100 Labour MPs urge Starmer to steer party back to the left

The Tribune Group of more than 100 Labour MPs have called for the prime minister to steer the party back to the left. Meanwhile, 81 MPs have demanded he stand down after Labour came third in the local elections when it comes to national vote share.

Suggested policies

Tribune Labour MPs have said Labour should:

• Introduce free buses for under 25s and universal credit claimers
• Raise capital gains tax
• Proportional property tax instead of stamp duty
• Reformed council tax
• Change government’s fiscal constraints to enable more borrowing

These are generally progressive policies, but they lack the overall economic strategy to significantly change the UK.

Also, encouraging bus use is a greener approach to travel. But why support Labour’s current policy of more expensive fares for the majority of those over 25? Labour rose the Tories’ bus fare cap from £2 to £3.

Further, raising capital gains tax towards the rate for income tax is a positive step. Capital gains is passive income and it doesn’t make sense for it to be lower than taxes on people working. Labour did raise it in its October 2024 budget, but it’s still the lowest in the G7.

Onto the next suggestion, a proportional property tax means that households pay a yearly fixed percentage of their home’s ‘value’ in tax. That’s opposed to the current stamp duty, where people pay a percentage of between 2% and 12% when they are buying a house.

A more robust policy would be to stop treating houses as an asset and for the state to provide them at cost price to the taste of the person or household. Then, the person or household re-pays for the cost of building and designing in affordable monthly payments.

Next, there’s council tax. It isn’t related to income, meaning many households pay more despite earning less. Reforming this would be welcome.

On the government’s fiscal rules, public investment is cheaper than private investment for infrastructure. The private sector pays higher interest and would charge the state or people to make profit. More borrowing, failing the use of debt-free fiat currency, is a better longterm solution.

‘Move left’ isn’t much for Labour

Given Labour is basically a corporate party under its current tragectory, the Tribune Group’s call for a move left may not mean much. But there are some worthwhile policies suggested.

Labour so far cut the winter fuel payment for pensioners then U-turned.

The leadership suspended Labour MPs for voting against the two child benefit cap, then U-turned and reinstated the benefit. The party has administered a huge rise in energy bills.

Any move to the left would be welcome after that.