Spending Review: George Osborne U-Turn Over Tax Credits

[mikey4444]

http://www.bbc.co.uk/news/uk-politics-34915218

Spectacular U-Turn from Osborne !

"The chancellor was forced to rethink plans to cut £4.4bn from tax credits for low paid workers in April after they were rejected by the House of Lords.

Rather than phasing the cuts in, as he had been expected to do, Mr Osborne said he said he had decided the "simplest thing" was "to avoid them altogether", even though it would mean missing his own target for overall welfare spending in the early years of this Parliament"

Thanks House of Lords....you do serve a useful purpose after all !

[jim360]

Has to be said, I've never expected the "tax credits make people lazy" argument -- isn't it up to your employers how many hours you work, and what your pay is for that matter? Ending them is still a good idea, to be sure, but after wage rises to bridge the shortfall once tax credits are cut.

[ichkeria]

I'm it talking about tax credits per se I'm talkibg about Osborne's cuts to them
I'm sure we all want to see higher wages and lower wage supplements.
But not done like that. The fact Osborne could not see the problems he ss lining up for himself does not bode well for his future plans for G Osborne

[ichkeria]

That should have read 'not tax credits per se (necessarily) but O's cuts to them

[mikey4444]

Jim ...exactly ! Osborne was putting the cart before the horse.....cut peoples income now, and hope that the employers will pick up the tab later.

A lot of people would like more hours but their employers won't give them full time jobs.

[naomi24]

//A lot of people would like more hours but their employers won't give them full time jobs. //

And a lot of people won't work at full time jobs because they lose their Tax Credits.

[mikey4444]

ichkeria....Osborne is so arrogant and completely out of touch with ordinary people, its no wonder he has got himself into this mess.

David Davies, a Tory MP that wasn't born with a silver spoon in his mouth, was one of Osborne's greatest critics after his defeat in the HOL.

If dave has any sense, he will lose Osborne in a Cabinet re-shuffle sometime next year.

[naomi24]

Mikey, why would you want Cameron to lose Osborne? He's doing what you want. Flipping heck! If he carries on like this you'll have no option but to vote for him! ;o)

[mikey4444]

Naomi...Osborne is doing what he is doing today because the concerted political opposition in Britain forced to do so.

If he had had his way, millions of Britons would have been dragged into penury next year. A win for ordinary people, as I have already pointed out.

Because of that vital defeat in the HOL's, he has had no option but to completely re-write his whole financial strategy.

By the way...Hell will freeze over before I ever vote Tory !

[naomi24]

Go on, Mikey, be true to yourself. For one so aspirational, you know you want to. ;o)

[ludwig]

I could've sworn I heard Corbyn say a couple of weeks ago that if the Tories would abandon their plans for tax credit cuts, they'd get no criticism, just support from the opposition benches.
I must have imagined it.

[retrocop]

mikey4444
Question Author
Naomi...Osborne is doing what he is doing today because the concerted political opposition in Britain forced to do so.


At the end of the day Osbourne is WHERE he is today because the concerted political opposition in Britain were just not good enough or wanted.

[naomi24]

Ludwig, no one listens to him.

retrocop, ahh... don't burst his bubble.

[Svejk]

The left inhabit a strange twilight world that normal people have no chance of understanding. Since Osborne was made Chancellor, they have warned against cutting the deficit too fast, too far.
Today, their 'little red book' wielding S/Chancellor criticized him for,,,,,,,,,,,,,,,,,,,,,,,,not cutting it fast enough or deep enough.

[naomi24]

^And poor old Jeremy will never get the chance to use it. Shame. ;o)

[Retrochic]

Tax Credits do not encourage people to work nor do they encourage employers to raise wages voluntarily. Osbourne should not have done a U Turn but stuck to his guns. One of my daughters is a manager in a large hotel and Housekeeping ( the British ones) will only work 16 hours and no more even if they are offered overtime. The hotel is struggling at the moment to get cover for the Holidays -only the East Europeans have no problem doing extra hours. Why do an extra 7 Hours work when you can sit at home watching Jeremy Kyle and get paid by the Government? Its a stupid 'benefit' that really only benefits those that pay little if no tax to start with.