Following the Comprehensive Spending Review, Brent will not know in detail our precise settlement from Sarah Teather’s Coalition until mid-December. What we do know is that these cuts will be front-loaded.
To put things into perspective, there are two astonishing facts about Teather’s Government’s cuts.
1. The average cut that Departments have to make following the Comprehensive Spending Review fall in the region of 19%
2. Brent Council has to make cuts of 27%
That’s right 27% – making the cuts disproportionately impact on local Councils. Indeed the cuts are designed to have the face of the Local Authority on them when in fact they are stemming from the Coalition Government.
I’ll be blogging more on the cuts in the next few days and weeks ahead.
It’s in virtually all the papers this morning and being reported all over the news. The Institute for Fiscal Studies (IFS), a well reputed organisation that provides independent scrutiny of Government policies has vanished all claims from Sarah Teather’s Coalition Government that the Emergency Budget was ‘progressive’ announced by Chancellor George Osborne was progressive.
What the IFS say:
“The tax and benefit changes announced in the emergency Budget are clearly regressive as, on average, they hit the poorest households more than those in the upper-middle of the income distribution in cash, let alone percentage, terms. The distributional effect of all tax and benefit reforms due to be implemented by 2014–15 is clearly regressive within the bottom nine decile groups of the income distribution when losses are expressed as a percentage of net income.
The report also considers the impact of tax and benefit reforms on different sorts of households. 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. They do not lose out from cuts in welfare spending, and they are the biggest beneficiaries from the increase in the income tax personal allowance.”
Source: Institute for Fiscal Studies (IFS)
The findings present a pretty damning view of the Coalition Government. The in-depth IFS analysis of the Government’s measures confirms that the poorest in society, and particularly those with children are the targets of the Coalition Government’s cuts. The Government’s rhetoric that they would protect those on low income and the reality of their proposals couldn’t be any further apart.