Savings scepticismpublished at 13:38
The World at One
BBC Radio 4
Paul Johnson, director of the Institute for Fiscal Studies, says he’s “sceptical” about the numbers being put forward by the main parties when interviewed on The World At One. He’s particularly unimpressed with their income tax proposals. “We’ve now got to a point where about 44% of the adult population don’t pay income tax,” Mr Johnson says. “If what you really wanted to do was help people on lower earnings, you’d be much better off increasing the point at which they pay national insurance contributions.”
On welfare, Mr Johnson says if the Tories are serious about going ahead with £12bn, they’ll have to cut up to 15% of spending on housing benefit, tax credit or child benefit. Labour’s proposals don’t contain many cuts at all -which means there are “stark differences” between the two parties’ plans.