As we countdown to what I think is probably the most intriguing General Election for decades, all of the main parties are trying to show us how great they have been over the past 5 years. One of the favourite ways of trying to demonstrate that is by telling us all how much ‘better off’ we are, despite the fact that in real cash terms, of course we are all worse off!
We have the Lib Dems claiming that 8m household will be better off by £1,330 on average next year, benefitting from tax cuts, which the Liberal Democrats say was their “flagship policy” and has caused “the greatest revolution I the tax landscape for working people in living memory”.
However, the Mail claims that stay at home mothers have lost out as a result of the tax reforms, whereas working couples with children have received increasingly generous support.
Meanwhile, David Cameron is expected to commit a future Conservative Government to tax cuts with middle earners being the biggest gainers. Of course at the moment, the £7.2bn of promised cuts are as yet unfunded with no indication of where the funds are going to come from!
By contract, Labour and the Liberal Democrats believe that the public are prepared to accept tax rises to fund public services.
The next couple of months are certainly going to be interesting!