Labour Factions Propose Tax Cuts and Policy Overhauls Amid Pressure on Starmer
Labour Groups Propose Tax Cuts and Policy Changes

Groups connected to the health secretary, Wes Streeting, and the Greater Manchester mayor, Andy Burnham, have proposed large changes to government policy, giving a sense of how the country may change should either one succeed Keir Starmer.

Labour Growth Group Proposals

The Labour Growth Group, allied to Streeting, has published a document titled An Honest Day, calling for a rise in capital gains tax to fund a 2p cut in national insurance. The document also advocates for greater powers for English mayors over tax and spending, the creation of a new Department of the Prime Minister, and allowing Thames Water to fail. Additionally, it suggests refocusing UK energy policy from clean power generation to affordability, a potential shift from Ed Miliband's climate-focused agenda.

One minister described the report as "a really radical programme that backs working people, cuts the cost of essentials, and takes on the interests profiting from Britain not working." The report was co-written by Chris Curtis, an MP who chairs the group and has called for Starmer's resignation.

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Tribune Group Proposals

The Tribune group, allied to Burnham, has launched its own policy proposals in the Renewal journal. These include stripping the Treasury of its growth responsibility and changing fiscal rules after the next election. Louise Haigh, a former transport secretary and Burnham ally, calls for reducing council tax and replacing stamp duty with a new property tax. In a joint essay, Haigh and Yuan Yang argue that Britain's economic settlement is no longer delivering, with growth too weak and uneven.

Broader Progressive Push

Three progressive thinktanks—the Institute for Public Policy Research, the New Economics Foundation, and the Joseph Rowntree Foundation—are expected to publish papers calling for rent caps to reduce living costs. While ministers have previously ruled this out, Chancellor Rachel Reeves has reportedly considered a one-year freeze on private sector rents.

A leftwing policy expert noted: "The fact that ideas that were previously out of reach, such as rent controls, are now being pushed by a range of organisations suggests the ground is shifting towards a more progressive economic agenda."

Prime Minister's Own Plans

Meanwhile, Starmer is finalizing his second king's speech, expected to include legislation for closer EU ties, immigration curbs, the "Hillsborough law" for public body cooperation with inquiries, and leasehold reforms. Government officials have said the speech cannot be cancelled despite the uncertainty over Starmer's future.

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