A significant rift has opened within Labour's ranks after a leading thinktank urged the party leadership to aggressively counter the Green party, with critics warning the strategy is both a moral and electoral mistake.
Fabian Society's "Twin Populisms" Claim Sparks Backlash
The controversy was ignited by Joe Dromey of the Fabian Society, who recently described both the Green party and Reform UK as representing "twin populisms" that Labour must confront. Dromey specifically dismissed the Green party's flagship policy for a wealth tax as offering voters "fantasy solutions."
This stance has been robustly challenged by Labour MPs and members. Richard Burgon, the Labour MP for Leeds East, argued that Dromey "could not be more wrong." Burgon highlighted that the wealth tax proposal is far from a fringe idea, pointing out that eight in ten Labour voters support such a measure.
The £50bn Case for a Wealth Tax
Defending the policy's substance, Burgon outlined its potential scale. A levy of 2% on assets over £10 million could raise approximately £24 billion annually. He argued this could be part of a broader fiscal package, including equalising capital gains tax with income tax and a windfall tax on bank super-profits, potentially taking the total closer to £50 billion.
"This would not only provide vital resources to support people still hit hard by the cost of living crisis and to fund our public services," Burgon stated. "It would also send a clear signal that a Labour government is prepared to act against our broken economic model."
A Political Warning for Labour
Beyond the economic argument, critics see Dromey's approach as a dangerous political miscalculation. Burgon warned that Labour is losing more voters to the Greens and to non-voters than it is to Reform UK. Alienating progressive voters with attacks on popular social democratic policies, he contends, risks inadvertently opening the door to Reform victories in certain constituencies.
This sentiment was echoed by Green party supporters. Adam Osborne from Bristol suggested that for many younger voters, the wealth tax is less a literal panacea and more a "signpost to the Green priority of addressing wealth inequality," which he notes has reached near-Victorian levels. Osborne contrasted the Greens' message of positivity with what he perceives as Labour's post-election "doom-mongering."
Political observer John Gray offered a pointed summary, noting: "There can be no greater proof of Zack Polanski’s successful cut-through than that the Fabian Society now sees the Green party as a threat." He added that Labour has long provided reasons for its natural heartland to vote elsewhere.
The debate underscores a strategic dilemma for the Labour leadership as it balances its governing agenda with the need to retain its progressive base, all while fending off challenges from both the left and the right.
