Press releases

Emergency Budget: Redistribution from poor to big business

22nd June 2010

The Emergency Budget will redistribute wealth from the poor to big business. The Budget announced a 4% cut in corporation tax from 28% to 24%, a higher threshold for employer NI contributions and employer NI exemptions for new businesses, and a cut in the small business rate of tax.

Meanwhile, £11bn of cuts are announced on welfare, benefits will only now be uprated in line with CPI not RPI, maternity grants are abolished, child benefit will be frozen for three years and public sector pay frozen for two years.

In response to the Chancellor’s Emergency Budget today, John McDonnell MP, LRC Chair, said:

“The budget is a significant redistribution of wealth from the poorest in our society to big business. Cuts in welfare benefits to children, pregnant women and the homeless are being used to fund cuts in corporation taxes for big business. Welcome to the Coalition’s concept of ‘fairness’

“People rightfully perceive a grotesque unfairness in that they are being forced to pay with cuts in their jobs and services for a crisis caused by the greed of the bankers. Cuts on this scale will inevitably be met by resistance from not just trade unions but from across our community”.

See also Jeremy Corbyn’s article in the Morning Star and the LEAP blog