Research printed by The Spectator in an article by Fraser Nelson today reveals that Osborne’s tax changes mean:”Some workers will be able to keep just 7p in every extra £1 that they earn. So the new system will put them on an effective tax rate of 93 per cent.”For other equally damaging statistics, please click on the link in the first paragraph.
Fraser Nelson concludes:
“So Osborne’s reforms, as they stand, have become a weapon aimed straight at the strivers: the people who it had been trying to help. As the leading article in the current Spectator argues, this is deeply damaging not only to those affected but to the Conservative Party’s reputation.”
The situation is not helped by claims in yesterday’s Sunday Times that Osborne is trying to ” to kill off criticism over his cuts to tax credits as he faces a cabinet split coupled with a Conservative backbench rebellion.
The Chancellor has called in rebel MPs and asked them what he can do to help their constituencies in a bid to buy off his critics as three unnamed cabinet ministers have privately expressed concerns over his handling of the reforms, fearing they may prove as unpopular as the poll tax. “