HARTLEPOOL MP Iain Wright said families in town will be hit in the pocket after the Government went back on plans to raise child tax credits.
Chancellor George Osborne said in his Autumn Statement that the credits would not be raised above the rate of inflation.
The Chancellor had announced plans to increase the credits by £50 above inflation to tackle rises in child poverty in last year’s budget.
Mr Wright said: “I think that will really hit people in Hartlepool who are struggling on low pay, but are trying to do the decent thing by going out to work and that seems really unfair.”
Mr Wright said the overall economic picture was “bleak” after yesterday’s statement with borrowing and unemployment predicted to be higher than first thought and spending cuts to carry on to 2017.
He said: “You can’t blame all the difficulties on things that are happening overseas in Europe. A lot of this is of the Government’s own making.
“The North-East comes out very poorly, we get virtually nothing.
“It worries me if we are thinking about how our area is going to be economically competitive in the next few years.
“The north south divide is going to get wider as a result of this.”
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