Jeremy Corbyn launches bid to amend Budget to avoid Labour tax rebellion
3 min read
Jeremy Corbyn will today highlight Labour plans to increase taxes on top earners in a bid to see off a backbench rebellion.
PoliticsHome revealed yesterday that at least a dozen Labour MPs were planning to defy their leader to vote against the Government's plans to cut income tax for the well-off.
John McDonnell has said he supports the measure, which was unveiled by Chancellor Philip Hammond in Monday's Budget.
That was despite the left-leaning Resolution Foundation think tank warning the move - which is estimated will cost the Treasury £2.8bn - would benefit the richest tenth of households by 14 times as much as the poorest.
Labour MPs are expected to be ordered to abstain when the tax changes are put to a Commons vote later, but some are expected to break the whip to vote against.
They include Wigan MP Lisa Nandy, who said it was "abhorrent" to hand a tax cut to higher earners while continuing to freeze benefits.
Last night, Mr Corbyn and Mr McDonnell tabled an amendment to the Budget demanding the Government assess the impact of Labour's own tax proposals.
They would see the threshold at which workers begin paying the 45p rate of tax reduced to £80,000, and the 50p threshold cut to £125,000.
Labour say that would mean only the top 5% of earners would pay more tax.
Meanwhile, The Times reports that the tax row has highlighted splits over Labour policy between Mr McDonnell and Mr Corbyn, particularly the leader's top aides Karie Murphy and Andrew Fisher.
One source told the paper: "For the last six months there has been tension between John and the leader’s office, particularly Karie and Andrew.
"John has found his ideas have ended up falling foul of the pair of them. He now goes on telly to make announcements first.
"John thinks it’s right to target only the top 5 per cent for increased tax rises. Polling shows it’s overwhelmingly popular. But Andrew thinks that you can also go after middle earners, the sort of person on £40/ £50/ £60,000, and Corbyn’s most ardent supporters will back them up."
But a Labour spokesman said: "Labour will not oppose tax changes that put money in the pockets of low and middle-income taxpayers, but we will increase tax on the highest paid 5 per cent. Jeremy and John are entirely united in support of that policy."
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