George Osborne claimed it was a "progressive Budget". Analysis by the independent IFS shows that, stripping away pre-announced measures, it was a "regressive Budget".
A picture says a thousand words. The respected, independent Institute for Fiscal Studies today said clearly that , “likely … overall impact of yesterday’s measures was regressive”.
By 2014-15, the distributional impact of tax and benefit measures is only “progressive” if the pre-announced decisions made by Labour – including the 50p income tax rate – are included. The IFS are clear that the Treasury’s claims only hold valid, “because of reforms announced by the previous government”. Stripping them out means that George Osborne’s dictum is wrong.
This analysis – consistent with Left Foot Forward’s own yesterday, the Financial Times’ and Nick Pearce on Open Democracy – could not be clearer: taken on its own, it was a regressive Budget.
52 Responses to “IFS: Budget was “regressive””
Stewart Owadally
RT @leftfootfwd: IFS: Budget was "regressive" http://bit.ly/9CVpcG
mike
Cameron says he must cut public sector pay and pensions to savre public sector jobs
yet hes cutting at least 500,000 public sector jobs
and planning to privatise thousands more
so no safety
Just where will ex public sector workers secure work ???
private sector is still losing jobs
so the dole than
say goodbye to your teaching assistant
scyppend
RT @leftfootfwd: IFS: Budget was "regressive" http://bit.ly/9CVpcG
Matt Edgar
A single chart reminds me why #ivotedlabour http://tinyurl.com/33or75f
cheap
IFS: Budget was "regressive" | Left Foot Forward: George Osborne claimed it was a progressive Budget. Analysis by … http://bit.ly/bGNf1T