BUDGET 2013: Dispelling the Tory/Lib Dem Myths

(March 20, 2013)

Budget 2013

So Labour would borrow more than the Tories?

David Cameron says any action to kick-start the economy will lead to more borrowing. But the government is itself borrowing billions more simply to pay for the costs of their economic failure.

Without growth we cannot get the deficit down. That is why the deficit is rising this year and the Government is set to borrow a staggering £245 billion more than planned to pay for the mounting costs of its economic failure. If confidence is crushed, businesses go bust, long-term unemployment soars, the Government gets less from tax revenues and the benefits bill goes up.

This doesn’t make any sense. A steadier and more balanced plan – sensible spending cuts and tax rises, together with measures that support our economy, create jobs, invest in infrastructure, and reform our economy for the long term – would be fairer, more successful in getting the deficit down and make Britain better off for the future.

But isn’t it the case that the 50p tax led to a collapse in revenues from the wealthiest?  Surely we want a tax that actually raises money?

The 50p tax rise led to people bringing forward income and this has had a distorting effect on the numbers. George Osborne has cut this tax before we’ve got a clear picture of its impact even though HMRC has said it could have raised up to £1 billion.

David Cameron and George Osborne can’t hide the fact they’re giving a £3 billion tax cut to existing 50p taxpayers.  Those people are the richest one per cent of the population.  How is that fair?

Aren’t top rate tax-payers paying more under the Coalition Government?

It was the previous Labour Government that increased income tax on the richest, to ensure the burden of reducing the deficit would be fairly shared.  The Government is now watering down those measures.

Smoke and mirrors from the Government on the issue of tax cannot mask the fact come April it will be the millionaires who are getting the tax cuts while millions are made to pay more.

Labour voted against the welfare benefits up- rating bill - doesn’t that show that only the Government is on the side of working people against the “Shirkers”?

The Tory-led Government has sought to play divisive politics on this issue.  The reality is that two-thirds of the people hit by the Strivers’ Tax are in work.  The Institute for Fiscal Studies has found that 7 million working people will lose an average of £165 a year.

The Government’s own figures estimate 200,000 children will be pushed into poverty as a result and that half of these will be the children of working parents –mums and dads doing their best for their children as the Government makes things more and more difficult for them.

But Labour didn’t tackle the social care crisis in Government so how can you criticise the Government now?

The last Labour Government recognised the need to transform the way social care is funded and delivered which is why before the last General Election we said we would create a new National Care Service, ending the postcode lottery for care and ensuring that users and carers have fair access to the support they need and the dignity they deserve.

Labour’s vision is an NHS committed to ‘whole-person care’, bringing together physical health, mental health and social care into a single service to meet our care needs, in contrast to the Tory-led Government’s plans for ever greater fragmentation and dismantling of the NHS.

Isn’t the housing crisis caused by Labour not building enough houses when you were in Government?

Before the last General Election Labour brought forward funding to help build 110,000 new affordable homes. We also announced plans to expand this council house building programme, so that up to 10,000 homes a year are built by 2014/15

And we’ve also said that the Government should use the money raised from the 4G auction to build thousands of affordable homes.

Aren’t the banks paying more in tax under this Government than under Labour’s Bank Bonus tax?

The Tory-led Government has effectively given the banks a tax cut.  According to the Office for Budget Responsibility, Labour’s bank bonus tax brought in £3.5 billion.  The raised by the bank levy in each year is lower and is set to bring in just £1.8 billion this year.

We want to see a repeat of the Bank Bonus tax - on top of the bank levy - to pay for a guaranteed job for every young person out of work for a year or more.

And bankers earning more than £150,000 are set to get a tax cut in just a couple of weeks.

Click here to return to the News page