by Our News Desk

THE man who served for six years as Margaret Thatcher’s chancellor admitted yesterday that George Osborne’s tax credits cash grab would leave families “worse off.”

Lord Lawson told the Radio 4 Today programme: “You cannot remove these tax credits without people being worse off. The question is who is going to be worse off.”

But the Tory baron of Blaby still insisted that the heartless policy was “absolutely right” and just needed “tweaking” in some areas.

“Tax credits go a long way up the scale. It goes up to half the families in the land,” he said.

“And so the tweaking would be to make the burden — and there is always a burden when you make these tough decisions to cut tax credits — rather less for the people towards the bottom end of the scale.”

The ex-chancellor also hit out at Lib Dems peers for tabling a “fatal motion” that would axe the £4.4 million tax entirely, arguing that it would break the convention “settled” in 1911 that the Lords can’t overturn financial matters that have gone through the Commons.

The muted criticism adds to bubbling discontent in the Tory Party, with backbenchers pushing Mr Osborne to protect the poorest from the cut, with senior figures reportedly threatening to rebel in a Commons vote next week to force his hand.

But the Chancellor insisted the cut was “fundamentally a judgement call” with which he was “comfortable.”

Shadow chancellor John McDonnell responded: “It is shameful that David Cameron talked about his ‘delight’ at tax credit cuts and now George Osborne has said he is ‘comfortable’ with his decision to take £1,300 a year away from working families.

“It’s time for David Cameron and George Osborne to think again and reverse these tax credit cuts.”

And shadow Commons leader Chris Bryant asked Tory counterpart Chis Grayling: “We all know, every single one of us here knows, that some way or other they’re going to beat the retreat.

“Can you just tell us when it’s going to happen? I promise we won’t crow.”

The Lords will debate the cut on Monday.