Summary
A leaked memo suggests that Deputy Prime Minister Angela Rayner called for Chancellor Rachel Reeves to increase taxes by £3 billion to £4 billion before the Spring Statement, which did not happen. Instead of raising taxes, Reeves announced £5 billion in welfare cuts, sparking ongoing debate within the Labour Party about tax and spending decisions.
Key Facts
- The memo suggested increasing taxes by £3 billion to £4 billion, but this was not implemented.
- Chancellor Rachel Reeves chose to cut £5 billion in welfare instead of raising taxes.
- Discussions within the Labour Party continue about how to handle tax and spending decisions.
- Some party members argue that wealth taxes or different borrowing rules could help avoid cuts.
- The memo proposed tax changes like raising corporation tax on banks and reinstating the lifetime pensions allowance.
- Labour MP Neil Duncan-Jordan expressed concerns about the impact of welfare cuts on poverty levels.
- There is consideration of reversing cuts to winter fuel payments for pensioners.
- The debate within the Labour Party continues, tying into broader concerns about government financial strategies.
