Thursday, 21 October 2010
Red Rag - The coalitions claims that the comprehensive spending review was "progressive" and "fair" is being blown apart in all kinds of directions.
Firstly The Tories ex-favourite think tank (it was the one they always quoted when Labour was in power but since the coalition was formed they think that this think tank is always wrong) has said that if you take away the very top 2% of earners, as a percentage the poorest are hit the hardest. They also say, like I pointed out yesterday, that Osborne tried a sleight of hand when formulating his graphs to show that the review was progressive. As they said when you actually investigate the figures Osborne is using to prove how progressive it is, the only parts of the figures he uses that are progressive are the tax rises that were brought in by the Labour government and are now to be implemented. If you take away the progressive Labour measures and just concentrate on the measures the coalition have brought in, it is quite the opposite. In fact it is slightly more regressive than the measures announced in the emergency budget. As IFS acting director Carl Emmerson said "Our analysis continues to show that, with the notable exception of the richest 2%, the tax and benefit components of the fiscal consolidation are, overall, being implements in a regressive way".
In fact that it is so regressive, that instead of taking the top 2% you take the top 10%, they are paying less as a percentage than the bottom 30%.
Demos another think tank that actually contains quite a few Tories said "The Treasury's own analysis(with the Osborne sleight of hand in it-RR) shows the second fifth of the poorest people in the country will feel exactly the same pinch in cash terms as the richest fifth of people in the country:£520 a year". So wether you are earning £25,000 a year or £2,500,000 a year the coalition has formulated policy so you both pay the same amount towards the cuts.....and the coalition say that is fair.
Tim Horton of the Fabian Society said "George Osborne claims that his spending review is progressive but the treasury's own analysis shows the poorest will be hit the hardest from the very same review. In fact the only way the overall package of tax and benefit reforms can be described as progressive is if you include every single policy the government inherited from Labour."
Rhian Beynon of the End Child Poverty Campaign said "the spending review will increase child poverty and increase the economic costs for any society with high levels of poverty, inequality and social exclusion".
Neal Lawson of Compass said "Fairness should be judged according to who caused the crisis and who can afford to pay to resolve it. This points to the bankers and the richest of society who are least in the need of public services unlike the poor, who are not to blame and will now suffer horribly".
Richard Portess London Business School "The governments plans are very risky indeed.Why take the risk?We are not Greece, we are nowhere near bankruptcy.Our debt is below historical peaks.It's average maturity is the highest amongst advanced countries.The interest rates on our debt have been falling since February.So the bond market cannot do us much damage either. Tax increase and budget cuts that are too aggressive and front loaded may give us a double dip recession not growth....taxes are rising, real wages are flat and 500,00 workers will lose their jobs.A multiple of that figure must fear unemployment and will want to protect themselves by saving.Net exports will not rise enough to fill the gap with our major markets in the EU and the US only growing very slowly.Nor are we likely to have an investment boom in the face of excess capacity and weak final demand.The chancellor thinks he can call Kensians animal spirits from the vasty deep of the private sector.Will they come when he calls them?Keynes himself and the experience of the 1930's suggest not".
Fact Check have done a brilliant list of what the Lib Dems and Tories promised in their manifestos to what is now reality:
Tory Manifesto pledge :"we don't have a situation where we have troops on the ground and not enough helicopters" - Reality:Labour ordered 22 helicopters, this has been reduced to 12.
Tory Manifesto pledge:"we are determined that early release is not introduced again so we will develop the prison estate and increase capacity" - Reality:1500 place prison cancelled. Ministry of Justice cut 23%, 9,000 prison and probation jobs axed all of which mean 3,000 fewer prison places.
Tory Manifesto pledge:"You cannot put off the decision on Trident , you have to make it early and make your country safe - Reality: Trident decision will now not be taken until after the next election.
Tory Manifesto pledge:" We will stop the forced closure of A&E wards". - Reality:Since the election Queens Mary Sidcup, University Hospital of Hartlepool, Rochdale Infirmary amongst nay others have shut or planning to their A & E units.
Tory Manifesto pledge:"We cannot justify paying tax credits to families earing over £50,000" - Reality: They cut tax credits for families earning more than £40,000.
There was not a single mention in the Tory Manifesto that they were even thinking about cutting Child Benefit......but they have.
Orange Tory Manifeso pledge "We will begin our first year in office with a one year economic stimulus and job creation package - Reality : The entire opposite, a £6 billion cuts package
Orange Tory Manifesto pledge:"Scrapu university tuition fees for those students taking their first degree" - Reality: The entire opposite, raising tuition fees
Orange Tory Manifesto pledge: "Cut rail fares....so rail fares will be 1% below inflation" - Reality: The entire opposite, rail fares to be 3% above inflation
Orange Tory Manifesto pledge:"Reject a new generation of power stattions" - Reality: The entire opposite, Chris Huhne announced eight brand new nuclear power stations
Orange Tory Manifesto pledge:"Firstly quite simply more police on the street, for the same price of the ID casrds we can put 3,00 more police on the streets" - Reality: The entire opposite, police spending to fall by 4% every year with at least 5000 less policemen in the next twelve months.
Orange Tory Manifesto pledge"We must continue to invest in our school buildings" - Reality:Schools Building programme axed.
Lie after lie after lie, from their manifesto to the emergency budget to the comprehensive spending review. It's a coalition built on bullshit.
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