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Willetts rebels as Cameron snubs tax credit rethink

by Our News Desk

DAVID CAMERON ruled out yesterday a review of his “cruel” tax credit cuts that will hammer millions of working families.

The Prime Minister insisted that there would be no rethink of the cuts, which have hit 2.7 million families, in the autumn statement on November 25 — ignoring calls from his own party to do so.

Tory former minister David Willetts urged Mr Cameron and Chancellor George Osborne to look at the plans again as the Tory Party conference got under way in Manchester.

But Mr Cameron defended the cuts, citing plans to raise the national minimum wage and cut taxes.

Business Secretary Sajid Javid said a “typical” family would be better off by the changes.

He told BBC 1’s Sunday Politics that an individual working full-time on the national minimum wage would be £2,400 better off by 2020.

But economists at the Institute for Fiscal Studies (IFS) warned it was “arithmetically impossible” for nobody to lose out under the changes.

The IFS findings say the increase to the minimum wage will not make up the shortfall from tax credit cuts.

Labour shadow minister without portfolio Jon Ashworth said: “David Cameron has shown that his promises to stand up for working families are a complete farce.”

Mr Ashworth argued that the tax credit cuts would make working families £1,300 worse off on average.

Public service union Unison general secretary Dave Prentis said: “Millions of low to middle income working families will be the victims of the Chancellor’s cruel tax credits snatch-and-grab next year.”

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