Owen Smith MP, Labour's Shadow Treasury Minister, in response to today's inflation figures, said:
“Despite this small fall in the inflation rate there is little respite for hard-pressed families and pensioners. The cost of living is still rising much faster than the Government’s target rate. And deep cuts to things like tax credits from next month will cost a family with children an average of £530 per year, on top of the VAT rise, pay freezes and rising rail fares.
“At a time when there is a huge squeeze on families on middle and low incomes, cutting the top rate of tax for people on over £150,000 would be completely the wrong priority and show just how out of touch this Government is.
“We need a Budget for jobs and growth, that’s fair to people on middle and low incomes and stops next month’s tax credits bombshell that will make thousands of parents better off quitting work. There have to be tough decisions on tax, spending and pay, but without jobs and growth we won’t get the deficit down.”