UK Treasury Ministers Slammed By Stats Watchdog Over Misleading Tax Cut Claims

By

UK Treasury Laura Trott
LONDON, ENGLAND - NOVEMBER 28: Laura Trott, Chief Secretary to the Treasury, leaves 10 Downing Street following the Weekly Cabinet Meeting on November 28, 2023 in London, England. Dan Kitwood via Getty Images

Recently, the chair of the UK's statistics watchdog, Sir Robert Chote, expressed disapproval towards two UK Treasury ministers. BBC reports that it's regarding their statements on tax cuts for average earners.

Chief Secretary to the Treasury, Laura Trott, faced criticism after claiming in November that "taxes for the average worker will have gone down £1,000 since 2010." Another minister, Bim Afolami, also received rebuke, prompting Labour to label the verdict as "damning."

The Treasury has been reached out to for a response.

UK Treasury Minister's Misleading Tax Claims

Sir Robert highlighted in a letter published on Monday, Feb. 19, that Laura Trott's statements could confuse the public. He clarified that while the claim of lower taxes since 2010 is incorrect, the figure mentioned by Ms. Trott is a comparison of what the average tax bill would have been in 2024-25 if tax thresholds had risen in line with prices since 2010.

Following the economic impact of the coronavirus pandemic, the government's policy of raising thresholds above inflation to reduce tax burdens has been reversed, leading to many workers falling back into the tax system and higher tax brackets.

Economic Secretary to the Treasury, Bim Afolami, was also reminded in Sir Robert's letter to be clearer in his statements. The tax burden has significantly increased in recent years and is set to reach its highest level in 70 years, according to the Office for Budget Responsibility.

The UK's statistics watchdog emphasized the importance for ministers and MPs to consider how typical listeners understand their statements, especially when using 'round number' talking points.

Interestingly-this isn't the first time the watchdog has challenged ministerial claims about the economy.

In a recent incident, Prime Minister Rishi Sunak's claim of reducing debt was contested. Debt has been rising as a proportion of the economy, despite the prime minister's statement.

Labour has called for corrections to be made to previous statements on tax cuts, emphasizing the need for transparency and accuracy in government communication regarding tax policies.

© 2024 VCPOST.com All rights reserved. Do not reproduce without permission.

Join the Conversation

Real Time Analytics