Labour leader, Ed Miliband, will on commit the next Labour government to repealing "David Cameron’s bedroom tax," and announce he and Ed Balls have already "earmarked funds to pay for it". Speaking in Brighton at the start of the Labour Party conference, Mr Miliband will say "the Bedroom Tax has become a symbol of an out of touch government standing up only for the interests of a privileged few". He will describe how two-thirds of the 660,000 people affected are disabled and the vast majority do not have the option of moving to smaller accommodation.
Although both the National Housing Federation and the National Audit Office have questioned whether the Bedroom Tax will raise all, or even any, of the £470 million claimed by the Treasury, Mr Miliband will reiterate that One Nation Labour will not pay for promises on social security with extra borrowing. Instead, he will say money is being earmarked to pay for the repeal of the bedroom tax by closing boardroom loophole schemes and tax scams.·Reversing George Osborne’s £150 million tax cut for hedge funds announced in Budget 2013.·
Labour claim that by scrapping George Osborne’s “shares for rights” scheme which has been rejected by businesses and has opened up a tax loophole of up to £1 billion.·Tackling tax scams in the construction industry which is costing £500million in lost revenue.
The Tories have reacted saying Ed Miliband’s first policy commitment in three years is an unfunded pledge for more spending on housing benefit. They say this breaks his own pledge that any changes from this Government’s plans for welfare spending in 2015/16 would ‘need to be fully funded’ and further undermines his promise to show ‘discipline’ on public spending. Labour’s commitment to reintroduce the Spare Room Subsidy would leave a "£320 million black hole in 2015/16". More evidence of their plan for more borrowing, which would mean higher taxes and higher mortgage rates.
Treasury Minister Sajid Javid commented: "Labour’s first policy commitment, after 3 years of waiting, is more spending on housing benefit, funded by a tax on pensions and more borrowing. That sums up Labour’s record in office and shows it’s still the same old Labour. Despite promising ‘discipline’ on borrowing, Ed Miliband has shown he is too weak to deliver. Nothing has changed – it’s the same old Labour. And hardworking people would pay the price through higher taxes and higher mortgage rates."
