Labour peer launches blistering attack on George Osborne ahead of screeching tax credits U-turn

Lord McFall called Osborne the "most political" Chancellor ever - saying MPs "won't fully understand" his spending review

George Osborne is set to row back on plans to slash tax credits

A Labour peer has launched a blistering attack on George Osborne as the Chancellor prepares for a screeching tax credit U-turn.
In a passionate defence of welfare, former Treasury Select Committee chairman Lord McFall insisted the Upper House was right to block the £4.4billion raid.
And he feared that “no ​body​” in the Commons today would “fully understand” the ​Chancellor's ​Spending Review.
He was speaking hours before Mr Osborne delivers the mini-Budget in his Autumn Statement where he is expected to scale back his tax credit assault after a huge outcry.
It would have stripped 3.2 million low-paid families of about £1,300 a year. But peers forced Mr Osborne to rethink the pocket-picking plan.
Speaking at a seminar organised by the centre-right Politeia think-tank, the ex-Northern Ireland Minister said peers had a “duty” to scrutinise the plan after MPs only gave it a “cursory glance”.
“There was a lot of baloney spoken about the tax credits by the Government, saying it was a constitutional issue. Bah, bah to that,” he insisted.
“What happened was ​​ George Osborne is the most political Chancellor – I think he out-politics Gordon Brown – he decided, 'Wait a minute, I'm not going to get this tax credit measure through the House of Commons, so what'll I do? I'll put it as a statutory instrument'.”

Lord McFall branded Osborne the most political chancellor ever

He went on: “There was a constitutional duty in the House of Lords to look at it.
“All the House of Lords did was send it back to the House of Commons.
“But it's got them (the Tories) into real, deep problems because in the Autumn Statement tomorrow, if he changes that tax credit in any way, he will have to go back to the House of Commons to change the Welfare Bill provisions.
“Shortsightedness did that – and it was the House of Lords that looked at that and scrutinised it.”


Lord McFall launched an outspoken defence of social security as Mr Osborne sharpened his axe for a £12billion raid on the budget.
“George Osborne says £12billion of welfare cuts. Now when he mentions the word 'welfare', there's a connotation to that word 'welfare',” said the peer.
“It gives you the impression that it's people hiding behind their curtains, they're lazy, seeing other people going out to work and not doing anything.
“But let's look at welfare. Welfare takes up 25% of the national budget – but welfare includes the pensions of soldiers, teachers, nurses, the elderly.
“Welfare includes children in care, welfare includes nursing homes, welfare includes child benefit which is a universal provision, welfare includes winter fuel allowance, welfare includes tax credits for working families and welfare includes helping the poorest pensioners.
“Financial support for the unemployed is five per cent of the welfare budget and financial support for jobseekers is three per cent of that budget.
“So my plea is, if we're going to be using words then use words in their honest context.”

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​Lord McFall also feared that when the Chancellor unveils his latest tax and spending plans today, “there will be nobody in that chamber that fully understands it”.

Urging Parliament to “get a grip on the figures”, he warned: “When you've that level of ignorance, you have got to do something fundamental about that.”