MALVERN’S MP has reinforced her position backing plans to axe child benefit for higher rate taxpayers after the Prime Minister suggested a major rethink on the proposal.
Harriett Baldwin said, as a mother who receives child benefit despite earning about £65,000 a year, that she believes it is only fair people such as her are asked to play their part in tackling the country’s deficit.
But heads were turned when David Cameron said he acknowledged the potential “unfairness” on some families earning just above the 40 per cent threshold – or about £43,000-a-year – as they stand to lose thousands of pounds.
Chancellor George Osborne insisted he would go ahead with the controversial plans but indicated ministers will be looking at the way they are implemented when the changes come into effect next year.
Mrs Baldwin, a Conservative backbencher, has long supported Mr Osborne’s plan.
In response to the latest developments she said: “I do think it is fair to ask higher rate taxpayers like me to contribute more to dealing with the deficit.
“Put another way, why should we borrow to pay out money to higher earning parents today when it is our children who will have to pay back the debt?
“The tax system today already means that two earners on £40,000 pay a lot less tax than one earner on £80,000.
“However, if the Chancellor can find a better way to administer child benefit then I am sure we will hear about it in the budget.”
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