Tax on high earners divides Labour

Alistair Darling’s new 50p tax rate for high earners has come under attack from former Cabinet colleague Stephen Byers. The ex-transport secretary and leading Blairite launched an assault on the Chancellor’s "cynical" political manoeuvring and insisted Labour would regret the policy for many years to come. In an intervention which could encourage further Labour figures to break ranks over the manifesto-breaking move, Mr Byers also claimed that the Cabinet was divided over it. His comments bring into sharp focus tensions within the Labour Party between its Blairite right-wing and its traditional base on the left. The shift in last week’s Budget to a 50p top rate of tax on earnings…

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