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”
Bruce Lesley
Support for children likely to go in first Lib-Con cuts | Left Foot Forward: http://bit.ly/aNxRwB: Elections matter for children
Fred
Whatever cuts and tax rises are coming are Labour’s fault so don’t call them Lib-Con cuts. Labour made this mess by running up large budget deficits when the economy was booming.
Every single Labour government has left office with higher unemployment than when they entered office and with the public finances in a complete mess. Once again someone else has to clear up the mess, but to blame the cleaners for the mess is frankly insulting.
norbert
@Fred
you are so right.
now, after this phoney war I wonder if there’ll be any debate about where the cuts should apply. I’m in favour of an immediate across the board cut to remove the structural part of the deficit and if the economy still needs some fiscal stimulus above that given by the cyclical deficit then cut taxes/raise threshholds. After that I’d say any job advertised in the Guardian, social workers (give the remit to the police, the social workers seem to just stand by and watch as children are murdered), PCSOs, welfare benefits to those with criminal records etc etc. Plenty of opportunity
Anon E Mouse
norbert – Not all social workers are the same dude – even those in child protection. (I had to say that!)
Will – You came across very well on the BBC on Saturday. Are you going to upload the footage you took whilst outside the Lib Dems HQ?
The news on Miliband is good…
norbert
i knew a social worker once. he referred to the alcoholics he had to treat as his ‘client base’. he wanted that base to be bigger because that was his job justification. he’d have been mortified if one of them had actually given up the booze.
I am hoping for a Milliband (the creepy rather than just odd one) versus Ed Balls.