Families ‘worse off under Tories’


Published: Saturday 4th April 2015 by The News Editor

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Tory tax policy has left households £1,100 a year worse off on average and families with children have suffered most, Labour will claim.

Ed Balls will use research by independent economists to back up his assault on the Conservatives’ record in government when he launches the party’s latest election campaign poster.

Analysis produced by the Institute for Fiscal Studies (IFS), which factored in the impact of the rise in VAT, cuts to tax credits for working families and changes to the personal allowance, shows families have been hit hard in the pocket as a result of tax and benefit reforms over the last five years, according to the shadow chancellor.

Mr Balls has turned to the respected IFS just days after it judged Tory warnings that Labour would increase taxes on working families by more than £3,000 as unfounded.

On a campaign visit in West Yorkshire, he will say: “Families will be £1,100 a year worse off on average because of this Tory Chancellor’s choices.

“George Osborne and David Cameron have raised VAT and cut the tax credits of working people, but given millionaires a huge tax cut. And our new figures today show how families with children have been hit hardest of all.

“Labour’s better plan will make fairer choices, put working people first and save our NHS.

“We will cut taxes for 24 million working people through a lower 10p starting rate of tax and expand free childcare for working parents to 25 hours a week.

“We will reverse the £3 billion a year Tory tax cut for people earning over £150,000 and introduce a Mansion Tax to help rescue our NHS.

“And we will take further action to help working families by raising the minimum wage to £8, freezing energy bills and banning exploitative zero-hours contracts.

“Because it’s only when working people succeed that Britain succeeds.”

Labour analysis, which factors in childcare costs and direct taxation and benefit changes but not VAT, put a couple both in work on average earnings and with two children as £1,700 worse off in 2015/16.

A lone parent with two children working 25 hours a week on minimum wage will lose £1,800, according to the figures.

Conservative Priti Patel said: “Ed Miliband’s tax rises will cut the average working family’s pay packet by £3,028, and Labour’s debt and borrowing will cause economic chaos.

“The independent experts at both the Institute for Fiscal Studies and the Office for Budget Responsibility show that living standards are set to be higher in 2015 than they were in 2010 – the average family will be £900 better off under the Conservatives than they were when Labour left office.

“The job isn’t done, but our long-term economic plan is working.

“The choice at this election is clear. An income tax cut for 30 million people under David Cameron – meaning more security for hardworking taxpayers and their families. Or the chaos of the debt, waste, borrowing and taxes under Ed Miliband.”

Published: Saturday 4th April 2015 by The News Editor

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