Leaked memo reveals Rayner referred to as for tax rises-OxBig News Network

Deputy Prime Minister Angela Rayner’s division referred to as for Chancellor Rachel Reeves to extend taxes previous to this yr’s Spring Statement.

A memo – seen by the Daily Telegraph – appeared to induce Reeves to lift taxes by £3bn to £4bn a yr by means of numerous 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.

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

While the Spring Statement has been and gone, arguments within the Labour occasion persist forward of departmental spending plans being set out in June.

Those on the left of the occasion 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.

The Conservatives, in the meantime, urged the Chancellor to rule out tax will increase within the Autumn price range.

Inside the memo have been a sequence of proposals that included various measures corresponding to rising the speed of company tax on banks.

It steered extending the freeze on the edge at which the 45% tax price is paid to incorporate extra folks within the larger bracket and scrapping the tax-free allowance on dividends.

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

This allowance was scrapped beneath the Conservative authorities and whereas Labour had made plans to reinstate it earlier than final yr’s common election, they reversed the choice earlier than publishing the occasion’s manifesto.

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

“At the very highest stage, 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 prime brass, together with the Deputy Prime Minister, wish to come again for extra.”

A authorities spokesperson informed PA Media “we do not touch upon leaks”.