Jeremy Corbyn suffers Labour rebellion over party's support for tax cuts for the well-off
2 min read
Jeremy Corbyn has been hit by a backbench rebellion over Labour's decision to support tax cuts for the well-off.
Twenty Labour MPs defied their leader to vote against the measure, which was unveiled in Philip Hammond's Budget on Monday.
The Chancellor unveiled plans to raise the salary threshold at which people start paying tax to £12,500 from next April.
More controversially, he also announced that the 40p rate of income tax will start to kick in at £50,000 at the same time, handing a tax cut to higher earners.
The Resolution Foundation think tank said 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.
In a move which angered many Labour figures, Shadow Chancellor John McDonnell said the party would not oppose the policy, arguing that "low and middle earners" deserved to keep more of their wages.
Labour MPs were ordered to abstain when the tax changes were put to a vote in the Commons - prompting the rebellion.
Among the rebels were Lisa Nandy, Stella Creasy, David Lammy, Yvette Cooper and Liz Kendall.
Speaking on Sky News yesterday, Wigan MP Ms Nandy said the tax cut for higher earners was "immoral".
She said: "My view is that this is now so abhorrent, to be spending so much money on people who need it the least and so little on people who need it the most, and such a disastrous economic approach too.
"We ought to oppose this on behalf of those people who don't have a voice at the moment."
But Labour chiefs argued that because some low-earners would also benefit from the tax changes, the party should not vote against the whole package.
Meanwhile, a Labour amendment to the Budget highlighting the party's plans to raise income tax for everyone earning more than £80,000 a year was defeated by 313 votes to 246.
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