Support for children likely to go in first Lib-Con cuts

The Lib-Con government will start cutting spending in 2010-11. This could include cuts to Child Tax Credits and the Child Trust Fund.

The Liberal Democrats have agreed to cut £6 billion in 2010-11 as part of the compromise agreement with the Conservatives. This is likely to include cuts to Child Tax Credits and the Child Trust Fund.

The Guardian reports today that:

“the Lib Dems accepted that spending cuts will start this year as part of an accelerated deficit reduction plan.”

In February, Philip Hammond told Channel 4 News:

“We have been very clear about this. In addition to cuts in child trust funds and child tax credits we will cut the government advertising budget.

“So for 2010, it is absolutely right to add savings from the reduction in the advertising budget to the savings in trust funds and tax credits”.

“We can save £1bn-£1.5bn from those three measures.”

Although the Liberal Democrats were previously opposed to cuts in 2010-11, their manifesto set out that they would make savings by “restricting tax credits” and “ending government payment in Child Trust Funds”. The Conservative party manifesto outlined that the party would “stop paying tax credits to better-off families with incomes over £50,000” and “cut government contributions to Child trust funds for all but the poorest third of families and families with disabled children”.

During the election Labour contended that a Conservative government would, in fact, have to cut child tax credits for those earning over £31,000 in order to make up the numbers.

UPDATE 14.47:

The coalition negotiations agreement confirms that, “The parties agree that reductions can be made to the Child Trust Fund and tax credits for higher earners.”

27 Responses to “Support for children likely to go in first Lib-Con cuts”

  1. norbert

    @will straw

    you have a big opportunity to be a great blog that isn’t supporting the incumbent. please don’t just scream ‘tory cuts’.

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  3. Anon E Mouse

    Will – I was disappointed to see Alan Johnson not standing for leader but I’ll give David Miliband a second look. Watched an old Politics Show on Sky+ and he seems quite humorous which is really something the left is lacking and perpetuating the po faced aspects of Labour does not help win people over.

    You need to get the left to unite against the likes of Ed Balls and any of that bunch of Browns inner circle of cronies because you need to ensure a Labour Party that people actually want to vote for and one that isn’t complacent about getting back into power.

    My advice is not to lurch to the left and I agree with norbert above about the somewhat hysterical screaming from certain articles on this blog should really be toned down – keep a firm hand on the reigns of other moderators I say and things should be ok.

    Brown has rightly gone – he lost the election. LFF should now do everything it can to encourage full transparency in the election of a new leader of a once proud party and then things can only get better.

  4. ruby

    Support for children likely to go in first Lib-Con cuts | Left …: The Lib-Con government will start cutting spen… http://bit.ly/duplU5

  5. Avatar photo

    Will Straw

    Thanks for the comments.

    I can guarantee to both Anon and norbert that we will not take a kneejerk reaction to every piece of Government policy. There is a clear need for tax rises and spending cuts in addition to a clear strategy of how to get Britain growing again and we will examine what is presented before making a judgment. We wrote frequently about child tax credits before the election and the case for preserving them so it seemed appropriate to focus on this today.

    As to the Labour leadership race, as I will outline in a blog later, we’re going to stay above the fray and help frame the debate.

    All the best,

    Will

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