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Telegraph
6 days ago
- Business
- Telegraph
The 26 MPs calling for a wealth tax vote ahead of Labour's Budget
MPs have called for a debate on a so-called 'wealth tax' ahead of the autumn Budget amid surging borrowing costs. Fourteen Labour MPs are among 26 members of Parliament who on Monday signed an early day motion (EDM) in support of an annual levy of 2pc on individual assets over £10m. EDMs are typically used by MPs to express support for a particular policy, and are one of the first steps towards an official debate. The 26 MPs – who also included six Independents, four Plaid Cymru MPs and one Alliance MP – said that a wealth tax could raise an estimated £24bn a year, a tempting figure given the increase in Government borrowing to £20.7bn in June. This higher-than-anticipated figure has raised chances of tax rises in the Budget as Chancellor Rachel Reeves seeks to plug a growing deficit. Cabinet ministers have so far played down the chances of a wealth tax being implemented, with one saying it was 'off the table'. The MPs' statement read: 'That such a measure would represent a fairer alternative to cuts and could provide urgently needed resources to tackle the poverty and inequality that blights our society – and calls on the Government to bring forward proposals for such a tax on extreme wealth ahead of the next Budget.' Labour MPs Richard Burgon, Imran Hussain, Bell Ribeiro-Addy, Kate Osborne, Kim Johnson and Ian Byrne have sponsored the motion. Of the six Independent MPs who signed the document, five have previously been Labour MPs, including Rachael Maskell, Neil Duncan-Jordan and Brian Leishman, who had the whip removed earlier this month. Ms Maskell said: 'Increasingly, those with the highest levels of wealth are deriving their income from investments and assets, and yet their tax burden is inequitable. 'A wealth tax of 2pc on assets over £10m is popular, and is a first step in recognising progressive means of contributing to our country's future at a time when we need investment.' Mr Leishman MP added: 'There are grotesque levels of inequality in Britain, the sixth largest economy in the world. 'It does not have to be this way. We should be redistributing wealth and power across society for the benefit of the many. 'While the Government has taken some welcome steps in the right direction, addressing non-dom status and imposing VAT on private school fees, these policies do not come close enough to tackling the gross inequalities the working class faces today.' The motion was also backed by MPs including Diane Abbott, who was this month sanctioned for standing by comments in which she implied that the racism experienced by Jewish people was less significant than other forms of racism. Vocal Corbyn supporters, Apsana Begum and John McDonnell, put their names to the motion, alongside Alliance MP, Sorcha Eastwood, and four Plaid Cymru MPs, including Ben Lake, Llinos Medi, Liz Saville Roberts and Ann Davies. Some of Labour's biggest names, including Lord Kinnock, have advocated for a wealth tax. Ahead of this year's Spring Statement, Patriotic Millionaires, a campaign group which has long called for higher taxes for the super-rich, said that 80pc of UK-based millionaires would support a wealth tax. But The Times reported earlier this week that Ms Reeves was resisting calls for the implementation of such a levy, with Cabinet ministers calling it a 'non-starter'. Eight countries have previously implemented wealth taxes, including Austria, Denmark, Germany, Finland, Iceland, Luxembourg, Sweden and France, only to scrap them. Just four countries, Norway, Spain, Switzerland and Colombia still have a wealth tax. Dawn Butler, who is set to run in the 2028 contest for London Mayor, also backed the motion alongside Clive Lewis, Cat Eccles, Jon Trickett, Steve Witherden, Ian Lavery, Rebecca Long-Bailey, Grahame Morris and Imran Hussain. In March, Ms Butler said a wealth tax would be a better way to bring in money than cutting public services. She said: 'That is a better way to bring money in to help fill the black hole that we have found ourselves in because of the disaster of 14 years of Tory government.' Plaid Cymru MP, Ann Davies, said: 'An overwhelming majority of people across the UK support a 2pc wealth tax on assets over £10m. It's time Labour started listening. 'People are still struggling with the cost of living crisis, and our public services are on their knees. Yet, Labour continues to target those least able to shoulder the burden, from cutting disability benefits to slashing pensioners' winter fuel payments. 'A wealth tax offers a genuine opportunity to tackle the deepening inequality in our society.' A Treasury spokesman said: 'The best way to strengthen public finances is by growing the economy – which is our focus. Changes to tax and spend policy are not the only ways of doing this. 'We are committed to keeping taxes for working people as low as possible.'
Telegraph
08-07-2025
- Business
- Telegraph
Starmer faces fresh rebellion over welfare benefit cuts
Sir Keir Starmer faces another Labour rebellion on Wednesday over his remaining welfare cuts. More than two dozen of the Prime Minister's backbenchers are urging him to sustain the health element of the Universal Credit (UC) benefit at its current level. The new rebellion threat comes as the Welfare Bill – which was heavily watered down last week in the face of a major Labour revolt – returns to the Commons for its final parliamentary stages. Currently, people claiming the health element of Universal Credit receive £432.27 a month. This would be roughly halved to £217.26 from next April under the new proposals. The cut is the only substantial benefit reduction to survive the rebellion of the past fortnight during which more than 120 Labour MPs had braced to defy the Prime Minister and vote down his plans. The Government reacted by promising that all existing disability claimants will keep their benefits. It also dropped changes to who can claim personal independence payments (PIP). But 49 Labour MPs voted against the Bill regardless and 26 of these now have backed a new amendment calling for the health element of UC to remain at its current rate of £432.27. It has been tabled by Richard Burgon, a prominent figure on the Left of the party who served as shadow justice secretary under Jeremy Corbyn. Mr Burgon warned Labour MPs against thinking that the 'worst parts of the Bill' had already been watered down and called on them to oppose Sir Keir's changes to UC. In an article for the Labour List website, he said: 'Those losing out will include people facing some of the most distressing and difficult circumstances. 'That includes people unable to turn the pages of a book with either hand, those who cannot bring food or drink to their mouth without help of someone else, those who cannot communicate a simple message such as the presence of a hazard, and those with debilitating incontinence. 'No Labour MP should be backing any of that. That's why I have tabled an amendment to prevent this cruel and unnecessary cut – and the damaging two-tier system it would create.' The Government has a working parliamentary majority of 165 after Sir Keir's landslide last July and Mr Burgon's amendment is well short of the 83 rebels needed to inflict a defeat. But Downing Street could still find at least two dozen Labour MPs once again voting against its flagship legislation despite last week's climbdown opening up a £5 billion black hole. Mr Burgon's amendment has the support of both Mr Corbyn and Zarah Sultana, the former Labour MP, who is planning with him to launch a new hard-Left party to challenge Sir Keir nationally. A separate backbench mutiny is also brewing as ministers consider whether to scrap the system which ensures special needs pupils are entitled to personalised support at school. Bridget Phillipson, the Education Secretary, is considering ditching the bespoke plans under a wholesale review of the current model. On Tuesday, Angela Rayner, the Deputy Prime Minister and Communities Secretary, was asked by a Commons committee to guarantee no child with special needs would lose out. Ms Rayner, whose son Charlie is registered blind and has additional needs, replied: 'We're absolutely clear that the legal right for additional support is absolutely the right thing to do and that SEND [special educational needs and disabilities] children need that support. 'And as somebody who's been through that system very recently I understand that the holy grail of the ECHP plan, even though it has its limitations, I understand why parents are really concerned even though that still doesn't deliver what parents want for their children.' Ms Rayner went on to declare that 'huge sums of money' were going towards SEND provisions 'but the outcomes are not getting better'. She told MPs: 'Something has to change. And what we're trying to do is collaborate to find out what isn't working, what is working and how to make the system better.'
The National
03-07-2025
- Business
- The National
Keir Starmer faces fresh rebellion threat over Universal Credit cut
Backbencher Richard Burgon has tabled an amendment to the Universal Credit and Personal Independence Payment Bill to prevent the cut to the health component of the benefit. The current bill, which was gutted of controversial cuts to Personal Independence Payments (Pip) in a last-minute U-turn, still retains the reduction in the health top-up of Universal Credit. As it stands, the extra payment is set to be cut for new claimants from £97 per week to £50 per week – a reduction to £217.26 per month. READ MORE: Rachel Reeves breaks silence on tears in the House of Commons Burgon's amendment would reverse this cut, keeping the health element at its current rate of £423.27. It is estimated the UK Government's changes would affect more than 750,000 people and result in an annual loss of income of £3000 per person. It is understood the amendment has the backing of more than 25 MPs, including 20 Labour MPs. If selected for debate when the Commons debates the remaining stages of the welfare bill on Wednesday, it could trigger yet another bruising backbench rebellion for Keir Starmer. READ MORE: PM takes blame for welfare U-turn as he gives full backing to Chancellor The Prime Minister's authority was dealt a blow earlier this week when the threat of a substantial rebellion saw the UK Government scrap much of its welfare bill mid-debate. Burgon said: 'Despite welcome promises regarding Pip, a huge cut for sick and disabled people remains at the heart of this Bill. 'This cruel and unnecessary halving of the Universal Credit health element will see £2 billion per year slashed from vital support that sick and disabled people rely on. 'The Government needs to scrap this proposal. There should be no two-tier system for disability support.'
Times
02-07-2025
- Politics
- Times
Nine Labour MPs vote against banning Palestine Action
Nine Labour MPs voted against the government's move to ban Palestine Action as a terrorist organisation. MPs overwhelmingly backed the decision to add the direct action group to a list of terrorist groups alongside al-Qaeda, Islamic State and Hamas. If approved by the House of Lords on Thursday, Palestine Action will become a proscribed terror group on Friday, which will make it illegal to be a member or to invite support for the organisation, punishable by up to 14 years in prison. On Friday the High Court will hear a last-minute injunction application from Palestine Action to try to suspend the move. The group of Labour MPs included the veteran left-winger Diane Abbott, Clive Lewis and Richard Burgon, who served in Jeremy Corbyn's shadow cabinet.
Spectator
01-07-2025
- Health
- Spectator
Labour MPs need a reality check on Britain's ballooning benefits bill
'No one votes Labour to cut the welfare state. People vote Labour to grow the welfare state. That's the role of the party.' That's what John McTernan, Labour strategist, said on Coffee House Shots last week. He's absolutely correct, of course. But the ballooning cost of the benefits bill means that Labour now faces an uncomfortable decision, for which many of its MPs seem ill prepared. The total cost for Personal Independence Payments (PIP) alone is expected to reach £35 billion by the end of this decade, up from £16 billion in 2019-20 and £26.5 billion in 2024-25. The total benefits bill, including the state pension, universal credit and other benefits, could hit £324 billion by 2030. Labour has few options for balancing the books Yet Labour has few options for balancing the books. They've already hit the country once with a devastating tax raid which has left the economy reeling. Gilt yields are well above where they were during the mini-budget. But even the modest proposals to reduce the benefits bill have been watered down, given the inability of scores of Labour MPs to stomach a marginal deceleration – not a reversal – of benefits spending. As Richard Burgon, MP for Leeds East, put it: 'The Government shouldn't be balancing the books on the backs of disabled people.' This, for some Labour MPs, is a point of principle. But what do Burgon and his colleagues really believe is behind the growth of PIP? Is it just that we are getting older? Sicker? That the pandemic changed things? Or that underfunding of the NHS is leaving people suffering with longer-term conditions? Certainly, Britain appears to be sicker than in previous years. And with the NHS in the state that it is, it's probably inevitable that there would be uptick in bad health. But are we really supposed to believe that, for example, the number of people with Tourettes has climbed three fold: 1,661 people with the condition now receive PIP, including 857 who receive the mobility part of enhanced PIP (making them eligible for Motability), this is up from 545 in January 2019. Or that the number of people receiving PIP for sleep apnea has gone from 429 to 3,001? Or that there should really be people receiving PIP for writer's cramp (seven), acne (14) and factitious disorders (18)? Or is it the case that the almost four-fold increase in the number of people receiving PIP for eczema is partially attributable to the very normal human phenomenon of responding to incentives? If it becomes easier to access free money, it seems likely that more people will, shockingly, take that free money. Is it perhaps the case that, given how few PIP assessments now take place in person, some less than scrupulous fellow citizens and residents feel more confident in emphasising the disabling effects of, say, their tennis elbow, or obsessive compulsive disorder? And that, perhaps, the Department for Work and Pensions is less able to identify the genuinely needy and those gaming the system? Maybe this isn't the case. Maybe there is a reasonable explanation to all of this. And the various benefit claims, broken down in the Taxpayers' Alliance's benefits dashboard, can all be explained away. But for any Labour MPs still planning on voting the government's already diluted plans down, it's surely time for them to advocate for an urgent public inquiry on what is driving the devastating surge in sleep apnea across our island.
