Chancellor George Osborne will use “smoke and mirrors” to press on with welfare cuts despite the Lords defeat over tax credits.That’s the prediction of Shadow Chancellor John McDonnell in the run-up to this week’s Autumn Statement .
He believes Iain Duncan Smith will have bullied the hapless Chancellor into finding other ways of hitting the poor.
The Work and Pensions Secretary reportedly threatened to quit if Mr Osborne made his department cover the £4bn cost of postponing cuts to tax credits by trimming his Universal Credit programme.
“He’s obviously been in a row with Iain Duncan Smith. The Quiet Man will have spoken – and won. So somehow welfare will be cut ,” said Mr McDonnell.
“We’ve looked at the figures. In terms of tax credits, the Chancellor will demonstrate he’s addressing some issues, but he’ll look for cuts elsewhere .
“It will be the usual smoke and mirrors. That’s why we’ve argued we will only support him if it’s a full and a fair reversal of policy.”
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