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  1. Business
  2. Economics
29 October 2012

The Tories are in danger of appearing complacent over child benefit cuts

Even if the majority of voters support the policy, those who don't could yet hurt the Tories.

By George Eaton

In a bid to assuage Tory MPs fearful that the child benefit cuts could be their 10p tax moment, the Conservatives have released new private polling showing that the overwhelming majority of voters support the policy, including those who will lose out. The party’s survey, conducted by Populus (and reportedly commissioned by George Osborne), found that 82 per cent of people favour plans to taper the benefit away from households in which at least one person earns more than £50,000 (those in which one person earns at least £60,000 will lose it all together), with just 13 per cent opposed. In addition, 78 per cent of people with children under-18 support the policy, as do 74 per cent of households earning over £69,000, 82 per cent of households with income between £55,000 and £69,000, and 80 per cent of households with income between £41,000 and £55,000.

We’ve yet to see the wording of the question used by the Tories, but the results are in line with previous polls on the subject. Despite this, it’s hard to avoid the sense that the party is in danger of lapsing into complacency. As HM Revenue & Customs will inform those affected this week, families will lose £1,055.60 a year for a first child and a further £696.80 a year for each additional child, meaning that a family with three children stands to lose £2,449.20 – the equivalent of a £3,500 pay cut (since child benefit is untaxed).

The Tories argue that the policy, which takes effect in January 2013, differs from Gordon Brown’s ill-fated decision to abolish the 10p tax rate in at least three respects. First, while Brown insisted for months, against all evidence to the contrary, that there would be “no losers” from the move, the coalition has been clear that some will lose out – they can’t be accused of deception. Second, while it was the low-paid who lost out under Brown’s policy (they saw their marginal tax rate double from 10p to 20p), it is the top 15 per cent of earners who lose out under the Tories’. Finally, while the 10p tax move was widely viewed as “unfair”, the majority of voters believe the child benefit cuts are fair.

But as the Daily Express’s Patrick O’Flynn suggests, more important than question of how many oppose the policy, is the intensity of their opposition. If the 13 per cent opposed to the move vote against the Tories in protest at the next election, the party will suffer significant losses. Thus, Osborne’s poll, if intended to reassure Conservative backbenchers, is likely to have the opposite effect. Rather than persuading Tory MPs that the Chancellor understands their concerns, it will only confirm their fear that he doesn’t.

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