Labour's tax plans branded 'chaotic' after Angela Rayner's comments

2023-04-15

Labour’s tax plans branded ‘chaotic’ after Angela Rayner revives calls for a big raid on hardworking Brits’ savings and investments amid speculation party is planning a major capital gains tax hike if they seize power

Labour’s deputy leader highlighted the ‘gap’ between CGT and income tax rates
Mrs Rayner indicated she is still pushing for tax rise commitment in manifesto

Labour’s tax plans were branded ‘chaotic’ yesterday, after Angela Rayner revived calls for a big raid on savings and investments.

Last month, Labour’s Shadow Chancellor Rachel Reeves tried to close down mounting speculation that the party is planning a major hike in capital gains tax, saying she had ‘no plans’ to do so.

But, amid growing Labour tensions over the issue, Mrs Rayner indicated that she is still pushing for Labour to commit to the tax rise in its next manifesto.

Labour’s deputy leader highlighted the ‘gap’ between CGT and income tax rates, with higher rate payers typically charged 20 per cent on gains, compared with 40 per cent on earned income.

‘I would like to see our tax system made fairer for working people,’ she told BBC Radio Four’s Today programme.

Angela Rayner, Deputy Leader of the Labour Party (file photo). Mrs Rayner indicated that she is still pushing for Labour to commit to the tax rise in its next manifesto

Angela Rayner and Labour Party leader Sir Keir Starmer (file photo). Labour’s deputy leader highlighted the ‘gap’ between CGT and income tax rates, with higher rate payers typically charged 20 per cent on gains, compared with 40 per cent on earned income

Mrs Rayner said she could not commit to raising capital gains tax now, saying it would be wrong to make ‘piecemeal’ announcements. But she indicated it could be included in Labour’s election manifesto next year.

‘Coming up to the General Election, our priorities will be about helping and supporting working people,’ she said. ‘We will set out our proposals at a General Election, we are not piecemeal doing it… but we are saying come the election the choice will be continuing with the Conservatives helping the top wealthiest, or a Labour Party who are clearly setting out that working people would be better off.’ Former Tory cabinet minister Simon Clarke said her comments pointed to a major split at the top of the Labour Party.

‘This is definitely at odds with what Rachel Reeves has insisted,’ he said. ‘Labour’s tax plans look not just flimsy but chaotic – and it’s clear Angela Rayner wants to take the burden still higher.’ Mrs Rayner first seized on the issue last month after Rishi Sunak’s tax return revealed that the Prime Minister paid an effective tax rate of 22 per cent over the last three years because much of his income came from investments that attracted capital gains tax.’ However, Sir Keir Starmer’s tax return revealed that his effective tax rate was also brought down as a result of a large capital gain on a property he bought with his sister.

Sir Keir has ducked questions about whether he favours a rise in CGT.

But a Labour source yesterday insisted the party has ‘no plans’ to increase the tax at present.

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