Angela Rayner has revived calls for a huge raid on savings and investments as tensions rise within the party over a tax increases in its next manifesto.
Labour's deputy leader highlighted the "gap" between Capital gains tax (CGT) and income tax rates, with higher rate payers on average charged 20 per cent on gains, compared with 40 per cent on earned income.
Last month, Labour’s Shadow Chancellor Rachel Reeves attempted to shut down speculation that the party is planning a major hike in capital gains tax, saying she had "no plans" to do so.
However, Rayner has indicated that she is still pushing for Labour to pledge a tax rise in its next manifesto.
Tensions are rising within the Labour party over a tax rise in its next manifesto
PA
"I would like to see our tax system made fairer for working people," she told BBC Radio Four’s Today programme.
She added that she could not commit to increasing capital gains tax now, as it would be wrong to make "piecemeal" announcements.
But she did suggest that it could be included in Labour’s election manifesto next year.
"Coming up to the General Election, our priorities will be about helping and supporting working people," she said.
"We will set out our proposals at a General Election, we are not piecemeal doing it... but we are saying come the election the choice will be continuing with the Conservatives helping the top wealthiest, or a Labour Party who are clearly setting out that working people would be better off."
Former Tory cabinet minister Simon Clarke claims her comments pointed to a major split between seniors within the Labour Party.
"This is definitely at odds with what Rachel Reeves has insisted," he said.
The Labour party say they have 'no plans' for a major tax hike
PA
"Labour’s tax plans look not just flimsy but chaotic - and it’s clear Angela Rayner wants to take the burden still higher."
Rayner first responded to the issue last month after Rishi Sunak’s tax return revealed that the Prime Minister paid an effective tax rate of 22 per cent over the last three years because much of his income came from investments that attracted capital gains tax.
Starmer has avoided questions about whether he favours a rise in CGT.
A Labour source yesterday insisted the party has "no plans" to increase the tax at present.