I welcome Ed Miliband's statement on tax credits this week. He said “No government led by me as Prime Minister will cut the tax credits that working people rely on, while giving tax breaks to the richest. Instead, a Labour government will raise them at least in line with inflation in every Budget. That is my commitment. “A better plan. A better future. Let’s make it happen together.”
The Tories have failed to rule out further cuts to tax credits and child benefit. People just want to know where they stand. The Tories want you to go to the polls without knowing what they will do to your income.
As the independent Institute for Fiscal Studies said earlier this week “it is not possible for the Conservatives to meet this target by increasing benefits by less than inflation – large cuts to cash entitlements would be required”. (Institute for Fiscal Studies, Taxes and benefits: the parties’ plans, April 2015, p.27)
With less than a week to go until polling day it’s time for the Tories to come clean about where these “large cuts to cash entitlements” will fall.“
Ed Balls, Labour’s Shadow Chancellor, has also spoken on the subject, he said:
“Tax credits help to make work pay for millions of families. That’s why it’s so wrong that the Tories chose to cut them while giving millionaires a tax break.
Labour will put working families first by raising tax credits at least in line with inflation in every Budget.
“Before the last election we warned that the Tories would cut tax credits for families earning £30,000. The Tories said this was a lie, but then did exactly as Labour warned after the election.
“Analysis of Tory spending plans shows that David Cameron and George Osborne are planning another raid on the tax credits of millions of working families. They should come clean and admit it.
“The choice at next week’s election is clear. Labour’s better plan which will put working families first or a Tory hit to family budgets which working people cannot afford.”