|Printable version||E-mail this to a friend|
ippr to the Spending Review
Responding to the Chancellor’s Spending Review, ippr Director Nick Pearce said:
By cutting so far and so fast the Chancellor is putting the economic recovery at risk. While relative protection has been given to investment in transport and science, overall infrastructure spending is still being sharply cut, particularly on social housing and regeneration. This is a mistake the Coalition inherited from the Labour government and it should be reversed.
There is good news on real increases in school funding and on more money for nursery education for disadvantaged two year olds. But at the other end of the age range, badly targeted universal benefits like winter fuel allowances, free TV licences and bus passes – many of which go to increasingly prosperous pensioners – are protected. A rising Basic State Pension is vital, but these other benefits have been saved at the expense of the working poor, who will see cuts in working tax credits and childcare funding, and the young, who will have Education Maintenance Allowances removed and face rising tuition fees and higher house prices.
The Chancellor claimed that one of the principles of his Spending Review was fairness. But if you cut spending by 77 per cent and raise taxes by only 23 per cent, a larger burden will fall on those who rely most on public services. The whole exercise in reducing the deficit can only be described as fair towards the less well off because it includes the last Labour government’s tax rises which were targeted on the more affluent. The Chancellor’s own chart shows the spending cuts and benefit and tax credit changes are regressive.
Tim Finch, Director of Communications: 020 7470 6110 / 07595 920 899 / firstname.lastname@example.org
Note to editors
ippr's alternative plan for deficit reduction Cutting the deficit: There is an alternative by Tony Dolphin is available at http://www.ippr.org.uk/publicationsandreports/publication.asp?id=781
Latest News from
JRF response to changes to the Child Poverty Act03/07/2015 09:35:00
Julia Unwin, Chief Executive of the Joseph Rowntree Foundation (JRF), responded to the statement made by the Secretary of State for Work and Pensions on changes to the Child Poverty Act.
IFS - Time for tax reform02/07/2015 16:35:00
The 8 July Budget may prove to be George Osborne’s best chance to bring in some much-needed reforms to our creaking and increasingly incoherent tax system.
Kings Fund - 2016 GSK IMPACT Awards calls for applications from health and wellbeing charities02/07/2015 15:35:00
GSK and The King’s Fund yesterday launched the 2016 GSK IMPACT Awards, which will be open for applications from UK charities until 25 September 2015.