Friday, 20 September 2013

LABOUR WILL REPEAL THE BEDROOM TAX, WITHOUT EXTRA BORROWING

AT a time when this Government is standing up for a privileged few by giving a tax cut to millionaires, it’s appalling that vulnerable people, many of them disabled, are being plunged into arrears and debt as a result of David Cameron’s Bedroom Tax.

Labour has announced that in Government we will repeal the Bedroom Tax.  We’ll pay for that by reversing Government measures including the recent tax cut for hedge funds, the shares for rights scheme (which opened up a massive £1 billion tax loophole) and tackling tax scams in the construction industry.

This will provide a glimmer of hope to the over 400,000 disabled people hit by David Cameron’s cruel and unfair measure.

The move also demonstrates what life under Labour will be like.  Not borrowing more in these tough times, but using Labour values to guide a different set of Labour priorities.

The fact remains that the Bedroom Tax does not deal with the problem that it’s supposed to solve, that of under-occupation.  In fact, the Government’s costings on the amount raised from the Bedroom Tax explicitly assume that people do not move into smaller properties.

It is because Labour is serious about getting the social security bill down that repealing the Bedroom Tax is the right thing to do.  As well as being cruel and unfair, growing evidence shows that the Bedroom Tax costs more than it saves, partly because those forced to move to the private rented sector will end up costing more in Housing Benefit.  Councils and Housing Associations say that tens of millions of pounds are likely to be lost through the build up of arrears.

We need a recovery that benefits everyone, not just a few at the top.  Labour’s approach to bringing social security down will be to ensure that more people are in work.  That is why we want to help to make work pay by introducing a lower 10p starting rate of tax – paid for by a mansion tax – and to repeat the tax on bankers’ bonuses to pay for a compulsory jobs guarantee for young people.

Unlike this vicious, shameful and shameless Tory-Lib Dem Government, who look after the rich and powerful at the expense of the poorest and most vulnerable citizens, Labour will deliver fairness for everyone

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