Inflation in the UK jumped by more than expected last month to 3.5% – its highest rate in more than a year – afterdramatic increases in water bills, energy costs and council tax,Phillip Inmanreports.
Good morning. Today theInstitute for Fiscal Studieshas launched its interactive‘Be the Chancellor’tool. In apress releaseannouncing it,Tim Leunig, the chief economist at Nesta, which has developed it with the IFS, says:
The tool allows anyone to explore the consequences of different choices on spending and tax.
One person who may be logging on isAngela Rayner, the deputy Labour leader and housing secretary. According to the Telegraph splash, she is taking a keen interest in the government’s tax policy, and wants taxes to go higher.
In his story,Ben Riley-Smithreports:
Here is a Telegraph graphic showing how much some of the Rayner proposals might raise.
Secret government memos are always interesting. But proposals in Whitehall documents don’t always become official policy, and the Telegraph points out that Rayner’s department sent this to the chancellor,Rachel Reeves, before the spring statement. Despite speculation that Reeves might use the spring statement to raise taxes, in the end she didn’t, and the Rayner document is still just a wishlist.
Amazingly, though, it seems to have found its way into the public domain. In his report, Riley-Smith implies that Rayner won’t be totally devastated to hear it on the news.
Simon Finkelstein, a former Tory special adviser,describes thisas: “An absolute classic of the genre: letters to the chancellor ahead of a spending review/fiscal event that are designed to be leaked...”
The Conservative party has tried to capitalise on the leak but (as usual these days) it has fluffed its response by going over the top. In a statement,Mel Stride, the shadow chancellor, said:
Stride seems to have missed the point that these proposals haven’t actually been implemented, and that the Labour leadership isn’t turning to “Corbynism” (not that these proposals amount to that anyway), which is why Rayner may be feeling “exasperated”. (Stride would have sounded more sensible if he had just issued a press statement challengingKeir Starmerto rule these ideas out.)
The Tories might be critical but, as the Telegraph reports,Labourleftwingers approve of Labour’s proposals.Andy McDonaldtold the paper:
And on the Today programme, asked if the Rayner proposals were “the sorts of things the government should be considering, another backbencher,Neil Duncan-Jordan, replied: “Absolutely.”
He went on:
Doubtless we will hear more about this atPMQs.
Here is the agenda for the day.
10am:Liz Kendall, the work and pensions secretary, gives a speech at the IPPR thinktankdefending the proposed welfare cuts.
Noon:Keir Starmer facesKemi Badenochat PMQs.
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