NEWS that proposed changes to tax credits have been abandoned has been welcomed — but some opponents have warned it is only a ‘small victory’.

The proposed cut would have reduced the earnings level for the withdrawal of tax credits for a household from £6,420 to £3,850. It was estimated the move would have saved £4.4-billion a year.

The Chancellor, George Osborne, surprised the House of Commons in his autumn statement last Wednesday when he announced that the proposed tax credit changes would be abandoned.

He said: “I’ve had representations that these changes to tax credits should be phased in. I’ve listened to the concerns. I hear and understand them.

“And because I’ve been able to announce today an improvement in the public finances, the simplest thing to do is not to phase these changes in, but to avoid them altogether.”

Crystal Steinberg, manager of the Torridge and West Devon Labour Party campaign, ‘Stop The Tax Credit Cuts’, recently presented the contituency’s Conservative MP Geoffrey Cox, at his Bideford office, with a petition of almost 1,000 signatures collected by 38 Degrees activists and Labour Party members.

She told the Post: “I think the overwhelming public pressure has kind of got them to the point where they have to be seen to be doing something.

“It’s a small victory, but there is still some ground to keep on campaigning.

“Obviously it’s a good thing for families currently getting tax credit but for the families suddenly going over to universal credit, it’s still quite a worrying thing.”

Those who receive tax credits will eventually be moved on to the Universal Credit system, which is being introduced in stages. Whether a person can claim depends on where they live and their personal circumstances.

Mr Cox, said: “I am very pleased that the Chancellor of the Exchequer has listened to the strong representations that I, and others, have made on behalf of low paid workers in Torridge and West Devon about the need to preserve tax credits until a living wage is introduced.

“This announcement will mean that nobody in work and receiving tax credits will lose out and it is a welcome further sign that the economy is continuing to grow under the Conservative Government.”

The statement was also welcomed by Scott Mann, Conservative MP for North Cornwall. He too had received a petition, which asked him to do all he could to oppose the cuts.

He said: “I’m pleased that the Chancellor has listened to myself and colleagues on this important matter. I was looking forward to hearing what proposals George Osborne was going to bring forward in the Autumn Statement, and he has delivered a result which best serves the people of North Cornwall.

“Although I support the reform of welfare, my argument has always been that it should match the increases in wages so that no-one is left worse off.”

— The MPs also welcomed other parts of the autumn statement.

Mr Cox has recently been collecting signatures for a parliamentary petition calling for improvements on rural roads.

Following the autumn statement he said: “I also welcome the announcement of a dedicated £250-million Pothole Fund, which is a step in the right direction.”

On school pupil funding, Mr Mann, who said the current situation sees children from poor backgrounds receiving up to 50% less funding than a child in another school, but with identical circumstances, said the Government will launch a detailed consultation in 2016 to implement the new formulae.

He added: “This is fantastic news. After meeting with head teachers up and down North Cornwall, and making representations to the Education Secretary, Ministers, and David Cameron to make funding fairer, it’s great to hear that a proper formula will be implemented to bring equality to school funding, which will greatly benefit small rural schools in North Cornwall.”

The chancellor also announced that from next April, people purchasing additional properties such as buy to let properties and second homes will pay an extra 3% in stamp duty.

Mr Osborne said: “This extra stamp duty raises almost a billion pounds by 2021 — and we’ll reinvest some of that money in local communities in London and places like Cornwall which are being priced out of home ownership.”

Mr Mann reacted to this, saying: “Although I welcome people to live in Cornwall and enjoy our beautiful surroundings, the detrimental impact that second homes have had on some of our communities cannot be understated. It is important that our housing policies are shaped to support the working population within Cornwall and any additional taxation which stops new houses in Cornwall becoming second homes is welcomed.

“This Government is passionate about building homes and getting people on the housing ladder, and policies such as this will help do that.”

Mr Osborne also said they would ‘continue to provide £50 off the water bills of South West Water customers, for the rest of this Parliament’.