Yesterday’s OBR report sets out the impacts that low wage work is having for tax revenues, suggesting that the £17bn shortfall we assessed that low earnings have created to date (as set out in IPPR analysis for the TUC last week) is likely to be even larger. Firstly, the OBR point to various…Read more…
Autumn Statement: The most common government boast on the gender pay gap
Minutes into opening his Autumn Statement, the Chancellor repeated one of the most common government boasts about the gender pay gap – that it is the lowest ever on record. Almost all Chancellors in the past 40 years could have said this. It’s hardly something to brag about, especially when last…Read more…
Umbrella companies “con trick” – review promised in Autumn Statement
A word of hope now. In the section of the Autumn Statement that dealt with tax avoidance the Chancellor said : “we are also consulting on ….the use of so called ‘umbrella companies’ to deprive people of basic employment rights like the minimum wage and avoid tax.” An umbrella…Read more…
Tackling corporate tax avoidance in the Autumn Statement – measures welcome but will they work?
The Office of Budget Responsibility (OBR) notes that the ‘giveaways’ and the ‘takeaways’ in the Autumn Statement roughly balance out. A huge proportion of the so-called ‘takeaways’ – ie, that will generate net income for government revenues – stem from measures to tackle corporate tax avoidance and…Read more…
#AutumnStatement 2014: No budget for a green economy
This was no budget for a green economy. There’s no notion of how the Chancellor’s infrastructure plans or business incentives would contribute to green growth, nor how to avoid any of the downside risks of these plans. Environmental levies look increasingly like a straight revenue raiser….Read more…
The real story of the Autumn Statement: the OBR tell the Chancellor to think again
Many are already reporting today’s Autumn Statement in terms of the immediate changes to stamp duty and air travel. But the big headlines were not in the Chancellor’s speech. It’s the OBR’s chilling analysis of the spending cuts that are set to come that should be the real…Read more…
Work allowances – the nasty little cut in the #AutumnStatement
This afternoon the Chancellor told us that one of his “steps to control benefit spending” will be “freezing Universal Credit work allowances for a further year”. The work allowance is one of the key elements of Universal Credit – it is the amount of earnings you’re allowed before your Universal…Read more…
The ‘long-term plan’ is a political plan not an economic plan
Today the OBR released figures that showed, as widely expected, deficit reduction to date has stalled. Balancing the books (one further year into the future) relies on eye-watering and dangerous cuts in departmental spending. Meantime, in the economy, household debts have been revised up by £174…Read more…
Autumn Statement 2014 stamp duty give away will do nothing to solve the housing crisis
Many eyes will be on the stamp duty tax cuts announced in the autumn statement today, but this will do little to address the UK’s entrenched housing crisis. A very unpalatable truth for supporters of the current government is that total home ownership has declined in every year since 2008….Read more…
Britain needs a pay rise, but this #AutumnStatement won’t give us one
Listening to today’s Autumn Statement, it’s clear the living standards crisis has wrecked the Chancellor’s strategy. He has failed his deficit reduction pledge as low-paid Britain is paying much less tax than expected – £17bn less in fact. And businesses won’t be able to find the…Read more…
Austerity will continue to hit frontline flood defences
One thing at least is clear from the Autumn Statement: austerity measures will continue to undermine our national response to climate change, notably our frontline flood defences. No new money is involved in the multi-year capital programme for flood d…Read more…