Ethnic minority Britons will be disproportionately affected by Conservative cuts

Minority Britons can expect to see a widening racial gap in the British economy

George Osborne ncr


When George Osborne presented the Conservative Budget to parliament a few weeks ago it received a critical review from many corners of civil society. But what has received less coverage is the fact that some are going so far as to call it outright racist.

A recent report put together by Omar Khan, director of racial equality think-tank The Runnymede Trust, has built a compelling case suggesting this new budget will disproportionately hurt Black and Ethnic Minority (BME) communities.

Through a system of tax credit and welfare reforms, it seems that minority Britons can expect to see a widening of the already significant racial gap in the British economy.

So how will the budget hurt BME groups?

Here are just a couple of reforms that will be sure to increase burdens on BME populations and benefit the white population.

An increase in the inheritance tax threshold

With Osborne’s new budget, the inheritance tax will no longer take effect until assets reach up to £1 million. Right now, the average White British household holds around £221,000 while Black African households hold only £21,000, and Bangladeshi households hold £15,000.

Because of this already stark gap, very few BME families can hope to receive any benefit from this provision. To be fair, most White households will not benefit from this either, but it’s much, much more likely than for BME households.

Child Tax Credit reform

Did your family decide to have more than two kids? If so, you’ve surpassed the new limit, and you can expect to see a cut to your income via an amended tax credit system. This has a hugely disproportionate impact on Black and Asian families, 24 per cent of which have more than two children, whereas only 8 per cent of White families have more than two children.

Khan points out:

While ethnic minorities form around 11 per cent of households and 14 per cent of the UK population, we expect them to be over 15 per cent of households and around 25 per cent of individuals worst affected by the budget – because of their younger age, higher child poverty, lower wages, fewer pensioners and greater part-time working.”

Individuals and families with a Bangladeshi background can expect to be affected most negatively by the new budget. The study finds that about half of the Bangladeshi population,which totals about 225,000 people, will lose out by about £1,000.

Was this an oversight on the part of CCHQ and senior figures in the Conservative Party who put together and approved this new budget?

It’s hard to say for sure. But a spokesperson for the Treasury claimed: “HMT has fully considered equality impacts on different protected groups”. If this is true, then Osborne needs to hire better policy researchers.

Varinder Singh is a councillor in the London Borough of Redbridge and works for an MP

17 Responses to “Ethnic minority Britons will be disproportionately affected by Conservative cuts”

  1. English_Woman

    Can’t afford more than 2 kids, then don’t have them.

  2. Samuel Hooper

    I’m sorry, but what complete and utter hogwash. Something isn’t “racist” just because it doesn’t have affirmative action baked into it. Singh should be ashamed for devaluing the meaning of racism in this way.

    Here’s my fuller response to Varinder Singh:

    We don’t advance the cause of tackling real racism by throwing the word around as an insult against our political opponents.

  3. Samuel Hooper

    Very well said. It’s not the job of the taxpayer to subsidise large families.

  4. steroflex

    I could not agree more.
    I would also like to mention the effect on family life which Islam has. A man with several wives is not going to encourage all his children (especially the girls?) as much as someone who has just one family to provide for. And the sheer spirituality of the religion cuts against a lot of Western assumptions too.

  5. Dave Stewart

    The point of child tax credits are that it is not the child’s fault it was born to a poor family and every child even those born into a family which is poor does not deserve to live in poverty. Child tax credits were put in place to level the playing field at bit for the CHILDREN who happen to be born in to poverty. Likewise it is not a child’s fault that they happen to have been born into a family which already has two children.

    I know it’s easy to say well don’t have more (or any if you extend the argument) children to the parents but that doesn’t change the fact that it is the child that ends up disadvantaged through no fault of it’s own.

  6. Freya_267

    I’m really appalled by the bigoted views expressed in the comments section by individuals who are clearly affiliated to Samuel Hooper (a UKIP voter) and the Conservative Party.

    Why don’t these offended voices comment on the disproportionate impact of Tory Party policy on Britain’s BME communities? They’ll be calling for the poor and disadvantaged to be castrated next!

  7. JoeDM

    If they don’t like it they can always go back to where they came from.

  8. JoeDM

    Having several wives is, of course, illegal in the UK. It’s called bigamy.

    But only normal white British people will ever be charged with it.

    Islamics get away with it all the time

  9. MahmudH

    Yeah, then you can send the royal family back to Germany, or Greece, whichever they like, but it’s not easy to find a new job in Greece.

  10. MahmudH

    Polygamy is actually very rare amongst Muslims in Britain, and fairly unusual in most Muslim majority countries except amongst mega rich oil barons.

    But since you mention parental care and encouragement, you might have noticed that the highest rates of single parenthood in the UK are not among Muslims. In addition there may not be much bigamy amongst the non-muslim population, but there is plenty of adultery and divorce to cause children emotional distress and leave them neglected.

  11. Mike Stallard

    I am so glad you mentioned this.
    You are completely right. Just as one of my relatives was told that her husband (Moroccan) was going to take another wife, another friend, with a child of 2 years old, simply walked off with another woman. Same difference.
    The social differences are perhaps more obvious.
    In a society which allows divorce, the new marrieds are OK, but the other wife is simply dumped often into social housing, of which we have quite a lot in our little village. In Peterborough, however, you have the new urban ghetto of Bangla Deshis.
    You are obviously a Muslim, me, I am a Catholic. Am I allowed to say that we are brothers in the fight against atheism and agnosticism?

  12. MahmudH

    We, and all human beings, are brothers, one family. I don’t see the disagreements between beliefs as a war though. Atheism is a result of the pressure from the material world that makes people forget their connection with God. It’s not something that can be fought in the sense of a material struggle. It just has to be managed so that it doesn’t drag down society as a whole too much.

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  14. Mike Stallard

    Mahmud, I think we are both saying exactly the same thing. I am sorry you do not like my metaphor of a war. For me as a Christian, I feel embattled at the moment in a land which has very much abandoned its traditional beliefs and which is uncomfortable with itself. I am, I suppose you could say in a struggle with that. Perhaps the word Jihad sums it up best – by which I mean spiritual not material struggle!

  15. Kathryn

    Additionally, people’s circumstances change. You may be able to provide very well for your children but then become sick, or be widowed.

  16. Kathryn

    “Britons” means they are British, and from Britain.

    Hope this clears up your confusion.

  17. Michael Worcester

    Should it be the government’s job to susidise large families when we have a population boom?

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