A series of left-wing Labour MPs have come out to back Angela Rayner in a brewing row over a "secret memo" sent to Rachel Reeves.
Details of the memo, unearthed by The Telegraph last night, reveal that the Deputy Prime Minister urged Reeves to carry out a billion-pound tax raid on hard-working British savers just before her Spring Statement.
Rayner had called on the Chancellor to exact new raids on the million people who pay the additional rate of income tax and a higher corporation tax level for banks.
The Treasury ignored her proposals at the time, but after coming to light, Corbynista MPs have lent her their support.
A Labour row is brewing over a 'secret memo' sent to Rachel Reeves
PA
Andy McDonald, Jeremy Corbyn's Shadow Transport Secretary, said: "My sense is that a lot of Labour MPs are concerned that the Chancellor's fiscal rules and spending cut proposals hit those on lower incomes.
"Proposals to increase tax revenue from the wealthy would make tax fairer and support public services.
"Ideas outlined such as increasing tax rates on dividend income so they’re in line with income tax, something which should be done with capital gains tax too, would target a small number of wealthy people and bring in vital tax revenue."
While Corbyn's Shadow Business Secretary Jon Trickett spat: "The leadership’s fiscal strategy is a stale version of Treasury orthodoxy.
READ MORE ON ANGELA RAYNER'S MEMO:
- Angela Rayner scolded over 'very alarming' plans to raid Britain's savers: 'Tax increases are not the answer!'
- 'Absolute disaster!' Esther McVey takes aim at Angela Rayner's proposed tax raid on Britons: 'Labour couldn't grow a plant'
- 'It is OUR money!' Eamonn Holmes lambasts Angela Rayner in blistering rant over plans for £1bn tax raid on savers: 'Already feeling poor enough'
Angela Rayner has already said every borough will take their fair share of migrantsPA"Attacks on poor communities, pensioners and working people should never be a part of Labour's armoury.
"There needs to be an open debate - not a clandestine one in closed rooms at the top - but at all levels of the Labour movement which reasserts our Labour values."
Work & Pensions Secretary Liz Kendall then claimed that the "entire Cabinet" backs Rachel Reeves despite the news of a "secret memo" tabled to the Chancellor by Angela Rayner.
Kendall said: "You wouldn’t expect me to comment on leaks, but I would just say this:
Liz Kendall has claimed that the 'entire Cabinet' backs Rachel ReevesPA "The entire Cabinet backs Rachel's economic strategy to grow the economy, drive up living standards, increase jobs.
"Some of you may have forgotten, [but] we actually have raised taxes on some of the richest in this country.
"We have got rid of the non-dom tax status, we've closed private equity loopholes, we have taken action to make sure those with the broadest shoulders bear the biggest burden.
"Ultimately, the key to getting out of the mess that we inherited is we have to grow the economy."
