Cable: £1.3 billion for higher-rate payers should be used to reverse welfare cuts

The Liberal Democrats have announced they will be voting against the Government’s plans to raise the higher-rate tax threshold to £50,000.

The policy – announced in Monday’s budget – will cost an estimated £1.3 billion pounds next year, money which could instead be used to reverse cuts to Universal Credit or end the benefits freeze a year early.

Leader of the Liberal Democrats Vince Cable said:

Government is about priorities. With public services desperate for investment, now is not the time to reduce taxes for high earners. Instead Philip Hammond should use the money to further reverse cuts to Universal Credit or end the benefits freeze a year early.

In Government Liberal Democrats focused tax cuts on lower earning families, and we support continued efforts to do so.

We encourage Labour MPs who disagree with both front benches about the raising of the higher rate threshold to vote with us against it and put pressure on the Treasury to change course.

Commenting as 21 Labour MPs voted with the Liberal Democrats against raising the higher rate tax threshold, Lib Dem Leader, Vince Cable said:

Despite the best efforts of their whips, 21 Labour MPs put principle above party and voted with the Liberal Democrats against the Government’s indefensible tax cuts for higher earners.

It is beyond belief that a party which claims to stand ‘for the many, not the few’, decided not to oppose the Government on this. Using the money to fund Universal Credit or end the benefits freeze would have been a far more progressive way of using the money.

On Brexit, Universal Credit and now the Budget, the Liberal Democrats have shown that we are the real opposition.