Spending review: IFS examines the ‘regressive’ cuts
At the Institute for Fiscal Studies well drinking the pure water of their analysis. They rubbish George Osborne’s theatrical flourish at the end of his speech claiming he’d undercut Labour’s departmental savings – which means it had the double hazard of making him look a bit shifty on numbers and at the time getting Tory MPs cheering excitedly at the deepest cuts for a generation. Not quite the image high command wanted.
As for whether yesterday’s changes are progressive, the IFS says that tax and benefit elements of the fiscal consolidation are regressive (with the exception of the top two per cent of earners – thanks to Labour measures) and that the Treasury’s own analysis proves that the cuts to public services are regressive too.