Minority Britons can expect to see a widening racial gap in the British economy
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”
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?
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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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!
Kathryn
Additionally, people’s circumstances change. You may be able to provide very well for your children but then become sick, or be widowed.