“We need a better plan that works for the many not the few” says Steve McCabe MP

The Chancellor of the Exchequer George Osborne today gave his final budget 13 days before the end of Parliament and the onset of a General Election, unprecedented in modern politics.

 

He took the chance to claim things have never been better but the reality is GDP per head is still below pre-crisis levels and for most people things have never been so bad.

 

Figures from the Institute of Fiscal Studies show that families are on average £1,127 a year worse off because of tax and benefit changes and people aged 22-30 years old have suffered the biggest drop in income under George Osborne. This is the first Parliament since the 1920s where people are worse off at the end than they were at the beginning.

 

While the announcement of an increase in the tax free personal allowance is welcomed by Labour, the Chancellor offered little else to ease pressure on family budgets. His failure to index link the changes in Child Benefit means the number of families set to lose Child Benefit will double. After 5 years of this coalition government we have seen the erosion of wages, job insecurity and tax cuts for millionaires. George Osborne promised to eliminate the deficit in 5 years but his long term economic gimmick has failed and we are still at the halfway point.

 

Commenting on the Budget, Steve McCabe MP (Birmingham Selly Oak) said:

“What we have heard from the Chancellor is the most cynical political posturing we’ve witnessed in years. This is from the man whose priority was a tax cut for millionaires. His inheritance tax plans are good news for the 54,000 wealthiest families in the land.

 

“This is a budget which offered little cheer from a Chancellor who looks set to cut NHS funding and increase VAT after the election and is already responsible for imposing 24 tax rises on ordinary people. No amount of window dressing can disguise the reality of Osborne’s plans

 

“In my constituency unemployment is still at 4.4%, almost double the national average and we are in the top 16% of constituencies across the country for unemployment. People I speak to are telling me they are worse off and are worried about their children’s future. We need a better plan that works for the many not the few.”

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