Budget 2012: Impact per decile – the poorer you are, the harder you’re hit

Aside from the top decile, the poorest ten per cent will be hit the hardest by George Osborne’s budget, reports Shamik Das.

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The “we’re all in it together” line was missing from today’s budget – and no wonder, when one looks at the distributional impact of George Osborne’s latest proposals and previous announcements.

As Chart B2 of the Budget 2012 Red book (pdf) shows, the cumulative effect of this budget and previous announcements is regressive for the bottom eight deciles. The ninth decile pay less proportionally than the poorest half of people. But the budget is progressive when looking at the richest 10 per cent versus the rest.

Chart B2:



See also:

Budget 2012: It may do nothing for growth, but the fat cats will purr more loudly 21 Mar 2012

The charts that shame the “we’re all in this together” coalition 16 Mar 2012

Autumn statement 2011: “We’re all in this together” – when ‘we’ means the bottom 80% 29 Nov 2011

Budget 2011: Distributional analysis of coalition’s major tax changes 24 Mar 2011

How the government lost the fairness argument 8 Jan 2011


Up to eighth decile the richer you are, the less you’re impacted – with the ninth decile still paying less than the poorest 50 per cent. If this is Mr Osborne’s definition of a “fair” distribution of pain, we’d hate to see what he’d come up with if he sat down and really put his mind to penning an “unfair” budget…


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50 Responses to “Budget 2012: Impact per decile – the poorer you are, the harder you’re hit”

  1. Edwin

    What are the direct taxes that the bottom decile pay?

  2. Stephen Henderson

    I’m not sure..but I think I heard that the calculation of impact on the top decile also excludes the 50p tax change because “it was too complicated”.

  3. Anonymous

    The problem is that you are hit if you are reliant on the state. The state is the problem.

    The reason the state can’t support the poor, is that it has run up 7 trillion of debts. Those owed their pound of flesh from the state, want their money back. From bond holders, PFI, pensioners, they want what they are owed, and the state can’t afford it. It’s wasted their money, and not invested it.

    So the poor are going to be hit because they have bought into the idea that the state will look after them, whereas the reality is that the state has robbed them blind.

  4. Newsbot9

    Oh yes, that’s right, the poor should quietly go die.
    Because that’s what you’re calling for.

    Meanwhile, you’re a happy Corporatist who wants more of that nice welfare and handouts to your stock portfolio. Productivity is UP, it’s just being bled away from wages by people like you. There is no inherent issue, just a feral 1%.

  5. Robert Clayton

    Budget 2012: Impact per decile – the poorer you are, the harder you’re hit http://t.co/VG9g3mhH #democracy #nhs #wrb #workfare #grannytax

Comments are closed.