Boy George (Osborne), DC (Cameron) and Cleggy have all ardently claimed that the recent “emergency budget” was hardwired into being a “progressive” budget and that the poor would be shielded from the upcoming years of austerity and that in the words of DC, “we are all in this together”…….what he forgot to add was “…unless you’re rich but you’re particularly in if you’re poor”.
A recent report by the Institute for Fiscal Studies (IFS), Britain’s leading independent tax organisations completely destroyed the coalitions claims that the budget is “progressive” but rather describing it as “clearly regressive as, on average, they hit the poorest households more than those in the upper middle of the income distribution in cash, let alone percentage, terms.”. Yes, you read the quote correctly; it hits the poorest harder in cash never mind percentage terms!
The IFS also said the poorest 10% of families would lose over 5% of their income as a result of the budget compared with a loss of less than 1% for non-pensioner households without children in the richest 10% of households. It added that the budget contrasted with the “progressive” plans for 2010-14 inherited from Labour, under which the richest 10% of households bore the brunt of the cuts.
Leaving aside whether it is a right or wrong descision to attempt to remove the structural deficit within 5 years, I can assure you know that the coalition will turn round and you use one of the oldest tricks in the books, blame the predecessors. Well let me say, don’t you even dare, don’t even dare, this is now totally the coalition’s doing. This is what happens when you have severe changes to housing benefit, disability allowances, tax credits and a deficit reduction plan that is totally out of balance in terms of cuts to taxation.
We all knew the Tories where bulling when DC stated that “we are all in this together” and that the Lib Dems had sold themselves out on economic policy, but now we have conclusive proof from a well respected independent body, all we can say now is, need we say more…