As the Finance Bill reaches its final stages in the Commons today, Ed Balls has called on George Osborne to u-turn on bonuses, the 50p cut and the ‘granny tax’.
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As the Finance Bill reaches its final stages in the House of Commons today, Ed Balls has called on the government to u-turn on the bankers’ bonus tax, its 50p cut and the ‘granny tax’.
Labour is seeking votes on amendments to the Bill in order to introduce a bankers’ bonus tax to fund a guaranteed job for every young person out of work for more than a year, to stop the cut in the 50p top rate of tax for those earning more than £150,000, and to stop the change in age-related pension allowances known as the ‘granny tax’.
The shadow chancellor says:
“First of all, we need a u-turn on David Cameron and George Osborne’s failed economic policies and to urgently put in place Labour’s plan for jobs and growth including a bankers’ bonus tax to fund youth jobs.
“Second, we need a u-turn on the tax cut for millionaires, so that in tough times the richest pay their fair share.
“And third, we need a u-turn on the ‘granny tax’ so that pensioners aren’t unfairly hit – paying more while the highest earners pay less.”
Adding:
“With Britain in a double-dip recession, long-term unemployment at a 17 year high and so borrowing now going up not down, it’s clear that the government’s economic plan is now failing…
“Conservative and Liberal Democrat backbenchers should stand up for their constituents and vote with us to create jobs for young people, stop the granny tax and reverse the tax cut for millionaires.”
• Osborne’s scrapping of fuel tax is ‘fastest U-turn in history’, but a welcome one 26 Jun 2012
• U-turns galore: The omnishambles runneth over 2 Jun 2012
• Osborne tries to bury charity tax U-turn – the fifth flip-flop this week 31 May 2012
• Osborne’s inevitable pasty tax U-turn set to cost Treasury £35 million 29 May 2012
• More than 70% of public want Osborne to U-turn on cuts and adopt a Plan B 29 May 2012
Last week, George Osborne made the latest budget u-turn, on fuel duty, which followed the post-budget reverses on pasties, caravans, churches and charities – yet it is on cuts that a u-turn will be most welcome, the current strategy having plunging Britain into a double-dip recession. In May, a ComRes poll for the The Independent revealed 72 per cent of the public believe it’s time for Plan B – including 64% of Tory 2010 voters, and 68% of Lib Dem 2010 voters.
Will Osborne listen?
28 Responses to “Balls calls for “three more u-turns” – on a bankers’ bonus tax, 50p and the ‘granny tax’”
Anonymous
Largest ever increase? Yes, because inflation is sky-high. There should be absolutely NO credit for this, it’s following the normal system! (I’d note that benefits link to it is under attack, of course).
And I see, any reasonable kind of saving is now under attack. Well, don’t worry, in the future no matter how much you stuff into a pension if you’re under 40 odd you won’t see it again anyway, so this is just a cherry on top.
There are more reasonable ways to change the tax system – for instance, if you’re working you should pay NI regardless of your age.
Richard
Due to re-establishment of the earnings link and the “triple lock” state pensions will now increase in line with the higher of earnings, inflations or 2.5% – so even if inflation was flatlining, pensioners would still get a decent increase. While the Gov can’t claim credit for inflation they can claim credit for changing the “normal system” as under New Labour where pensioners were lucky to get even an at-inflation increase – in fact, when adjusted for CPI, between 2002 and 2010 the value of the state pension actually went down.
Anonymous
Pardon me if I don’t give the Tories credit for pushing inflation over 5%.