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Labour leadership: Labour ‘too timid’ on tax – Owen Smith

Labour has been “too timid” about taxation, leadership hopeful Owen Smith has said, and pledged that he would raise the top income tax rate to 50p.

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Smith added: “We need to negotiate right now, I don’t think we should accept that we’re on a definite path out”.

Despite facing a revolt from his MPs, Mr Corbyn retains the strong support of many party members and has said he will fight the challenges in a contest which is expected to be decided in September.

“I think we have to have the person who is most likely to beat Jeremy Corbyn and I think that’s me”, said Eagle while sitting alongside Smith on the same programme.

But Ms Eagle, who launched her leadership bid last week, refused to sign up to the idea that the contender with the fewest nominations should step aside.

Smith said people voting in last month’s referendum took part in “good faith” but added: “I don’t think many people in this country knew precisely what the outturn was going to be”.

His comments came as the SNP called on Prime Minister Theresa May to delay the parliamentary debate on Trident until the full cost is known.

Former home secretary Yvette Cooper told The Guardian: “Angela and Owen are both really talented and could do the job”.

There is mounting speculation that Labour could split if Mr Corbyn clings on to power despite having been abandoned by most of his MPs.

The former shadow work and pensions secretary said living standards have fallen under the conservatives and many people feel their hopes will not be realised.

“We need to get the terms of leaving right and we’ve got to have all party agreement on that”, Eagle said.

“It’s really very hard and it’s distressing because for all of us who have devoted our lives to the Labour Party and been members a long time the sort of abuse that is being directed at ordinary Labour Party members, whatever the idea was behind a kinder gentler politics it is not what we have seen”.

“But I will serve and work with Jeremy if he wins”.

Mr Corbyn has called on supporters not to abuse his rivals during the leadership contest amid growing tensions within the Labour movement.

“Let’s just wait and see what happens at the hustings”.

Eagle and Smith are keen to whittle the choice down to Corbyn and one opponent.

She said: “I put my name forward because i think i am the best candidate to do this job and I think I would be a good Prime Minister”.

Mr Sandell is also expected to urge members and supporters to help the party’s candidate in the East Brighton by-election, Lloyd Russell-Moyle, to be voted on to Brighton and Hove City Council.

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Labour Party members who joined before January 12 qualify to vote in the leadership contest. “It’s been a shambles so far”.

Jon Trickett