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The Chancellor of the Shadow, John McDonnell, faces a violent reaction after hinting that the Labor Party would continue the tax cuts for the high incomes announced by the Chancellor in Monday's budget.
Philip Hammond announced a year later the Conservative Manifesto in which he pledged to increase personal compensation to £ 12,500 and the threshold of taxation above £ 50,000.
Asked about the budget on Tuesday morning, Mr McDonnell surprised a lot of people saying that the Labor Party would not cancel the cuts, which would mostly benefit high wages, and cost the Treasury nearly £ 2.8 billion. Next year.
"We will support tax cuts for the moment because we will inject demand into the economy," he said today.
He added that the Labor Party would then aim to end austerity during the legislature by raising taxes on the top 5% of the best paid and canceling corporate tax cuts.
An analysis of the Resolution Foundation released Tuesday revealed that the cuts would be extremely beneficial for the richest households, according to the analysis, nearly half of them being directed at the richest 10% of households. .
Andy Burnham, Mayor of Greater Manchester and former Labor leadership candidate, said he was "unable to explain why we are doing it".
Alison McGovern, President of Progress, said, "We can not support the additional spending on tax cuts for the wealthy, but on the mess of universal credit."
Tottenham MP David Lammy said, "We should not support tax cuts that disproportionately help the rich."
Another prominent member of the Labor Party and former minister said his party should "make choices".
The tax cuts announced by Hammond will cost £ 2.7 billion next year. The 20% tax bracket, which currently starts with earnings over £ 11,850, will rise to £ 12,500 next year. The top 40% tax bracket will start at £ 50,000 from April, against £ 46,350.
Later Tuesday, Phantom Secretary Rebecca Long-Bailey attempted to explain McDonnell's decision, saying the budget offered little benefit.
"I think John McDonnell said very clearly this morning that in the context of this budget, we would not shift them because there were few other offers for many workers," he said. she told Sky News. "Low-income people are particularly abused."
On Tuesday, Hammond defended his decision to implement tax cuts while admitting that some ministries could face further cuts, calling it "fair and moral" that the Conservatives keep their promises in their manifesto.
The Chancellor admitted that the increase in NHS spending would ensure that actual spending would remain unchanged for all other departments, although some, including the Department of Defense, were allocated additional funds. However, other departments were still likely to face continued compression of expenditures.
"We have made our choice to fund health very generously … this means that our overall spending envelope is available, once you have subscribed the commitment made to health, the actual expenses are available to all other departments, "Hammond told the" Today "broadcast of BBC Radio 4. program. "It's a choice we make."
Hammond, whose budget was criticized Tuesday for the benefit that the income tax cuts will bring to the richest households, said the government had "made it very clear" in the last election to increase the personal indemnity and the threshold of higher incomes. tax.
"It is fair and moral for a Conservative to honor the commitments we made in our election manifesto," he said. "People have the right to expect that when politicians come before them in a general election and make a very clear commitment, they will keep that commitment."
By contrast, nearly three-quarters of social assistance cuts announced since 2015 are expected to continue, including a freeze of 1.5 billion pounds of benefits next April, which will cost a couple 200 pounds of lost money. children.
Defending his decision not to end the freeze, Hammond told ITV Good Morning Britain: "We have had to take action in the past and these measures, some of them, continue to make their way into the economy. But what we could do yesterday is a better future. "
An analysis showed that the Chancellor had chosen to spend £ 75.8 billion of its budget revenues from the Office for fiscal responsibility over the forecast period, but Mr Hammond said that "we are not going to be able to do that. he had not "abandoned fiscal rectitude".
"Every year of this forecast, our deficit will decrease," he said, adding that there was still enough "fiscal room to maneuver" to deal with economic shocks, such as a "Brexit without a deal". .
"If there is a shock, we will manage it in the usual way," he said. "Very often, a shock to the economy may require an increase in short-term spending to sustain demand and maintain the economy. I have been very cautious in maintaining my fiscal leeway … in order to be able, in case of shock on the economy, to invest more in the economy. "
