Starmer-backed group of Labour MPs proposed six tax rises worth £60bn

Sir Keir Starmer is a member of the Labour Tribune group
Sir Keir Starmer is a member of the Labour Tribune group - PA

A dossier drawn up by Labour MPs proposed six new tax rises to raise £60 billion.

The proposals from the party’s Tribune group – of which Sir Keir Starmer is a member – set out increases to inheritance tax, capital gains taxes and a new “jackpot” levy on the super-rich.

Under the plan, working pensioners would also be forced to pay national insurance (NI), council tax would be reformed which could double bills and the cap on NI would be removed.

The document, seen by the Daily Mail, was submitted as part of discussions about what would go in Labour’s manifesto by the Tribune group of MPs, whose members also include David Lammy, the shadow foreign secretary, and Yvette Cooper, the shadow home secretary.

Laura Trott, the Conservative Chief Secretary to the Treasury, said the proposals were “shocking”.

“After spending the whole campaign failing to rule out these tax rises, it’s clear from this document that their plan all along has been to raise taxes across the board,” she said.

“It’s now time for the Labour Party to come clean with the public: which taxes are they planning to raise?”

But a Labour spokesman dismissed the claims, telling the Daily Mail that Sir Keir had “nothing to do with” the manifesto submission and that it was rejected at an early stage of manifesto deliberations.

“None of this is Labour policy,” the spokesman said. “The Tories are the party of high taxes. Labour will ensure taxes on working people are as low as possible.”

The Tribune manifesto submission said the six tax rises are “consistent” with Labour’s values but “do not represent specific policy positions”.

The dossier proposes extending NI to all sources of income to raise a claimed £12 billion. Pension payments would be exempt but working pensioners’ salaries would not be.

The cap on NI would also be removed. Currently, NI is paid at a rate of eight per cent on all earnings up to £50,268 and two per cent on income above that threshold. That rate would instead be increased to eight per cent, raising £20 billion.

Capital gains tax would also be equalised with income tax rates to bring in £16 billion, while inheritance tax reliefs on farmland, business property and pension pots would be axed to raise £4 billion.

Council tax rates would be reformed to become “fairer”, meaning rates in more expensive areas could double.

Lastly, a “jackpot tax” on what the proposal deems “extreme wealth” would raise £10 billion a year.

Labour’s manifesto contains proposals for tax rises worth a total of £8.6 billion.

The party has insisted it will not raise income tax, National Insurance or VAT.

But senior figures have refused to rule out raising capital gains tax or council tax, saying only that there are “no plans” to do so.