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   Poorest hit hardest by Budget, says IFS
by Tom Rodgers
Independent analysis of the country's Budget has found that the most vulnerable people will see the biggest increase in taxation. Research published today from the Instuitute of Fiscal Studies (IFS) claims that changes to tax and benefits will "tend to hit the bottom half of the income distribution more than the top half." The research directly challenges The Chancellor George Osborne's claim that "the June 2010 Budget was a progressive Budget". IFS researchers have previously cast doubt on this claim, noting that "the main measures which will lead to losses amongst better-off households were announced by the previous government, and that the reforms to be in place by 2014-15 are generally regressive". The study shows the impact of benefit cuts in the coalition Budget, taking into account cuts to housing benefit, Disability Living Allowance and tax credits. The researchers make their findings very clear, claiming that: "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." A spokesman for the Treasury said: "The government does not accept the IFS analysis." Due to problems with spam only SalfordOnline members can now leave comments. Becoming a member of SalfordOnline only takes a minute, just hit the red Join Us button at the top right hand side of the page to create your Personal account. Got a news story? Need help with publicity for an event in Salford? Send it to newsdesk@salfordonline.com or call the SalfordOnline newsdesk on 0161 789 5377. |
