1 dzień temu
Sir Keir Starmer's last-minute retreat on welfare reform will have "financial consequences," a Cabinet minister has warned, declining to rule out tax rises.
Pat McFadden told BBC Breakfast that ministers "will keep to the tax promises" in their election manifesto but refused to speculate on what might appear in the autumn budget.
Asked explicitly whether he could rule out tax hikes, McFadden said: “I’m not going to speculate on the budget."
“We will keep to the tax promises that we made in our manifesto when we fought the election last year. But it doesn’t make sense for me to speculate on something where, as I say, there are so many moving parts of which this is only one element.”
Rachel Reeves has seen the £4.8 billion predicted savings from welfare changes whittled away through the Government's changes to plans designed to keep backbenchers onside.
In a late concession on Tuesday evening, ministers shelved plans to restrict eligibility for the personal independence payment (PIP), with any changes now only coming after a review of the benefit.
The Prime Minister had a revolt of almost 50 MPs regardless of the changes.
Economists at the Institute for Fiscal Studies (IFS) and Resolution Foundation think tanks warned that Tuesday's concessions meant Reeves could now expect no "net savings" by 2029/30 – a key year for meeting her fiscal targets.
Ministers have repeatedly insisted that Labour will not raise taxes on "working people", specifically income tax, national insurance or VAT.
But Ms Reeves also remains committed to her “iron clad” fiscal rules, which require day-to-day spending to be covered by revenues – not borrowing – in 2029/30.
Despite the last-minute concessions, a total of 49 Labour MPs rebelled and voted against the legislation, the largest revolt of Starmer's premiership.
Overall, the legislation cleared its first parliamentary hurdle by 335 votes to 260, a majority of 75.
The changes came after a first round of concessions offered last week did not seem enough to quell the rebellion.
"Change in power"
York Central MP Rachael Maskell had tabled an amendment designed to halt the legislation, which was backed by a total of 44 Labour MPs.
She said on Wednesday that the concessions signalled a "change in power between the Prime Minister" and disabled people.
Maskell told BBC Radio 4's Today programme that Tuesday saw "the Bill disintegrating before our eyes".
She added: “And I think throughout the day, what we saw was a change in power between the Prime Minister and his Government and disabled people across our country, they having their voice at the heart of Parliament, and that’s why I put the reasoned amendment down.”
The York Central MP also said she was "glad" that the debate was "had in public" and "now disabled people should feel empowered to have their voice at long last in an ableist parliament".
(PA) Note: This article has been edited with the help of Artificial Intelligence.
