Politicians in Reading have clashed over the Government’s U-turn on a plan to scrap the 45 per cent tax rate on the highest earners.
The proposal, which involved removing the 45 per cent tax rate for those earning £150,000 and over per year, made up part of a ‘mini budget’.
The ‘mini-budget’ was announced following the release of the government’s ‘Growth Plan’ on September 23.
Top councillors in Reading have clashed over the U-turn, with the Labour leader calling the government “out of touch” and the Conservative group leader defending the government’s relief measures.
Councillor Jason Brock, the leader of the council (Labour, Southcote) said: "The Conservative U-turn on scrapping the 45p tax rate is welcome, but the initial policy demonstrates how out of touch with public opinion this Government is.
"The fiscal crisis they’ve unleashed – with people across Reading and the nation worrying about paying their mortgages and rents – will not be so easily reversed and there is a urgent need for sound economic policy rather than ideological flights of fancy.
“With the country facing a perilous situation and only Labour offering a coherent policy platform to benefit everyone and restore stability, it is clearly time for a General Election.
"If the Conservatives genuinely had the courage of their convictions they’d call one immediately, but I doubt they’ll dare to do so – they’re only looking out for themselves.”
Meanwhile, cllr Clarence Mitchell, the leader of the Conservative group and representative for Emmer Green, said: “The chancellor has said that he’s not going to implement that now.
“The mini budget has a lot of good points in it, personally I think it was badly communicated.
“Personally I think the 45p rate should have gone to consultation, with a view to it being announced at the next proper budget.
“That way more people may have understood what it was going to achieve.
“Announcing it cold to the cabinet, market and the public by surprise.”
Cllr Mitchell added that the government is doing a lot to support people.
Earlier this year, it provided a £150 council tax rebate for people in band A-D properties.
He also praised other apects of the mini budget but said the communication of it has been mishandled so far.
READ MORE: Reading council Conservative group leader accused of moving to town for Parliament ambitions
The government has argued measures in the budget include tax cuts which are hoped will stimulate economic growth.
Other policies in the mini budget include offering an Energy Price Guarantee, which the government has stated will save the typical household £1,000 a year on their energy bill with the Energy Bill Relief Scheme.
Additionally, the government plans to cut stamp duty for first time buyers, who will now pay no stamp duty whatsover on propeties valued up to £425,000.
The clash over the u-turn comes as more than 474,000 people have signed a petition calling for an early general election.
Of those, 1,049 people have signed it in the Reading East constituency, and 813 people have signed it in Reading West.
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