by derekdeedman on 27 November, 2015
‘You make your own luck,’ goes the saying. In which case, and only in this respect, George Osborne truly has started a “march of the makers” because he’s one hell of a lucky Chancellor. Had the independent Office for Budget Responsibility not lavished on him a £27 billion fiscal (and notional) windfall, this week’s Autumn Statement would have been far more wintry. As it was, he was able to play out the role of Santa, albeit a very Tory version: snatching away fewer of the kids’ presents in order to re-gift them to their grandparents. For this was a spending review which confirmed this Government stands shoulder-to-shoulder with pensioners (who vote, in droves) while shrugging its shoulders at the plight of the younger, working poor (who often don’t vote, and if they do probably vote Labour anyway).
Yes, the tax credit cuts were jettisoned for now — take a bow all those who’ve campaigned against them because it took concerted action to persuade the House of Lords and a few Tory MPs with a social conscience to stand up to this government — but, really, they’ve just been deferred. Once universal credit has been implemented (assuming that Godot-like day ever arises) the Resolution Foundation calculates eligible working families with children will be £1,300 a year worse off (even taking into account the so-called ‘national living wage’ and planned increases in the tax-threshold). Which might sound bad, but that average actually conceals far worse news for some. For instance, a single mum working part-time on the minimum wage will receive £2,800 a year less by 2020 under the Tories’ plans, while a working couple on the minimum wage with three kids will lose out to the tune of £3,060. Meanwhile the pensions ‘triple lock’ (of which Lib Dems have often boasted) will guarantee that pensioner benefits grow to more than half of all welfare spending.
Gone are the days when the Lib Dems could require a distributional analysis to ensure the pain of cuts was shared around to ensure that, as far as possible, Britain was all in it together. It’s George’s Show now. It’s just a shame some of his luck won’t rub off on those “hard-working families” he’s soon going to clobber.Leave a comment