Labour MPs call for Chancellor to hike taxes for greater spending – poll

A majority of Labour MPs think the Chancellor should raise taxes at the Budget to allow for additional spending and investment above the amount needed to meet her fiscal rules.

In a poll of 75 Labour MPs conducted by Survation for the Invest in Britain campaign, more than half (52%) said taxes should be hiked to both meet fiscal rules and allow for additional public spending, while 13% backed raising taxes just enough to meet fiscal rules while keeping spending at the same level.

Roughly one in ten (nine percent) backed a cut in spending or investment while raising taxes for fiscal headroom, while seven percent supported breaking fiscal rules and four percent favoured cutting spending over increasing taxes further.

The survey also found that a large majority of Labour’s MPs think the UK’s fiscal framework should focus more on promoting sustainable and inclusive economic growth (76%), resourcing high-quality public services (72%) and responding to geopolitical threats and emergencies (59%).

READ MORE: Labour members would back breaking tax pledges to fund public services – poll

Director of the Invest in Britain campaign Louis Willis said: “The government’s current fiscal approach risks leaving Britain stuck in a low-growth trap. We need to get beyond a simplistic obsession with ‘headroom’ and instead start using fiscal policy as a tool to drive sustainable growth.

“These findings show clear support among Labour MPs for a more ambitious and credible strategy – one that raises the revenue needed to rebuild public services and invests in the foundations of long-term growth.”

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A recent LabourList poll revealed that three-quarters of Labour members would support the government breaking its manifesto commitments on tax if it helped fund a boost in investment in public services.

Despite this, Rachel Reeves has said the party’s manifesto pledge not to raise taxes on working people still stands – although she has said she is looking at potential tax rises and spending cuts as part of the Budget on November 26.

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