Changes to tax must be made, MP says

Date: 9th September 2009

The taxation levels faced by Britain's wealthy must be increased, a Labour MP has said.

Jon Cruddas suggested that the revenues generated from such a move could be used to help out poorer people - and called on Gordon Brown to show more "radicalism".

Revenues to central government have been under pressure over recent months, due to the continuing effects of the recession.

July figures showed that both VAT and corporation tax levels were around a third below those of the same month in 2008.

The government is also running up unprecedented deficits of £175 billion this year - and plans to hike income tax for those earning £150,000 or more a year from 40 to 50 per cent in 2010.

However, Mr Cruddas' latest comments suggest that he believes these moves are not enough - and called for "tax justice".

He added: "What does Labour stand for any more? There are plenty of initiatives and announcements, but no sense of animating purpose - and thus, as yet, no compelling case for re-election."

The MP made the comments in a speech to Compass, a left-wing pressure group.