Hundreds of working people in Thornton are set for a big income fall as the Conservative and Lib Dem government cuts social security to pay for a millionaire’s tax cut.
Thanks to the Chancellor George Osborne more than 8,000 people in the UK earning over £1 million will get a £100,000 tax cut in April. To fill this £3 billion black-hole the government is taking money from seven million working people through a ‘strivers tax’.
A new report from the Institute for Fiscal Studies shows that seven million working families will lose out under the government’s real terms cuts to tax credits and other benefits. It follows Children’s Society research which shows that an Army second lieutenant will lose £552 a year, a nurse could lose £424 a year and a primary school teacher could lose £424 a year.
Labour opposed the Bill and called for the government to bring in a compulsory jobs guarantee, which would give people out of work for 24 months or more a job which they would have to take up or lose their benefits.
Thornton councillor Ed Davie said: ‘The government is trying to play divide and rule blaming the poorest for economic problems caused by casino bankers they are rewarding with a 5% tax cut.
‘Many families in Thornton will suffer because of this attack on the incomes of the squeezed middle and those at the bottom.
‘Lambeth’s Labour council is doing what it can to help by freezing the council tax for another two years after four years of no rise.’