This Tuesday Emma demanded that the Deputy Prime Minister own up to increasing the tax burden for the poorest households through his support for changes to Council Tax support.
At Deputy Prime Minister’s Questions, Emma asked:
“The Deputy Prime Minister claims that he has lowered taxes for poorer households by raising the personal allowance, but will he confirm that the localisation of Council Tax support is raising taxes for the very worst off?”
Mr Clegg admitted that that had been some “controversial reforms” but said that raising the personal allowance had taken some low earners out of tax.
But for the very poorest – those earning less than £10,000 a year – the change to the personal allowance has no effect, while the impact of Council Tax reform means their overall tax bill is higher. This means that under the Coalition millions of low paid and part time workers – an estimated 17 per cent of the working population including over a quarter of working women – pay more tax.
In 2012 the Coalition made local authorities responsible for how local Council Tax support is allocated in their area, while at the same time reducing the amount councils were allowed to spend. The Government’s funding cuts mean that working people have lost out on support and now face a higher tax bill.
Labour opposed the changes to Council Tax, which some campaigners have called the “Poll Tax Mark II”
Speaking after Deputy Prime Minister’s Questions, Emma said:
“The Deputy Prime Minister tried to dodge the question, but he couldn’t deny that the policies he supported have made things harder for some of the poorest and most vulnerable households in our country. He tries to claim that his party is helping low earners, but his claims fall apart as soon as you look at the details.
“The real record of the Liberal Democrats is that they have caved in to the Tories time and time again, backing tax cuts for the rich while allowing them to tighten the squeeze on low-income households enduring a cost of living crisis. The Tories may stand up for the wrong people, but the Lib Dems can’t even stand up for themselves.”