It’s no secret that economic policy often sparks fierce debates behind closed doors—but this time, it’s Angela Rayner making waves within her own party.

In a bold move that has exposed deep cracks in Labour’s top team, the Deputy Prime Minister has reportedly been urging Chancellor Rachel Reeves to roll out a series of tax hikes targeting the wealthy.

And we’re not just talking about one or two small changes.

Rayner outlined eight separate proposals in a private memo, seen by The Telegraph, which could bring in between £3 billion and £4 billion a year.

But insiders say the true figure could be even higher, since not all of the suggested measures were officially costed.

A Confidential Memo Stirs Tensions at the Top

According to reports, Rayner submitted her ideas back in March, via a document marked “official” and titled Alternative Proposals for Raising Revenue.

The focus? Taxing the wealthier segments of society—while promising not to touch working-class pockets.

Among the suggestions:

Reinstating the pensions lifetime allowance, which had previously allowed individuals to save over £1 million without facing heavy tax penalties.
Tightening up on dividend taxes.
Hitting an estimated one million high earners with higher income tax obligations.
Raising corporation tax on banks, which could see them coughing up more to the Treasury.

Rayner’s memo made the case that these measures would be seen as “popular” and “prudent,” particularly as pressure mounts on the government to find new sources of revenue without cutting public services further.

Rayner’s Growing Frustration with Budget Cuts

Allies close to Rayner say she’s grown increasingly frustrated with having to justify ongoing spending cuts.

Her memo seems to reflect a broader desire among some in Labour’s leadership to shift the burden of fiscal responsibility away from ordinary workers and onto wealthier individuals and financial institutions.

While no official comments have been made about the leaked document, a source near Rayner acknowledged that internal discussion papers like these are common.

Still, this one clearly struck a nerve.

Reeves Holds the Line on Who Decides Tax Policy

Despite the stir, Chancellor Rachel Reeves is reportedly standing firm.

Sources suggest Reeves is reminding colleagues that she alone sets taxation and spending policy, signaling that not all of Rayner’s proposals are likely to make it into Labour’s formal agenda.

But the leak has added fresh fuel to speculation that Labour may be planning a more aggressive approach to taxation if elected—especially after Reeves refused to rule out more tax changes in the upcoming autumn budget.

Why Your Isa Might Be on the Chopping Block

Meanwhile, Reeves has another big tax-related decision hanging in the balance—this one affecting millions of savers. Despite public backlash and earlier reports that she had dropped the idea, Reeves is still considering cutting the annual cash Isa allowance.

Currently, adults can put up to £20,000 a year into a tax-free Isa.

But if Reeves has her way, that cash allowance could drop to just £4,000, with the goal of nudging more people into stocks and shares Isas instead of saving in cash.

In a recent interview with the BBC, Reeves said she had “no plans to reduce the limit of what people can put into an Isa”—which many interpreted as her backing down.

But within hours, a Treasury insider clarified that Reeves was only referring to the overall annual Isa limit, not the specific cash portion of it.

What’s Really Going On?

At the heart of this is a broader conversation about who pays what, and how the government plans to raise enough revenue to fund public services while staying fair to working people.

Rayner’s push shows a clear desire to rebalance the scales, but Reeves appears cautious about straying too far from her own roadmap.

As Labour edges closer to power, the internal tug-of-war over taxation could become one of the party’s defining struggles.

Whether voters see these proposals as economic justice or financial overreach could play a major role in shaping what happens next.