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Sustainable Economy > Published by Shamik Das, August 25th 2010 at 12:01 am

IFS: Osborne’s Budget is “clearly regressive”

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Poorer families will be hit harder than rich families by the Coalition’s June Budget, new analysis by the Institute for Fiscal Studies has revealed. The IFS says that “once all of the benefit cuts are considered, the tax and benefit changes announced in the emergency Budget are clearly regressive” as “they hit the poorest households more than those in the upper-middle of the income distribution in cash, let alone percentage, terms”.

Labour leadership candidate Ed Balls called the analysis, “the final nail in the coffin for George Osborne’s claims to have delivered anything but the most regressive Budget in a generation.” The Chancellor had claimed that his Budget was a ‘progressive Budget’ that would hit the richest more than the poorest, yet the analysis clearly states that:

“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“.

Osbornes-regressive-BudgetThe IFS analysis goes on:

“The distributional analysis in the Budget documents also excluded the effects of some cuts to housing benefit, Disability Living Allowance and tax credits that will tend to hit the bottom half of the income distribution more than the top half…

“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.”

Today’s IFS analysis confirms Left Foot Forward’s coverage of the Budget:

• On June 22nd, Tim Horton and Howard Reed were the first analysts to outline the regressive nature of the tax and benefit changes in the Budget;

• On June 26th, Will Straw and Tom Phillips published data showing that deprived areas would be hit hardest by cuts;

• On June 27th Horton and Reed published a briefing paper for the TUC which concluded that the impact of the Coalition’s spending cuts was “deeply regressive … All households are hit considerably, but the poorest households are hit the hardest”.

  • http://twitter.com/rosiecosy/status/22005727917 Rosie

    RT @leftfootfwd: IFS: Osborne's Budget is regressive & will hit the poorest households more: http://bit.ly/bP0wPz #ConDemNation

  • http://twitter.com/tommilleruk/status/22005809036 Tom Miller

    RT @leftfootfwd: IFS: Osborne's Budget is regressive & will hit the poorest households more: http://bit.ly/bP0wPz #ConDemNation

  • http://twitter.com/shamikdas/status/22005817599 Shamik Das

    RT @leftfootfwd: IFS: Osborne's Budget is regressive & will hit the poorest households more http://bit.ly/bP0wPz #ConDemNation #FalseEconomy

  • http://twitter.com/sarahstanbridge/status/22005830446 Sarah Stanbridge

    RT @leftfootfwd: IFS: Osborne's Budget is regressive & will hit the poorest households more: http://bit.ly/bP0wPz #ConDemNation

  • http://twitter.com/maximmanchester/status/22005888519 Max

    RT @leftfootfwd: IFS: Osborne's Budget is regressive & will hit the poorest households more: http://bit.ly/bP0wPz #ConDemNation

  • http://twitter.com/chris_goulden/status/22006167812 Chris Goulden

    RT @leftfootfwd: IFS: Osborne's Budget is regressive & will hit the poorest households more: http://bit.ly/bP0wPz #ConDemNation

  • http://twitter.com/chocodel/status/22006590338 chocodel

    RT @leftfootfwd: IFS: Osborne's Budget is regressive & will hit the poorest households more: http://bit.ly/bP0wPz #ConDemNation

  • winston k moss aka 9xzulug

    sorry to say it but what did this unelected coalition CONDEM(us all)PARTY expect.VAT was not necessary but closing offshore banking/tax loopholes were but they ignored that due to their parties r/wing element dictating the party.FACT

  • Evidence based.

    Is this graph misleading like the last one? Does it include the totality of the financial measures included; i.e the proposed Labour policies the coalition introduced (also bear in mind Darling admitted he wanted to increase VAT). Furthermore you are looking at progressivity through a specific (if i’m being cynical convieniant) spectrum. Whilst benefit cuts would show up on your model, i presume that impacts of things such as IDS’s welfare reforms would not be included? Lastly, it is jumping the gun to profess that you can honestly say you know the impact that a VAT hike would have on actual prices. When it was cut there was little movement, which indicates (neither of us know whether this will be the case) that there may be little actual movement this time. My point is (like usual on this site) is that trying to pass this off as concrete fact is misleading.

  • http://splithorizons.blogspot.com Duncan Stott

    Yep, it is only showing the effect of policies announced in the June 2010 budget, not the cumulative effect of both Labour’s and the Coalition’s budgets. This is misleading. The graph doesn’t show what the actual impact on people’s lives will be.

  • http://twitter.com/davidsforrest/status/22038774891 Dave Forrest

    RT @leftfootfwd: IFS: Osborne's Budget is "clearly regressive": http://bit.ly/dbXZC5 #ConDemNation

  • http://twitter.com/warrenmorgan/status/22038801250 Warren Morgan

    RT @leftfootfwd: IFS: Osborne's Budget is "clearly regressive": http://bit.ly/dbXZC5 #ConDemNation

  • http://twitter.com/johnbrissenden/status/22038831159 John Brissenden

    RT @leftfootfwd: IFS: Osborne's Budget is "clearly regressive": http://bit.ly/dbXZC5 #ConDemNation

  • http://twitter.com/darenbbc/status/22039000957 Daren

    RT @dominiccampbell Going 2 be big news shortly I'd say RT @leftfootfwd: IFS: Osborne's Budget is "clearly regressive": http://bit.ly/dbXZC5

  • http://twitter.com/celticchickadee/status/22039038655 isla dowds

    RT @leftfootfwd: IFS: Osborne's Budget is "clearly regressive" http://bit.ly/aNnWtu NOW will LDs admit it..Vince? before we lose all faith

  • http://twitter.com/langtry_girl/status/22039078761 Anna Hedge

    Just as well Cameron has has his baby now,because he'll have a whirlwind to tackle after *this* ….http://bit.ly/dbXZC5

  • http://twitter.com/chazelgrove/status/22039108670 Claire Hazelgrove

    Hopefully! RT @dominiccampbell: Big news shortly I'd say RT @leftfootfwd IFS: Osborne's Budget is "clearly regressive" http://bit.ly/dbXZC5

  • http://twitter.com/davidsforrest/status/22039110031 Dave Forrest

    We're in this together aren't we, Dave? RT @leftfootfwd
    IFS: Osborne's Budget is "clearly regressive": http://bit.ly/dbXZC5 #ConDemNation

  • http://twitter.com/wesstreeting/status/22039113322 Wes Streeting

    RT @BevaniteEllie: RT @dominiccampbell: Going to be big news shortly I'd say RT @leftfootfwd: IFS: Osborne's Budget is"clearly regressive" http://bit.ly/dbXZC5

  • http://twitter.com/kinell88/status/22039139555 Ell Aitch

    RT @leftfootfwd: IFS: Osborne's Budget is "clearly regressive": http://bit.ly/dbXZC5 #ConDemNation

  • http://twitter.com/lynsky22/status/22039151059 Lyn Iglinsky

    RT @dominiccampbell: Going 2 B big news shortly I'd say RT @leftfootfwd: IFS: Osborne's Budget is "clearly regressive": http://bit.ly/dbXZC5

  • http://twitter.com/one_society/status/22039230462 One Society campaign

    Big news: IFS confirm that families & poorest hit hardest by Budget cuts http://bit.ly/cUfh7Z (also see http://bit.ly/dbXZC5)

  • http://twitter.com/sarahstanbridge/status/22039286287 Sarah Stanbridge

    RT @One_Society: Big news: IFS confirm that families & poorest hit hardest by Budget cuts http://bit.ly/cUfh7Z (also see http://bit.ly/dbXZC5)

  • http://twitter.com/tulipsiddiq/status/22039334085 Tulip Siddiq

    RT @leftfootfwd: IFS: Osborne's Budget is "clearly regressive": http://bit.ly/dbXZC5 #ConDemNation

  • http://twitter.com/idemamba/status/22039455214 AnotherCountry

    UK – Osborne's Budget is "clearly regressive
    http://bit.ly/c6glk3

  • http://twitter.com/robandale/status/22039523809 Robert Dale

    will be interesting to see how this story develops–> RT @leftfootfwd IFS: Osborne's Budget "clearly regressive": http://bit.ly/dbXZC5 #cuts

  • http://twitter.com/sdharman/status/22039531214 Stephen Harman

    RT @leftfootfwd: IFS: Osborne's Budget is "clearly regressive": http://bit.ly/dbXZC5 #ConDemNation

  • http://twitter.com/cardboardmoose/status/22039632755 Moose de Carabas

    The government felt the need to embargo this until midnight. Hmm. http://bit.ly/9PRT0w

  • http://twitter.com/markrugman/status/22040040398 Mark Rugman

    RT @dominiccampbell: Going to be big news shortly I'd say RT @leftfootfwd: IFS: Osborne's Budget is "clearly regressive": http://bit.ly/dbXZC5

  • Chris

    To all the leftie/Social Liberals reading – Thanks for nothing.

  • http://twitter.com/ccarvalho/status/22042398959 Claudio Carvalho

    IFS: Osborne’s Budget is regressive & will hit the poorest households more http://bit.ly/9LOEnr

  • http://twitter.com/nocandidate/status/22044191176 NoSuitableCandidate

    RT @leftfootfwd: IFS: Osborne's Budget is "clearly regressive": http://bit.ly/dbXZC5 #ConDemNation

  • http://twitter.com/geoff_reid/status/22050060384 Geoff Reid

    Osbourne a 'Chinless Fuckwit' says I, and the IFS calls his budget 'Regressive, says Left Foot Forward http://bit.ly/alsWQL

  • http://twitter.com/lockpickernet/status/22054985385 LockPickerNet

    IFS: Osborne's Budget is "clearly regressive": http://bit.ly/dbXZC5 #ConDemNation via @leftfootfwd

  • http://bestblogs.labourhome.org/2010/08/24/ifs-osborne%e2%80%99s-budget-is-%e2%80%9cclearly-regressive%e2%80%9d/ IFS: Osborne’s Budget is “clearly regressive” « The best Labour blogs

    [...] More… [...]

  • http://twitter.com/mp4man/status/22061197418 michael fourman

    RT @langtry_girl Just as well Cameron has has his baby now,because he'll have a whirlwind to tackle after *this* ….http://bit.ly/dbXZC5

  • http://twitter.com/clairee_french/status/22065938166 Claire French

    RT @leftfootfwd: IFS: Osborne's Budget is "clearly regressive": http://bit.ly/dbXZC5 #ConDemNation

  • http://twitter.com/readinglabour/status/22066598623 Reading Labour Party

    RT @leftfootfwd IFS: Osborne's Budget is "clearly regressive": http://bit.ly/dbXZC5 #ConDemNation

  • http://twitter.com/andy_s_64/status/22068088981 Andy Sutherland

    RT @leftfootfwd: IFS: Osborne's Budget is "clearly regressive": http://bit.ly/dbXZC5 #ConDemNation

  • http://twitter.com/mike_wiltshire/status/22068237783 Mike Wiltshire

    RT @leftfootfwd: IFS: Osborne's Budget is "clearly regressive": http://bit.ly/dbXZC5 #ConDemNation

  • http://twitter.com/aboutpower/status/22068244259 Alan Marshall

    RT @leftfootfwd IFS: Osborne's Budget is "clearly regressive": http://bit.ly/dbXZC5 #ConDemNation

  • http://twitter.com/wdjstraw/status/22068677696 Will Straw

    Carcrash radio from Mark Hoban insisting that the Budget was progressive. When will the Coalition face facts? http://bit.ly/dbXZC5

  • http://twitter.com/andy_s_64/status/22068711007 Andy Sutherland

    RT @wdjstraw: Carcrash radio from Mark Hoban insisting that the Budget was progressive. When will the Coalition face facts? http://bit.ly/dbXZC5

  • http://twitter.com/anthonypainter/status/22068823617 Anthony Painter

    “@wdjstraw: Carcrash radio from Mark Hoban insisting….Budget was progressive. When will the Coalition face facts? http://bit.ly/dbXZC5”

  • http://twitter.com/rich_w/status/22068945893 Rich Watts

    RT @dominiccampbell: RT @leftfootfwd: IFS: Osborne's Budget is "clearly regressive": http://bit.ly/dbXZC5

  • http://twitter.com/politicallybrit/status/22068979650 B Latif

    RT @wdjstraw: Carcrash radio from Mark Hoban insisting that the Budget was progressive. When will the #Coalition face.. http://bit.ly/dbXZC5

  • http://twitter.com/sspcampsie/status/22068990265 SSP Campsie

    RT @wdjstraw: Carcrash radio from Mark Hoban insisting that the Budget was progressive. When will the Coalition face facts? http://bit.ly/dbXZC5

  • http://twitter.com/rich_w/status/22069022896 Rich Watts

    RT @leftfootfwd: IFS: Osborne's Budget is "clearly regressive" http://bit.ly/aNnWtu

  • http://twitter.com/josephpowell/status/22069061322 Joe Powell

    RT @wdjstraw: Carcrash radio from Mark Hoban insisting that the Budget was progressive. When will the Coalition face facts? http://bit.ly/dbXZC5

  • http://twitter.com/danielblaney/status/22069066339 Daniel Blaney

    RT @wdjstraw: Carcrash radio from Mark Hoban insisting that the Budget was progressive. When will the Coalition face facts? http://bit.ly/dbXZC5

  • http://twitter.com/caracourage/status/22069520248 Cara Courage

    RT @One_Society: Big news: IFS confirm that families & poorest hit hardest by Budget cuts http://bit.ly/cUfh7Z (also see http://bit.ly/dbXZC5)

  • http://twitter.com/sph1984/status/22069523868 Simon Hughes

    RT @leftfootfwd IFS: Osborne's Budget is "clearly regressive": http://bit.ly/dbXZC5 #ConDemNation

  • http://twitter.com/jesus_john/status/22069578238 John West

    RT @anthonypainter: “@wdjstraw: Carcrash radio from Mark Hoban insisting….Budget was progressive. When will the Coalition face facts? http://bit.ly/dbXZC5”

  • http://twitter.com/wesstreeting/status/22069828995 Wes Streeting

    RT @anthonypainter: “@wdjstraw: Carcrash radio from Mark Hoban insisting….Budget was progressive. When will the Coalition face facts? http://bit.ly/dbXZC5”

  • http://twitter.com/lilwatchergirl/status/22069918808 Naomi

    RT @rich_w: RT @leftfootfwd: IFS: Osborne's Budget is "clearly regressive" http://bit.ly/aNnWtu

  • http://twitter.com/naomi_jacobs/status/22069941300 Naomi Jacobs

    RT @rich_w: RT @leftfootfwd: IFS: Osborne's Budget is "clearly regressive" http://bit.ly/aNnWtu

  • http://twitter.com/thebrianduggan/status/22070332693 Brian Duggan

    RT @wdjstraw: Carcrash radio from Mark Hoban insisting that Budget was progressive. When will the Coalition face facts? http://bit.ly/dbXZC5

  • http://twitter.com/vinaypatel/status/22070633105 Vinay Patel

    RT @leftfootfwd: IFS: Osborne's Budget is "clearly regressive": http://bit.ly/dbXZC5 #ConDemNation

  • http://twitter.com/teachertalks/status/22072004207 TeacherTalks

    RT @TheBrianDuggan: RT @wdjstraw: Carcrash radio from Mark Hoban insisting that Budget was progressive. When will the Coalition face facts? http://bit.ly/dbXZC5

  • http://twitter.com/accordingtojond/status/22072183201 accordingtojond

    Now there's a shocker:

    RT @leftfootfwd: IFS: Osborne's Budget is "clearly regressive" http://bit.ly/aNnWtu

  • http://twitter.com/davidebaines/status/22074589824 David Baines

    RT @leftfootfwd: IFS: Osborne's Budget is "clearly regressive": http://bit.ly/dbXZC5 #ConDemNation

  • http://twitter.com/jossgarman/status/22074952070 Joss Garman

    RT @leftfootfwd: IFS: Osborne's Budget is "clearly regressive": http://bit.ly/dbXZC5 #ConDemNation

  • http://billyblofeld.wordpress.com Billy Blofeld
  • http://twitter.com/clairee_french/status/22076131717 Claire French

    RT @leftfootfwd: IFS: Osborne's Budget is "clearly regressive" http://bit.ly/aNnWtu

  • http://www.leftfootforward.org/2010/08/hoban-dodges-fairness-question-six-times/ Hoban dodges fairness question six times | Left Foot Forward

    [...] was interviewed in the wake of the independent IFS analysis that the June Budget was regressive and would hit the poorest household the most, [...]

  • http://twitter.com/shamikdas/status/22077978691 Shamik Das

    On @leftfootfwd this morning: IFS: Budget is "clearly regressive" http://bit.ly/dbXZC5 & Hoban dodges fairness question http://bit.ly/bKorpf

  • http://twitter.com/othertpa/status/22078467317 Other TaxPayers Alli

    RT @shamikdas IFS: Budget is "clearly regressive" http://bit.ly/dbXZC5; Hoban dodges fairness question http://bit.ly/bKorpf

  • http://twitter.com/aidanant/status/22078827510 Aidan Mc

    RT @OtherTPA: RT @shamikdas IFS: Budget is "clearly regressive" http://bit.ly/dbXZC5; Hoban dodges fairness question http://bit.ly/bKorpf

  • http://twitter.com/gregeden/status/22079390001 Greg Eden

    RT @leftfootfwd: IFS: Osborne's Budget is "clearly regressive": http://bit.ly/dbXZC5 #ConDemNation

  • http://twitter.com/nataliewh/status/22080902443 Natalie White

    RT @clairee_french: RT @leftfootfwd: IFS: Osborne's Budget is "clearly regressive" http://bit.ly/aNnWtu

  • http://twitter.com/cutswatchuk/status/22082150714 cutswatchuk

    IFS: Osborne's Budget is "clearly regressive": http://bit.ly/dbXZC5 #cutswatch (via leftfootfwd)

  • http://www.leftfootforward.org/2010/08/clegg-slams-partial-ifs-yet-in-april-he-was-really-delighted-with-it/ Clegg slams “partial” IFS – yet in April he was “really delighted” with it | Left Foot Forward

    [...] the IFS’ finding that the Budget, very, very clearly, and very directly, is “completely regressive“. Mr Clegg told Channel 4 News: “Much of the IFS analysis was about benefits, but we [...]

  • http://twitter.com/cllrkrichards/status/22116878647 Kevin Richards

    RT @leftfootfwd: IFS: Osborne's Budget is "clearly regressive"
    http://bit.ly/aNnWtu

  • http://www.touchstoneblog.org.uk/2010/09/spending-cuts-will-hit-the-poorest/ Spending cuts will hit the poorest | ToUChstone blog: A public policy blog from the TUC

    [...] a few weeks ago, the Government was seriously embarrassed by IFS research showing that the changes to tax and benefits bear down hardest on the poor. But so far no-one has [...]

  • http://www.leftfootforward.org/2010/10/there-is-an-alternative/ There is an alternative | Left Foot Forward

    [...] that the cuts are “tough but fair” – we’ve heard that one [...]

  • http://twitter.com/burntturnip/status/27936482228 Liam B….bad joke

    IFS laying into budget http://bit.ly/c6glk3 It's a disgrace how they're able to get away with this without being fagged by the bigger boys.

  • http://www.leftfootforward.org/2011/09/argument-against-50p-tax/ The 50p tax debate: Are we taxing off our nose to spite our face? | Left Foot Forward

    [...] Studies. The IFS is a non-partisan, well-respected economic and fiscal think tank whose data Left Foot Forward has often drawn upon to show how this government’s economic policy is wrong-headed or unjust. [...]