Leaked memo reveals Rayner known as for tax rises

Deputy Prime Minister Angela Rayner’s division known as for Chancellor Rachel Reeves to extend taxes previous to this 12 months’s Spring Assertion.

A memo – seen by the Day by day Telegraph – appeared to induce Reeves to boost taxes by £3bn to £4bn a 12 months by means of varied measures, which the chancellor didn’t implement. She has repeatedly pushed towards elevating taxes and as a substitute introduced £5bn of welfare cuts in March.

Authorities insiders mentioned it was common for dialogue papers to be informally exchanged between departments with out sign-off by ministers.

Whereas the Spring Assertion has been and gone, arguments within the Labour get together persist forward of departmental spending plans being set out in June.

These on the left of the get together particularly have been arguing that cuts to some departments might be averted if Reeves launched a wealth tax or relaxed her guidelines on borrowing and debt. She has pledged to not borrow to fund day-to-day spending.

Requested in regards to the memo on BBC Breakfast, Setting Secretary Steve Reed mentioned the cupboard had been “united behind the federal government’s plan for change”.

He added that Labour had already elevated taxes on the rich, pointing to adjustments to the non-dom tax standing, which he mentioned would see the richest pay extra.

The Conservatives, in the meantime, urged the chancellor to rule out tax will increase within the Autumn Funds.

Contained in the memo had been a collection of proposals that included different measures reminiscent of growing the speed of company tax on banks.

It urged extending the freeze on the brink at which the 45% tax price is paid to incorporate extra individuals within the greater bracket and scrapping the tax-free allowance on dividends.

It additionally known as for the lifetime pensions allowance to be reinstated, which places a cap on how a lot savers might put into their pension earlier than greater tax is utilized.

This allowance was scrapped beneath the Conservative authorities and whereas Labour had made plans to reinstate it earlier than final 12 months’s normal election, they reversed the choice earlier than publishing the get together’s manifesto.

Chatting with The Telegraph, Conservative Shadow Chancellor Mel Stride mentioned that the be aware “confirms that we’re nonetheless dwelling with the Labour Occasion of Jeremy Corbyn”.

“On the very highest degree, Labour ministers are debating which taxes to extend subsequent,” he added.

“The chancellor has repeatedly refused to rule out one other tax raid within the autumn, and now we all know why – Labour’s high brass, together with the deputy prime minister, need to come again for extra.”