George Osborne thinks he can fool the British public, but this week’s Budget uncovered the reality that the Conservative party is not, as he claims, the party of the working people.
This was a Budget from a politician wanting to grab headlines rather than putting Britain first. The priority should be to help those in work but we now see that the budget has hit working people in the pocket, reducing the tax credits millions rely on.
The Institute for Fiscal Studies showed how Osborne’s decision to cut tax credits will hit about 3 million families. Their analysis supports what the Labour Party have been saying all along. Osborne should not underestimate how important tax credits have been to many people on low incomes, and cutting them will have sever implications for people’s household budgets.
In Cardiff Central, 4,300 families with children claim tax credits. That’s 54% of families that receive this vital support.
When Labour introduced tax credits, they gave people an incentive to move into work. However, the Chancellor’s reforms are effectively a penalty on work, reducing the incentive for people to get a job.
A couple from Cardiff Central in full-time work on the minimum wage with two children may gain £1,560 in salary from the increased minimum wage, but they will lose over £2,200 from cuts to tax credits.
So overall it will be low income working families in Cardiff Central who will bear the biggest burden of Osborne’s Budget.
Jo Stevens, MP for Cardiff Central, said, “I know from speaking to constituents in Cardiff Central that household budgets are already tight and people are struggling to get work that pays. This should have been a Budget to help people here into work and make it pay. Instead it was a political con trick from a Chancellor whose idea of a “long-term plan” is a move from 11 Downing Street to No 10.”