Cabinet Breakdown as Rayner Pushes for Tax Rises in Briefing War – Guido Fawkes

Cabinet Breakdown as Rayner Pushes for Tax Rises in Briefing War

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A copy of a petition for more tax rises from Rayner to Reeves’ Treasury, fired in March, made its way to The Telegraph last night. Rayner proposed a cocktail of eight hikes:

• Remove inheritance tax relief for AIM shares.
• Outlaw offshore sales of shares in companies owning commercial property to avoid stamp duty.
• Remove tax-free dividend allowance.
• Re-freeze the additional rate income tax threshold.
• Raise rates on dividend taxes in line with income tax.
• Reinstate the pensions lifetime allowance removed by Hunt.
• Increase the annual tax on enveloped dwellings
• Raise the bank surcharge to 5%.

According to Rayner’s estimates the tax hikes raise somewhere in the region of £4 billion. Rayner’s “allies” say she is “increasingly exasperated by having to publicly defend Treasury spending cuts” while team Treasury responds: “Ms Reeves welcomes contributions from all Cabinet colleagues, as Chancellor she decides taxation and spending policy.” Cabinet discipline goes poof…

Reeves is already having to climb down on winter fuel after pressure and briefings from No10 which Guido hears went down like a cup of cold sick in the Treasury. There are also briefings from the government about taking housing out of Rayner’s competence. Something she is known to value control over and a major event if ever executed…

Corbynite MPs are in favour of Rayner’s proposals which go against Reeves’ stated position to cut spending over raising taxes every time. Unite chief Sharon Graham on the Today Programme this morning backed a u-turn on a “wealth tax.” Rayner is wishing she had that Office of the Deputy Prime Minister power base now…