From the TUC

#Budget2016: TUC reaction roundup

17 Mar 2016, by in Politics

The Chancellor, George Osborne delivered the 2016 budget yesterday, here is a quick round up of reactions from our TUC bloggers:

Public Service cuts

£3.5bn worth of cuts to public services by 2020.

The spending cuts will be identified through an ‘efficiency review’. Cuts and increased pressures on departmental budgets presents a great challenge to public services which are already stretched due to previous cuts.

Education

All schools in England will become academies by 2020.

This is a major attack on national pay bargaining. Academies are exempt from national pay bargaining meaning the government is doing away with national pay setting structures for school staff. This could lead to national pay bargaining to be less efficient, more chaotic and could lead to costing employers more in the long run.

Public Borrowing

The overall government debt is up more than had been anticipated.  Borrowing has increased over £50bn more than the Chancellor had originally planned.

Under the Chancellor’s 2010 plans, the public debt ratio was meant to peak in 2013/14 and then start falling. Then the target moved to 2014/15. Now it is due to peak in 2015/16, with debt currently running at 83.7% GDP.

Pensions and savings

Public sector employers will be faced with a £2bn increase in contributions to unfunded public sector pension schemes by 2020.

From April 2017 anyone under 40 will be able to open a Lifetime ISA. They can save up to £4,000 yearly and will receive a 25% bonus from the government on every pound they put in. But the money can only be withdrawn to buy a first property or after the age of 60.

Environment

£50m allocated for innovation in energy tech industry over the next five years.

The government’s idea is for UK to become a world leader in smart technologies, including electricity storage. Energy storage is a major issue, but allocating £10m a year isn’t going to get us that far.

Tax

Corporation tax cut and the lifting of 40p income tax threshold.

Both are measures that will mainly benefit men – whilst the Chancellor is also making cuts to vital services and benefits for people with disabilities.

Living standards

Real earnings are set to grow even slower than previously forecasted. We’re already living through the longest wage squeeze in UK recorded history.

Real earnings grew in 2015 by 2.5%, for the first time since 2007. But they are now expected to grow by only 1.9%. The forecast for average earnings is revised down to 2.6% from 3.4%.

In June 2010 the Chancellor imagined a future where real earnings would recover in 5 years; this doubled to a lost eleven years. Now workers face at least a dozen years of falling living standards.

Housing Crisis

The government will deliver 400,000 affordable housing by 2021.

We are still building far too few houses to escape from the crisis. Having a bigger population than ever before, last year England saw 21,000 fewer houses completed than 40 years ago. This is not a record to be proud of.

Analysis and blogs from the TUC on the Budget Review 2016 can be found here.

6 Responses to #Budget2016: TUC reaction roundup

  1. ron
    Mar 17th 2016, 4:21 pm

    Typically, nothing is said about more deaths/ executions of disabled people – what the F**k does it take for you people to notice?????????????????????????????????

  2. ron
    Mar 17th 2016, 4:44 pm

    Here’s one for the TUC equality unit – IF A NATION DOES NOT TREAT IT’S DISABLED PEOPLE/ WORKERS PROPERLY THEN WHAT HOPE IS THERE FOR ANYBODY ELSE?

    THE TUC BUSY DOING NOTHING, NOTHING THE WHOLE DAY THROUGH

  3. ron
    Mar 17th 2016, 7:47 pm

    I HAVE TO ASK – DOES ANYBODY READ THIS STUFF?

    PUBLIC? TUC? ARTICLE WRITERS?

    WHAT IS THE POINT?

  4. Jill Jervis
    Mar 18th 2016, 6:01 pm

    Where’s the reduction in living monies to the disabled mentioned, and not just the PIP reductions and the £30 per week on ESA work related activity group but also the other benefits DLA/PIP entitled them to? How do people expect the disabled to live? No one wants to employ a lot of them whether they want to work or not so they have to have something to live on and for the long term. What happened to compassion and caring Cameron goes on about but doesn’t seem to feel?

  5. Claire
    Mar 21st 2016, 10:12 pm

    I read ‘this stuff’…I find it interesting. ‘The point’ is that it informs, raises awareness of issues and contributes to wider public debate. It would be great if any criticism could be more constructively worded. Thanks for the article Riz.

  6. ron
    Mar 23rd 2016, 9:04 pm

    Thanks for your middle class rendition of STFUP Claire, excellent!!