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		</div><p>Lisa Nandy’s bid to win the UK Labour leadership race has received a fresh boost after former contender Jess Phillips said she was now backing her to succeed Jeremy Corbyn.</p>
<p>Ms Phillips announced on Tuesday that she was pulling out of the contest, saying she was not the right person to unite the party after its crushing general election defeat.</p>
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<p>She said that while she would support both Keir Starmer and Ms Nandy among the remaining four contenders, Ms Nandy would be her “number one preference”.</p>
<p>“I’ve said that right now, I can’t bring the party together and that’s why I have withdrawn from the race,” Ms Phillips said.</p>
<p>“I think both Lisa and Keir can unite the party and begin the process of winning back trust with the country.</p>
<p>“I’ll be voting for Lisa and Keir, as I think that they can do that. Lisa will be my number one preference.”</p>
<p>In a campaign speech at the Centrepoint charity in London, Ms Nandy said she would raise taxes in order to reverse Tory welfare cuts.</p>
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<p>The Wigan MP said the party needed to go out and make the case that taxation was not “evil” but was essential to pay for public services.</p>
<p>“It cannot be right that the poorest can find themselves paying the highest marginal effective rate of tax – that bakers’ bonuses are taxed more than bankers. The root is Universal Credit, and the cuts made in 2012,” Ms Nandy said.</p>
<p>“I would immediately reverse these, paid for by cancelling the Tories’ proposed changes to the national insurance contributions threshold, while we design a progressive tax system that works for the least well-off.</p>
<p>“We need to change the debate. Tax is not an evil. Tax is how we contribute to something bigger, better than ourselves.”</p>
<figure id="attachment_148293" aria-describedby="caption-attachment-148293" style="width: 600px" class="wp-caption aligncenter"><img class="size-full wp-image-148293" src="https://londonglossy.com/wp-content/uploads/2020/01/C208BA7A-D86B-4D10-8BF5-3BD604EC1373.jpeg" alt="" width="600" height="400" /><figcaption id="caption-attachment-148293" class="wp-caption-text">Lisa Nandy gives a speech on the welfare state at the homeless charity Centrepoint in central London</figcaption></figure>
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<p>She said she would use the tax system to penalise large companies which refused to pay their employees the living wage.</p>
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