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Labour leadership: Labour 'too timid' on tax - Owen Smith Labour leadership: Labour 'too timid' on tax - Owen Smith
(about 2 hours later)
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.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.
Mr Smith, who joins Angela Eagle in challenging Jeremy Corbyn, said an "overhaul" of the tax system was needed to make it more "progressive".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 indicated he would also want to raise capital gains tax from 20%.He indicated he would also want to raise capital gains tax from 20%.
On Britain's EU exit, Mr Smith told the BBC: "I don't think we should accept we're on a definite path out."On Britain's EU exit, Mr Smith told the BBC: "I don't think we should accept we're on a definite path out."
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".
Nuclear button
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."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."
He added: "Certainly I'd go back to a 50p rate tomorrow, because I think that is absolutely the right thing to do." The former work and pensions secretary said he would reintroduce a 50p top rate of tax "tomorrow" and said it was "completely anomalous" for capital gains tax to be 20% when the higher rate of income tax is 45%.
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%. Mr Smith, a former member of the Campaign for Nuclear Disarmament (CND), also said he would vote to renew Trident in Monday's Commons vote, saying he believed the world had become "more volatile, more insecure over the last few years".
"It's not Labour... for us to have that sort of tax system. I'd want to get into that and the benefits system. "I want a world without nuclear weapons altogether, but I don't think we hasten that by divesting," he said.
"We should be thinking about this thing far more holistically, and be much more radical about it," he added. Asked whether he would be prepared to press the nuclear "button" as prime minister, Mr Smith said: "You've got to be prepared to say 'yes', that's absolutely right."
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 Mr 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.
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. On the EU, Mr Smith, MP for Pontypridd, hinted at 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 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 also said it would be "very tempting" for Labour to campaign on a promise not to trigger the Article 50 process to bring the UK out of the EU, "because we are a party that believes in being at the heart of Europe".
"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."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.
"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.""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."
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".
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.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.
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".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".
"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."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.
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.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."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?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: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:
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.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.
The Labour leader, who will automatically be on the leadership ballot, has told the BBC's Sunday Politics programme he believes the £25 fee for registered supporters to vote in the contest is too high.The Labour leader, who will automatically be on the leadership ballot, has told the BBC's Sunday Politics programme he believes the £25 fee for registered supporters to vote in the contest is too high.