Margaret Hodge, anti-tax avoidance campaigner and Kendall backer. Photo: Getty Images
Show Hide image

Liz Kendall appoints Margaret Hodge to investigate Britain's £100bn tax relief bill

The Labour leadership has appointed the former head of the Public Affairs Committee and anti-tax avoidance campaigner Margaret Hodge to review the £100bn that Britain gives away in tax relief each year. 

Liz Kendall has announced a review into Britain's tax relief bill, potentially paving the way to massive reductions in the amount that the Treasury gives away in tax breaks.

The Labour leadership hopeful, who has described regaining the party's reputation for economic credibility as "the gateway to government", has appointed Margaret Hodge, the former chair of the Public Accounts Committee and a renowned tax avoidance campaigner, to look into the United Kingdom's £100bn annual tax relief. 

Although Kendall regards many of the tax breaks as vital to attracting investment to important sectors of the economy, including manufacturing and IT, she also believes that other reliefs are impossible to defend.

The Late Night Taxi Relief is a particularly egregious example: a tax break for people who work late hours and are given taxis home, paid for by their employers. Bankers and hedge fund traders regularly claim this tax break. But shift workers, night bus drivers, care workers and security guards are not entitled to claim the relief, as they are contracted to work unsocial hours. Between 80 to 90 per cent of the relief is claimed by city firms. 

The Kendall campaign also hope to highlight the rise in tax relief under the Conservative-led government, in contrast to the cuts to tax credits and the ongoing public sector pay freeze. Over the last five years, tax reliefs rose from 5.5 per cent of GDP to six per cent of GDP, while the cost of working age welfare fell from 5.7  per cent of GDP to 5.2 per cent. Even a reduction to 2010 levels would generation £10 billion for the Treasury, while the combined £100bn cost is greater than that paid to the NHS.)

Stephen Bush is special correspondent at the New Statesman. He usually writes about politics. 

Getty
Show Hide image

Sarah Champion wants to un-resign and join Jeremy Corbyn's shadow cabinet again

The MP is understood to have emailed asking for her job back. 

Sarah Champion, MP for Rotherham, is to rejoin the shadow cabinet less than a month after her dramatic resignation. 

On 28 June, in the aftermath of Brexit, she tweeted: "I have just stepped down from my shadow minister job, but not my responsibilities to my constituents, party or victims of abuse."

Now, she has reportedly emailed Jeremy Corbyn's team to request an un-resignation from her position as shadow minister for preventing abuse. 

According to the Guido Fawkes blog, she wrote: "I would like to formally retract my resignation and ask to be reinstated to my role as Shadow Home Office minister for preventing abuse and domestic violence with immediate effect."

Unsurprisingly, perhaps, given their staffing issues on the shadow cabinet, the Corbyn team is understood to be welcoming her back. 

Shadow chancellor John McDonnell has repeatedly urged ex-shadow cabinet MPs to come back. On 1 July he said: "Wouldn't it be better if people came back and worked with us?"

And on Sunday, he alarmed weekend TV viewers by turning straight to camera and telling the nation: "We've got to stop this now."