Oldham’s Labour, Lib Dem, and Tory politicians have given their reactions to the government's U-turn surrounding a controversial tax policy announced lest than two weeks ago.
On Monday, Chancellor Kwasi Kwarteng said a tax cut for people earning more than £150,000 would be scrapped just 10 days after it was announced in the mini-budget.
The tax means anyone earning more than £150,000 pays 45 per cent on everything they earn above that amount.
All earnings between £50,271 and £150,000 are still taxed at 40 per cent, and earnings below £50,271 are taxed at 20 per cent – meaning someone who earns over the tax band threshold isn’t taking home less money.
The U-turn comes after several Tory MPs voiced their opposition to the plan, which would have seen all earnings above £150,000 taxed at the 40 per cent rate instead.
We asked Oldham politicians for their thoughts on the news.
Angela Rayner, Labour MP
The Deputy Leader of the Labour Party is also the local MP for Failsworth and Ashton.
Ms Rayner said: “Liz Truss has been forced to abandon her unfunded tax cut for the richest one per cent but the latest Tory U-turn comes too late for the families who will pay higher mortgages and higher prices for years.
“They’re making it up as they go along and there is still no plan to clear up the mess the Tories have spent the last 12 years creating, destroying their economic credibility and shattering trust in the British economy in the process.
“They need to reverse their whole economic, discredited trickle-down strategy.
“As the party of fiscal responsibility and social justice, it will come to the Labour Party to repair the damage this Tory government has done.”
Jim McMahon, Labour MP
Jim McMahon, MP for Oldham West and Royton, said: “The Tory government have been forced into another U-turn and will rightly abandon their unfunded income tax cut for the richest 1 per cent in our society.
“However, this is too little too late for working people in Oldham who are facing years of higher mortgages and higher prices at the hands of 12 years of failed Tory economics.
“They have no plan for the future and need to return to parliament to reverse their fantasy trickle-down economics before it does even more damage.”
Sam Al-Hamdani, Liberal Democrat councillor
Liberal Democrat Cllr Sam Al-Hamdani said: “Cutting the 45p rate of tax was just one headline in a series of unforgivable policies.
“The whole mini-budget was driven by ideology – it was an attack on fairness, borrowing money to slash taxes and create unearned profits for the richest in society.
"While this U-turn is one step in the right direction, it is only one step when this Conservative government is charging headlong into an economic crash.
“No-one understands what this government is doing. I spoke to a lifelong Conservative last week who looked at this budget and said ‘Conservatism isn’t working’.
“In a time of instability, we need a government with credibility and responsibility, not this crazed sugar-rush of bankers bonuses and obscene profits for energy producers.”
Dave Arnott, Conservative councillor
Conservative Cllr Dave Arnott said: “The chancellor’s ‘mini budget’ announced on Friday contains a raft of measures to support households and businesses and to promote growth.
“The Energy Price Guarantee will limit household and business fuel bills this winter.
"Further initiatives include the reversal of the rise in National Insurance contributions, cancellation of the planned rise in Corporation Tax and plans for 38 investment zones.
“The Chancellor also announced tax cuts that will simplify the tax system. These included a reduction in the basic rate of personal income tax, the first for 15 years, which will benefit millions of working people.
“Labour has no plans to reduce tax, and would reverse this cut, should they come to power.
“I support the Prime Minister’s decision to reverse plans to remove the higher rate of income tax which had become a distraction from the challenges that face the government at this difficult time.”
Debbie Abrahams, Labour MP
Debbie Abrahams, MP for Oldham East and Saddleworth, said: “This is a humiliating start to Liz Truss’ reign as the latest Tory Prime Minister.
“The Tories have been forced to abandon their unfunded tax cut for the richest 1 per cent following overwhelming opposition. The real question is why they felt they could gamble with people’s lives in the first place.
“Over the last few days the Tories have destroyed their own economic credibility and clearly have no rational plan to help the millions of ordinary people who are struggling to stay afloat in a cost of living crisis.
“This trickle-down fantasy budget simply added to the misery caused by 12 years of Tory Government. There is a way out of this mess. Labour has a fully-funded plan, which puts social justice at the forefront of our policies, and would help the country get through this crisis while building a stronger, secure and sustainable economy.”
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