How a 50p income tax rate would work – and does Shabana Mahmood support it?

• Shabana Mahmood, widely tipped to be Andy Burnham’s choice for the next chancellor, previously rallied against the Conservative government’s reduction of the top income tax rate.
• In 2014, Ms Mahmood stated it was 'wrong' for the government to cut the additional rate of income tax from 50p to 45p, labelling it a 'tax cut for millionaires'.
• The Institute for Fiscal Studies estimated the 2014 tax cut would cost the exchequer around £700 million a year, a move also opposed by then-Labour leader Ed Miliband.
• Despite Ms Mahmood's past stance, Labour's 2024 manifesto pledges not to increase income tax, National Insurance, or VAT for 'working people', making a return to the 50p rate unlikely.
• Andy Burnham, set to become prime minister, has not ruled out a wealth tax and indicated 'some room within [Labour’s] manifesto for movement on tax' for other revenue-raising measures.

IN FULL

Chancellor favourite Shabana Mahmood backed 50p income tax rate