Reeves to scrap two-child benefit cap in Budget to appease Labour rebels
Reeves to scrap two-child benefit cap with Budget to battle leadership challenge
- Keir Starmer and Rachel Reeves are reportedly planning a left-leaning budget to avert a potential leadership challenge from Labour MPs.
- The proposed budget includes scrapping the two-child benefit cap and introducing new wealth taxes to address a spending deficit.
- Planned wealth taxes feature a mansion tax on properties over £2 million, a profits tax on gambling companies, a levy on bank profits, and an increase in capital gains tax.
- The decision to avoid an income tax rise was influenced by pressure from backbenchers, who warned it would alienate voters.
- These economic measures are also seen as a way to balance recent right-leaning stances on issues like asylum and human rights, aiming to appease party members and the Parliamentary Labour Party.