Labour MP Lucy Powell confronted Conservative MP Lucy Frazer by lifting the lid on the Government’s strategy to reduce taxes amid the cost of living crisis. In the spring statement, Chancellor of the Exchequer Rishi Sunak announced a rise in the National Insurance threshold, which he said will save the typical employee over £330 in the period from July till December. But people earning more than £9,880 a year have started paying £1.25p more in the pound since April. To Ms. Powell, the Government is taking people for fools with an ineffective tax cut.
Speaking on BBC Question Time, Ms Powell blasted: “I have to take issue, Lucy.
“You cannot dupe the audience here that you’re helping the most in need.
“Because you’re not. And you talk about a tax cut coming in July.
“It’s your own tax rise.
“So, you raised everybody’s taxes in April, and then you are reducing that same tax by a bit in July and claiming it’s a tax cut.
“But it isn’t”, Ms Powell added.
“And the most in need are not benefitting the most from what you are doing.
“We got a £200 buy-now-pay-later loan that nobody wants.
“The Council Tax rebate misses out on the poorest because they don’t pay council tax anyway.
“So, that’s why the president of the CBI, not necessarily known for their progressive politics, are urging you, along with a wealth of other people to get some targeted support to those who cannot afford to heat and eat their homes, who are facing destitution.
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“And thirdly, I’d just like to respond to Lucy’s point.
“The Labour government have not said that they would take away that levy.”
“There’s no Labour government yet”, noted Mo Hussein, panellist and former Home Office advisor.
“A long way of that”, added Ms Powell.