Stop the tax credit cuts!


On the 26th of October, the Liberal Democrats tried to stop George Osborne's unfair and economically unwise cuts to people's tax credits by voting for an amendment – the so-called "fatal motion" – that would have killed off the cuts altogether.

In Government, Liberal Democrats blocked these cuts and we continue to oppose them now. We said it was not fair to make savings by cutting the support for people on low and middle incomes. In City and East the cuts would have affected 52,000 families and 96,000 children. Instead, we believe that people who earn more should bear a fair share of the cost, and that cutting the money people have to spend on everyday items risks hurting the economy too.

During the election, Danny Alexander warned that the Conservatives were considering the cuts. Prime Minister David Cameron even made a promise that tax credits would not be cut. We think it is only fair that he be held to that promise.

Sadly, Jeremy Corbyn's Labour peers chose not to vote on the Liberal Democrat motion, just like Labour MPs abstained on the welfare bill in the summer.

As Liberal Democrats we would rather see the best result for people, so we supported the weaker amendments even though it means the cuts are only delayed and not stopped, and that they start immediately for new claimants, hurting young people the most.

The Prime Minister and the Chancellor are trying to cover their embarrassment by calling this a "constitutional crisis". But what the Lords did was correct. It was the Government's choice to avoid the scrutiny given to a Parliamentary Bill by sending these measures to the Lords as a ‘Statutory Instrument’, which the Lords can only say yes or no to. Many moderate Conservatives were already calling on Mr Osborne to think again about these cuts, so the Lords have actually done their job of calling on the Government to think again.


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