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."
This budget 2012 has squeezed out the middle class earners. I am particularly disappointed by the removal of child benefit one earner earns more than £60K. So a couple where each earner gets £50K equalling a total household income of £100K gets to keep the child benefit, another couple with a £60k/£40k income gets nothing. The former couple gets more disposable income even without the child benefit and the latter couple needs to earn an extra £4,080 in gross income to compensate for the loss of child benefit. Most parents earning child benefit was saving it for the child to reach 18 so that the child has something to look forward to- this has now gone for certain category of earners. Afterall, these were taxes deducted from our salaries. You do not have to go to Eaton to know that in fairness the benefit should have been looked at a couple's joint income rather than at an individual level. Do not count on my vote Osborne Eaton?
Posted by: daves surajbali, 22 Mar 2012 | 14:49
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