Angela Rayner told Rachel Reeves to embark on a "punitive" pension raid which would hike taxes on elderly Britons, the full leak of her controversial "secret memo" has revealed.
The Deputy Prime Minister demanded that Reeves repeal Jeremy Hunt's abolition of the pensions lifetime allowance - and impose high levies on pensions once they reached a certain value.
A direct reversal could have raised £800million every year for the Treasury if raised to the same level as before.
The news comes as The Telegraph - which has partially unveiled the contents of the "secret memo" over recent days - has published the briefing in full.
Rayner's secretive 10-point plan was dropped on the Chancellor's desk just days before her controversial Spring Statement
PA
Rayner's secretive 10-point plan, dropped on the Chancellor's desk just days before her controversial Spring Statement, has poured fuel on rumours that the Deputy PM is being positioned as a "credible" alternative to Sir Keir Starmer.
It also reveals that Reeves ignored her proposals entirely in her March so-called "Emergency Budget" - though they could reappear at Labour's next "fiscal event".
Rayner's proposals outline a series of ideas which "would be popular, prudent, and would not raise taxes on working people", the memo reveals.
LATEST ON ANGELA RAYNER'S 'SECRET MEMO':
Rayner's proposals outline a series of ideas which 'would be popular, prudent, and would not raise taxes on working people'
GETTYThey are as follows:
1. Raising the bank surcharge to five per cent - which could raise £500-700million by hiking the tax paid by banks on profits.
2. Removing Inheritance Tax (IHT) Relief entirely from Alternative Investment Market Shares - "not listed" shares currently receive 50 per cent tax relief following the Autumn Budget. Canning them entirely could raise £100million-£1billion per year.
3. Removing the dividend allowance - further reducing the un-taxable amount of dividend income from £500 to nothing. This could raise £325million a year.
4. Freezing the additional rate income tax threshold - keeping the 45 per cent tax rate in place for income above £125,140 rather than updating it with inflation from April 2028, the point up to which Rachel Reeves has pledged to freeze it.
5. Increasing the Annual Tax on Enveloped Dwellings - companies that own a UK residential property could face further tax in a bid to squeeze £100-200million a year from homes almost entirely in the wealthiest parts of London.
Rumours are swirling that the Deputy PM is being positioned as a 'credible' alternative to Sir Keir Starmer
REUTERS6. Closing the commercial property stamp duty loophole - a lot of commercial property sales place the property in an offshore company, then sell the shares in the company in order to pay no stamp duty. External experts estimate closing it could raise up to £1billion a year.
7. Moving higher and additional rate Dividend Taxes closer to Income Tax - the higher rate of tax on dividends stands at 33.75 per cent (vs 40 per cent income tax), while the additional rate stands at 39.35 per cent (vs 45 per cent). Rayner says this would bring a "logical alignment of the tax system".
8. Reinstating a pensions lifetime allowance - squeezing OAPs by bringing back a limit on the total value Britons' private pensions can reach before high tax rates are applied. Jeremy Hunt abolished this as Chancellor - reversing this could raise almost £800million for the Treasury.
9. Reversing the changes to the High Income Child Benefit charge - urging Rachel Reeves to "claw back" the benefit from households where the highest earner brought back £50,000-£80,000 per year. This could raise some £600million.
10. Tightening migrant access to the welfare system - blocking the "Boriswave" of non-EU migrants from obtaining taxpayer-funded benefits for which they are eligible thanks to Indefinite Leave to Remain.
