Rebels defy Corbyn on Budget tax cuts

JEREMY Corbyn faced fresh embarrassment last night as 20 of his MPs defied orders not to oppose a tax cut for the better-off.

Conservatives also seized on the Labour leadership’s official decision to abstain rather than vote in favour of reducing tax from April for millions earning up to £50,000 a year.

Labour leader Mr Corbyn and several of his MPs criticised the Budget proposal to increase the point where income attracts 40 per cent higher rate tax, from £46,350 to £50,000 a year.

He said it was a tax cut for the rich when poorer people and benefit claimants should be the priority.

The Tories also pledged to raise the tax-free personal allowance from £11,850 to £12,500 next April.

But shadow chancellor John McDonnell incensed some colleagues by saying Labour would not oppose the cuts because he did not want to “take money out of people’s pockets”.

The Labour rebels opposing the tax cut included former ministers Yvette Cooper, Dame Margaret Hodge and David Lammy.

Dame Margaret told the last day of the House of Commons’ Budget debate: “We can’t keep promising excellent schools, effective policing and compassionate care if we refuse to raise the necessary money through tax.”

The 20 joined Lib Dems, Green MP Caroline Lucas and Frank Field – an independent since he quit the Labour whip – in voting against the reductions.

But most Labour MPs obeyed party orders to abstain and the Government easily won the vote 314 to 31.