British Labour Party to Launch Radical Review of BOE

The blow to the new leader’s authority over Trident is one of several issues which are provoking deep splits within the Labour Party in a potentially bruising week for the new leader.


The Labour Party needs to win next year’s Mayor of London election to prove that Jeremy Corbyn can reach out to floating voters, a leading centrist MP has warned at the party conference.

In the Summer Budget in July the Tories raised the threshold at which the tax – 40% at present – is paid so that after 2017 a couple with an estate worth less than £1m would pay nothing.

Yesterday, Shadow Chancellor Mr McDonnell won loud applause from the conference audience but left business leaders with questions when he vowed that a future Labour Government would pursue an anti-austerity agenda yet “dynamically” grow the economy. The estimated cost of this was put as high as several hundred billion dollars, and included one plan to change U.S. law to enable the United Kingdom to use bases in America itself.

“We need to prove to the British people we can run the economy better than the rich elite that runs it now”, he said.

LABOUR remains committed to Trident with the decision not to debate it at the party’s conference a sign of support for renewing the nuclear deterrent, according to the city’s council leader.

“Let me be clear that we will guarantee the independence of the Bank of England”, McDonnell said, aiming to calm fears after he had called for the government to reclaim the power to set interest rates.

McDonnell said reports that Labour planned to implement a financial transaction tax – also known as the Robin Hood tax – had been blown out of proportion.

Mr Corbyn suggested that he was prepared to offer his MPs a free vote on the issue in the face of a significant rebellion by members of his shadow cabinet including Hilary Benn, the shadow foreign secretary.

“I was elected with the biggest-ever mandate of any Labour leader”, Mr Corbyn said.

Insisting that Labour would not be “deficit deniers” Mr McDonnell said: “I tell you straight from here on in Labour will always ensure that this country lives within its means”.

Corbyn was relaxed about this, unable to understand why on earth members of a party should not have different views and debate them in public. And he said Labour would boost growth through an “active monetary policy” – effectively printing money to stimulate the economy.

“Fair play for all, solidarity and not walking by when people are in trouble”.

Mr McDonnell backed a Heathrow protester who tried to superglue himself to David Cameron and said such tactics were acceptable “when politicians are not listening”.

Labour’s new advisory Piketty brought the topic of wealth inequality to the forefront of political debate previous year with his book Capital in the 21st Century.


The British Labour party talks about offering a radical economic alternative.

UK Labour Party to vote on scrapping nuclear weapons