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Harriet Harman 'happy to be overruled' on tax credit cuts Harriet Harman 'happy to be overruled' on tax credit cuts
(about 3 hours later)
Labour's acting leader Harriet Harman is "perfectly happy" for her backing of tax credit cuts to be reversed, the BBC understands. Labour's acting leader Harriet Harman is "perfectly happy" for her backing of tax credit cuts to be reversed, a source close to her has told the BBC.
A source close to Ms Harman told BBC assistant political editor Norman Smith she had been setting out "an attitude" not a final policy. She set out "an attitude" not a final policy, the source told BBC assistant political editor Norman Smith.
Ms Harman faced a Labour backlash after saying the party would not oppose Budget plans to limit child tax credits to the first two children.Ms Harman faced a Labour backlash after saying the party would not oppose Budget plans to limit child tax credits to the first two children.
She will address Labour MPs later. But leadership contender Liz Kendall said she was "absolutely right".
"Harriet was simply setting out an attitude that we are not going to oppose everything," the Labour source said. Speaking in a leadership hustings hosted by the BBC's Victoria Derbyshire programme, Ms Kendall said: "Many parents who aren't on tax credits have to make difficult decisions about how many children they can afford."
In a special debate hosted by the BBC's Victoria Derbyshire programme, three of Labour's leadership contenders, Andy Burnham, Yvette Cooper and Jeremy Corbyn, said they would oppose the move. If Labour persists with "the same arguments we have done over the last five years" its election defeat will be repeated, she added.
Ms Cooper said reducing tax credits would reduce people's incentives to work. The other candidates, Andy Burnham, Yvette Cooper and Jeremy Corbyn, said they would oppose the move.
But the other candidate, Liz Kendall, said Ms Harman was "absolutely right". "You don't allow a change that is going to take money off people in work who are trying to do the right thing," Mr Burnham said.
"Many parents who aren't on tax credits have to make difficult decisions about how many children they can't afford," she said. Ms Cooper said reducing tax credits would affect people's incentives to work. "I think we can be credible and also say we are going to oppose the things that the Tories are doing which are going to hit work and hit people's incentives to work," she said.
Speaking to the BBC on Sunday, Ms Harman said Labour's big defeats in the last two elections meant it could not adopt "blanket opposition". Mr Corbyn said he would oppose George Osborne's Budget, which he called "brutal and anti-young and anti the poorest in Britain".
Ms Harman will address Labour MPs later at a meeting of the Parliamentary Labour Party.
Speaking to the BBC on Sunday, she said Labour's big defeats in the last two elections meant it could not adopt "blanket opposition".
She said the party must listen to the views of those who had put off having "bigger families" for financial reasons, as well as those getting state support.She said the party must listen to the views of those who had put off having "bigger families" for financial reasons, as well as those getting state support.
The acting leader said Labour would not oppose the government's plan to reduce the overall household benefit cap - to £23,000 a year in London and £20,000 outside - and it would also back the third child limit on future tax credits claims.The acting leader said Labour would not oppose the government's plan to reduce the overall household benefit cap - to £23,000 a year in London and £20,000 outside - and it would also back the third child limit on future tax credits claims.
She said Labour would oppose the reduction in the tax credit threshold to £3,850 a year and the faster withdrawal of it, saying it would leave families an average of £1,000 a year worse off.She said Labour would oppose the reduction in the tax credit threshold to £3,850 a year and the faster withdrawal of it, saying it would leave families an average of £1,000 a year worse off.
But she said the temptation to oppose everything in the Budget was not a luxury open to Labour since, at this moment, it was seen as being a party of opposition - not a government in waiting.But she said the temptation to oppose everything in the Budget was not a luxury open to Labour since, at this moment, it was seen as being a party of opposition - not a government in waiting.
Labour MP Diane Abbott said Ms Harman was "doing her very best" as interim leader. Labour MP Frank Field, who chairs the work and pensions committee, backed Ms Harman, telling the BBC's Daily Politics the stance taken by Labour leadership candidates was "dismal".
But she told BBC Radio 4's Today programme: "I don't believe the Labour Party can support welfare measures that will force tens of thousands of children into poverty." He drew a distinction between the two children change, which will only apply to new claimants, and reforms that would apply to those already in the system - an area where he said the Tories were "vulnerable".
No 'blanket opposition' But Labour MP Diane Abbott she told BBC Radio 4's Today programme: "I don't believe the Labour Party can support welfare measures that will force tens of thousands of children into poverty."
A spokesman for Mr Burnham said he had consistently spoken out against taking away support for working families with children on modest incomes.
"Andy will not offer blanket opposition and, where we agree with a government policy, we won't oppose for the sake of it," a spokesman said.
"But these tax credit changes are regressive, they are wrong, they hit families in work and Andy opposes them."
Ms Cooper said Labour should strongly oppose the cuts, saying she did not believe the best way to reduce the deficit was "to hit working families, reduce work incentives and push more children into poverty".
And Mr Corbyn, who is basing his leadership campaign on an anti-austerity message, said he was "not willing to vote for policies that will push more children into poverty".