Work and pensions minister says government will not go ahead with Tory plans but needs to make savings
Alison McGovern: ‘We will bring forward our own reforms because the last 14 years have been a complete failure when it comes to employment.’ Photograph: Christopher Thomond/The Guardian
Labour will bring its “own reforms” to the benefits system in order to make £3bn worth of cuts, rather than stick to Conservative plans, a minister has suggested.
The work and pensions minister Alison McGovern was asked by Times Radio why Labour was pressing ahead with plans made by the previous Tory government to amend work capability rules.
The Daily Telegraph reported on Friday that the government planned to cut £3bn from the welfare bill by tightening access to sickness benefits, honouring the Tories’ proposals to make savings over four years by changing the work capability assessment.
McGovern said: “Like all departments, the Department for Work and Pensions has to make savings because we are in a terrible financial situation. To be clear, on that point we will bring forward our own reforms because the last 14 years have been a complete failure when it comes to employment.”
Pressed if this meant there would be no cuts, she added: “We will not go ahead with the Tory plan because that was theirs. We will need to make savings like all departments, but we will bring forward our own reforms.”
In the run-up to the government’s first budget, on 30 October, speculation and leaks are rife around what the new administration plans for spending and taxes, such as changes to stamp duty, capital gains tax and levies on vaping.
In the past week it has emerged that the chancellor, Rachel Reeves, is aiming to raise £40bn through tax rises and spending cuts in the budget. Shortly after Labour came to power it claimed the previous government had left a £22bn shortfall in the public finances and said there would be “painful” decisions ahead.
The BBC reported on Friday that the government was planning to increase the amount of money it raised in inheritance tax. It is not known how many people are likely to end up paying more, nor how much more they would pay.
It is understood the prime minister and the chancellor are considering changes to the tax, which now includes several exemptions and reliefs.
Inheritance tax is charged at 40% on the property, possessions and money of somebody who has died, above a £325,000 threshold. It raises about £7bn a year and about 4% of deaths result in an inheritance tax charge.
