From the TUC

IFS: Budget not progressive

23 Jun 2010, by Guest in Economics

The IFS Budget analysis concludes that, contrary to George Osborne’s claim, this was not a Budget that protected the poorest.  It also concludes that the evidence for progressivity presented in the Budget was misleading because it only looks at reforms planned to 2012-13.  These reforms appear progressive because they include genuinely progressive measures introduced by the previous Government and they don’t take account of the regressive measures to be introduced after 2013.  In addition, neither the Treasury’s analysis nor the IFS’s are able to take account of some further measures (such as cuts in Housing Benefit) which are also likely to be regressive.

The IFS analysis concludes pretty bluntly that the:

overall impact of yesterday’s measures was regressive.

This a pretty serious dent to Osborne’s proud claim that his deficit reduction will be fair.  But also to his oft-repeated assertion that he is being straight with the British people.  There could be an uncomfortable few hours in the news studios to come!  And expect Labour to throw this at the Lib Dems and the Government over and over again.

 

2 Responses to IFS: Budget not progressive

  1. Budget hits poor even more than thought earlier | Liberal Conspiracy
    Jun 27th 2010, 1:34 pm

    […] 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. […]

  2. Budget even more regressive than thought | ToUChstone blog: A public policy blog from the TUC
    Jul 5th 2010, 1:41 pm

    […] 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. […]