A message from the New Economics Foundation
On 21 March, George Osborne unveiled a Budget for the 1%. Amidst the interest rate spin, tax breaks for the super-rich and anti-green infrastructure policies, the Chancellor committed us to another year of austerity, despite its crippling effects on our economy and society. It’s the economic equivalent of medieval medicine, bleeding a sick, weak patient in the hope of making them better. Download our Budget briefing to find out more about today’s announcements.
But the most damning verdict of all today comes from the Treasury’s own analysis. Hidden away in Annex B is the impact of the Budget on households based on their incomes. Even withoutthe impact of the 50p tax rate (which the government decided not to calculate) the Budget is regressive –it hits those on lower incomes hardest. My colleague Faiza explains more on our blog…
Osborne’s focus on public sector debt (the yellow area) is wholly misplaced. The debt held by the private financial sector dwarfs all other kinds, and is perhaps the biggest single threat to the UK’s continuing economic stability. James Meadway, New Economics Foundation.