'Chancellor Must Rethink Tax Credits' Ex-Minister Mitchell Urges Osborne to Revise Policy

The Birmingham Post (England), October 29, 2015 | Go to article overview

'Chancellor Must Rethink Tax Credits' Ex-Minister Mitchell Urges Osborne to Revise Policy


Byline: Jonathan Walker Political Editor jon.walker@trinitymirror.com

CHANCELLOR George Osborne must rethink plans to cut tax credits - to ensure workers on lower incomes are protected, a Conservative MP has warned.

Former Cabinet Minister Andrew Mitchell, Conservative MP for Sutton Coldfield, was speaking after the Government suffered a dramatic defeat in the House of Lords over tax credits.

Mr Mitchell urged the Chancellor to ensure the cuts hit "those with the broadest shoulders" who could afford to cope with a reduction in their income.

And he said Mr Osborne was right to "respond to the will of the Lords" and accept that he had to make changes to his plans.

Government figures show that 319,000 working households in the West Midlands region receive tax credits. Those with incomes above PS3,850 will be affected by the cuts under Mr Osborne's original plans, although some will also benefit from an increase in the minimum wage or an increase in the income tax threshold, which effectively cuts income tax for many people.

Critics say the move could deprive low-income workers of up to PS1,300 a year.

The Lords blocked the changes by voting for a Labour motion stating cuts should not go ahead unless the Government ensures people on low incomes who currently receive tax credits are protected for at three years. …

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