Two Labour-linked groups, allied to Health Secretary Wes Streeting and Greater Manchester Mayor Andy Burnham, have published rival policy proposals including tax cuts, cost of living support, and government restructuring. The documents emerge as Prime Minister Keir Starmer faces mounting pressure to resign, with dozens of MPs calling for his departure.
The Labour Growth Group, connected to Streeting, proposes a rise in capital gains tax to fund a 2p cut in national insurance. Its report, titled 'An Honest Day', also calls for greater devolution of tax and spending powers to English mayors, the creation of a Department of the Prime Minister, and allowing Thames Water to fail. It advocates refocusing energy policy on affordability rather than solely clean power generation.
The Tribune group, aligned with Burnham, suggests stripping the Treasury of growth responsibility and changing fiscal rules after the next election. Former Transport Secretary Louise Haigh, a key Burnham ally, proposes reducing council tax and replacing stamp duty with a new property tax. The group's essays argue that Britain's economic settlement is failing, with growth too weak and uneven.
Separately, three progressive thinktanks—IPPR, New Economics Foundation, and Joseph Rowntree Foundation—are expected to call 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.
The prime minister is finalising his second King's Speech, expected to include legislation for closer EU ties, immigration curbs, the 'Hillsborough law' for public body cooperation, and long-promised charter reforms.
