Budget giveaways will benefit rich families 14 times more than the poor

Philip Hammond’s budget, which was billed as marking an end to austerity, will actually benefit rich families 14 times more than the poor, new analysis has revealed.

The Resolution Foundation crunched the numbers on the latest budget finding almost half of the income tax are set to go to the top ten per cent of households.

Households in the top cohort will gain £410 from income tax and benefits changes announced yesterday, whereas those in the poorest ten per cent will gain just £30.

Today the Chancellor admitted higher earners will “get a bit more” after putting much of the focus in parliament on a promise to raise the tax-free personal allowance in Income Tax – which hands £130 a year to any worker earning over £12,500 from April.

But he also followed through on a pledge to hike the 40p tax rate threshold from £46,350 to £50,000, meaning the richest 13 per cent of Brits will be able to earn much more before they start paying higher tax – gaining £860 a year.

Resolution Foundation director Torsten Bell warned the Budget “spelt an easing rather than an end to austerity”.

He added: “Income tax cuts announced yesterday will overwhelmingly benefit richer households, with almost half of the long term gains going to the top ten per cent of households.

“On public services the NHS saw a big spending boost ­– but unprotected departments still have further cuts penciled in.”

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1 Response

  1. P Powell

    Nigel Lawson helped closely link our economy with USA in the 80s relying on many being in debt, after they made millions unemployed, for economy to crash by early 90s so they could use as excuse to make many suffer. Such as after they stole and sold off most social housing without using money to build more, they made 18 year old in bedsit pay same poll tax as Lord in a manor, VAT increases, taking away old people’s free eye tests, while they gave the rich tax cuts. Nigel Lawson was advising us to leave the EU while he applies to live in France

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