The publication of 1,500 pages of the “Mandelson files” has revealed a crucial sentence that encapsulates the Labour government's troubles. In a casual message, cabinet minister Pat McFadden expressed frustration over the government's approach to welfare spending, particularly disability benefits.
McFadden's Revealing Message
On 25 May last year, McFadden, then Chancellor of the Duchy of Lancaster, messaged Peter Mandelson about the challenges in controlling welfare costs. He wrote, “I don’t know what Keir thinks of all this. He has not spoken to me about any of it.” Mandelson replied that the Parliamentary Labour Party was “in a mutinous state.” McFadden, expected to defuse the rebellion as a ministerial troubleshooter for Sir Keir Starmer, instead confided that even he was unaware of the prime minister’s stance, adding: “Yes. Every meeting I have is ‘who can we tax in order to pay benefits to others’. They’re asking the wrong questions.”
The Core Problem
This summary—“who can we tax in order to pay benefits to others”—strikes at the heart of the issue. Shortly after, Sir Keir ordered a retreat from restraining disability benefits growth, and Chancellor Rachel Reeves was directed to find more taxpayers to fund increased benefits. McFadden's private view aligns with his public comments on BBC TV, where he stressed the need for centre-left parties to focus on wealth creation as much as fair distribution.
Impact on Labour's Image
The phrase captures the essence of Labour's failure under Sir Keir. Voters who hoped for a pro-business government dedicated to growth have been disappointed. While most reasonable people accepted the need for tax rises to stabilise public finances, the government quickly capitulated to its “soft left” backbenchers, raising taxes further to fund unproductive spending. McFadden's words will be used by opponents for years. Labour MPs must now reflect on their own role rather than blaming the messenger.
Context of the Disclosure
The disclosure is unrelated to Mandelson's appointment as ambassador to Washington. It resulted from a humble address tabled by Conservative leader Kemi Badenoch in February, requiring publication of communications between Mandelson and ministers during his ambassadorship. While these documents do not explain his appointment, one message may serve as an epitaph for the prime minister who appointed him. In this way, the disgraced Lord Mandelson has exacted a small form of revenge.
