Budget2012: 'A millionaire’s budget that squeezes the middle', says Labour leader

Labour leader Ed Miliband has dismissed the 2012 Budget as a budget for millionaires that will hurt middle-income families.

In response to the Budget announced earlier on Wednesday by Chancellor George Osborne – which announced a cut in the 50p top rate of income tax to 45p from April 2013 and an increase in the personal allowance individuals can earn before they start to pay tax to more than £9,000 – Miliband said the Budget had failed the “fairness test”.

“Today marks the end of ‘we’re all in this together’, Miliband told the House of Commons. “After this Budget millions will pay more while millionaires will pay less.”

He said that the 14,000 Britons who earn more than £1m a year would get a tax cut of about £40,000 a year.

In contrast, families on incomes of £20,000 will be about £250 worse off each year from April, Miliband added.

The TUC union said the Budget was “for the rich by the rich”.

Brendan Barber, TUC General Secretary, said: “We needed a Budget that looked to the future and made jobs – particularly for young people – the national priority. Instead we have got a Budget for the rich by the rich.”