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Labour’s dilemma over tax and spending policy has been laid bare with polls showing voters are divided over whether Sir Keir Starmer should back the Conservatives’ further tax cuts.
A narrow majority of voters (51%) say Labor should support further tax cuts, even if it means spending less on public services, with the Conservatives suggesting they may do so in the autumn budget. .
But 49% want the party to oppose tax cuts to free up cash for promises to fund tougher public services, More in Common research exclusively shared I suggests.
Labor has so far stuck close to the Conservative Party’s fiscal plan, supporting tax cuts in its spring budget and autumn statement.
But the party is under increasing pressure to explain how it will help restore public services that critics say have been severely damaged by Conservative austerity cuts since 2010.
On Thursday, Mr Starmer was forced to admit there was “no magic money tree” that money could use to plug the £4bn black hole in council finances, while the Labor leader also said there would be 280 in the green sector. Growth Plan defended his decision to scrap the party’s pledge to spend £100m.
A 60-40 majority of Labor voters in 2019 want the party to defeat Conservative plans and oppose further pre-election tax cuts to fund public service spending, a poll shows. This highlighted Mr Starmer’s dilemma.
By contrast, Conservative voters in 2019, whom Labor is trying to win over, supported further tax cuts by a 65-35 majority, even if it meant spending less on public services.
Luke Trill, UK director of More in Common, said: ‘The Conservatives’ plan to seize control of the agenda with further tax cuts in the autumn is a risk, especially given their failure to change course so far. “This is a high-level strategy.” And the public is divided on its affordability.
“But the dilemma for Labor is what it should do in response.
“Our polling shows that it matters how the debate around tax cuts is framed. People don’t want to oppose tax cuts in the abstract, but they do want to see tax cuts lead to cuts in public services. If there is a connection, public opinion is even more divided.
“If Labor wants to say ‘no’ to further cuts, it will need to convince the public that core services will suffer if government funding is reduced.”
A Labor Party spokesperson said: “Every decision a changed Labor party takes is aimed at putting more money into working people’s pockets, improving living standards and rebuilding public services.”
“After 14 years of Tory government turmoil and failure, we have no illusions about the current state of the economy. Labor will never play shorthand with public finances. Our mission-driven program will support growth. It will restore hope and restore a future to Britain.”
:: More In Common surveyed 2,027 UK adults on March 19th and 20th. Data is weighted to be nationally representative. More In Common is a member of the British Opinion Research Council and complies with its rules.