Chancellor pledges tax cut for the rich while millions face financial hardship

George Osborne announced the Government Budget in the House of Commons on Wednesday 21 March.
 
On the budget, Steve McCabe said:
“What we have seen from the Chancellor is a millionaire’s budget conceived by the rich for the rich, it will do nothing to promote growth or tackle unemployment.
 
When people on middle and low incomes are being squeezed by rising fuel prices, seeing their tax credits and child benefit cut, when one million young people are out of work and there’s a big deficit to clear, it is completely the wrong priority to cut taxes for people earning over £150,000.
 
“Unemployment has risen to huge levels over the past year yet the Chancellor has not addressed this growing crisis in his budget. I am astonished that a tax cut for the rich has been prioritised over getting people back to work.”

 

 

Key features of this announcement are:
 
- George Osborne said "no pensioner will lose in cash terms", but HM Revenue and Customs estimates that in 2013-14, 4.41 million people will be worse off in real terms with an average loss of £83.
- Child Benefit will be phased out when someone in a household has an income of more than £50,000. It will fall by 1% for every £100 earned over £50,000. Only those earning more than £60,000 will lose the entirety of the benefit.
- New general anti-tax avoidance rule to be introduced.
 
For more information on the Budget click here to see the BBC’s ‘Budget 2012 at a glance’.
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