Shadow Education Minister Neil O'Brien has expressed his concern for Angela Rayner's "very alarming" leaked memo to Rachel Reeves, proposing billions in tax raids on Britain's savers.
In a leaked document, the Deputy Prime Minister urged the Chancellor to implement a multi-billion pound tax raid on wealthy individuals and businesses, instead of proceeding with planned welfare cuts.
The memo, submitted to the Treasury in mid-March ahead of the Spring Statement, was titled "alternative proposals for raising revenue".
Rayner proposed eight tax increases, targeting the rich as an alternative to the £5billion welfare cuts. It claimed the policies would be "popular, prudent, and would not raise taxes on working people" - echoing a promise from Labour's 2024 election manifesto.
Neil O'Brien admitted Angela Rayner's proposed tax raid is 'alarming'
Getty / GB News
Reacting to the document, O'Brien told GB News that the answer to Labour's economic struggles is "not more tax increases".
The Tory Minister said of the memo: "I think it's very, very alarming. The Chancellor has already increased taxes to a record high, a record share of the economy and unbelievably, for a Labour Government, a notionally social democratic Government, they have done that by increasing taxes in a way that is targeted on low income workers, those who are grafting, working hard for living, not earning that much.
"They are taking the biggest hit from the Chancellor's tax increases, and now their only plan with this huge hole opening up in the public finances, they are now casting about for even more tax increases, which the UK economy needs like a hole in the head."
He added: "We're already seeing the economy stagnating because of the tax increases that Rachel Reeves has pushed through already. The answer is not even more tax increases."
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Angela Rayner sent a secret memo to Rachel Reeves pushing for a new tax raid on savers, according to a new reportGettyO'Brien called for scrutiny on Labour's "crazy spending", and decisions such as their "surrender" of the Chagos Islands.
He stated: "The time is now to start looking at some of the government's crazy spending, which we should start by looking at this unbelievable Chagos surrender deal, where we are handing over money to another country to have our own territory taken off of us.
"It's absolutely incredible abuse of taxpayers. We should be looking at things like that before we start increasing taxes even more."
Turning his criticism of Labour to the concerns with education, O'Brien claimed that due to the Government's tax increases, state schools are being forced to "make good teachers redundant" in order to cover costs.
O'Brien told GB News that Labour's 'broken promise' on education means state schools are 'making good teachers redundant'
GB News
O'Brien explained: "The problem is the tax increases. Labour promised that they would fully fund the increase in the national insurance tax on state schools, but they broke that promise, and some schools have been left up to 35 per cent short.
"And then they promised to fund the teachers pay deal, and they broke that promise, too. And that is why across the country right now, schools are unbelievably making good teachers redundant."
He added: "And according to the Institute for Fiscal Studies, they have created with these measures an £800million gap. And that translates into about 13,000 teachers losing their jobs unless something is done.
"Schools across the country are sacking good teachers because of the hole that has been created by Labour breaking their promises, particularly by breaking their promise that they would fully fund the tax increase on state schools and they haven't done it."
