A senior Labour Cabinet minister privately complained that party colleagues were too focused on finding new people to tax in order to fund welfare spending, according to newly released government documents.
Pat McFadden, the Work and Pensions Secretary and one of Sir Keir Starmer’s closest allies, made the remarks in messages exchanged with Lord Mandelson that have now been published as part of a major release of official correspondence.
The documents, which run to more than 1,500 pages, offer a rare glimpse into discussions taking place at the highest levels of Government and reveal growing concern within Labour about welfare costs, taxation and the party’s political direction.
In one exchange following disappointing local election results, Lord Mandelson described the mood within Labour as “mutinous”.
Mr McFadden agreed, replying:
“Every meeting I have is ‘who can we tax in order to pay benefits to others?’ They’re asking the wrong questions.”
The comments are likely to reignite debate over the Government’s approach to taxation and welfare reform at a time when ministers are facing increasing pressure over the rising cost of Britain’s benefits system.
The exchange took place before the Government’s decision to scale back planned welfare reforms that would have delivered billions of pounds in savings. The move followed opposition from Labour MPs and was viewed by many political observers as a significant setback for ministers seeking to reduce welfare spending.
The documents also reveal wider tensions within Government.
Lord Mandelson was critical of Sir Keir Starmer’s leadership, suggesting the Prime Minister lacked “verve” and arguing that ministers needed to do more to demonstrate a sense of purpose and direction.
In another message, Mr McFadden acknowledged concerns about the Government’s public image, saying it could appear “tone deaf” and “a bit robotic”.
The release of the files has prompted criticism from opposition parties.
Conservative leader Kemi Badenoch said Mr McFadden’s comments showed Labour had become “the welfare party”, while Labour ministers insist their focus remains on helping more people into work and creating opportunities for young people.
A spokesman for Mr McFadden said he has repeatedly argued that welfare policy should focus on changing people’s lives through work and opportunity, rather than simply determining what benefits they are entitled to receive.
The publication of the Mandelson files has opened an unusual window into private conversations between some of the most senior figures in British politics, revealing disagreements over policy, leadership and the future direction of the Government.
For ministers already facing difficult decisions on public spending, taxation and welfare reform, the disclosures are likely to fuel further scrutiny in the months ahead.
