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Labour leadership: Owen Smith urges party unity Labour leadership: Labour 'too timid' on tax - Owen Smith
(about 2 hours later)
Owen Smith will launch his bid to be Labour leader by warning the party risks "falling apart" if it does not act "like a proper team". Labour has been "too timid" about taxation, leadership hopeful Owen Smith has said, and pledged that he would raise the top income tax rate to 50p.
The former shadow work and pensions secretary will say his plan to invest £200bn into building projects is what is needed to "rebuild Britain". Mr Smith, who joins Angela Eagle in challenging Jeremy Corbyn, said an "overhaul" of the tax system was needed to make it more "progressive".
He joins Angela Eagle in the race against Jeremy Corbyn's leadership. He indicated he would also want to raise capital gains tax from 20%.
Meanwhile Mr Corbyn has said he wants Labour's governing body to change the rules for who can vote in the contest. On Britain's EU exit, Mr Smith told the BBC: "I don't think we should accept we're on a definite path out."
Writing in the Sunday Mirror Mr Smith said it was a "worrying time for Labour" and claimed the new Conservative government "will try to use Brexit as an excuse for slashing workers' rights and forcing through even more cuts". Speaking on Sunday's Andrew Marr Show, Mr Smith, when asked if he would raise taxes on the richest in society, said: "I think we need to completely overhaul our tax system, so yes."
"Only a strong, united and competent Labour Party can stop that happening and start leading us back to power. I am part of a new generation of Labour women and men who must now step up to secure Labour's future," he said. He added: "Certainly I'd go back to a 50p rate tomorrow, because I think that is absolutely the right thing to do."
'A worrying time'
The former work and pensions secretary also said it was "completely anomalous" and "not progressive" for capital gains tax to be set at 20% when the higher rate of income tax was 45%.
"It's not Labour... for us to have that sort of tax system. I'd want to get into that and the benefits system.
"We should be thinking about this thing far more holistically, and be much more radical about it," he added.
AnalysisAnalysis
BBC political correspondent Alan SoadyBBC political correspondent Alan Soady
Both Angela Eagle and Owen Smith are putting themselves forward as anti-Jeremy Corbyn candidates and as candidates of unity who think they're not as far left as Corbyn but are not Blairites either.Both Angela Eagle and Owen Smith are putting themselves forward as anti-Jeremy Corbyn candidates and as candidates of unity who think they're not as far left as Corbyn but are not Blairites either.
By positioning themselves in that way, they think they could potentially be acceptable to both wings of the party.By positioning themselves in that way, they think they could potentially be acceptable to both wings of the party.
The problem is that having two rival unity candidates splits the vote and one would have thought that it makes it more likely that Jeremy Corbyn will win this leadership contest.The problem is that having two rival unity candidates splits the vote and one would have thought that it makes it more likely that Jeremy Corbyn will win this leadership contest.
Owen Smith has already said he believes there should only be one of them going forward into the formal contest - it's just a case of deciding who.Owen Smith has already said he believes there should only be one of them going forward into the formal contest - it's just a case of deciding who.
The MP for Pontypridd will lay out his leadership pledges in a speech in his constituency later, having postponed his launch in the wake of the attacks in Nice. On the EU, Mr Smith, MP for Pontypridd, suggested the possibility of a second referendum on EU membership, but said it would depend on what kind of deal the UK negotiated on the terms of Brexit.
He will talk about his multi-billion pound plan "to renew our crumbling buildings and transport systems and tackle our housing crisis, as well as investing in young people". He also said it would be "very tempting" for Labour to campaign on a promise not to trigger the Article 50 process "because we are a party that believes in being at the heart of Europe".
He is also expected to attack Mr Corbyn for being anti-austerity without bringing forward an alternative. "I don't think we should accept we're on a definite path out. I think we need to make sure people are satisfied," he added.
"It is not enough for the Labour Party to simply talk about being anti-austerity. We have to set out a detailed plan for how Labour would replace failed Tory austerity with credible proposals for prosperity." "We trusted people, rightly, to take the decision. We can trust them again in 18 months time to check it's absolutely what they wanted."
Writing in the Observer, Ms Eagle echoed Mr Smith's view that the party was in danger of being destroyed , saying it was "as divided and disunited as I can remember". Mr Smith will set out his leadership pledges in a speech in his constituency later, including plans to invest £200bn into building projects, which he will say is what is needed to "rebuild Britain".
She added: "Betrayal narratives do not unite; they divide and Labour will pay a huge price if this is allowed to continue. But it's not too late to get our house in order and I know I can unite us again." He will also warn the party risks "falling apart" if it does not act "like a proper team", and is expected to attack Mr Corbyn for being anti-austerity without bringing forward an alternative.
Ms Eagle had hoped for a clear run at trying to defeat Mr Corbyn, the BBC's political correspondent Ben Wright said. Meanwhile, in her pitch for the Labour leadership Ms Eagle said she was a "working-class woman" from the North, "and that's what we need at the moment".
However having announced his intention to stand, Mr Smith later added that he believed only one challenger should appear on the final ballot. "My whole political mission is to get working class kids the right opportunities to shine," she said, adding that she had experience in both government and opposition.
He suggested the party's deputy leader, MPs or executive committee could choose between him and Angela Eagle. The former shadow business secretary also urged Labour Party members and supporters to "keep it comradely" in the leadership election, following abuse and threats directed at MPs.
"What's been happening isn't the kinder, gentler politics. We have to stamp it out. We've got to keep it comradely," Ms Eagle told the Marr show.
Who can vote in Labour leadership contest?
Labour Party members, affiliated trade union supporters and so-called registered supporters are able to vote although there are some key differences from the 2015 contest, which Jeremy Corbyn won:
Ms Eagle had hoped for a clear run at trying to defeat Mr Corbyn in a leadership election, BBC political correspondent Ben Wright said.
However, despite launching his own leadership bid Mr Smith has said he believes only one challenger should appear on the final ballot, and suggested the party's deputy leader, MPs or executive committee could choose between him and Ms Eagle.
Despite facing a revolt from his MPs, Mr Corbyn retains the strong support of many party members and has said he will fight the challenges in a contest which is expected to be decided in September.Despite facing a revolt from his MPs, Mr Corbyn retains the strong support of many party members and has said he will fight the challenges in a contest which is expected to be decided in September.
Mr Corbyn, who will automatically be on the leadership ballot, has told the BBC's Sunday Politics programme he thinks voting rules should be changed. The Labour leader, who will automatically be on the leadership ballot, has told the BBC's Sunday Politics programme he thinks voting rules should be changed.
Last week the party's National Executive Committee ruled that party members could only vote in the upcoming election if they joined before 12 January.Last week the party's National Executive Committee ruled that party members could only vote in the upcoming election if they joined before 12 January.
However, registered supporters who pay £25 before Wednesday will get a vote. Mr Corbyn believes the £25 fee is too high and wants Labour's NEC to think again.However, registered supporters who pay £25 before Wednesday will get a vote. Mr Corbyn believes the £25 fee is too high and wants Labour's NEC to think again.