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Sir Kir StamorSenior ministers are further frightened and divided deeply on the economic policy with the cabinet. Measures to target the rich In next month Budget Money from Britain can accelerate migration.
Cabinet ministers have told Independent They believe Rahel reeves The rich have already gone far away with the measures that targets and target businesses, and have urged the Chancellor to urge to change the course if he has any hope Achieve,
He cited “anti-expiration” measures such as elimination Non-dome Status and Tub On the fees of private school as major drivers of money away from the UK, he said that they are “harming this country”. Allegedly further measures include a property tax and a new bank profit on high-value houses.
Instead, ministers have urged the Prime Minister and Ms. Reeves to consider “proficiency savings” and cut the budget black hole between £ 30bn and £ 40BN.
On the left Labor Noted that recently the reshuffle has “entrusted more power to the right of the party” while the leftist who support the taxes has been demoted or pushed out.
But a powerful group within the cabinet over the party’s rights believes that the government is failing to curb the expenditure and “to improve the state in a labor way” needs to be more ready.
One minister said: “The problem is that we have crossed a line in an attempt to encourage Akanksha. VAT has sent an opposite message on non-dome changes and school fees.”
Is paying attention Record number of millionaires London especially, the minister said: “It is doing a lot of harm to the country.”
Another cabinet minister said: “I think non-dome changes did not make any real understanding. Why do we want people to take it out of the country? It’s really bad for London.”
Ms. Reeves is currently refusing to dominate the promise of the manifesto for not increasing the VAT, Income Tax or Employees National Insurance Contribution, but is facing increasing pressure.
However, one of his strongest colleagues in sticking to this pledge is the new welfare secretary. Pat macfadenThose who have warned the colleagues that “it is difficult to win the election and the promise of the manifesto was important to achieve it”.
He is trying to revive welfare reforms after Labor MPs reduced the government’s plans to reduce disability payments by mass rebellion before summer.
However, there is another faction within the cabinet that is supporting increasing calls from unions and labor members for money taxes to plug the hole in the country’s finance, such as a property tax that will hit those who have high-value houses.
There are other people who are supporting TUC’s campaign to tax a new bank profit and to hit the super-rich with a money tax.
One minister said: “It only seems appropriate that the rich carry the burden.”
However, question marks have been raised on whether the so -called money tax can fill the budget black hole or do more damage.
Professor Stephen Millard, Deputy Director of the National Institute of Economic and Social Research (NIESR), has warned that Ms. Reeves will eventually have to break the promise of her manifesto to not increase any major taxes – VAT, Income Tax or Employees National Insurance contribution.
NIESR estimates that the black hole will be above £ 40BN, and Prof. Millard warned: “It is likely that, the Chancellor will have a big difference to fill to fill their fiscal rules; it will be difficult to get a huge difference, as we have reviewed a comprehensive expenditure.
“It is likely that any change in the rules that enab the Chancellor to borrow will result in an adverse market response; so the Chancellor will need to increase taxes.
“Given our estimates about the range of interval, we do not think that Chancellor will be able to fill it by ‘tampering’ with a lot of changes in non -big four taxes; so we feel that he will have to increase income tax, NIC or VAT.”
ISAC Delstre, Senior Research Economist of Institute for Fiscal Studies (IFS), warned: “If the office of the office (OBR) deteriorates for budget responsibility and the Chancellor wants to stick to his fiscal rules, he will either need to reduce or increase tax.”