Chancellor performs u-turn on tax credit cuts

Written by Tom Freeman on 25 November 2015 in News

Nicola Sturgeon welcomes news of tax credits cuts reversal

Chancellor George Osborne has scrapped plans to save £4.4bn by cutting tax credits.

The planned cuts had been widely criticised and were rejected by the House of Lords.

Laying out his Autumn Statement and Spending Review to the House of Commons, Osborne said: “I’ve had representations that these changes to tax credits should be phased in. I’ve listened to the concerns. I hear and understand them.


RELATED CONTENT

Warnings for Scotland's budget ahead of Autumn Statement

Family finances ‘in crisis’ warn charities


“And because I’ve been able to announce today an improvement in the public finances, the simplest thing to do is not to phase these changes in, but to avoid them altogether.”

Universal credit is being phased in, and the Chancellor said the minimum income floor for the benefit will rise with the minimum wage, which he has called the ‘National Living Wage’.

Housing benefits will be cut as part of a £12bn cut to the welfare bill.

The move was welcomed by First Minister Nicola Sturgeon, who tweeted: “Well done to all who kept pressure on Chancellor to drop tax credit cuts. Now need to scrutinise housing benefit cuts.”

However Scottish Greens co-convener Patrick Harvie was more sceptical.

"The Chancellor's apparent u-turn on tax credit cuts is a mere pretence, and vast numbers of people will still lose out, either now or under Universal Credit instead,” he said.

 

Tags

Categories

Related Articles

Nicola Sturgeon opens new £8.9m centre for lightweight manufacturing technology
26 June 2019

Lightweight Manufacturing Centre, operated by the University of Strathclyde, will develop lighter, more efficient components for high-value industries, including automotive and aerospace

HMRC to open high-tech Edinburgh hub
17 June 2019

Plans to relocate almost 3,000 civil servants to a new office building in Edinburgh city centre have...

Holyrood committee proposes banning Scottish Government from advance views of economic statistics
6 June 2019

The Economy, Energy and Fair Work Committee have proposed a committee bill which would abolish pre-release access to GDP and the Retail Sales Index for Scotland

Digital sector generates joint highest number of FDI projects, finds EY
5 June 2019

With 16 FDI projects based in the digital sector north of the border, EY rated Edinburgh, Glasgow and Aberdeen in the top ten UK cities outside of London for attracting investment

Related Sponsored Articles

Share this page