Labour MP who led welfare revolt calls for wealth tax to meet £5bn cost of U-turn
Labour welfare revolt leader wants wealth tax to plug budget
- Labour MPs staged the largest rebellion of Sir Keir Starmer's premiership, forcing him to abandon key welfare reforms.
- Rachael Maskell, who led the rebellion of 42 Labour MPs, criticised the Treasury for seeking savings from disabled people.
- Rebel MPs are now advocating for a wealth tax or equalising capital gains tax to cover the £5bn cost of the welfare reform U-turn, potentially raising £24bn.
- The government's decision to drop plans to restrict Personal Independence Payment (PIP) eligibility has created uncertainty regarding the intended savings from the reforms.
- The Institute for Fiscal Studies warned that the reforms package could end up costing taxpayers £100m by 2029-30 if PIP eligibility restrictions were scrapped, and a cabinet minister indicated the revolt would lead to spending cuts elsewhere.