Miliband Pledges To Scrap 'Bedroom Tax'

A Labour government would scrap the coalition's "bedroom tax", Ed Miliband will announce ahead of the party's annual conference.

The Labour leader will condemn the controversial measure as "a symbol of an out-of-touch, uncaring Tory Government".

Labour insists the £470m expected to be saved by the welfare reform could instead be covered by closing "shady" tax loopholes.

On the eve of his party's conference in Brighton, Mr Miliband will say the "most important issue facing families in Britain" is "the cost of living crisis".

He will say: "Under David Cameron life is getting harder and harder with prices rising faster than wages in 38 of the 39 months that he has been in Downing Street, and working people are an average of almost £1,500 a year worse off under his Government.

Campaigners on Thursday claimed a third of council tenants affected by the "bedroom tax" are in arrears and facing eviction.

The TUC's False Economy group made Freedom of Information requests to all British councils and 114 responded to reveal 50,000 households can no longer pay for their accommodation.

He will say the "bedroom tax" was the product of a Government that "stands up for the privileged few - but never for you".

Mr Miliband will say: "We'll scrap the bedroom tax by abolishing the shady schemes of tax loopholes for the privileged few which the Tories keep inventing.

"Tax cuts for hedge funds, the billion pound black hole created with a scheme for workers to sell their rights for shares, and by tackling scams which cheat the taxpayer in construction."

The Conservatives claimed Labour's sums did not add up and the party would need to increase borrowing to cover the cost of the "bedroom tax" policy.

Treasury Minister Sajid Javid said: "Labour's first policy commitment, after three years of waiting, is more spending on housing benefit, funded by a tax on pensions and more borrowing.

"That sums up Labour's record in office and shows it's still the same old Labour."

The "bedroom tax" announcement came as Labour feared their annual gathering could be overshadowed by the publication of Gordon Brown's spin doctor's memoirs.

In it, former special adviser Damian McBride confesses to leaking stories to the press about former home secretaries John Reid and Charles Clarke at a time when he was determined to ensure Mr Brown succeeded Tony Blair as prime minister.

Blairite former minister Dame Tessa Jowell said she was "sure" that Mr Miliband, a member of the Brown inner circle, would have been aware of Mr McBride's activities.

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