Overview

• A leaked memo from Angela Rayner to Chancellor Rachel Reeves proposed eight tax increases and migrant benefit restrictions, highlighting policy rifts within Labour’s leadership.
• The memo has intensified speculation that Rayner is positioning herself as a credible alternative to Keir Starmer, with allies denying orchestrating the leak.
• Rayner’s proposals include limiting migrants’ access to the state pension and increasing the NHS surcharge for visa holders, alongside measures targeting wealthier taxpayers.
• Labour MPs and analysts view the memo as a strategic move to differentiate Rayner from Starmer and Reeves, with some suggesting it signals her leadership ambitions.
• The Labour leadership insists the cabinet remains united, but the episode underscores internal tensions ahead of the autumn Budget, where Reeves may adopt or reject Rayner’s proposals.