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Vince Cable slams excessive Conservative cuts on working poor Vince Cable slams excessive Conservative cuts on working poor
(6 months later)
Business secretary Vince Cable says the Tories are planning punitive and unnecessary cuts to the incomes of the working poor that go "far beyond" what is needed to cut the deficit.Business secretary Vince Cable says the Tories are planning punitive and unnecessary cuts to the incomes of the working poor that go "far beyond" what is needed to cut the deficit.
In an interview with the Observer, the Liberal Democrat cabinet minister says proposals announced last week by chancellor George Osborne to freeze benefits for those in work after the next election, while also introducing big tax cuts for middle earners, would be completely unacceptable to his party in any future coalition. "There's absolutely no way that making deep cuts in provision for the working poor is acceptable and that we can possibly go along with it," he says. "What he is suggesting goes far beyond what you need in order to achieve financial discipline."In an interview with the Observer, the Liberal Democrat cabinet minister says proposals announced last week by chancellor George Osborne to freeze benefits for those in work after the next election, while also introducing big tax cuts for middle earners, would be completely unacceptable to his party in any future coalition. "There's absolutely no way that making deep cuts in provision for the working poor is acceptable and that we can possibly go along with it," he says. "What he is suggesting goes far beyond what you need in order to achieve financial discipline."
Cable's intervention will stoke mounting tension between the coalition parties, which until now have agreed on broad strategy to bring the public finances under control.Cable's intervention will stoke mounting tension between the coalition parties, which until now have agreed on broad strategy to bring the public finances under control.
At the Conservative party conference in Birmingham last week, Osborne delighted the Tory faithful by unveiling proposals to freeze working age benefits for two years from next year, delivering savings of £3bn, as part of a package of £25bn of spending cuts for the next parliament.At the Conservative party conference in Birmingham last week, Osborne delighted the Tory faithful by unveiling proposals to freeze working age benefits for two years from next year, delivering savings of £3bn, as part of a package of £25bn of spending cuts for the next parliament.
Half of the 10 million families affected by the benefits freeze would be in working households. The Tories say that a family with two children provided for by a single earner on £25,000 a year would lose £495 annually in payments such as tax credits.Half of the 10 million families affected by the benefits freeze would be in working households. The Tories say that a family with two children provided for by a single earner on £25,000 a year would lose £495 annually in payments such as tax credits.
Cable, speaking before the Liberal Democrats' conference, which opened in Glasgow on Saturday, says the level of cuts planned by Osborne is excessive and not what the two parties agreed. "The £25bn Osborne talks about is way beyond actually what is necessary to achieve the thing we committed ourselves to do in the coalition agreement, which was dealing with the structural deficit."Cable, speaking before the Liberal Democrats' conference, which opened in Glasgow on Saturday, says the level of cuts planned by Osborne is excessive and not what the two parties agreed. "The £25bn Osborne talks about is way beyond actually what is necessary to achieve the thing we committed ourselves to do in the coalition agreement, which was dealing with the structural deficit."
On Saturday as he tried to rally his party, which is languishing in single figures in the opinion polls, party leader Nick Clegg told delegates they were in a "fight for their lives". As the Lib Dems battled for survival in many parts of the country, he told them that only their party could save people from the dangers of undiluted Tory or Labour rule.On Saturday as he tried to rally his party, which is languishing in single figures in the opinion polls, party leader Nick Clegg told delegates they were in a "fight for their lives". As the Lib Dems battled for survival in many parts of the country, he told them that only their party could save people from the dangers of undiluted Tory or Labour rule.
If Conservatives were to govern alone after the election, Clegg said the young and the working poor would be "hit time and time again as George Osborne takes his axe to the welfare budget with no regard for the impact on people's lives".If Conservatives were to govern alone after the election, Clegg said the young and the working poor would be "hit time and time again as George Osborne takes his axe to the welfare budget with no regard for the impact on people's lives".
Schools would be run "in the interests of profit for shareholders rather than the life chances of pupils" under a prime minister "trapped between being a poor man's Margaret Thatcher and a rich man's Nigel Farage".Schools would be run "in the interests of profit for shareholders rather than the life chances of pupils" under a prime minister "trapped between being a poor man's Margaret Thatcher and a rich man's Nigel Farage".
The prospect of Labour running the country on its own was equally frightening. A nation led by Ed Miliband would see a return to high borrowing, high unemployment and recession.The prospect of Labour running the country on its own was equally frightening. A nation led by Ed Miliband would see a return to high borrowing, high unemployment and recession.
"We can't allow Labour to throw away our recovery," Clegg said. "And we can't allow the Conservatives to put the interests of a few above the needs of the many. The only party that can build a stronger economy and a fairer society, so that everyone can have the opportunity to get on in life, are the Liberal Democrats.""We can't allow Labour to throw away our recovery," Clegg said. "And we can't allow the Conservatives to put the interests of a few above the needs of the many. The only party that can build a stronger economy and a fairer society, so that everyone can have the opportunity to get on in life, are the Liberal Democrats."
The Tories say that the effect of freezing working age benefits will be offset by the boost to incomes from their plans to raise the tax free allowance from £10,000 to £12,500. They are also confident that plans announced by David Cameron in Birmingham to raise the threshold at which the 40p tax rate becomes payable from £41,900 to £50,000 over the lifetime of the next parliament will prove an election winner. The Tories say that the effect of freezing working age benefits will be offset by the boost to incomes from their plans to raise the tax free allowance from £10,000 to £12,500. They are also confident that plans announced by David Cameron in Birmingham to raise the threshold at which the 40p tax rate becomes payable from £41,900 to £50,000 over the lifetime of the next parliament will prove an election winner.
Cable said that the planned Tory tax cuts for middle earners, coupled with promises of more money for the NHS, would be unaffordable and "just not deliverable".Cable said that the planned Tory tax cuts for middle earners, coupled with promises of more money for the NHS, would be unaffordable and "just not deliverable".
"It looks a little bit like desperation," Cable declared, adding that Cameron and Osborne's proposed tax giveaways to middle earners made "Nigel Farage look like a bastion of Gladstonian fiscal responsibility"."It looks a little bit like desperation," Cable declared, adding that Cameron and Osborne's proposed tax giveaways to middle earners made "Nigel Farage look like a bastion of Gladstonian fiscal responsibility".
Yesterday shadow chancellor Ed Balls said the Tories planned to punish "strivers" at the lower end of the income scale, while promising tax cuts for those on middle incomes, without explaining where one penny of the money would come from.Yesterday shadow chancellor Ed Balls said the Tories planned to punish "strivers" at the lower end of the income scale, while promising tax cuts for those on middle incomes, without explaining where one penny of the money would come from.
"Working people who have already seen their wages fall by an average of £1,600 a year under the Tories will be left even more badly off," Balls wrote on his blog. "Nurses, call centre workers, shop staff, shift workers and teaching assistants will pay the price of George Osborne's choice. It's a strivers' tax, which will cost a one-earner family with two children on £25,000 a year almost £500.""Working people who have already seen their wages fall by an average of £1,600 a year under the Tories will be left even more badly off," Balls wrote on his blog. "Nurses, call centre workers, shop staff, shift workers and teaching assistants will pay the price of George Osborne's choice. It's a strivers' tax, which will cost a one-earner family with two children on £25,000 a year almost £500."
Osborne told the Tory conference last week that benefits had risen faster than wages and that the country could no longer afford to fund £100bn of benefits to people of working age in state payments.Osborne told the Tory conference last week that benefits had risen faster than wages and that the country could no longer afford to fund £100bn of benefits to people of working age in state payments.