Shabana Mahmood, the Labour MP for Birmingham Ladywood, has backed a plan to increase the top rate of income tax to 50p, as speculation mounts that she could be appointed Chancellor by Andy Burnham. Reports from The Times, The Guardian, and the New Statesman indicate that Burnham is considering Mahmood for the role of Chancellor of the Exchequer.
Mahmood's Voting Record Under Scrutiny
Ahead of any potential appointment, Mahmood's voting record is being closely examined. In 2014, she tabled an amendment requiring the chancellor to assess the impact of restoring the 50p top rate of income tax. She strongly opposed the Coalition government's decision to cut the top rate from 50p to 45p, accusing ministers of giving "an absolutely huge tax cut to the wealthiest in our country" while ordinary households struggled.
Mahmood argued that "when the deficit is high it cannot be right to cut the top rate of tax" and pledged that "the next Labour government will put that rate back to 50p while we get the deficit down."
Immigration and Skills Investment
This year, Mahmood also outlined her economic priorities, stating: "My definition of what is best for the UK economy is one where migration is controlled and where there is investment in skills and training for our home-grown workforce, not an over-reliance on overseas recruitment."
Burnham's Tax Stance
If appointed, Mahmood would begin work on an autumn budget. Andy Burnham, the Labour leader, told Gary Lineker on Wednesday that he may "ask for a little bit more" in tax, but refused to rule out imposing a wealth tax. "I do believe we need a greater sense of fairness and people feeling that things are being done in the right way and a fair way," he said. However, he added: "I don't want to be perceived as somebody who's coming in with grudges and agendas and going to just immediately find or demonise one group or create a new way of dividing people." Burnham did not rule out future tax increases, stating: "At some point that might be having to ask for a little more. But, you know, those decisions are not for now. They're for another day."
