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Budget boost for Millionaires whilst pensioners and middle class

 

Mike Gapes has hit out at the Budget " where millions are asked to pay more, so millionaires can pay less"

 

14,000 people earning £1 million or more are getting a tax cut of over £40,000 each year.

A family with children earning just £20,000 loses £253 a year from this April. This is on top of the VAT rise which is costing a family an average of £450 per year. 

 

This Budget includes a £3 billion tax raid on pensioners over the next four years. The freeze in the personal allowance for pensioners will see 4.5 million pensioners who pay income tax losing an average of £75 per year next April. People who turn 65 next year will lose out by £314.

 

The government promised change, but things have got worse not better.  Their policies have failed on jobs, growth and the deficit:

One million young people are unemployed.

Our economy has stalled. The OBR is predicting just 0.8% growth in 2012 compared to 2.5% forecast in last year’s Budget. And the UK is growing at half the rate of the United States. 

The government is set to borrow £150 billion more than planned because of slower growth and higher unemployment.

 

 Even on the government’s bogus calculations the 50p top rate of tax has  raised £1 billion in its first year. The Chancellor could have used the money to cut fuel duty, reverse cuts to tax credits, reduce cuts to police officers or help pay the down the deficit – but instead he chose to cut taxes for the richest 1% of earners. This is the wrong choice from a government that is totally out of touch.

 

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.


The Chancellor claimed this was a “Budget which rewards work.” But at the same time as cutting taxes for the very richest, the government is pressing ahead with huge cuts to tax credits for working families next month which will leave thousands of families better off quitting work and living on benefits.

 

The increase in the personal allowance today is outweighed by the VAT rise, cuts to tax credits and higher petrol duty. A family with children earning just £20,000 loses £253 a year from this April. This is on top of the VAT rise which is costing a family an average of £450 per year. 

 

And of course most pensioners and people on low incomes won’t be helped at all by this policy. The government is giving with one hand, but taking lots more away with the other hand.

 

There are 300,000 people benefiting each and every year from the Chancellor’s top rate tax cut.But there are just 4,000 houses sold each year for more than £2 million. So 99% of those who gain from his tax cut for the richest will be totally unaffected by his rise in stamp duty, and get a massive windfall from this Chancellor.

 

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