There is “no money left” to lift the cap on two-child benefits, a Labor leader has said amid a growing revolt in the party.
Sir Keir Starmer has faced a backlash from his own MPs after confirming he would keep the cap if elected despite promising to scrap it during his 2020 leadership campaign.
Jonathan Ashworth, the shadow work and pensions secretary, described the policy, first introduced by George Osborne, as “appalling” earlier this year, while Angela Rayner, Sir Keir’s deputy, he has also criticized it in the past.
Speaking on Times Radio, Ms Powell said: “It’s a really difficult situation where we find ourselves with the economy crushed and the economy in shambles after 13 years of Conservative government, where our political hopes and aspirations are head on hard economic realities.
“And we can’t do everything we’d like to do in the first term of a Labor government, because frankly, there’s no money left, to coin a phrase, and we have to take that responsible position.”
In 2010, Liam Byrne, a former Labor chief secretary to the Treasury, left a note on a desk for his successor that read: “Dear Chief Secretary, I’m afraid there is no money. Kind regards and good luck! ” Byrne insisted the message was meant as a private joke.
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