UK Deputy PM Rayner Urges £4bn Wealth Tax Rise Before Budget

Deputy Prime Minister Angela Rayner has urged Chancellor Rachel Reeves to consider a series of wealth tax increases ahead of the Spring Statement, proposing measures estimated to raise between £3 billion and £4 billion annually. Rayner's leaked memo suggested reinstating the pensions lifetime allowance, increasing corporation tax for banks, raising dividend tax rates, freezing the threshold for the 45% income tax rate, and ending inheritance tax relief on certain shares, targeting wealthier individuals while aiming to protect working people from tax hikes. These proposals highlight a split within the Labour government, with Rayner representing the party's left wing and expressing frustration over planned public spending cuts, while Reeves maintains tight fiscal rules and has opted for spending reductions. The memo, seen as a discussion document, was submitted in mid-March but was not adopted, with Reeves emphasizing her control over tax and spending policy. The tax proposals have drawn criticism from Conservative figures, who see them as signs of Labour’s lingering left-wing tax ambitions. The internal debate underscores tensions within the Labour cabinet regarding the balance between taxation and public spending in the current economic strategy.