Labour 'using all the power at our disposal to fight Tory cuts'

The paty's shadow work and pensions secretary will claim they are the only party fighting tax credits across all of the UK

Published 12th Nov 2015

Labour is the only party fighting tax credits across the whole of the UK, the shadow work and pensions secretary will claim as he launches a weekend ofopposition to the policy.

Owen Smith MP will be in Edinburgh to highlight Labour action against the proposed UK Government cuts, including Scottish leader Kezia Dugdale's pledge to use new powers coming to Holyrood to restore tax credits to families in Scotland.

The party has said the cost of mitigating the policy would be met by not proceeding with SNP plans to cut and then abolish Air Passenger Duty and not increasing the threshold at which people start to pay income tax at 40%.

First Minister Nicola Sturgeon has also promised to counter the changes if they are pushed through by Chancellor George Osborne, but has not yet given details of what form this would take or how it would be paid for.

Speaking ahead of the visit, Mr Smith said up to 350,000 families in Scotland stood to lose an average of £1,300 if the cuts go ahead.

"Labour is the only party that is standing against the tax credit cuts for the whole of the UK and has a plan to restore the money people in Scotland stand to lose,'' he said.

"Labour members of the House of Lords have already sent George Osborne back to think again, but we still haven't seen his plans and David Cameron has refused to say if anyone will be left worse off.

"The Nationalists want to say that they are standing up for working people, but their finance spokesperson couldn't say if people would be worse off with their plan to devolve tax credits, and at Holyrood the First Minister has refused to say if they will restore the money people will lose.

"Labour is using all the power at our disposal to fight these Tory cuts.

"And if people in Scotland are made worse off, Scottish Labour will use the new powers that are coming to the Scottish Parliament to ensure that no one is made worse off.''

SNP MSP Kevin Stewart said: "All parties should be uniting to stand up against the Tories, but once again Labour appears to have run up the white flag on tax credit cuts - just as pressure is building on George Osborne to change course.

"The SNP has consistently opposed these wrong-headed and damaging cuts, now is certainly not the time to let-up on our opposition to the Tories.

"Mr Smith should use his day-trip to Scotland to explain why his party joined the Tories in voting against devolving tax credits to Scotland and why they are happy for the Scottish Parliament to mitigate Tory cuts rather than having the powers to stop them in the first place.''