Sunday, 29 August 2010
THE CUTS WILL DISPROPORTIONATELY HIT THE POOR
It seems that it is an excellent time to bury bad news.
The Institute of Fiscal Studies (IFS) has reported that the coalition’s budget has affected poor households disproportionately, but little has been made of this in the press, as Nick Clegg settles his feet under the desk for a prolonged period as acting Prime Minister.
As an aside, do you remember the derision which met Nick Clegg’s statement, made only a few months ago, that he came into politics to be prime minister .....? Eat crow people who smirked or even belly laughed!
The IFS’ assessment highlights impact of the looming cuts to public services, which will hit poorer households significantly harder than richer households. The Financial Times, no less, reckons that the IFS conclusions will put massive pressure on Liberal Democrat MPs. After all, which Liberal could honestly say that he came into politics to vote for measures that target the poor as a means of bringing down a deficit which has largely been caused by the rich?
The FT’s own calculations, based on the effect of cutting public services by 15%, showed the losses were heavily concentrated in poor families and dwarfed the effects of other Budget tax and benefit changes. Losses for the poorest 20% of households would be around 8% of income, with losses of less than 3% among the richest 20% of families. Given that the richest really do not use all of their income on a daily basis, and the poor usually do, the unfairness is compounded and will in some cases, bring real misery.
The results, interesting, contrast with the Treasury’s own analysis, which amazingly, and conveniently, does not include the effect of public spending cuts, and so shows larger proportionate losses among the richest.
Spokesmen (people) for the chancellor said that he had been “totally straight and clear” about what was included in the Treasury analysis and what was excluded. One claimed the chancellor’s boast that the Budget “was progressive” was accurate. He said the government had implemented some of Labour’s policies.
As if that were some indication of progressiveness!!!
But, in most media this was small beer compared to the Earth shattering news that, in Kernow, a wealthy lady had given birth to a baby daughter just like approximately 1,900 other women across the United Kingdom.