From the TUC

Budget even more regressive than thought

27 Jun 2010, by Guest in Economics, Politics

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 distributional impact of tax, benefit and spending changes

The Observer has a report on the study today.

8 Responses to Budget even more regressive than thought

  1. Tweets that mention Budget even more regressive than thought | ToUChstone blog: A public policy blog from the TUC — Topsy.com
    Jun 27th 2010, 12:13 pm

    […] This post was mentioned on Twitter by Sunder Katwala and ToUChstone blog, Aisha Gani. Aisha Gani said: RT @nextleft: Must read: what the spending cuts do on budget fairness http://www.touchstoneblog.org.uk/2010/06/budget-even-more-regressi … […]

  2. Tim Worstall
    Jun 27th 2010, 6:05 pm

    What a wonderful report.

    When we back calculate the numbers what we get is that every household in the bottom 10% gets £26,000 a year of public services. Add the £7,000 they get in income and that means that the consumption basket of every household is now higher than the median household income of £30,000 a year.

    How wonderful! We’ve finally abolished poverty! there is no one whose consumption is less than 60% of median income: for there’s no one whose consumption is less than median income!

    Woo Hoo!

  3. Budget even more regressive than thought! « Cobwebspider's Blog
    Jun 28th 2010, 9:06 am

    […] June 28, 2010 by cobwebspider Following on from my previous post about the budget this post by Adam Lent on the Touch Stone Blog give further evidence that the Coalitions claimed transparency becomes more […]

  4. Edmund Bullingham
    Jun 29th 2010, 12:29 am

    The well named Lib-Cons sure have conned the Liberals. Typical Tory everyone pays the same (poll tax) style “fairness”. I remember that same poll tax style “fairness” when i lived in Coventry, Stoke Aldermoor the most needy council estate in Coventry lost £1m a year to the poll tax BUT across the main drag in Stoke where all the wealthy people live they had a gain of £1m a year all in the name of everybody pays the same: fairness Tory style.

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  6. 100 days of Coalition and over 100 unfair cuts | ToUChstone blog: A public policy blog from the TUC
    Aug 18th 2010, 12:35 pm

    […] families and communities, significant service cuts and the worst off being affected. As analysis commissioned for the TUC and UNISON has shown, spending cuts inevitably hit the poorest hardest – it is hard to see how the […]

  7. Cuts Watch #213: The impact of Local Area Grant cuts | ToUChstone blog: A public policy blog from the TUC
    Aug 20th 2010, 12:49 pm

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    […] Child Poverty reports on new research, commissioned from the IFS, that shows definitively what many others have highlighted – the cuts announced in the Budget will hit families and the poorest the […]

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