Labour’s shadow Treasury team will also challenge Ministers to rule out a further cut in the top rate of income tax for earnings over £150,000 – which David Cameron and George Osborne have so far failed to do.
Labour’s shadow chief secretary to the Treasury, Chris Leslie, speaking ahead of the debate, said: "While millions of working people have seen their taxes go up, millionaires have been given a huge tax cut by David Cameron’s government. The top one per cent of earners have been given a £3 billion a year tax cut – worth an average of £100,000 for those earning over £1 million. But at the same time families will be on average almost £1,000 a year worse off by next year as a result of tax and benefit changes since 2010."
Continuing Mr Leslie said: "How can a tax cut for millionaires be the right priority when working people are still not feeling the recovery and the deficit remains high? Now the Tories want to cut tax credits again for millions of working families while keeping their huge tax cut for top one per cent of earners. As we’ve seen time and time again, the Tories always stand up for a privileged few rather than hard working people. We know their real economic plan is to cut taxes at the top and hope that wealth will just trickle down. That’s why David Cameron and George Osborne still won’t rule out cutting the top rate of tax again for earnings over £150,000 from 45p to 40p."
"Working people who are worse off under David Cameron can’t afford more of this same old failed Tory economics. As part of our plan to balance the books in the next Parliament in a fairer way Labour will reverse the Tory tax cut for millionaires and introduce a lower 10p starting rate of tax for 24 million working people." Chris Leslie added.
A source from the Conservatives said: "We get all this hot air about a 'millionaire's tax cut' from Labour. What Labour don't point out is that in March 2012 the Labour party abstained on a vote on whether to cut the top rate from 50p to 45p. They also had no problem with a 40p top rate for 13 years in government. They also say wish to bring back the 10p tax rate, that'd be the one they abolished in the first place. Under Conservative plans, what Labour wish to tax at 10p, we will tax at zero as we will raise the income tax threshold to £12,500."
