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Tuesday 1st January 2013 | 00:01
Labour press release
Rachel Reeves MP, Labour’s shadow chief secretary to the Treasury, commenting on tax and benefit changes due to take effect in 2013, said:
“We ended 2012 with the failure of the Tory-led Government’s economic plan on both growth and the deficit and the news that working families are being forced to pay the price. And in 2013 the true scale of the unfairness of David Cameron and George Osborne’s decisions will be exposed for all to see.
“While millionaires will get a huge tax cut this year, striving working families on modest incomes will see their tax credits cut, middle income families will lose child benefit and pensioners will be hit by the granny tax.
“In a year when our economy needs to be kick-started and millions of striving families will continue to see their incomes squeezed the Tory-led government is sticking with the same failing policies and standing up for the wrong people.
“Millions of working families will be worse off overall under this government, even with the changes to the personal allowance, as cuts to tax credits and child benefit bite on top of the cost of higher VAT. Yet 8,000 millionaires will get an average tax cut of over £107,000 in April.
“There is nothing fair about making striving working families pay the price for this government’s economic failure, while George Osborne gives a £3 billion tax cut to the richest earners in the country.
“The Tories can no longer claim we are all in this together and throughout 2013 Labour will highlight the major economic and political mistake they have made.”