Budget Likely to Increase Inequality

Responding to the IFS’ distributional analysis of the effects of taxes and benefits in the Budget, Duncan Exley, Director of the Equality Trust said:

“This is a Two Nation Budget that will only increase the gap between the rich and the rest of us. It offers tax giveaways to the rich whilst taking money from the pockets of those on middle and low incomes.
“Making the wealthiest foreign nationals who live in the UK pay their way is a good start, but this is undone by the increase in the inheritance tax threshold. We don’t need to help millionaires pass on their wealth, we need to help ordinary middle earners who are struggling to pass down to their kids anything at all.

“What’s worse is that this is portrayed as a Budget for ‘middle earners’, it’s nothing of the sort. Reducing tax credits hits middle income families, and raising the 40p tax rate threshold only helps the richest 15 per cent.

“We know that inequality hurts our society, slows our economy and robs our children of a better future.  It’s bad enough for our politicians to bury their heads in the sand and ignore it. It’s unforgivable for them to introduce policies that actively increase inequality”