Response to Spring Statement
The Chancellor in his Spring Statement said that the number one priority in the Conservatives desire for tax reform is to reduce taxes for ‘hard-working families’. The tax system does not recognise the ‘family’. All tax cuts are for ‘hardworking individuals’. Focused tax cuts should be on HOUSEHOLD incomes with children.
Families will see real household disposable income squeezed by the highest amount in decades. Inflated food, fuel and energy prices all concurring will see many families suffering great hardship.
Families where one earner supports the family will see the biggest squeeze. These families will start to pay tax at half the threshold of those where both parents work. And if they work extra hours to earn extra money to meet inflated costs they face hitting the higher tax rate and the subsequent loss of child benefit at half the threshold than if two parents worked. For those families on low income and receiving Universal credits any gains they may make from a rise in tax and NI thresholds will be offset by a loss of credits and/or benefits.
We need to tax families as households not individuals. Individual earnings are not a good measure of how well off a family is. The system needs to recognise housing costs and the number of dependents to determine this.
To understand this more please see:
Treasury Select Committee Inquiry
Please write to your MP:
Campaign page – resource template letter + MAHMifesto
Anne Fennell, MAHM Chair