Why Labour MPs won’t be whipped to vote against Tory tax cuts today

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This afternoon, MPs will start voting on what was dubbed a “broken promise budget” by Jeremy Corbyn at PMQs. As covered in yesterday’s email, Labour MPs are divided over whether they should be backing tax cuts that benefit the top 10% of earners most. John McDonnell is clear that Labour MPs won’t be ordered to vote against the increases in personal allowance and the higher-rate threshold.

But Corbyn had already criticised the “ideological tax cuts” in his initial budget response, and at PMQs asked why the Tories had “brought forward a tax cut for higher earners” when it could have ended the benefit freeze, for instance. (Whether this was a misstep or a deliberate move is something I considered briefly here.)

The Times’ Sam Coates reports that behind the row are differences in priorities between Corbyn’s office and McDonnell, touching on the idea that – unlike the leader’s office – the Shadow Chancellor is more pragmatic and often prioritises electability over ideological purity. This analysis is fast becoming common wisdom amongst journalists and some staffers. But a Labour spokesperson told Coates the pair are “entirely united” in support of the policy, and The New Statesman‘s Stephen Bush advises against reading too much into the difference in tone.

Writing for LabourList, Jonathan Reynolds from the shadow Treasury team sets out the reasoning of the frontbench position with several arguments. First, the government should not raise income tax thresholds without ending the benefit freeze. Second, there was a 2017 manifesto commitment not to raise taxes for those earning under £80,000. Finally, Labour pledges to introduce a new top rate of tax that would claw back benefits of the cut from the highest earners. The leadership hopes an amendment to that effect will help get potential rebels back on board with the official line in the vote today.

Sienna @siennamarla

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