The Fight To Keep Tax Credits

Labour will file a motion today in the House of Commons to keep tax credits.

17:27 20 October 2015

Labour are set to file a motion later today to put the brakes on George Osborne’s cuts to tax credits. Although it is more likely to push through, opponents warned Shadow Chief Treasury Secretary Seema Malhotra warned that it is a “turning point in people’s trust.”

 

The tax credit is expected to affect 3.2 million by April. Labours isn’t the only one against the Osborne’s hated plans, the motion is also supported by backbenchers from the Tory Party, SNP, UKIP, DUP, and Plaid Cymru, giving them a better chances of winning to protect the poorest workers and their families.

 

In 2008, a similar backbench revolt against Gordon Brown’s draft decision to scrap 10p rate tax, lead to tax cuts being given to the whole population. Some MPs are now suggesting that Osborne might follow a similar tax-cutting strategy.

 

A proposal has been made to the Chancellor seeking protection for the poorest workers at nil cost. It includes the introduction of a second earnings threshold that cover all those who make £13,100 or less, whose tax credit clawback rate would remain as it is now. This will protect around 1.7 million of the poorest workers and their families.