Ministers look at blueprint for economic overhaul amid fears cost of living could hand election to far right

Many MPs say they are frustrated with communications strategy that brands both Reform and Greens as extremists

Cabinet ministers have been studying a blueprint for Labour to radically overhaul its economic offer and messaging, including devolving tax powers, abolishing national insurance and major property tax reforms.

Passed around dozens of MPs, the paper argues that without a major rethink, the failure to tackle the discontent on the cost of living will hand the next election to a hard-right government. There is also increasing concern that the war with Iran – pushing up prices of fuel, energy, food and mortgages – will fuel further mass public anger.