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Monday 23/02/2026

Labour Faces Internal Strife Over Potential Income Tax Increase

Labour Party members debating income tax increase in office
Alex CarterAlex Carter

In This Article

HIGHLIGHTS

  • Chancellor Rachel Reeves signals a potential income tax increase, challenging Labour's manifesto pledge.
  • Deputy Leader Lucy Powell urges Labour to uphold its commitment against raising taxes.
  • Justice Secretary David Lammy criticized for his handling of a mistaken prisoner release.
  • Keir Starmer attends COP30, facing criticism for prioritizing international over domestic issues.
  • Andrew Mountbatten Windsor summoned by a US Congressional committee regarding Jeffrey Epstein.

In a move that could signal a significant policy shift, Chancellor Rachel Reeves has indicated plans to increase income tax, according to a submission to the Office for Budget Responsibility (OBR). This development has sparked internal tensions within the Labour Party, as it contradicts their manifesto promise not to raise income tax, national insurance, or VAT. Deputy Leader Lucy Powell has publicly urged the party to adhere to its original commitments, describing the potential tax hike as a "significant intervention" that could pressure the Chancellor to reconsider.

Justice Secretary Under Fire for Prisoner Release Blunder

Justice Secretary David Lammy is facing criticism following the mistaken release of inmates from prison. The Daily Mail has labeled him "guilty of ineptitude," while a cabinet colleague reportedly described his handling of the situation as "cowardly." Lammy has defended his actions, stating he was not fully briefed on the details when questioned during Prime Minister's Questions.

Starmer's COP30 Attendance Sparks Debate

Labour leader Keir Starmer's participation in the COP30 climate summit has drawn criticism from Kemi Badenoch, who argues that Starmer should focus on domestic issues, especially since major polluters like the US, India, China, and Russia are absent from the conference. Despite this, Starmer maintains that the UK is committed to net-zero goals and is showing leadership on the global stage.

Andrew Mountbatten Windsor Summoned in Epstein Inquiry

In a separate development, Andrew Mountbatten Windsor has been requested to provide evidence to a US Congressional committee investigating the sex offender Jeffrey Epstein. The Daily Mirror reports that there is "no hiding place left" for the former prince, emphasizing the gravity of the situation.

Tensions at Aston Villa Match and Teaching Unions' Concerns

The Aston Villa match against Maccabi Tel Aviv was marred by tensions, with police managing to prevent any major incidents. Meanwhile, teaching unions in England have expressed concerns over the government's proposed pay award, warning that it is not adequately funded.

WHAT THIS MIGHT MEAN

The potential increase in income tax could lead to significant political repercussions for the Labour Party, potentially alienating voters who supported their manifesto pledge. If the party fails to present a unified stance, it may face challenges in upcoming elections.

David Lammy's handling of the prisoner release issue might prompt calls for greater accountability and transparency within the justice system. This incident could lead to policy reviews and reforms to prevent similar occurrences in the future.

Keir Starmer's involvement in COP30 highlights the ongoing debate between global environmental responsibilities and domestic priorities. His actions may influence the UK's future climate policies and its role on the international stage, especially if the summit yields significant agreements or commitments.