Cutting tax for rich has cost us £11bn, says union

CUTTING income tax for people earning more than £1 million a year has deprived the Exchequer of more than £11 billion – while the pay of public sector workers has been capped, according to a new study.

Unison said its analysis found that high earners had reduced their tax bill by more than £650,000 on average over the past six years.

During the same period, public sector workers had pay rises capped at 1%, the union pointed out.

Unison said the income tax cut would have paid for an extra 30,000 nurses, 15,000 police officers, 20,000 teachers and 10,000 police community support officers.

Unison general secretary Dave Prentis said: “It’s disgusting that public services have lost out on billions, while the richest in this country have benefited handsomely from the Government’s tax policies. The claim that there’s no money for public services has a hollow ring, given the revenue the Government could have raised.

“That is if ministers hadn’t been more interested in giving the country’s millionaires a huge tax cut.

“The increasing pressure on public services is repeatedly blamed on staff shortages. These billions could have paid for thousands more nurses, teachers and community support officers.” Mel Stride, Treasury Minister, said: “The rich have paid more in income tax in every year of this government and we are investing record amounts in schools and hospitals.

“We have also cut income tax by an average of £1,000 for over 31 million workers, have taken four million of the lowest paid out of income tax, and introduced the National Living Wage, giving over two million of the lowest paid a £2,000 pay rise, the fastest pay rise in 20 years.”