Budget even more regressive than thought
Drawing on a wealth of data sources, Landman Economics and the Fabian Society, have been building a statistical model for the TUC and Unison over the last few months which shows how public spending affects different households and income groups. Don’t Forget the Spending Cuts! is the first study based on the model and it reveals just how strikingly regressive the Budget is once you factor in the spending cuts which neither the Treasury nor the IFS’s analysis included.
The model reveals that:
the average annual cut in public spending on the poorest tenth of households is £1,344, equivalent to 20.5% of their household income, whereas the average annual cut in public spending on the richest tenth of households is £1,135, equivalent to just 1.6% of their household income.
The graph based on the data tells its own remarkable story (you can click on it for a bigger version):
The Observer has a report on the study today.