Link to this page: http://secure.socialistparty.org.uk/issue/636/10144
Cuts hit poor hardest
THE CON-Dem coalition claims that their 'progressive' cuts hit hardest at the rich and that they 'shield' poor families from the effects of austerity. The report by the Institute for Fiscal Studies (IFS), gives the lie to this.
The IFS called Tory chancellor Osborne's emergency budget "clearly regressive" with cuts in welfare provision making working families on the lowest incomes - particularly those with children - the biggest losers.
They looked at proposed changes to housing benefit, disability allowances and tax credits pencilled in between today and 2015. They conclude that "they hit the poorest households more than those in the upper middle of income distribution in cash, let alone percentage, terms."
The poorest 10% of families could lose over 5% of their income as a result of the budget compared with a loss of under 1% for non-pensioner households without children in the richest 10% of households.
The rest of the population will face attacks on jobs and services. By the look of it, the only people to escape will be the ultra-rich and their friends, unless the working class movement steps up the fight.
In The Socialist 1 September 2010:
Youth fight for jobs
Socialist Party news and analysis
Socialist Party feature
International socialist news
Socialist Party workplace news