[Kizzy]

U turn?.....

'George Osborne should abandon his planned cuts to tax credits and look for the £4.4bn in revenue elsewhere, according to the Resolution Foundation.

The thinktank was one of the first to warn of the political damage cuts that tax credits could inflict on the chancellor if he pressed ahead with the timetable set out in the summer budget. It has been looking for an alternative way for the cuts to proceed in order to mitigate the effects and has concluded that there is no effective way of simply tweaking the cuts. It instead proposes changes to taxation thresholds and pensions in an attempt to find the £4.4bn.

The foundation warns that phasing in the cuts would still leave 2.7 million families worse off and only shift the burden towards the end of parliament. It also cautions that transitional arrangements such as only imposing the cuts on new tax credit claimants will save very little and will undermine the universal credit scheme by creating perverse incentives to work.'

http://www.theguardian.com/politics/...says-thinktank