On the 18th October, Shadow Chancellor John McDonnell confirmed that Labour will reverse the tax credit cuts, if the Tories implement the policy. This follows the publication of research which suggests that such a move could result in the Conservatives losing their majority at the next General Election.
The research released by the House of Commons library has found that the cuts to working tax credits will affect 3.2 million families, whom on average are set to be £1,300 worse off a year. The number of those affected within dozens of marginal seats is larger than the Tory majority, including Milton Keynes South, where 47% of families receive working tax credits.
Shadow Chief Secretary to the Treasury, Seema Malhotra, also clarified Labour’s position, stating that:
“We are calling for Osborne to reverse his decision to cut tax credits next April. The Tories have the chance to do the right thing. If they don’t reverse these cuts, we will be making it clear on Tuesday that we will.”