public spending

Reeves plans new austerity as government debt rises

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https://morningstaronline.co.uk/article/reeves-plans-new-austerity-as-government-debt-rises

Chancellor of the Exchequer Rachel Reeves during a press conference following her statement to the House of Commons on the findings of the Treasury audit into the state of the public finances, July 29, 2024

Unite general secretary Sharon Graham calls for wealth tax

MORE austerity is on the agenda as Chancellor Rachel Reeves prepares a new clampdown on public spending in her autumn Budget.

In a move that risks sparking new divisions and struggle within the labour movement, Ms Reeves is set to prioritise reassuring global money markets over repairing the damage done by the Tories.

She is reported to have been spooked by figures showing public sector borrowing at £3.1 billion in July, £1.8bn more than a year previously and above most expectations.

However, borrowing has fallen over a longer time-frame, but Ms Reeves will pay more attention to the short-term figures and use them as a reason to impose more austerity.

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Unite general secretary Sharon Graham has called for a shift in priorities, saying: “We are the sixth-richest economy in the world, where the 50 richest families are worth £500bn.

“It is clear, irrespective of ‘black holes,’ that we need to consider a wealth tax.”

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https://morningstaronline.co.uk/article/reeves-plans-new-austerity-as-government-debt-rises

Continue ReadingReeves plans new austerity as government debt rises

Labour leader Keir Starmer under pressure to commit to higher taxes for super-rich as Tory government prepares spending cuts

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https://www.theguardian.com/politics/2022/nov/03/labour-mps-press-keir-starmer-to-set-out-wealth-tax-plans

The Labour leader, Keir Starmer, is under pressure from campaigners, unions and his own MPs to set out plans for “wealth taxes” on the richest in society in order to support public services and help the poorest through the cost of living crisis.

As the government prepares to cut spending to fill an estimated £35bn black hole in the nation’s finances, calls are growing for higher taxes on the super-rich, many of whom have seen their fortunes soar during the pandemic.

Richard Burgon, the Labour MP for Leeds East, said: “While living standards are plummeting for most people, it’s been boom time for the super-rich, whose wealth has soared to record highs in recent years.”

Starmer, who is trying to position his party in the centre ground, has avoided committing to higher taxes on private incomes as Labour seeks to woo the City and businesspeople angry at the damage caused by the Conservatives’ mini-budget. But that approach is causing concern on his backbenches and more widely, with the Greens calling Labour “timid” on wealth.

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Molly Scott Cato, the Green party’s spokesperson on finance, said: “The Tories have created a big hole the public finances but there is an obvious place to look to fill it: taxing the super-rich. Not only do they have the broadest shoulders but they also increased their wealth during the pandemic because of enforced savings.

“What is more surprising is to find Labour being so timid on wealth taxes. Their proposal to abolish non-dom status will only bring in a few billion while a proper wealth tax could yield tens of billions. We’ve now got two weeks for Labour to remember their egalitarian roots and support loud and growing calls for a wealth tax. Otherwise they will be colluding in the devastating cuts to public services that are being cooked up by the millionaires in Nos 10 and 11 Downing Street.”

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https://www.theguardian.com/politics/2022/nov/03/labour-mps-press-keir-starmer-to-set-out-wealth-tax-plans

Continue ReadingLabour leader Keir Starmer under pressure to commit to higher taxes for super-rich as Tory government prepares spending cuts