Shabana Mahmood backed a 50p income tax rate in 2014, saying it would be right for the next Labour government to raise the top rate again. The remarks matter because Labour’s manifesto promised not to increase National Insurance, the basic, higher or additional rates of income tax, or VAT.
In the Commons, Mahmood said the Conservatives’ cut from 50p to 45p was “unfair and wrong”. She said there was “no justification for giving a huge tax cut to the richest in our country” and said “ordinary working people” had been left worse off.
Commons in 2014
The 50p additional or top rate was introduced by Alistair Darling and Gordon Brown in 2010, then cut under the Tory-Liberal Democrat coalition in 2013. Mahmood told the Commons in 2014 that it would be right for the next Labour government to raise it to 50p again.
That record puts her comments back in focus as she is reported to be a front-runner for chancellor. If she were to take No 11, the question would be whether that older position would shape any plan for the highest earners.
Labour and the 50p rate
The clash is straightforward. Labour’s manifesto promised not to raise the main rates of income tax, yet Mahmood previously supported restoring the top rate. The article also says a future chancellor could look at people who derive more than 10 per cent of their income from property, investments and dividends, or reduce the £125,140 threshold where the highest rate starts.
Andy Burnham added to the pressure this week when he said he may have to ask for “a little more” to balance the books. Sir Mel Stride warned that “Britain cannot afford yet more tax.” Robert Jenrick said, “Andy Burnham has backed billions in tax rises. Shabana Mahmood has backed billions more.”
What matters now is not the old speech but whether any future Labour chancellor turns it into policy. On the facts available, Mahmood has left a clear paper trail for a 50p income tax rate, while Labour’s manifesto still points the other way.
