Theresa May mocks Jeremy Corbyn over Labour’s tax cuts confusion
3 min read
Theresa May has mocked Jeremy Corbyn amid a Labour split over its backing for tax cuts set to hand extra cash to millions of top earners.
In a surprise move that angered some on the Labour benches, Shadow Chancellor John McDonnell yesterday declared that the party would not scrap changes to the higher rate of income tax - despite a damning analysis suggesting the move would favour the rich.
But Mr Corbyn today doubled down on Labour's criticism of the tax plans unveiled by Chancellor Philip Hammond in his Budget this week.
Speaking at Prime Minister's Questions, the Labour leader slammed the Government for choosing “not to unfreeze benefits” and instead announcing “a tax cut for higher earners”.
That remark was seized on by Mrs May, who said she was “interested” that he had chosen “to raise the question of tax cuts".
The Prime Minister told MPs: "On Monday he said that cutting taxes for 32m people was 'frittering money away on ideological tax cuts'.
"Yesterday the Shadow Chancellor said Labour would support the tax cuts.
"On Monday... the Leader of the Opposition, talked about tax cuts for the rich.
"Yesterday, his Shadow Chancellor said what we’ve always known: that the tax cuts were for 'middle earners, head teachers and people like that'.
"So when the Rt Hon Gentleman stands up, perhaps he can tell the House whether he will back the tax cuts and vote for the Budget?"
Hitting back, the Labour leader insisted his party's own tax plans were "fair" and accused the Conservatives of offering up a "broken promise Budget".
"Labour would have ended the benefit freeze - and, as she well knows, Labour policy is to raise taxes for the top 5% and for the biggest corporations in the country," he said.
"That would be a fair way of dealing with financial issues facing this country."
'TAX CUTS FOR THE WEALTHIEST'
The attack on the tax cut came just a day after Mr McDonnell said Labour would not oppose the move because it would leave "money in people's pockets".
The Shadow Chancellor said: “Our position is very, very clear - we'll introduce our own income tax proposals. We set them out at the general election, which was a new rate of 45p for £80,000 and above and then a 50p over £123,000. So we want a fair taxation system where the top 5% pay that bit more, simple as that.
"We're not going to take funding away from people, some of these are middle earners - we're talking about headteachers and people like that who've had a rough time, as well as everyone else.”
However, that stance sparked a backlash from senior Labour figures, with Greater Manchester Mayor Andy Burnham saying the comments had “sent a shiver” down his spine.
He added: "I can’t see how tax cuts for the wealthiest can be the top priority when our police are so stretched and there are people dying on British streets for want of a roof over their head."
Labour MPs Yvette Cooper, David Lammy and Lisa Nandy also criticised Mr McDonnell over the decision.
In his Autumn Budget, Mr Hammond pledged to raise the threshold at which people start paying the 40p rate of income tax to £50,000 from next April and raise the thershold at which people start people income tax altogether to £12,500.
But analysis by the Resolution Foundation think tank said the move would benefit the richest tenth of households 14 times as much as the poorest.
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