Labour spending overview should be ‘economic reset’, Louise Haigh to mention

Next month’s spending overview should be an “economic reset” in accordance with a daring wealth tax and better public funding, the previous cupboard minister Louise Haigh is to argue, as Keir Starmer faces renewed force from inside Labour to modify direction.

Haigh’s feedback come as Andy Burnham referred to as for Labour to “re-establish itself unequivocally once again as the party of working-class ambition” with formidable choices on housing and schooling.

Burnham, the mayor of Greater Manchester, will say ministers must permit mayors to construct on public land, and set a goal for the purpose at which extra new social houses are being constructed than current ones are bought off.

Haigh and Burnham will make their interventions in speeches at an match going down on Saturday organised via the Labour-allied thinktank Compass.

Haigh, who hand over the cupboard in November after it emerged she were convicted of fraud over a lacking paintings telephone, will reiterate her name for a wealth tax after the native election effects from 1 May, which she referred to as “a warning” from citizens that they sought after bolder insurance policies.

She will say: “The spending review must be a moment for an economic reset. I welcome the prime minister’s review of winter fuel changes but we must go further, ripping up our self-imposed tax rules and taxing the country’s vast wealth.”

Haigh will say the present tax device “punishes earned income but barely touches the sides of the real driver of inequality – wealth”. It is time to “finally move beyond a broken model where working people’s wages are topped up by tax credits and benefits, leaving bad employers and landlords to profit”, she’s going to say.

“It’s about moving from a system of handouts for the rich to real investment for everyone else. We need real reform: a proper wealth tax that rewards work, closes loopholes and finally gives us the means to invest in the NHS, schools and our communities.”

According to extracts of his speech launched prematurely, Burnham will say the spending overview “will define the rest of this parliament”, and he’ll name for Labour to concentrate on tactics it will probably definitely fight the electoral risk from Reform UK.

Burnham will say: “Rather than standing for the status quo, the time has come for the party to re-establish itself unequivocally once again as the party of working-class ambition, shedding the perception in the Midlands and the north of a London-centric, university-oriented party.”

This will require a selected focal point on housing and schooling, to in particular cope with “the single biggest cause of Britain’s modern malaise: a housing crisis caused not by immigration but by ideology”.

The Thatcher-era right-to-buy coverage, with out funding in new social houses, “shattered the foundations on which generations of working-class British families built better lives”, Burnham will say.

“Labour’s clarion call should be to free Britain from the grip of the housing crisis. In this spending review, working with mayors in the big city regions, it should set the date by which each will reach the crucial tipping point of building more social homes than they are losing.

“This is the moment when, instead of tightening its grip, the housing crisis starts to ease. To do that, the spending review should unlock public land for mayors to use to build a new generation of council homes at pace – akin to the drive of the postwar Labour government.”

Angela Rayner, the deputy top minister and housing secretary, has already introduced plans to limit correct to shop for and has driven for extra funding in social houses, however as but this has finished little to ease the housing disaster.

Other audio system on the Compass-run match will come with Mark Drakeford, the previous first minister of Wales, the Labour MPs Rachael Maskell and Simon Opher, and the junior power minister, Miatta Fahnbulleh.