Reform 'Disgraceful' Tax Credit System demands Bruce

6.20.16pm UTC (GMT +0000) Tue 25th Apr 2006

Gordon MP, Malcolm Bruce has called for reform of the Government's under-fire tax credit system following stinging criticism of the system in a major House of Commons report.

The report published today by the influential Public Accounts Committee condemned the 'disgraceful' level of tax credit overpayments that have hit families for two years in succession. Across Aberdeen and Aberdeenshire 35,500 people were in receipt of tax credits at the end of last year, including 8,600 in the Gordon constituency.

Mr Bruce said:

"This report is a timely critique of the disastrous political management of the Treasury. It is unacceptable that for a second year running, despite a huge public outcry, hundreds of thousands of vulnerable families have been forced to repay tax credits pushing many of them into debt.

"I know from my own postbag and constituency advice surgeries that too many of my constituents face real hardship and unacceptable pressure as a result of the incompetent mismanagement of the tax credit system."

The Liberal Democrat MP continued:

"The tax credit system is yet another Gordon Brown gimmick which has backfired, as this latest report proves. Many of the recommendations from last year's report by the Ombudsman are still being blocked by the Revenue - chiefly, they continue to refuse to write off the overpayments they themselves have caused. And they have done far too little too late to protect the system from serious and organised fraud.

"It is clear that the Government has yet to get to grips with the magnitude of the problem in the tax credit system. We should by now have moved to a system of fixed awards and clearer award notices. It is time for the Government to admit its mistakes and introduce real reform and fairness into the system."

ENDS