Double blow to George Osborne on tax credit cuts

Under attack over tax credits: Chancellor George Osborne
Umit Bektas/Reuters
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George Osborne's plan to slash tax credits came under attack today from a former chancellor and an influential Tory magazine.

First Nigel Lawson said Mr Osborne could “tweak” his proposals to soften the blow to poorer working families.

Then the Spectator said the Chancellor “snarls” at benefits claimants and accused him of struggling “to comprehend the human factor” of the cuts.

The double blow came as Downing Street was forced to deny rumours of a split between Mr Osborne and David Cameron on the issue.

Lord Lawson, chancellor between 1983 and 1989, told BBC radio that Mr Osborne was right to reduce the deficit and tackle the tax credits budget.

But he added: “There may be areas where there could be some tweaking.” He said recipients on a higher income should “have a slightly bigger burden”.

With a crucial debate approaching in the Lords, the Spectator’s intervention could also prove critical. In its leading article, the magazine warned that tax credits could be a “political disaster” like the poll tax.

It said: “Osborne has come to view politics as a game of chess he is playing with the Labour party. As a result, he struggles to comprehend the human factor.”

But Mr Osborne held his ground today, saying: “It comes down to a very simple judgment, which is do you think our welfare system is too expensive?

“Do you think we should move to a higher wage, lower welfare economy and ultimately that’s the decision we are all being asked to take as Members of Parliament … I’m comfortable with the judgment call that I’ve made.”

Shadow Chancellor John McDonnell said: “It’s time for David Cameron and George Osborne to think again and reverse these tax credit cuts."

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