How Labour has redistributed from rich to poor

New data shows how tax changes have benefited the poorest 10 per cent.

Robin Cook was always fond of hailing Tony Blair's Labour government as the most redistributive since Lloyd George, and now here's the data to prove it.

The graph below, from the Institute for Fiscal Studies, shows how New Labour's tax and benefits changes have redistributed wealth from the poorest to the richest since 1997.

Distributional-impact-Labour-1024x723

Under Labour, the poorest 10 per cent of households have gained by 13 per cent, while the richest 10 per cent have lost by almost 9 per cent.

With the Tories still committed to their grossly regressive plan to raise the inheritance-tax threshold to £1m and the Lib Dems' tax plans likely to widen income inequality, it's clear that only Labour can be trusted to combine redistribution with growth.

The party's deficit reduction plan, based on a ratio of 67 per cent spending cuts to 33 per cent tax rises, is also the most progressive.

The Tories plan to reduce the deficit through an 80:20 mix of cuts and taxes, while the Lib Dems, as Nick Clegg boasted to the Spectator, plan to do so through spending cuts alone.

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George Eaton is political editor of the New Statesman.

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What did Jeremy Corbyn really say about Bin Laden?

He's been critiqued for calling Bin Laden's death a "tragedy". But what did Jeremy Corbyn really say?

Jeremy Corbyn is under fire for describing Bin Laden’s death as a “tragedy” in the Sun, but what did the Labour leadership frontrunner really say?

In remarks made to Press TV, the state-backed Iranian broadcaster, the Islington North MP said:

“This was an assassination attempt, and is yet another tragedy, upon a tragedy, upon a tragedy. The World Trade Center was a tragedy, the attack on Afghanistan was a tragedy, the war in Iraq was a tragedy. Tens of thousands of people have died.”

He also added that it was his preference that Osama Bin Laden be put on trial, a view shared by, among other people, Barack Obama and Boris Johnson.

Although Andy Burnham, one of Corbyn’s rivals for the leadership, will later today claim that “there is everything to play for” in the contest, with “tens of thousands still to vote”, the row is unlikely to harm Corbyn’s chances of becoming Labour leader. 

Stephen Bush is editor of the Staggers, the New Statesman’s political blog.