George Osborne Scraps Tax Credit Cuts

25 November 2015
The news we've been hoping for...

Chancellor of the Exchequer, George Osborne, has scrapped his plans to cut tax credits.

The Guardian reports:

George Osborne has executed a complete U-turn on his controversial cuts to tax credits, as he delivered what he called, "a big spending review from a government that does big things"... But delivering his combined autumn statement and spending review, the chancellor said higher-than-expected tax revenues and lower interest payments on government debt had opened up an extra £27bn of fiscal wriggle-room, which would allow him to cancel the cuts altogether.

The paper points out that reversing the much-feared cuts is not just a U-turn on the proposals he set out four months ago, but also represents a breach of the welfare cap which he intended to put a limit on the cost of social security.

Quite what this means isn't yet clear - £12bn is still set to be cut from the welfare bill, after all - but Osborne says he'll do so in a way that helps families.

What it hopefully means is that families won't face the squeeze on their income that many of us have been fearing.

What do you make of this news? We'd love to hear your thoughts over on our Facebook page.

TOPICS:   Parents

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