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Could Osborne drop tax credit 拢4bn from surplus target?

A former adviser to Work and Pensions Secretary Iain Duncan Smith has suggested that the money lost by the rejection of cuts to tax credits could simply be removed from George Osborne鈥檚 surplus target.

The House of Lords鈥 rejection of tax credit cuts means the Chancellor has a 拢4bn shortfall in his target to reach a 拢10bn surplus by 2020.

Baroness Stroud, now executive director of Centre for Social Justice think tank, told the Today programme Mr Osborne needed to 鈥渏ust pause and think. Do you actually need to make this change?鈥

鈥淭he most important thing to protect is work incentive,鈥 she said.

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