Labour MPs criticise impending benefit cuts - as all 404 MPs summoned to Downing Street briefing

Labour MPs are speaking out publicly against the government’s impending cuts to benefits, arguing the party should make “different political choices” to the Tories and impose a wealth tax to raise money.

Ministers have been priming their MPs and the public for cuts to a ballooning welfare bill since the start of the year, but with a formal announcement expected in the spring statement on 26 March, Labour politicians are starting to make their opposition known.

It comes as all 404 Labour MPs have been called to Downing Street to attend a “welfare roundtable” to discuss the expected cuts in a bid to win over concerned MPs.

The discussions, taking place on Wednesday and Thursday, are being hosted by Number 10’s policy unit.

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Richard Burgon MP raised his concerns during Prime Minister’s Questions on Wednesday, telling the House disabled people in his constituency were “frightened”.

“They’re again hearing politicians use the language of tough choices, and they know, from bitter experience, when politicians talk about tough choices it means the easy option of making the poor and vulnerable pay.

“So instead of cutting benefits for disabled people, wouldn’t the moral thing to do, the courageous thing to do, be to make a real tough choice and introduce a wealth tax on the very wealthiest people in our society?”

Sir Keir Starmer replied that the Tories “left a broken welfare system, which locks millions out of work, that is indefensible, in my view, economically and morally”.

“Of course, we need to support people who need support, we need to help those who want to work to get back into work, and I think there’s a moral imperative in that.

“He talks about a wealth tax, we have raised money – the energy profits levy, taxing non-doms, and air passenger duty on private jets. But this isn’t a bottomless pit, and we must kick-start growth to get the economic stability that we need.”

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Mr Burgon lost the Labour whip in July last year after he rebelled against the government in a vote on the two-child benefit cap, and has since had the whip restored.

Earlier in the session, John Slinger MP asked if the prime minister would “set out how this government will give everyone who is able to work the support they need, provide compassion to those who can’t work, and fix the broken welfare system”.

Sir Keir said the government will “protect those who need protecting”, and said: “I come from a family that dealt with a disability through my mother and brother over many years, so I do understand the concerns that have been raised by him.”

And Nadia Whittome MP told the BBC that the government should impose a wealth tax rather than “placing that burden on disabled people who have already borne the brunt of 14 years of austerity”.

She added that she “can’t look her mum in the eye and support this”.

MPs deeply nervous

Several billion pounds in spending cuts, including from the welfare budget, are expected in the spring statement on 26 March, and many Labour MPs are deeply nervous following the backlash to cuts on pensioners’ winter fuel allowance by the government, announced by Chancellor Rachel Reeves less than a month after winning the election last July.

Ahead of the announcement, all Labour MPs have been invited to Downing Street to discuss the cuts, and Sky News has seen the slots being offered, which involves three 45-minute sessions on Wednesday and three on Thursday.

Inviting all Labour MPs to Downing Street briefings is an unusual move, however, Number 10 said it is “entirely routine for MPs to come in for briefings”.

Some Labour MPs fear the arguments the government is making sound very much like those made by the previous Conservative governments as they attempted to crack down on welfare spending with very little room left in the public finances.

Chancellor Rachel Reeves’ self-imposed borrowing limits have been eaten into by months of economic downturn and geopolitical events since the October budget, with the Treasury understood to believe she must maintain £9.9bn of headroom.

The Treasury is putting forward the proposed cuts to the Office for Budget Responsibility (OBR) on Wednesday ahead of the forecaster’s financial prediction on the day of Ms Reeves’ spring statement.

In an interview with Sky News’ political editor Beth Rigby last week on the Electoral Dysfunction podcast the chancellor argued: “We’ve got to reform our welfare system, because at the moment it’s letting down taxpayers because it’s costing too much, letting down our economy because there’s too many people trapped on out of work benefits.

“And it’s letting down the people who are recipients of benefits because they are trapped on benefits rather than actively supported back into work.”

And on Sunday, Cabinet Office minister Pat McFadden told Sunday Morning With Trevor Phillips “we cannot sit back and let this bill grow and write people off in the way that’s happened for many years”, promising reforms are coming “soon”.

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