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LABOUR URGED TO DO MORE ON WEALTH REDISTRIBUTION

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Labour activists have urged Tony Blair to include more action on wealth redistribution in the party's next election...
Labour activists have urged Tony Blair to include more action on wealth redistribution in the party's next election manifesto, reports The Financial Times (p4).

A document about Labour's economic policy says a consultation with party activists showed that 'a redistributive tax system was seen as part of building fairness'.

The consultation also found strong support for the new 10p starting rate of income tax and the working families tax credit. 'Submissions urged us to build upon these measures in a second term,' says the document.

The policy document says Labour activists stressed the need for more investment in public services, and raised concerns about the government's widespread use of the private finance initiative.

But Jack Straw, home secretary, said the government was 'doing a great deal' for Labour's heartlands, including the welfare to work programme. He rejected the idea of taxing the middle classes more.
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