As Disability Cuts Loom, Starmer Urged to Consider Wealth Tax Alternative

As the government looks to implement significant cuts to disability benefits, Labour faces increasing internal criticism. Senior figures, including Diane Abbott and Andy Burnham, are calling for a wealth tax as an alternative to cutting support for the disabled. The debate intensifies with accusations that the cuts will disproportionately impact the most vulnerable.

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As Disability Cuts Loom, Starmer Urged to Consider Wealth Tax Alternative | en.Econostrum.info - United Kingdom

As the UK government prepares to announce major cuts to disability benefits, pressure is mounting on Labour leader Keir Starmer to rethink his approach.

Figures from across the political spectrum are urging Starmer to consider alternatives to reducing financial support for disabled individuals, with some even advocating for a wealth tax.

The announcement, expected tomorrow, could see cuts totalling at least £5bn in disability benefits, a move that has stirred significant controversy within the Labour Party.

Disability advocates and senior party figures have voiced strong opposition to the proposals, emphasising the detrimental impact on vulnerable communities.

Calls for a Wealth Tax

In response to the looming cuts, Diane Abbott, a prominent Labour MP, has suggested that the government impose a wealth tax instead of cutting disability benefits. Abbott proposed a 2% wealth tax on individuals with assets exceeding £10 million, which she claims could raise up to £24bn annually

This proposal echoes ideas presented by the Green Party in the last election and offers a potential solution for funding the government’s fiscal plans without further reducing support for disabled people.

According to Abbott, such a tax would place the financial burden on the wealthiest individuals, ensuring that the most vulnerable are not disproportionately affected by the government’s austerity measures. 

The push for a wealth tax also comes in the wake of criticism that cuts to disability benefits, particularly the Personal Independence Payments (PIP), would hit the poorest families hardest.

Opposition Within Labour

Labour’s internal debate over the disability benefit cuts is intensifying. Andy Burnham, the Mayor of Greater Manchester, has expressed concerns about the impact of altering benefit eligibility, warning that the move could trap disabled individuals in poverty. 

“I would share concerns about changing support and eligibility to benefits while leaving the current top-down system broadly in place. It would trap too many people in poverty. And to be clear: there is no case in any scenario for cutting the support available to disabled people who are unable to work.” he said in an article for the Times.

Similarly, Ed Balls, a former Labour MP and leadership candidate, has joined others in opposing cuts to disability benefits, stating that Labour should not be cutting support for the most vulnerable in society. 

Burnham and Abbott have voiced shared concerns about the fairness of the government’s approach, with Burnham calling for alternative strategies to help people with disabilities return to work.

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