Bradley Thomas MP has voted against a series of tax rises from last week’s Benefits Budget that will hit working families in Bromsgrove and the Villages.
The Government’s tax hikes include:
- A Working People Tax by freezing personal allowance thresholds
- A Savings Tax by increasing dividend tax rates
- An Inheritance Tax on people saving for the future
- The Family Farm Tax by cutting Agricultural Property Relief
- A Business Tax by reducing Capital Gains reliefs
These tax rises will hit working families across Bromsgrove and the Villages, with households facing higher taxes at a time when family finances are already stretched.
The Government’s decision to extend the freeze on personal allowance thresholds for three years breaks the Government’s manifesto commitment and Rachel Reeves’ promises and will drag 1.7 million more people into higher tax brackets across the country.
For a person earning £47,000 in Bromsgrove and the Villages, the threshold freeze could mean paying £1,300 more in income tax and National Insurance over three years.
Additionally, the Government’s Savings Tax will penalise older people who rely on dividend income to support their families. By increasing dividend tax rates by 2 percentage points, the Government is taking money from pensioners who rely on income from dividends. This comes after the Government cruelly cut Winter Fuel Payments to supposedly prevent a ‘run on the pound’.
Meanwhile, the Government’s new Inheritance Tax will draw approximately 38,500 more estates into Inheritance Tax, with the average liability increasing by £34,000. This hits families in Bromsgrove and the Villages who have worked hard and saved responsibly throughout their lives, only to see their savings raided by Labour to pay for more welfare spending.
There is another way. The Conservative Party has a fully funded plan to cut spending by £47 billion through their Golden Economic Rule. This includes cutting £23 billion from welfare spending and reducing the size of the Civil Service by £8 billion. The Conservative Party would use these savings to cut taxes for working families, not increase them.
Bradley said:
“The Government and its MPs have voted to hit working families in Bromsgrove and the Villages with higher taxes across the board. Families are already struggling with the cost of living, and the Government’s answer is to take even more money out of their pockets.
“The threshold freeze alone could cost a working person in Bromsgrove and the Villages £1,300. The Government’s Savings Tax and Inheritance Tax will hit grandparents trying to help their families. This is a betrayal of working people.
“I could not in good conscience vote for a Budget that is unsustainable, unfair and damaging to the very foundations of our economy. Most importantly, it’s bad for all of us who work hard and do the right thing.
“Only the Conservatives have the leader with a backbone, the plan and the team to cut spending with our Golden Economic Rule and reduce tax.”
