Labour launches poster on David Cameron's tax cut for millionaires6 April 2013
The Labour Party is today launching a poster to highlight David Cameron’s decision to cut the top rate of tax for the richest people in the country, which comes into effect today.
Today’s tax cut for millionaires will see 13,000 people earning over £1 million get an average tax cut of £100,000, while families will be an average of £891 worse off this year because of changes introduced since 2010.
The poster is being unveiled this morning by Labour parliamentary candidates, together with Labour’s shadow chancellor Ed Balls MP and Labour Party deputy chair and campaign coordinator Tom Watson MP, and will be taken to battleground seats across the south of England later today.
Ed Balls MP, Labour’s shadow chancellor, said:
"The whole country will today see whose side this Conservative-led government is really on and who is paying the price for their total economic failure.
"David Cameron and George Osborne are today giving millionaires an average tax cut of £100,000 while they make millions of pensioners and working people on middle and low incomes worse off. It’s the wrong choice, it’s unfair and it’s totally out of touch with people on modest incomes struggling with the rising cost of living.
"Families will be an average of £891 worse off this year because of changes introduced since 2010, while a one earner family with children will be a staggering £4,000 worse off on average. And this is on top of the income squeeze we have seen over the last three years as a flatlining economy has seen prices rise faster than wages and unemployment rise again last month.
"These figures show the full picture David Cameron and George Osborne do not want you to see. They reveal that any gains Ministers boast about from the rise in the personal allowance are swamped by higher VAT, cuts to tax credits and child benefit.
"People in work, people looking for work, stay at home mums and pensioners hit by the granny tax are all being squeezed like never before. Millions are paying more while millionaires pay less."
According to Labour analysis of figures published by the independent Institute for Fiscal Studies (IFS), a one earner family with children will lose an average of £4,000 in the new financial year starting today because of tax rises and cuts to tax credits and benefits introduced since 2010.
Taking into account all changes to tax, tax credits and benefits that have been introduced since 2010, households in the UK will on average be £891 a year, or £17 a week, worse off in the 2013/14 financial year.
A breakdown of the figures shows different family types are affected in different ways. For example, a two-earner couple with children are losing an average of £1,869, a single parent in work £1,226, and a two earner couple with no children £672.
The analysis is based on figures published by the IFS in its Green Budget in February and its post Budget briefing last month.