The government needs to get thinking quickly about a new tax credits proposal that is acceptable to the Commons and the Lords. George Osborne will deliver his Autumn Statement in four weeks’ time and he has promised to outline the results of his ‘listening’ exercise. This afternoon’s debate on a backbench motion about the cuts showed that Conservatives support phasing out tax credits, but the main concerns expressed were over the speed of the transition. Notably, 20 Tory MPs supported the Labour motion criticising the cuts — including Bernard Jenkin, Jacob Rees-Mogg and Heidi Allen.
According to a report in the Guardian, Osborne has given himself ‘wiggle room’ in his deficit reduction plan so he can ensure a ‘lessening’ of the impact. The same article reports that he is expected to focus on the introduction of a National Living Wage in April 2017 and how workers can be assisted in the transition period. Frank Field, the Labour chair of the work and pensions select committee, has several ideas for mitigating the tax credit cuts:
- Introducing a new income threshold of £13,000. Field proposed
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