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You can find the current article at its original source at https://www.theguardian.com/politics/2018/nov/02/no-sanctions-labour-rebels-party-seeks-shut-down-row
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| Version 1 | Version 2 |
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| No sanctions for Labour rebels as party seeks to shut down tax row | No sanctions for Labour rebels as party seeks to shut down tax row |
| (2 months later) | |
| The 20 Labour MPs who rebelled to oppose Tory tax cuts for high earners will not face further sanctions, as the party tries to shut down the embarrassing row. | The 20 Labour MPs who rebelled to oppose Tory tax cuts for high earners will not face further sanctions, as the party tries to shut down the embarrassing row. |
| The shadow chancellor, John McDonnell, irked colleagues by announcing that Labour would not reverse the measures – a decision based on polling and focus group analysis described by one senior party figure as “eerily similar” to that carried out by Labour under Tony Blair. | The shadow chancellor, John McDonnell, irked colleagues by announcing that Labour would not reverse the measures – a decision based on polling and focus group analysis described by one senior party figure as “eerily similar” to that carried out by Labour under Tony Blair. |
| Philip Hammond’s move to bring forward increases to the income tax personal allowance and the higher-rate threshold, promised in the Conservative manifesto, was one of the most eye-catching announcements in the budget on Monday. | Philip Hammond’s move to bring forward increases to the income tax personal allowance and the higher-rate threshold, promised in the Conservative manifesto, was one of the most eye-catching announcements in the budget on Monday. |
| McDonnell provoked a backlash among Labour colleagues on Tuesday when he said in a series of interviews that he would not reverse the cuts if Labour came to power, but would instead introduce his own tax policy aimed at raising more revenue from corporations and workers earning more than £80,000. | McDonnell provoked a backlash among Labour colleagues on Tuesday when he said in a series of interviews that he would not reverse the cuts if Labour came to power, but would instead introduce his own tax policy aimed at raising more revenue from corporations and workers earning more than £80,000. |
| One senior Labour insider briefed on the shadow chancellor’s rationale said they had witnessed an “eerily similar spiel in the New Labour years” when Blair and Gordon Brown were thrashing out how best to raise extra funding for public services, including the NHS, without paying a price at the ballot box. | One senior Labour insider briefed on the shadow chancellor’s rationale said they had witnessed an “eerily similar spiel in the New Labour years” when Blair and Gordon Brown were thrashing out how best to raise extra funding for public services, including the NHS, without paying a price at the ballot box. |
| Twenty Labour MPs, including Lisa Nandy, David Lammy and Alison McGovern, defied party whips on Thursday to vote against the chancellor’s changes to tax thresholds despite Labour urging its MPs to abstain. | Twenty Labour MPs, including Lisa Nandy, David Lammy and Alison McGovern, defied party whips on Thursday to vote against the chancellor’s changes to tax thresholds despite Labour urging its MPs to abstain. |
| All of Jeremy Corbyn’s rivals for the party leadership in 2015 – Yvette Cooper, Liz Kendall and Andy Burnham – opposed McDonnell’s stance, saying the £2.7bn cost of the measure could have been spent on alleviating child poverty. | All of Jeremy Corbyn’s rivals for the party leadership in 2015 – Yvette Cooper, Liz Kendall and Andy Burnham – opposed McDonnell’s stance, saying the £2.7bn cost of the measure could have been spent on alleviating child poverty. |
| Senior party figures have said McDonnell based his decision partly on Labour party research that showed voters’ idea of who should pay more tax to fund public services tends to be those earning a sum well beyond their own expectations. | Senior party figures have said McDonnell based his decision partly on Labour party research that showed voters’ idea of who should pay more tax to fund public services tends to be those earning a sum well beyond their own expectations. |
| McDonnell cited the example of headteachers when he explained to journalists on Tuesday why it would not be Labour policy to overturn Hammond’s cuts. “We’re not going to take funding away from people,” he said. “Some of these are middle earners, headteachers and people like that, who’ve had a rough time of it, as well as everyone else”. | McDonnell cited the example of headteachers when he explained to journalists on Tuesday why it would not be Labour policy to overturn Hammond’s cuts. “We’re not going to take funding away from people,” he said. “Some of these are middle earners, headteachers and people like that, who’ve had a rough time of it, as well as everyone else”. |
| Under the income tax cuts announced by Hammond, the 20% tax band, which currently starts on earnings above £11,850, will rise to £12,500 next year, and the higher rate 40% tax band will begin at £50,000 from April, up from £46,350. | Under the income tax cuts announced by Hammond, the 20% tax band, which currently starts on earnings above £11,850, will rise to £12,500 next year, and the higher rate 40% tax band will begin at £50,000 from April, up from £46,350. |
| Party analysis also showed that taking the two measures together, about 50,000 voters in each constituency would be better off, albeit many of them by a small amount, as a result of Hammond’s announcement. | Party analysis also showed that taking the two measures together, about 50,000 voters in each constituency would be better off, albeit many of them by a small amount, as a result of Hammond’s announcement. |
| The Conservatives bundled both measures together in a single regulation, when MPs debated the budget on Thursday. Labour was content to let the package go through without a vote but the Lib Dems insisted on one. | The Conservatives bundled both measures together in a single regulation, when MPs debated the budget on Thursday. Labour was content to let the package go through without a vote but the Lib Dems insisted on one. |
| The row raised eyebrows among longstanding Labour MPs who remember when McDonnell was the scourge of the party’s frontbench, accusing Brown of not being sufficiently radical. | The row raised eyebrows among longstanding Labour MPs who remember when McDonnell was the scourge of the party’s frontbench, accusing Brown of not being sufficiently radical. |
| But the shadow chancellor and his allies believe the clash represented an opportunity for him to underline the fact that Labour would only increase taxes on the top 5% of earners – the party’s policy at last year’s general election. | But the shadow chancellor and his allies believe the clash represented an opportunity for him to underline the fact that Labour would only increase taxes on the top 5% of earners – the party’s policy at last year’s general election. |
| With a general election impossible to rule out in the coming months as Theresa May struggles with Brexit, Labour has been conscious of the risk of being seen to be preparing to impose swingeing tax increases on middle earners. | With a general election impossible to rule out in the coming months as Theresa May struggles with Brexit, Labour has been conscious of the risk of being seen to be preparing to impose swingeing tax increases on middle earners. |
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| Lisa Nandy | Lisa Nandy |
| David Lammy | David Lammy |
| Tax and spending | Tax and spending |
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