Voices: How Angela Rayner’s Soak-the-Rich Tax Plans Reveal Her Shrewd Strategy
Writing things down is a deliberate act in politics. Ed Balls boasted in our New
Labour
Years class at King’s College London that there are no documents in the National Archives with his name on them as an adviser to Gordon Brown. All the important business was done face-to-face or on the phone, and civil servants would write down what had been decided.
Being careful about writing things down was a rule tested to destruction by the spread of texting and especially WhatsApp, as the embarrassing and expletive-strewn disclosures of
Dominic Cummings’s successful campaign
to destroy
Boris Johnson
showed.
So when a cabinet minister writes things down and sends a letter to another cabinet minister, the first question we should ask is: what did she mean by that?
Two months back, before the
spring statement
,
Angela Rayner
, the Deputy Prime Minister, authored a paper titled “Alternate Revenue Generation Proposals” and forwarded it to
Rachel Reeves
, the
chancellor
What she intended to convey was: “This is a brief manifesto that could potentially get leaked at some point.”
The 1,000-word document showcases considerable expertise. It represented a meticulously planned gesture of defiance. Cabinet members are generally expected to refrain from sharing constructive suggestions with fellow ministers beyond their purview without being asked. Reeves likely felt enraged upon receiving it, and Keir Starmer probably experienced irritation at having been included as well.
The chancellor had already made up their mind not to make an announcement.
tax rises
At the Spring Statement: All the weight of restoring the public finances
finances
back within her fiscal rules would
drop on the welfare budget
.
However, Rayner was aware that Reeves would very likely have to
increase taxes in the budget
In October – a statement that holds even greater relevance since she must now secure the funds to cover the costs.
Reversal of Winter Fuel Payments Policy
.
Rayner was aware that the Treasury would initially look towards modest tax increases for the wealthy. This kind of measure Reeves might present as an unfortunate necessity, placing the weight on those best able to carry it.
By proposing eight intricate tax modifications that collectively would generate a significant amount of revenue, Rayner placed herself in a position ahead of where the chancellor is expected to be several months from now. This way, she shields herself from accusations of disloyalty and gains favor among Labour Party members.
Who wants to tax the wealthy?
.
In an impressive demonstration of behind-the-scenes policy-making, Rayner’s suggestions seem as though they were penned by treasury staff for the Chancellor.
Some of the proposals
It seems reasonable to me. It’s ridiculous – and likely due to an outdated tax break aimed at grabbing headlines from years gone by – that stocks within one company class would be subject to a lower taxation rate.
inheritance tax
Therefore, Rayner’s proposal to eliminate this tax advantage for holdings in smaller firms listed on AIM, which is a subsidiary market of the London Stock Exchange, is quite sensible.
The amount raised wouldn’t be as significant as Rayner stated, and several of her other proposals aren’t quite right either. For instance, she proposed reintroducing a pension lifetime allowance that Jeremy Hunt eliminated when he was chancellor with the intention of getting NHS consultants back into their jobs; however, reverting this change could push these professionals away once more.
It would be preferable to reduce other tax benefits for private pensions of higher-income individuals, and I believe this argument holds merit.
mansion tax
On pricier properties, the temptation becomes too strong. However, this move aims at conveying a specific message. The pros and cons of Rayner’s comprehensive recommendations matter less compared to the depth of analysis and the practicality as well as feasibility showcased in her proposal.
No extravagant claims of a
wealth tax
, which most economists consider impractical, serves as an audacious move aimed at reinforcing the stance among Labour members and Labour MPs who favor a straightforward wealth tax. It reassures them that there is someone atop the government who shares their desires yet approaches these goals with cunning strategy.
I’ve been getting positive feedback lately about
How well does Rayner perform when working off-screen?
This serves as a reminder that she has a deeper understanding of governmental operations than any other minister in the cabinet.
It isn’t far-fetched to observe the Starmer-Reeves reversal on
winter fuel payments
In reaction to Rayner’s influence within the party, many Labour MPs are protesting against proposed “cutbacks.” It’s widely acknowledged that another potential leadership is poised for governmental role. While this might be exaggerated, there is some validity; though Starmer and Reeves hold offices, Rayner wields the real power.
The Independent has consistently maintained a worldwide viewpoint. Rooted in strong foundations of exceptional international coverage and analysis, The Independent now boasts a scope that seemed unimaginable at its launch as a newcomer in the UK media landscape. In this era, for the first time since the conclusion of the Second World War, these core principles—pluralism, rationality, progressivism, humanism, and globalization—are facing challenges globally. Despite this, The Independent continues to expand its influence.