Latest news with #Labour MPs
The Independent
4 days ago
- Business
- The Independent
There won't be a wealth tax – but Rachel Reeves can't afford to rule it out just yet
Normally, when politicians decline to rule something out, a sceptical media and public believe they are about to do it. But there should be one exception to this rule. Keir Starmer, Rachel Reeves and other ministers are refusing to rule out introducing a wealth tax in this autumn's Budget, when the chancellor is likely to raise taxes by at least £20bn to stick within her fiscal rules. I'm told Starmer and Reeves will not bring in a new wealth tax, such as the 2 per cent levy on assets of more than £10m advocated by a growing number of Labour MPs and Neil Kinnock, the party's former leader, to raise £10bn. A wealth tax is an easy slogan and fits on to a banner. It would do nicely for the Starmer allies hoping to nudge him in a more progressive direction as he seeks a long overdue 'story' for his government. But Reeves and Starmer are not convinced. The chancellor thinks wealth taxes don't work. Twelve developed nations had them in 1990s but only three remain; only one, in Switzerland, brings in lots of money. Reeves burnt her own fingers by targeting non-doms – a process begun by Jeremy Hunt, the outgoing Tory chancellor. I'm told Reeves privately dismissed fears the rich would respond by leaving the UK, saying: "They always say that, but it never happens." It is happening, and she is now considering changing her plan to make worldwide assets, including those in foreign trusts, liable to inheritance tax. One government insider told me: 'People can choose where to pay their taxes. It's very easy to move countries and they are doing it.' A new wealth tax would be complex, take years to introduce and probably not be worth the candle. Dan Neidle, founder of Tax Policy Associates, said its study found such a tax would 'lower long-run growth and employment, thanks to a decline in foreign and domestic investment. It would make UK businesses more fragile and less competitive, and create strong incentives for capital reallocation and migration.' Why not just say no to a wealth tax now? Reeves offered one explanation to her Tory predecessor Norman Lamont at a Lords committee hearing this week. He told her he found it 'a bit strange' the government has not ruled out the move. Reeves replied that if she ruled out one tax rise, the media would move on to the next option, and assume that one was going to happen if she failed to rule it out. A fair point – but not her only reason. Reeves and Starmer need to build bridges with the parliamentary Labour Party after it filleted their welfare legislation, so rejecting a wealth tax now would inflame tensions. I suspect that when the Budget comes, Reeves and her allies will whisper to Labour MPs they are introducing a form of wealth tax through other measures, while avoiding headlines about implementing a specific one. Another reason not to rule out a wealth tax is to help message discipline. Labour certainly needs more of that: ministers unwittingly fuelled speculation about tax rises in media interviews by giving different definitions of "working people'. Far easier to say taxes are a matter for the Budget and we don't comment in advance. Some senior Labour figures think Reeves's reticence is because she is considering proposals that are close to being a wealth tax – for example, increasing property-based taxes. I think she should bring in higher council tax bands for the most expensive properties. It's ludicrous that this tax is based on 1991 property values, and that in England, people in homes valued at more than £320,000 pay the same amount in their local authority. Reform could be sold as a genuine levelling up measure the Tories flunked as it would cut bills in the north and Midlands while raising them in the south. Alternatively, Reeves could increase capital gains tax for the second Budget running, perhaps by bringing it into line with income tax rates, which are higher. Some in government favour a rise in income tax with the money earmarked for defence, as I have suggested. Another option is to raise the top rate of income tax from 45 per cent to 50 per cent. But both ideas would leave Labour open to the charge of breaching its manifesto pledge not to increase income tax, national insurance or VAT. Reeves could argue that circumstances had changed in a more dangerous world. But breaking its promise might be a step too far for an already deeply unpopular PM and party. I don't think there will be a wealth tax. However, the rich shouldn't celebrate. The Budget will increase existing taxes on the wealthy, in line with the government's mantra of protecting "working people", while ensuring 'those with the broadest shoulders carry the greatest burden'. Health warning: creating losers is not pain-free for them or the government, as Reeves discovered when she brought in the ' family farms tax '. But reforming some taxes under a better banner – 'fair tax' – is her best shot.
The Guardian
22-07-2025
- Business
- The Guardian
More than 100 Labour MPs urge Ed Miliband to explore radical energy bills overhaul
Ed Miliband has been urged by more than 100 Labour MPs to explore radically overhauling UK energy bills to cut costs for the those who use the least power. The energy secretary is understood to be considering a number of options for more progressive energy pricing, with changes to the standing charge and discounts for the least intensive consumers – known as rising block tariffs – all being reviewed. The push is the first in a number of policies set to be presented to ministers by a new caucus of MPs pushing the government to do more to focus on the cost of living. The Living Standards Coalition, convened by Loughborough MP Dr Jeevun Sandher said Miliband should look closely at a major overhaul of the standing charge, saying that lower-income households with lower energy use were being unfairly penalised with higher bills than more intensive users. 'Getting living standards rising is core to our Labour values and is the number one issue on which voters will judge this government,' Sandher said. 'Getting these bills down quickly will make families better off. It's why our party was founded, it is why we were elected last year.' In the letter to Miliband, the 103 MPs said British families were facing 'some of the highest energy bills in Europe' and the government must go further with policies that would reduce bills quicker. 'We strongly support policies that will get energy bills down immediately so our constituents will feel the benefits of a Labour government as quickly as possible. Our constituents rank getting energy bills down as the No 1 way to improve their cost of living,' it said. 'For the poorest households, £1 in every £10 goes on paying their energy bills.' It said Miliband should urgently examine a more progressive pricing system to reduce costs for low- and middle-income households, starting with changing the standing charge, which costs lower-income households more as a proportion of their income. The letter said the government could examine moving to a system of rising block tariffs, where the cost per unit of energy increases with higher levels of consumption, encouraging conservation and usually translating to cheaper bills for lower-usage households. The system can disproportionately affect larger households and is complex to administer but the letter said it was a change that would deliver cuts to bills to those most in need of them without cost to the Treasury. The group, which launched with a letter to the prime minister last week, has said it is a strong backer of net zero policies, though a small number of Labour MPs have begun to question the party's commitment to no new oil and gas licences. Two Labour MPs, Henry Tufnell and Melanie Onn of the Commission for Carbon Competitiveness group, last week called for the government to rethink green levies on business. Sign up to First Edition Our morning email breaks down the key stories of the day, telling you what's happening and why it matters after newsletter promotion But the Basingstoke MP, Luke Murphy, a founding member of the Living Standards group who is also on the energy and net zero select committee said the answer was not more fossil fuels. 'The high energy costs which we inherited from the Conservatives are a barrier to higher growth and living standards. Yet the Conservatives and Reform want to make us more reliant on fossil fuels, which are the main cause for high and volatile energy bills,' he said. 'The government must instead continue to drive towards clean energy 2030, which will lower bills for good and focus on reforms that will also bring bills down in the near term. This should include looking at the role of smart energy market reform, a social tariff, reforming standing charges, and reforming regressive levies.' The intervention is the second in 24 hours from groups of influential Labour MPs urging the government to step up the pace of change. In an article for the New Statesman, the Labour Growth Group said the government needed 'an extra injection of radicalism' on issues such as housing and infrastructure to take on the threat of Nigel Farage potentially becoming prime minister. It said the government should do more to ensure long-term growth took precedent over local objections to new homes – voicing disappointment in concessions in the planning bill last week that had been sought by environmental groups – and that mayors should be given tax-raising powers.
The Independent
21-07-2025
- Politics
- The Independent
Senior Labour MP tells Starmer planned welfare cuts left her ‘ashamed'
Keir Starmer has faced a grilling from a senior Labour MP, who told him the government 's plans to slash disability benefits had left her feeling 'ashamed'. Speaking as he appeared in front of a Commons Liaison Committee today (21 July), Work and Pensions Committee chair Debbie Abrahams told the prime minister the proposed bill was 'poor legislation... designed to save money for the treasury by cutting support to sick and disabled people.' ' It was so far removed from Labour values of fairness and social justice, let alone compassion and common decency,' she added. 'I have to say I felt ashamed.' Abrahams was one of a number of rebel Labour MPs who forced the government into making extensive concessions on welfare reform earlier this month.
Yahoo
19-07-2025
- Politics
- Yahoo
Constituents critical of York MP's suspension
On Wednesday, York Central MP Rachael Maskell was suspended from Labour, along with three other MPs, for repeated breaches of party discipline. It came after she was a key figure in organising a rebellion against her party's welfare reform bill, which she said would introduce "Dickensian cuts belonging to a different era and a different party". Maskell defended her decision as standing up for disabled people but the prime minister argued the MPs were "elected on a Labour manifesto" and so should back the government's agenda. But what do Maskell's York constituents think? People in Acomb have spoken to the BBC about their reaction to the news. 'Absolutely disgusting' Richard Lowe, from the Huntington Road area of York, is visiting shops on Front Street with his wife. When quizzed about Maskell's suspension, he says this is a topic the couple has discussed in depth, due to their careers in healthcare. "Rachael Maskell, for me, embodies what the Labour movement should be," the former mental health nurse says. "My thoughts are that the suspension is absolutely disgusting. "As she says, she's been a Labour member for 34 years, she's stood up for disability rights, she's a disability campaigner." As an ex-nurse, Richard says he has always had a duty of care to his patients - and that Maskell has a duty of care to her constituents. "I won't be voting Labour at the next general election," he says. "If Rachael Maskell is still an independent MP, I'll vote for her but I'm not voting Labour. "I hope she's retaken into the Labour Party very shortly. I can't see it happening myself, but there you go." 'Where are the lines?' Sat on a bench alongside their dog are Angela and her mother-in-law, Carole, who both live locally. They explain they do not share the same political views as Maskell but were on the fence about Sir Keir Starmer's decision to suspend her. "It's difficult, isn't it? Everybody's entitled to their own opinion but where are the lines?" Angela asks. "I think Labour has made a lot of terrible choices in the past year or so. "They're not doing themselves any favours." However, they both thought the welfare system needed an overhaul. "If you're a disabled person, you should be entitled to a benefit if that benefit is appropriate for your disability," Angela says. "But I think possibly there's been a bit of a trend of people claiming disability benefits and I don't think there's been enough checks into the background of what's actually needed for some people." Carole believes more "double checks" should be made to see what benefit is fair for each claimant. 'Over the top' Further down the street, Carolina Ficco, 62, also stops to chat. She believes that no matter the political party, MPs should not be punished for representing their constituents. "I think it was extremely harsh and over the top that she's been suspended," Carolina says. "Everybody is entitled to an opinion and if she's representing people, why should she be dismissed for that? "That's what politicians are supposed to be about, they're a voice for us. It's bang out of order." She says Maskell's suspension is "absolutely, totally wrong". The prime minister defended his decision to suspend Maskell, along with Neil Duncan-Jordan, Brian Leishman and Chris Hinchliff. He said: "I am determined we will change this country for the better for millions of working people – and I'm not going to be deflected from that. "Therefore, we have to deal with people who repeatedly break the whip. "Everyone was elected as a Labour MP on a Labour manifesto of change and everybody needs to deliver as a Labour government." In a statement, the York Central MP said she wanted this Labour government to be the "very best ever" and said she had "used every opportunity" to reach into government to be an advocate for disabled people. "I am, of course, sad of the decision to suspend me for simply seeking the very best for others," Maskell said. "As someone of deep conviction and faith, I bring these values with me in all I do in representing my constituents and ensuring that I advocate for them, keep them safe and ensure that their voices are taken into the very heart of politics." Listen to highlights from North Yorkshire on BBC Sounds, catch up with the latest episode of Look North. More on this story Starmer says he had to 'deal with' rebel Labour MPs Labour suspends four MPs after welfare cuts rebellion
BBC News
19-07-2025
- Politics
- BBC News
Constituents critical of York MP Rachel Maskell's suspension from Labour
On Wednesday, York Central MP Rachael Maskell was suspended from Labour, along with three other MPs, for repeated breaches of party came after she was a key figure in organising a rebellion against her party's welfare reform bill, which she said would introduce "Dickensian cuts belonging to a different era and a different party".Maskell defended her decision as standing up for disabled people but the prime minister argued the MPs were "elected on a Labour manifesto" and so should back the government's what do Maskell's York constituents think? People in Acomb have spoken to the BBC about their reaction to the news. 'Absolutely disgusting' Richard Lowe, from the Huntington Road area of York, is visiting shops on Front Street with his wife. When quizzed about Maskell's suspension, he says this is a topic the couple has discussed in depth, due to their careers in healthcare."Rachael Maskell, for me, embodies what the Labour movement should be," the former mental health nurse says."My thoughts are that the suspension is absolutely disgusting."As she says, she's been a Labour member for 34 years, she's stood up for disability rights, she's a disability campaigner."As an ex-nurse, Richard says he has always had a duty of care to his patients - and that Maskell has a duty of care to her constituents."I won't be voting Labour at the next general election," he says. "If Rachael Maskell is still an independent MP, I'll vote for her but I'm not voting Labour."I hope she's retaken into the Labour Party very shortly. I can't see it happening myself, but there you go." 'Where are the lines?' Sat on a bench alongside their dog are Angela and her mother-in-law, Carole, who both live locally. They explain they do not share the same political views as Maskell but were on the fence about Sir Keir Starmer's decision to suspend her. "It's difficult, isn't it? Everybody's entitled to their own opinion but where are the lines?" Angela asks."I think Labour has made a lot of terrible choices in the past year or so. "They're not doing themselves any favours."However, they both thought the welfare system needed an overhaul. "If you're a disabled person, you should be entitled to a benefit if that benefit is appropriate for your disability," Angela says."But I think possibly there's been a bit of a trend of people claiming disability benefits and I don't think there's been enough checks into the background of what's actually needed for some people."Carole believes more "double checks" should be made to see what benefit is fair for each claimant. 'Over the top' Further down the street, Carolina Ficco, 62, also stops to believes that no matter the political party, MPs should not be punished for representing their constituents. "I think it was extremely harsh and over the top that she's been suspended," Carolina says."Everybody is entitled to an opinion and if she's representing people, why should she be dismissed for that? "That's what politicians are supposed to be about, they're a voice for us. It's bang out of order."She says Maskell's suspension is "absolutely, totally wrong". The prime minister defended his decision to suspend Maskell, along with Neil Duncan-Jordan, Brian Leishman and Chris said: "I am determined we will change this country for the better for millions of working people – and I'm not going to be deflected from that."Therefore, we have to deal with people who repeatedly break the whip."Everyone was elected as a Labour MP on a Labour manifesto of change and everybody needs to deliver as a Labour government."In a statement, the York Central MP said she wanted this Labour government to be the "very best ever" and said she had "used every opportunity" to reach into government to be an advocate for disabled people."I am, of course, sad of the decision to suspend me for simply seeking the very best for others," Maskell said. "As someone of deep conviction and faith, I bring these values with me in all I do in representing my constituents and ensuring that I advocate for them, keep them safe and ensure that their voices are taken into the very heart of politics." Listen to highlights from North Yorkshire on BBC Sounds, catch up with the latest episode of Look North.
