Labour welfare bill latest: Minister won’t rule out tax rises and says climbdown will come at a ‘cost’

Angela Rayner has said Labour is “in a better place” after U-turning on its flagship welfare reforms in a dramatic Commons showdown on Tuesday night.

The deputy prime minister told ITV’s Lorraine: “People might see that as, oh, well, it’s chaos. But actually, we’ve got to a better place now, and we’ve got the bill through Parliament at its second reading. And now we’ll get into the details.”

The Independent’s political correspondent Archie Mitchell reports:

Angela Rayner has said there is “not a chance” she wants to become prime minister as it would “age me by 10 years within six months”.

Asked whether she is waiting in the wings as Sir Keir Starmer’s successor, she told ITV’s Lorraine: “I’m very interested in delivering for the people of this country, because to be elected as an MP from my background was incredible. Yes. And when I first went into parliament, I thought, this is Hogwarts. And it’s like, this is an incredible place. I’ve never been anywhere like it.

“It was like going to a church. It was an incredible building and learning all of that, but having that opportunity to serve my community that has raised me, looked after me, given me opportunities, and I don’t forget that.

“And to be deputy prime minister of this country it’s got to count for something, not a title.

“But what are you going to give back to your communities? And that’s why I’m so passionate about council housing that we need. That’s why I’m passionate about making sure we’ve got good, strong employment rights and that we’re delivering for working people in this country. Because they gave me an opportunity.”

The Independent’s political correspondent Archie Mitchell reports:

The shadow chancellor has claimed “tax rises are on the way”.

Sir Mel Stride MP said: “Tax rises are on the way to pay for Labour’s mismanagement of the economy.

“Hard working families will have an agonising summer waiting to hear how Rachel Reeves will claw back the cash to make up for the failings of this weak prime minister.”

The Independent’s political correspondent Archie Mitchell reports:

Angela Rayner has said the welfare bill is “going up rapidly” and “we have got to flatten that curve”.

The deputy prime minister said after brokering major concessions on the welfare bill that nobody is going to see changes to their current benefits.

But she said Labour will work with disability groups going forward to change the assessment criteria for those claiming personal independence payment (Pip).

She told ITV’s Lorraine: “That’s what MPs were really concerned about, making sure that we did things in the right order, supportively, so that people could be reassured that, yes, we will reform the welfare state, because it’s going up at a really rapid rate.

“We need to get people into good employment and the support there, so we’re bringing that package forward, but also make sure that people who are really vulnerable and need that help get the right and proper help.”

The Independent’s political correspondent Archie Mitchell reports:

David Blunkett has said Sir Keir Starmer can still win the next general election after Tuesday night’s chaotic welfare vote.

Asked whether the prime minister has lost his authority, the Labour grandee told BBC Radio 4’s Today programme: “He hasn’t lost it to the point where in three years time, we can’t win the general election. People lose battles and they rebuild.”

Lord Blunkett called for Sir Keir to commission a private review of “exactly what went wrong over the last few weeks, who gave the advice they gave and why… and let’s learn from it”.

“If you don’t learn from your mistakes, you’ll make them again,” he added.

The Independent’s political correspondent Archie Mitchell reports:

With Rachel Reeves looking for ways to plug the black hole left by the government’s welfare climbdown, calls from left-wing Labour MPs for a wealth tax are growing.

Labour rebel Andy McDonald said a tax on wealth, and equalising capital gains tax with income tax, should be used to make up the shortfall and invest in public services.

He told Times Radio: “If you listen to people like the patriotic millionaires, who’ve campaigned for higher taxes for themselves, these are people who’ve said in no uncertain terms that this country has given me every single opportunity, I’ve benefited from health and education and the opportunities presented to go into business.

“I’ve succeeded and I’ve flourished and I can afford to pay a little bit more. They’re suggesting that a wealth tax of two percent on assets over £10m will produce for the Treasury £24bn.”

The bill passed its second reading by 335 ayes to 260 noes, a majority of 75, with 49 Labour MPs voting against the welfare cuts which have caused controversy.

My colleague Bryony Gooch takes a look at how each MP voted:

The Independent’s political correspondent Archie Mitchell reports:

A Cabinet minister declined to rule out tax rises after Labour’s welfare concessions to backbench rebels.

Pat McFadden told BBC Breakfast he is “not going to speculate” on what could be in the budget, due in the autumn, but said that ministers “will keep to the tax promises” in their manifesto.

Asked whether economists were right that tax rises look likely, the Chancellor of the Duchy of Lancaster told the programme: “This is one moving part of the budgetary picture, it does have a financial consequence yesterday.

“I’m not going to speculate on where the budget lands, because there are so many other different moving parts in it, and it wouldn’t make sense for me to do that.”

Asked explicitly whether he could rule out tax rises, Mr McFadden said: “I’m not going to speculate on the budget.

“We will keep to the tax promises that we made in our manifesto when we fought the election last year. But it doesn’t make sense for me to speculate on something where, as I say, there are so many moving parts of which this is only one element.”

The shadow chancellor has demanded to know “where the money will come from” as he accused Labour of “making unfunded u-turns which will cost billions”.

In a post on X on Wednesday, Mel Stride said: “Labour are making unfunded u-turns which will cost billions.

“Before yesterday’s welfare vote, I wrote to the Chancellor asking where the money will come from. And the u-turns are coming so thick and fast that since I wrote it they’ve racked up an even bigger bill with yet another u turn.

“So, what will it be Rachel Reeves – tax rises, more borrowing or both?

“Labour owes the country answers.”