The cabinet battle over 50p tax

The new dispute between Balls and Mandelson and why it matters for Labour's future.

Today's Daily Mail reports that Ed Balls and Yvette Cooper are pushing Alistair Darling to reduce the salary threshold for the new 50p tax rate from £150,000 to £100,000 in this month's Budget.

The Schools Secretary and his wife previously called for this change ahead of last November's pre-Budget report, but found themselves outmanoeuvred by Peter Mandelson.

This latest dispute is likely to increase the tension between those, such as Mandelson, who view the new tax rate as temporary and regrettable and those, such as Balls, who view it as permanent and desirable.

Unlike the Business Secretary, who believes that it would be madness for Labour to vacate the centre ground, Balls believes that the times call for an unambiguously left-of-centre approach. It's a preview of the sort of the debate we can expect to see in any future leadership contest.

The Blairite wing of the party (at least what's left of it) will argue that any short-term political advantage to be gained from moving to the left is outweighed by the risk of permanently alienating "aspirational" voters. Meanwhile, Balls (who is certain to run) will point to polls suggesting that the 50p tax rate as well as the bonus tax are among the most popular things Labour has done.

Should Darling agree to widen the 50p band in the Budget, it will be first blood to Balls in the battle for Labour's ideological soul.

PS: The potential expansion of the 50p rate is another elephant trap we can expect David Cameron (much to Boris Johnson's consternation) to avoid easily.

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George Eaton is political editor of the New Statesman.

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Appreciate the full horror of Nigel Farage's pro-Trump speech

The former Ukip leader has appeared at a Donald Trump rally. It went exactly as you would expect.

It is with a heavy heart that I must announce Nigel Farage is at it again.

The on-again, off-again Ukip leader and current Member of the European Parliament has appeared at a Donald Trump rally to lend his support to the presidential candidate.

It was, predictably, distressing.

Farage started by telling his American audience why they, like he, should be positive.

"I come to you from the United Kingdom"

Okay, good start. Undeniably true.

"– with a message of hope –

Again, probably quite true.

Image: Clearly hopeful (Wikipedia Screenshot)

– and optimism.”

Ah.

Image: Nigel Farage in front of a poster showing immigrants who are definitely not European (Getty)

He continues: “If the little people, if the real people–”

Wait, what?

Why is Trump nodding sagely at this?

The little people?

Image: It's a plane with the name Trump on it (Wikimedia Commons)

THE LITTLE PEOPLE?

Image: It's the word Trump on the side of a skyscraper I can't cope with this (Pixel)

THE ONLY LITTLE PERSON CLOSE TO TRUMP IS RIDING A MASSIVE STUFFED LION

Image: I don't even know what to tell you. It's Trump and his wife and a child riding a stuffed lion. 

IN A PENTHOUSE

A PENTHOUSE WHICH LOOKS LIKE LIBERACE WAS LET LOOSE WITH THE GILT ON DAY FIVE OF A PARTICULARLY BAD BENDER

Image: So much gold. Just gold, everywhere.

HIS WIFE HAS SO MANY BAGS SHE HAS TO EMPLOY A BAG MAN TO CARRY THEM

Image: I did not even know there were so many styles of Louis Vuitton, and my dentists has a lot of old copies of Vogue.

Anyway. Back to Farage, who is telling the little people that they can win "against the forces of global corporatism".

 

Image: Aaaaarggghhhh (Wikipedia Screenshot)

Ugh. Okay. What next? Oh god, he's telling them they can have a Brexit moment.

“... you can beat Washington...”

“... if enough decent people...”

“...are prepared to stand up against the establishment”

Image: A screenshot from Donald Trump's Wikipedia page.

I think I need a lie down.

Watch the full clip here:

Stephanie Boland is digital assistant at the New Statesman. She tweets at @stephanieboland