Tax credits cut – another step towards universal poverty

Business groups have warned David Cameron that he cannot expect companies to automatically raise wages to compensate for cuts in tax credits that are likely to be unveiled in the summer budget.

Industry organisations, including the British Chamber of Commerce (BCC) and Institute of Directors (IoD), spoke out after Cameron gave a speech criticising what he claimed was a “welfare merry-go-round” and suggested higher pay should replace tax credits.

There has been speculation that Downing Street could unveil a plan to encourage companies to pay their workers more at the same time as the government announces £12bn of welfare cuts, including reductions to tax credits, next month.

Steve Hilton, Cameron’s former adviser, claimed in a Daily Mail article this week that it was a “complete travesty” that giant retailers like Tesco and Sainsbury’s are making billions of pounds in profits while they are “subsidised by the taxpayer so they can pay their workers a pittance”.

Full story :  http://northstar.boards.net/thread/149/credits-another-step-universal-poverty

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