Local economies across the West Midlands could be hit to the tune of around £350m a year if the Chancellor confirms later today (Wednesday), in the spending review, that he is to continue with cuts to tax credits announced in the summer, says UNISON.
More than 268,000 working families with children across the West Midlands who receive tax credits could between them lose around £350m, according to UNISON research. This average loss per tax credit household of £1,300 could see the region’s businesses and high streets suffer as families have much less money to spend locally.
Although last month’s vote in the House of Lords forced George Osborne to look again at his tax credit plans, the issue has certainly not gone away, says UNISON. As a result more than 2.7m low-income working families across the UK are nervously awaiting today’s autumn statement.
UNISON General Secretary Dave Prentis said: “The Lords might have forced a reluctant Chancellor to think again, but we’re not out of the woods yet. Tax credit cuts have not gone away, far from it. Even if the Chancellor announces a pause to their introduction today, it will only be delaying untold financial misery for working families.
“Tax credits are not a luxury, but are quite simply a lifeline for hardworking families in the West Midlands. Taking away a large proportion of the tax credits they rely upon will turn their already precarious finances upside down.
“Thousands of low income families across the region will be hoping that the Chancellor has good news for them today. They will want to hear that he’s decided against grabbing billions back in tax credits from working parents who are trying to provide a decent start in life for their children.”
