While millionaires get a tax cut it is millions of struggling families on middle and modest incomes who are paying the price for this government’s economic failure.
Independent figures show that around 60 per cent of households hit by the real terms cuts to benefits and tax credits are working households.
According to the House of Commons Library these decisions, together with all other changes to tax and benefits taking effect in April, mean a one-earner family on £20,000 with two children will lose £279 a year. This does not even include the VAT rise which has cost families with children around £450 per year. And this will happen on the same day that 8,000 millionaires get an average tax cut of over £107,000. How can this government claim we are all in this together when working families, striving to do their best, are being singled out?
– Rachel Reeves MP, Labour’s Shadow Chief Secretary to the Treasury