LABOUR are hell-bent on raising taxes to spend on benefits, new Mandelson Files revealed yesterday.

They show a minister texted in May 2025 to moan: “Every meeting I have is, ‘Who can we tax in order to pay benefits for others?’”

Former British Ambassador to the U.S. Peter Mandelson leaving his residence.New Peter Mandelson Files reveal Labour are hell-bent on raising taxes to spend on benefits Credit: Reuters Prime Minister Sir Keir Starmer and British ambassador to the United States Peter Mandelson at a welcome reception.Mandelson and PM Sir Keir Starmer in Washington in 2025 Credit: Alamy

Tory Party leader said: “They are the Welfare Party. It doesn’t matter who is in charge of these people, the party for will tax us all into poverty to pay for more welfare.”

Ms Badenoch hit out as yesterday’s second batch of — more than 1,500 pages of messages about his appointment as UK ambassador to the US — heaped even more pressure on PM .

rants show over personality and policy — with ministers caught agreeing with him.

In May 2025, Mandy warned then-Cabinet Office Secretary , now Welfare Minister, about the “mutinous” state of Labour MPs.

Mr McFadden vents about the “taxes for benefits” meetings and says backbenchers are “asking the wrong questions”.

Ms Badenoch added last night: “Pat McFadden has said in private what he and the PM deny in public.

“As I’ve said repeatedly, Labour MPs don’t understand where money comes from.

“They think our taxes are their money to spend, rather than the result of the hard work of the people in our country who deserve so much better.”

Pat McFadden, Secretary of State for Work and Pensions, in a suit and tie.Pat McFadden vents about the ‘taxes for benefits’ meetings and says Labour backbenchers are ‘asking the wrong questions’ Credit: Alamy Handwritten letter from Lord Mandelson to David Lammy.Mandelson’s letter to David Lammy, in which he states the Government would ‘never regret’ appointing him as the British ambassador to the US

added: “This extraordinary confession is the nail in the coffin for this sorry excuse of a government.”

Months after Mr McFadden’s May outburst, Labour rebels torpedoed a £5billion package of .

At last autumn’s Chancellor raised the income tax take on workers while failing to rein in the that is projected to hit £400billion by 2030.

Labour have commissioned a series of reviews into but have refused to commit to reducing spending by the .

Foreign Secretary David Lammy (left) and British ambassador to the United States Peter Mandelson (right) laugh while clapping.Mandy sent David Lammy a personal, handwritten letter about appointing him as British ambassador to the US Credit: PA Conservative Party leader Kemi Badenoch speaking to media.Kemi Badenoch hit out at the second batch of Mandelson Files and heaped even more pressure on the PM Credit: PA

Mr McFadden’s exchanges risk inflaming tensions further with MPs, almost 100 of whom have .

A spokesperson for Mr McFadden said: “Pat has said publicly many times that the question we should ask is not what are you entitled to, but how can we change your life?

“That has been his whole approach as Work and Pensions Secretary, focusing on how we best spread work and opportunities to young people in particular, rather than writing them off as the previous government did.”

Chancellor of the Exchequer Rachel Reeves posing with the red Budget Box in front of 11 Downing Street.Chancellor Rachel Reeves raised the income tax take on workers while failing to rein in the ballooning welfare bill at last autumn’s Budget Credit: Getty Robert Jenrick wearing a blue puffer jacket and a light blue tie.Robert Jenrick said: ‘This extraordinary confession is the nail in the coffin for this sorry excuse of a government’ Credit: Gary Stone