Labour steps up its 50p tax attack with new "Tory Millionaire's Day" campaign

Ahead of the abolition of the 50p tax rate on 6 April, Labour looks again to paint the Tories as the party of the rich.

When I recently interviewed Conservative MP Robert Halfon, who first called for the reintroduction of the 10p tax rate, he lamented how Labour's "brilliant" campaign against the abolition of the 50p rate had defined the Tories as "a party only interested in cutting taxes for millionaires". More than any other single measure, the move retoxified the Conservative brand and confirmed the Tories' status as "the party of rich". Every time that David Cameron defends an unpopular tax rise or spending cut, Ed Miliband is able to remind voters that he has simultaneously chosen to reduce taxes by an average of £107,500 for 8,000 income-millionaires.  

With just over a month to go until the tax cut is introduced on 6 April, Labour is stepping up its campaign against the measure. The party has today launched a new ad featuring Cameron writing a cheque for £100,000 to "a millionaire" and a clock counting down to "Tory Millionaire's Day". In response, expect the coalition to point out that the new 45p rate is, as Danny Alexander recently noted, still higher than the 40p rate seen for 155 of the 156 months that Labour was in power. 

Alongside the new campaign, I'm told that Labour, encouraged by how Barack Obama forced Mitt Romney onto the defensive over his tax bill, will continue to challenge the PM to say whether he will benefit from the reduction in the top rate. Private polling by the party has previously shown that 62 per cent of voters, including 46 per cent of Conservative supporters, believe he should "come clean and tell people honestly whether he is personally benefiting". 

Unlike George Osborne, who said last year that he would not gain from the move, Cameron has so far refused to say whether he will. When challenged on this subject by Stephen Pound MP at PMQs earlier this month, the PM replied evasively that he would "pay his taxes". Under ever-greater pressure from Labour, the Tories will need to decide whether this strategy is sustainable.

Labour's new advert reminds voters that those earning a million pounds a year will gain more than £100,000 from the cut in the top rate of tax.

George Eaton is political editor of the New Statesman.

Photo: Getty
Show Hide image

PMQs review: Jeremy Corbyn prompts Tory outrage as he blames Grenfell Tower fire on austerity

To Conservative cries of "shame on you!", the Labour leader warned that "we all pay a price in public safety" for spending cuts.

A fortnight after the Grenfell Tower fire erupted, the tragedy continues to cast a shadow over British politics. Rather than probing Theresa May on the DUP deal, Jeremy Corbyn asked a series of forensic questions on the incident, in which at least 79 people are confirmed to have died.

In the first PMQs of the new parliament, May revealed that the number of buildings that had failed fire safety tests had risen to 120 (a 100 per cent failure rate) and that the cladding used on Grenfell Tower was "non-compliant" with building regulations (Corbyn had asked whether it was "legal").

After several factual questions, the Labour leader rose to his political argument. To cries of "shame on you!" from Tory MPs, he warned that local authority cuts of 40 per cent meant "we all pay a price in public safety". Corbyn added: “What the tragedy of Grenfell Tower has exposed is the disastrous effects of austerity. The disregard for working-class communities, the terrible consequences of deregulation and cutting corners." Corbyn noted that 11,000 firefighters had been cut and that the public sector pay cap (which Labour has tabled a Queen's Speech amendment against) was hindering recruitment. "This disaster must be a wake-up call," he concluded.

But May, who fared better than many expected, had a ready retort. "The cladding of tower blocks did not start under this government, it did not start under the previous coalition governments, the cladding of tower blocks began under the Blair government," she said. “In 2005 it was a Labour government that introduced the regulatory reform fire safety order which changed the requirements to inspect a building on fire safety from the local fire authority to a 'responsible person'." In this regard, however, Corbyn's lack of frontbench experience is a virtue – no action by the last Labour government can be pinned on him. 

Whether or not the Conservatives accept the link between Grenfell and austerity, their reluctance to defend continued cuts shows an awareness of how politically vulnerable they have become (No10 has announced that the public sector pay cap is under review).

Though Tory MP Philip Davies accused May of having an "aversion" to policies "that might be popular with the public" (he demanded the abolition of the 0.7 per cent foreign aid target), there was little dissent from the backbenches – reflecting the new consensus that the Prime Minister is safe (in the absence of an attractive alternative).

And May, whose jokes sometimes fall painfully flat, was able to accuse Corbyn of saying "one thing to the many and another thing to the few" in reference to his alleged Trident comments to Glastonbury festival founder Michael Eavis. But the Labour leader, no longer looking fearfully over his shoulder, displayed his increased authority today. Though the Conservatives may jeer him, the lingering fear in Tory minds is that they and the country are on divergent paths. 

George Eaton is political editor of the New Statesman.

0800 7318496