IFS: Osborne’s Budget is “clearly regressive”

The bottom half of the income distribution will be hit more than the top half by the Coalition's June Budget, new analysis by the Institute for Fiscal Studies has revealed.

The Coalition

Poorer families will be hit harder than rich families by the Coalition’s June Budget, new analysis by the Institute for Fiscal Studies has revealed. The IFS says that “once all of the benefit cuts are considered, the tax and benefit changes announced in the emergency Budget are clearly regressive” as “they hit the poorest households more than those in the upper-middle of the income distribution in cash, let alone percentage, terms”.

Labour leadership candidate Ed Balls called the analysis, “the final nail in the coffin for George Osborne’s claims to have delivered anything but the most regressive Budget in a generation.” The Chancellor had claimed that his Budget was a ‘progressive Budget’ that would hit the richest more than the poorest, yet the analysis clearly states that:

“IFS researchers have previously cast doubt on this claim, noting that the main measures which will lead to losses amongst better-off households were announced by the previous government, and that the reforms to be in place by 2014–15 are generally regressive“.

The IFS analysis goes on:

“The distributional analysis in the Budget documents also excluded the effects of some cuts to housing benefit, Disability Living Allowance and tax credits that will tend to hit the bottom half of the income distribution more than the top half…

Low-income households of working age lose the most as a proportion of income from the tax and benefit reforms announced in the emergency Budget. Those who lose the least are households of working age without children in the upper half of the income distribution.”

Today’s IFS analysis confirms Left Foot Forward’s coverage of the Budget:

• On June 22nd, Tim Horton and Howard Reed were the first analysts to outline the regressive nature of the tax and benefit changes in the Budget;

• On June 26th, Will Straw and Tom Phillips published data showing that deprived areas would be hit hardest by cuts;

• On June 27th Horton and Reed published a briefing paper for the TUC which concluded that the impact of the Coalition’s spending cuts was “deeply regressive … All households are hit considerably, but the poorest households are hit the hardest”.

78 Responses to “IFS: Osborne’s Budget is “clearly regressive””

  1. Cara Courage

    RT @One_Society: Big news: IFS confirm that families & poorest hit hardest by Budget cuts http://bit.ly/cUfh7Z (also see http://bit.ly/dbXZC5)

  2. Simon Hughes

    RT @leftfootfwd IFS: Osborne's Budget is "clearly regressive": http://bit.ly/dbXZC5 #ConDemNation

  3. John West

    RT @anthonypainter: “@wdjstraw: Carcrash radio from Mark Hoban insisting….Budget was progressive. When will the Coalition face facts? http://bit.ly/dbXZC5”

  4. Wes Streeting

    RT @anthonypainter: “@wdjstraw: Carcrash radio from Mark Hoban insisting….Budget was progressive. When will the Coalition face facts? http://bit.ly/dbXZC5”

  5. Naomi

    RT @rich_w: RT @leftfootfwd: IFS: Osborne's Budget is "clearly regressive" http://bit.ly/aNnWtu

  6. Naomi Jacobs

    RT @rich_w: RT @leftfootfwd: IFS: Osborne's Budget is "clearly regressive" http://bit.ly/aNnWtu

  7. Brian Duggan

    RT @wdjstraw: Carcrash radio from Mark Hoban insisting that Budget was progressive. When will the Coalition face facts? http://bit.ly/dbXZC5

  8. Vinay Patel

    RT @leftfootfwd: IFS: Osborne's Budget is "clearly regressive": http://bit.ly/dbXZC5 #ConDemNation

  9. TeacherTalks

    RT @TheBrianDuggan: RT @wdjstraw: Carcrash radio from Mark Hoban insisting that Budget was progressive. When will the Coalition face facts? http://bit.ly/dbXZC5

  10. accordingtojond

    Now there's a shocker:

    RT @leftfootfwd: IFS: Osborne's Budget is "clearly regressive" http://bit.ly/aNnWtu

  11. David Baines

    RT @leftfootfwd: IFS: Osborne's Budget is "clearly regressive": http://bit.ly/dbXZC5 #ConDemNation

  12. Joss Garman

    RT @leftfootfwd: IFS: Osborne's Budget is "clearly regressive": http://bit.ly/dbXZC5 #ConDemNation

  13. Claire French

    RT @leftfootfwd: IFS: Osborne's Budget is "clearly regressive" http://bit.ly/aNnWtu

  14. Hoban dodges fairness question six times | Left Foot Forward

    […] was interviewed in the wake of the independent IFS analysis that the June Budget was regressive and would hit the poorest household the most, […]

  15. Shamik Das

    On @leftfootfwd this morning: IFS: Budget is "clearly regressive" http://bit.ly/dbXZC5 & Hoban dodges fairness question http://bit.ly/bKorpf

  16. Other TaxPayers Alli

    RT @shamikdas IFS: Budget is "clearly regressive" http://bit.ly/dbXZC5; Hoban dodges fairness question http://bit.ly/bKorpf

  17. Aidan Mc

    RT @OtherTPA: RT @shamikdas IFS: Budget is "clearly regressive" http://bit.ly/dbXZC5; Hoban dodges fairness question http://bit.ly/bKorpf

  18. Greg Eden

    RT @leftfootfwd: IFS: Osborne's Budget is "clearly regressive": http://bit.ly/dbXZC5 #ConDemNation

  19. Natalie White

    RT @clairee_french: RT @leftfootfwd: IFS: Osborne's Budget is "clearly regressive" http://bit.ly/aNnWtu

  20. cutswatchuk

    IFS: Osborne's Budget is "clearly regressive": http://bit.ly/dbXZC5 #cutswatch (via leftfootfwd)

  21. Clegg slams “partial” IFS - yet in April he was “really delighted” with it | Left Foot Forward

    […] the IFS’ finding that the Budget, very, very clearly, and very directly, is “completely regressive“. Mr Clegg told Channel 4 News: “Much of the IFS analysis was about benefits, but we […]

  22. Kevin Richards

    RT @leftfootfwd: IFS: Osborne's Budget is "clearly regressive"
    http://bit.ly/aNnWtu

  23. Spending cuts will hit the poorest | ToUChstone blog: A public policy blog from the TUC

    […] a few weeks ago, the Government was seriously embarrassed by IFS research showing that the changes to tax and benefits bear down hardest on the poor. But so far no-one has […]

  24. There is an alternative | Left Foot Forward

    […] that the cuts are “tough but fair” – we’ve heard that one […]

  25. Liam B....bad joke

    IFS laying into budget http://bit.ly/c6glk3 It's a disgrace how they're able to get away with this without being fagged by the bigger boys.

  26. The 50p tax debate: Are we taxing off our nose to spite our face? | Left Foot Forward

    […] Studies. The IFS is a non-partisan, well-respected economic and fiscal think tank whose data Left Foot Forward has often drawn upon to show how this government’s economic policy is wrong-headed or unjust. […]

  27. The charts that shame the “we’re all in this together” coalition | Left Foot Forward

    […] IFS: Osborne’s Budget is “clearly regressive” 25 Aug […]

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