Tories must remember why tax cuts help

Britain’s poorly paid public sector workers deserve a pay rise, says Jeremy Corbyn.

Britain’s poorly paid public sector workers will lose £3,000 in salary unless pay policies end, says the TUC.

Government poised to spend £4 billion to give public sector workers a pay rise, suggest the newspaper headlines.

Yet again, the Tories don’t appear to be prepared to defend their own record in Government, preferring instead to concede yet more ground to the socialists running Labour.

You see the truth is that every full time employee has received an increase in take home pay. It is true that the value of this is falling, as inflation is finally approaching historic norms, but it is still a substantial rise in the take home pay of every full time employee – private or public sector.

How has this rise in take home pay come about? Well, tax cuts. In 2010, the personal allowance meant employees paid taxes on every penny earned above £6,475. From this year that personal allowance has risen to £11,500. Yes that’s an extra £5,025 that you don’t pay tax on – worth at least £1,155 in additional pay.

If the Government has £4 billion to splurge on largesse – unlikely given the deficit still stands at £43 billion, and the debt to GDP ratio has now grown to 89.3% – then it should absolutely NOT spend that money on increasing public sector pay.

That might seem harsh, but it would be far better to spend that money on giving EVERYONE a pay rise, by cutting taxes. A 1% cut in the basic rate of income tax would cost marginally more than an increase in public sector pay, but would give EVERYONE a rise in their pay cheque.

Mr Corbyn may not have a decent grasp of economics. After all, he did suggest that Venezuela was a good example for the UK to follow.

But there is no excuse for the Tories in Government to forget the basics of running a country. It is a massive over-simplification, but lets give hard working people a further rise in their take home pay – by cutting their taxes.