Labour Factions Propose Tax Cuts and Policy Revamps Amid Starmer Pressure
Labour Groups Propose Tax Cuts, Policy Changes Amid Starmer Pressure

Groups connected to the health secretary, Wes Streeting, and the Greater Manchester mayor, Andy Burnham, have proposed large changes to government policy, offering a glimpse of how the country might shift should either succeed Keir Starmer as prime minister.

Competing Visions for Britain

The Labour Growth Group, allied to Streeting, and the Tribune group of Labour MPs, allied to Burnham, have published competing visions for running Britain. These include sweeping tax cuts, cost-of-living assistance, and major changes to government machinery.

With Keir Starmer under concerted pressure to stand down, these groups are among several Labour-linked organisations proposing radical measures to influence a future prime minister.

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Labour Growth Group Proposals

In a document titled An Honest Day, Mark McVitie, director of the Labour Growth Group, called for a rise in capital gains tax to fund a 2p cut in national insurance. The document also urged giving English mayors greater powers over tax and spending, creating a new Department of the Prime Minister, and allowing Thames Water to fail.

It advocated refocusing UK energy policy from clean power generation to the affordability of clean power, a potential shift away from Ed Miliband’s climate-focused agenda. “Clean power is not the problem,” the document stated. “The problem is a system that can build clean generation while failing to get enough of it to households and productive firms at a price they can afford.”

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 close to Streeting, who has told allies he is ready to launch a leadership bid if Starmer’s government collapses.

Tribune Group Proposals

The Tribune group launched its proposals in essays in the Renewal journal, including contributions from MPs Yuan Yang and Louise Haigh. They proposed stripping the Treasury of its responsibility for growth, while Haigh called for changing fiscal rules after the next election if current rules are met.

Haigh, a former transport secretary and Burnham ally, argued for reducing council tax and replacing stamp duty with a new property tax. In a joint essay, Yang and Haigh wrote: “Britain’s economic settlement is no longer delivering what it once promised,” citing growth that was “too weak, too uneven, and too often driven by asset inflation rather than productive investment.”

Broader Policy Shifts

Labour MPs are not alone in shaping future policy. This week, three progressive think tanks – 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.

Ministers have previously ruled out rent caps, favouring stronger legal protections for renters and more homebuilding. However, The Guardian revealed last month that Chancellor Rachel Reeves had considered a one-year freeze on private sector rents.

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

Prime Minister’s Agenda

Meanwhile, the prime minister is finalising his second king’s speech, expected to include legislation for closer EU ties, new immigration curbs, the “Hillsborough law” requiring public bodies to cooperate with inquiries, and long-promised leasehold reforms.

Government officials believe the speech, accompanying the state opening of parliament on Wednesday, cannot be cancelled despite uncertainty over Starmer’s future.

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