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Tax credits 'tweak' suggested by ex-minister Mitchell Tax credits 'tweak' suggested by ex-minister Mitchell
(34 minutes later)
A former Conservative Cabinet minister has suggested the government's tax credit reforms could be "tweaked" before they come into force in April.A former Conservative Cabinet minister has suggested the government's tax credit reforms could be "tweaked" before they come into force in April.
But Andrew Mitchell said he backed the "very tough" reforms overall.But Andrew Mitchell said he backed the "very tough" reforms overall.
Shadow chancellor John McDonnell confirmed Labour would reverse the cuts after two frontbenchers declined to make the commitment in interviews.Shadow chancellor John McDonnell confirmed Labour would reverse the cuts after two frontbenchers declined to make the commitment in interviews.
Labour is challenging Tory MPs to join them in opposing the reforms in a Commons vote on Tuesday.Labour is challenging Tory MPs to join them in opposing the reforms in a Commons vote on Tuesday.
The government's plans to reduce spending on tax credits were approved by MPs last month.The government's plans to reduce spending on tax credits were approved by MPs last month.
Labour debateLabour debate
From April, the threshold at which tax credits begin to be withdrawn will fall from £6,420 to £3,850, and people's income over this amount will be reduced more steeply.From April, the threshold at which tax credits begin to be withdrawn will fall from £6,420 to £3,850, and people's income over this amount will be reduced more steeply.
Mr Mitchell, the former international development secretary and Conservative chief whip, told the BBC's Sunday Politics the changes were needed because the current system was "out of control".Mr Mitchell, the former international development secretary and Conservative chief whip, told the BBC's Sunday Politics the changes were needed because the current system was "out of control".
He added: "It's a very tough measure but it's greatly compensated by other changes in the tax and welfare system.He added: "It's a very tough measure but it's greatly compensated by other changes in the tax and welfare system.
"We've got some time before it comes in so that we can tweak it if necessary but I think it is the right reform to make and overall we can make sure there are as few losers from this as possible.""We've got some time before it comes in so that we can tweak it if necessary but I think it is the right reform to make and overall we can make sure there are as few losers from this as possible."
Labour will use an opposition debate on Tuesday to urge the government to reverse the changes.Labour will use an opposition debate on Tuesday to urge the government to reverse the changes.
But on Sunday, neither shadow chief secretary to the Treasury Seema Malhotra nor shadow international development secretary Diane Abbott would pledge their reversal under a Labour government.But on Sunday, neither shadow chief secretary to the Treasury Seema Malhotra nor shadow international development secretary Diane Abbott would pledge their reversal under a Labour government.
'Lower taxes''Lower taxes'
Ms Malhotra said the cuts "should not go forward" while Ms Abbott said Mr McDonnell's "fiscal mandate" would set out the party's policy.Ms Malhotra said the cuts "should not go forward" while Ms Abbott said Mr McDonnell's "fiscal mandate" would set out the party's policy.
Mr McDonnell then tweeted that if Chancellor George Osborne would not reverse the cuts, "we're making it clear that we will".Mr McDonnell then tweeted that if Chancellor George Osborne would not reverse the cuts, "we're making it clear that we will".
More than three million low-paid workers will be told just before Christmas how much they will lose from the changes to tax credits.More than three million low-paid workers will be told just before Christmas how much they will lose from the changes to tax credits.
The government says other reforms, including a National Living Wage, increased personal tax allowance and expanding childcare, will compensate for the reforms and Prime Minister David Cameron has rejected calls for a change of course.The government says other reforms, including a National Living Wage, increased personal tax allowance and expanding childcare, will compensate for the reforms and Prime Minister David Cameron has rejected calls for a change of course.
Speaking on the BBC's Andrew Marr show, Defence Secretary Michael Fallon said the current tax credit system was "not very sensible", saying even some MPs were eligible to receive the payments.Speaking on the BBC's Andrew Marr show, Defence Secretary Michael Fallon said the current tax credit system was "not very sensible", saying even some MPs were eligible to receive the payments.
"We need to focus welfare on where it is needed most, and move our country to where you keep more of your earnings - lower tax and lower welfare," he said."We need to focus welfare on where it is needed most, and move our country to where you keep more of your earnings - lower tax and lower welfare," he said.
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