Labour to scrap hated Bedroom Tax

Ed Miliband will use a speech at party conference on Saturday to commit a future Labour government to repealing the coalition's Bedroom Tax.

Ed Miliband will use a speech at party conference on Saturday to commit a future Labour government to repealing the coalition’s Bedroom Tax.

He will also say that chancellor Ed Balls has already earmarked funds to pay for it.

Miliband will say that the Bedroom Tax has become a symbol of an out of touch government standing up only for the interests of a privileged few.

He will also detail how two-thirds of the 660,000 affected by the policy are disabled and the vast majority do not have the option of moving to smaller accomodation.

The National Housing Federation and the National Audit Office have previously questioned whether the Bedroom Tax will raise any money for the treasury, and Miliband will set out where the money will come from to pay for the repeal of the policy, promising no extra borrowing for social security promises.

Instead, repeal of the Bedroom Tax will be paid for by:

  • Reversing George Osborne’s £150 million tax cut for hedge funds announced in Budget 2013;
  • Scrapping George Osborne’s “shares for rights” scheme which has been rejected by businesses and has opened up a tax loophole of up to £1 billion;
  • Tackling tax scams in the construction industry which is costing £500million in lost revenue.

Left Foot Forward reported yesterday that one in three council tenants hit by the Bedroom Tax have fallen behind on their rent since its introduction, according to new figures from the TUC.

7 Responses to “Labour to scrap hated Bedroom Tax”

  1. Jacko

    Tax avoidance is perfectly legal. It’s simply the minimisation of tax liability. You do the same when you open an ISA or claim a single person’s discount on council tax. Company taxation minimisation is exactly the same principle, only much more complicated.

    If you have a problem with perceived immorality of corporate tax minimisation, then you should take it up with the people who drafted the legislation. Because they drafted poor legislation. Especially, look back to tax legislation passed under the last Labour government. Financial incompetence under Labour -3000 new laws, poorly drafted laws, billions squandered.

  2. cynicalhighlander

    It might be legal it is certainly not moral and no political party in power at Westminster will tackle it as they benefit directly from it.

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