Figures from the House of Commons Library show that over £197m could be lost to the North East economy if tax credit cuts proposed by Chancellor George Osborne - that will hit nearly over 148,000 low and middle-income working families in the region – come into effect in April 2016.
Labour will be out campaigning across North East and Cumbria this weekend, collecting signatures for a petition calling on David Cameron to stop the tax credit cut.
Seema Malhotra MP, Shadow Chief Secretary to the Treasury said:
“Around 148,000 working families in the North East will be worse off by an average of £1,300 a year from next April if the Tory tax credit cuts aren’t reversed. The House of Commons Library research I commissioned shows that not only will they suffer, but the North East economy could lose nearly £200million a year.
“This is about standing up for hard-working people in the North East and their families who depend on tax credits to make ends meet. We should be focusing on helping people earning their way of tax credits, not just cutting them as George Osborne is doing.”
Sharon Hodgson MP, Labour’s MP for Washington and Sunderland West said:
“It is vital that we get George Osborne to reverse his plans on Tax Credits cuts. This is penalty against those who want to do the right thing and work to support their families. Thousands of families across my constituency and the whole region will take a huge hit on their income and it’s simply unfair. We need to keep the pressure on the government to stop their tax credit cuts in the Autumn Statement.”
Notes to editors:
1. You can sign Labour’s petition here: http://www.labour.org.uk/page/s/tory-tax-credit-cut