Campaign news

A Budget by the rich, for the rich

23rd March 2012

The Budget on Wednesday 21 March was further evidence that this government is committed to making those who had nothing to do with causing the economic crisis pay for it. Osborne failed to give any indication that he has any plan to bring down unemployment, raise living standards, reduce inequality or create economic growth. Instead, he is committed to driving down wages and taxes on the rich in a global race to the bottom.

The main features of the Budget were:

• Cutting the top rate of income tax from 50% to 45%
• Another cut in corporation tax
• A further £10.5bn in welfare cuts (as yet unspecified)
• Raising the personal allowance on income tax
• But reducing the personal allowance for pensioners (the so-called ‘granny tax’)
• Above inflation increases on cigarettes and alcohol

Read more budget analysis at the LEAP website, including: ‘The most dishonest Budget ever?’ and ‘The consequences of ever vanishing corporation tax revenues’.

LRC Chair John McDonnell MP, who had earlier challenged the Prime Minister over blacklisting at PMQs, said:

“This was a Budget for the rich. The contrast could not be more stark: tax cuts for rich while slashing welfare benefits and tax credits for the many.

“It is now so blatant, this Budget could be political turning point to unite the country against Tories. It is a political gift for Labour, if we can seize it.”

RMT General Secretary Bob Crow, said:

“This is a budget of the rich for the rich. The tax changes mean that a banker on half a million pounds gets a kick back from George Osborne of £17,500, money robbed from our public services and the neediest in our divided society.

“This budget unleashes savage cuts to jobs, wages, welfare and services in the public sector while pandering to the private greed of those same people who dragged us into this economic crisis. It will spark an upsurge in protest and resistance across the country as the vast majority realise that they have been mugged by this Government of the wealthy elite.”

See detailed Budget response from LRC affiliated union BFAWU