I have been active on twitter and listening to the radio today following the budget and the major changes proposed. I cannot believe how the discourse has changed to a re-turn to the rhetoric of the 1980s.
Low taxes, small state and high wages will not be the outcome of this budget.
Osborne made a very clever move by announcing the introduction of a living wage which is good news. However, it does not apply to under 25s. It is already below the proposed living wage and will not rise to £9 until 2020.
Check out: http://www.livingwage.org.uk/
This move nevertheless means he has ‘stolen’ a major Labour policy, he can also no longer be accused of pursuing a purely stick approach of trying to get people into work.
But the caps on tax credits, reductions in the ESA rate for those deemed ‘capable’ of work, the lost of university maintenance grants for the poorest students and cuts to DSA, limits to housing benefits, rise in social housing rents will hit the poorest and most vulnerable the hardest.
A rise in the minimum wage and tax cuts will not full compensate for these loses.
See the response by the highly respected Joseph Rowntree Foundation to the budget:
Or this summary of research showing working families may be worse of following cuts to tax credits despite the new iving wage:
This budget will hit the youngest the hardest. For a local perspective see The Lincolnnite article:
The BBC has full coverage and a calculator to assess how far you may be affected by these changes:
As I noted in my post on the NHS at 67, it was introduced at a time of great austerity. Perhaps we need visionaries to help get us out of this seemingly never ending recession.
Angry at the budget. Check out my guest blog on the family patch to discover 10 ways you can get actively involved.
What are your opinions of the budget?