Chancellor's Budget more in the mould of Brown than Osborne – IFS

Asia's Tech News Daily

Rishi Sunak’s Budget had more in common with New Labour than it did his more recent Conservative predecessors, according to analysts.

The Institute for Fiscal Studies (IFS) said the decision to invest in public services, establish a “more generous” benefits system and increase wages meant the Chancellor’s Budget and Spending Review were “much more similar to Gordon Brown’s than to George Osborne’s”.

Wednesday’s fiscal statement saw Mr Sunak pledge to increase the budgets of Whitehall departments by £150 billion over the Parliament, boost local government grant funding in England by £4.8 billion over three years and raise the incomes of the devolved administrations.

This content is not available due to your privacy preferences.Update your settings here to see it.

The minimum wage was also hiked to £9.50 for those aged 23 and over, while the year-long public sector pay freeze was lifted.

But Paul Johnson, director of the IFS, said Mr Sunak was spending the majority of his recently increased tax receipts rather than putting them aside to reduce borrowing.

“To help fund the spending increases, the Chancellor confirmed big tax rises: this year has seen the biggest set of tax-raising measures since 1993,” said Mr Johnson.

“It now looks like a large part of those tax rises is to be spent rather than being entirely used to reduce borrowing as originally announced.”

In separate comments, Mr Johnson warned that the “almost non-existent” increases in living standards were a “big blow” to families and could become a “big political driver”.

Analysis of Budget documents by the IFS found that over the next five years real household disposable income is expected to grow by 0.8% per year, well below the historical average.

Mr Johnson tweeted the findings, telling followers: “This is actually awful. Yet more years of real incomes barely growing.”

Speaking to BBC News later, Mr Johnson said Government tax rises, along with inflation, were partly to blame for the poor uplift in living standards.

National Insurance Contributions for workers is to increase by 1.25 percentage points from April to help pay for the NHS and social care, which the IFS has previously estimated will bring the tax burden to 35% of GDP by 2023/24.

In his Budget speech, Mr Sunak warned that inflation, which stood at 3.1% in September, is “likely to rise further”.

Mr Johnson told the BBC: “Poor living standards had a big political effect and it looks like those almost non-existent increases in living standards over the next half a decade, that’s a big blow to all households and families of course, but it can also have a big impact on politics.”

The institute chief also contested the Chancellor’s claim that his minimum wage increase was worth £1,000 to a full-time worker.

He stated that it was instead worth £700 after tax and national insurance and “less than £300 to anyone on Universal Credit (UC)”.

The economist also said there would be “trade-offs” as part of the Treasury’s announcement on the change to the UC “taper” rate.

The dramatic reduction means that, instead of losing 63p of UC for every £1 earned above the work allowance, the amount will be reduced to 55p.

The amount people can earn before starting to lose the benefit will also increase by £500, with Mr Sunak arguing nearly two million families would keep on average an extra £1,000 a year due to the change.

But Mr Johnson said on social media: “Big cut to Universal Credit taper.

“And increase in work allowance.

“Targeted at working claimants.

“Out-of-work UC claimants get nothing.

“Trade-offs as ever.

“Improves work incentives for current recipients but will drag more into the system.”

Internet Explorer Channel Network
Asia's Tech News Daily
News Related


VIDEOS: Ram Charan, Jr NTR fans go berserk and kickstart celebrations ahead of the trailer launch of RRR

© Provided by Pinkvilla After Baahubali, SS Rajamouli has geared up for the release of another mega project titled, RRR. Starring Ram Charan and Jr NTR in the lead roles, ... Read more »

Grünes Licht für Medikament in den USA: Diese künstlichen Corona-Antikörper sind jetzt zugelassen

Die USA lassen ein Medikament zu, in dem künstliche Corona-Antikörper stecken. Das sei keine generelle Alternative zur Impfung, aber nützlich für Allergiker und Menschen mit einem geschwächten Immunsystem. © Bereitgestellt ... Read more »

'Pathetic Officiating': Former AUS Captain Slams TV Umpire After Ben Stokes's Overstepping Goes Unnoticed

© Provided by News18 ‘Pathetic Officiating’: Former AUS Captain Slams TV Umpire After Ben Stokes’s Overstepping Goes Unnoticed Ben Stokes overstepping the bowling crease multiple times on Thursday became one ... Read more »

Jennifer Aniston explains why she walked out of 'Friends' reunion

© IANS Jennifer Aniston.( Los Angeles, Dec 9 (IANS) Actress Jennifer Aniston recalled walking out of the reunion special for ‘Friends’. In a new interview with the Hollywood Reporter, the ... Read more »

Obi Toppin's impressive dunk couldn't even inspire woeful Knicks

The breakaway slam should have sparked a raging fire inside the Knicks, because it came straight from the heart of the city game. Obi Toppin grew up on the famous ... Read more »

This Seahawks-Saints trade for Russell Wilson could actually work

With the news that Russell Wilson might be interested in a move to the New Orleans Saints, the Seattle Seahawks may look to make a trade happen. © Provided by ... Read more »

Cricket-Warner burns England but late wickets leave Australia on 193-3

FILE PHOTO: Ashes 2019 – Fifth Test – England v Australia By Ian Ransom MELBOURNE (Reuters) –David Warner marched to the brink of a century after being reprieved three times ... Read more »

CEO of Apotheca Beauty Nora Al Ramadhan talks us through her skincare routine

© Motivate Publishing Nora Al Ramadhan December’s – ‘The Winter Escape Issue’ – Download Now Nora Al Ramadhan, CEO and Co-Founder of Apoethca Beauty, talks us through her beauty routines. Talk ... Read more »

'Game-changing' new Covid drugs will be sent to patients at home

© Provided by Daily Mail MailOnline logo Thousands of lives will be saved this winter by two ‘game-changing’ new Covid treatments being rolled out on the NHS today, ministers announced ... Read more »

Two teenagers shot in parking lot of Kansas City's Kauffman school Wednesday night

Two teenagers were injured in a shooting that unfolded in the Ewing Marion Kauffman School parking lot during a high school basketball game on Wednesday night. Off-duty Kansas City police ... Read more »

Glenwood High School goes to soft lockdown; Springfield police arrest 3 in separate threats

A Chatham Police K9 unit is parked outside Glenwood High School as the school goes on soft lockdown after a threat was made via the Yik Yak messaging platform to ... Read more »

Aston Villa coach exits as Steven Gerrard strikes key deal before January

Welcome to all the Aston Villa news from BirminghamLive on Wednesday, December 8. Coach exit confirmed Steven Gerrard‘s Aston Villa backroom staff shake-up has continued with first-team sport scientist Jack ... Read more »

Cricket-Ashes equipment malfunction sparks Stokes no-ball controversy

SYDNEY (Reuters) – The no-ball call that denied England’s Ben Stokes a wicket in his first over of the opening Ashes test on Thursday led to the revelation that the ... Read more »

Traces of Omicron super variant found at Melbourne Airport

© Provided by Daily Mail MailOnline logo Melbourne Airport has been put on alert after traces of the Omicron super variant were found in the wastewater – as Victoria records ... Read more »

Video: The Project's Carrie Bickmore suffers another major wardrobe malfunction just moments before walking the AACTA awards red carpet where she accidentally flashed her bottom 

Read more »

COMMENT | Will Pekan Nanas become Pineappolis?

© Malaysiakini (English) COMMENT | I don’t usually agree with Rais Yatim’s political views but his swipe at local authorities for adopting English names over Malaysian names is well taken. ... Read more »

Canada to join diplomatic boycott of Olympics to send China human rights message -PM

1 / 4Canada to join diplomatic boycott of Olympics to send China human rights message -PMCanada’s Minister of Sport Pascale St-Onge, with Minister of Foreign Affairs Melanie Joly and Parliamentary ... Read more »

Pfizer says its vaccine booster provides protection against the Omicron variant

Pfizer COVID-19 vaccine DANIEL LEAL/AFP via Getty Images Early data suggests three doses of Pfizer and BioNTech's COVID-19 vaccine provides protection against the new Omicron variant, the companies say. Pfizer ... Read more »

A Chinese government spokesperson said the US committed 'evil crimes' against Native Americans in a bid to counter reports of genocide in Xinjiang

Chinese spokesperson Zhao Lijian speaks at a daily media briefing in 2020.Greg Baker/AFP via Getty Images A Chinese spokesperson railed against the US' diplomatic boycott of the Winter Olympics. The ... Read more »

Texas gunman who mistook cop for home intruder acquitted of murder

David Wilson, found not guilty, was acquitted of the murder of Midland Police Officer Nathan Heidelberg. Midland County Sheriff’s Office A Texas man who opened fire on a cop who ... Read more »

Don't Ask Me Any Cliché Questions: General Bipin Rawat's Last Words to Me That Best Honour the Jolly Officer Bold

© Provided by News18 Don’t Ask Me Any Cliché Questions: General Bipin Rawat’s Last Words to Me That Best Honour the Jolly Officer Bold “Don’t ask me any cliché questions. ... Read more »

Group Captain Varun Singh, Lone survivor of Chopper Crash Had Dodged Death in 2020 As Well | A Look Into What Had Happened

© Surabhi Shaurya | News Desk Group Captain Varun Singh is the sole survivor of the crash. IAF Chopper Crash: Indian Air Force‘s Group Captain Varun Singh, the lone ... Read more »

Manchin kills Biden's private vaccine mandate: Senator and fellow Democrat Jon Tester join 50 Republicans to vote down plan that would force COVID shot on 31 million

Wednesday's vote overturned Biden's mandate ordering businesses with 100 workers or more to demand vaccination from workers by Jan 4Workers who refused were to be subjected to regular COVID testing The 52-48 vote sends the legislation to the Democratic-led House of Representatives, where it faces strong headwindsManchin and Tester argued on Wednesday that the consequences of implementing the mandate would be largely felt on the country's economyThe chamber's top Republican, Mitch McConnell, branded the Biden mandate as an 'illegal' and 'absurd' government effort to micromanage the lives of citizens Read more »

Jimmy Lai among three Hong Kong pro-democracy activists convicted over Tiananmen vigil

© AP File: Founder of Apple Daily Jimmy Lai is one of the three activists that a Hong Kong court found guilty of unauthorised assembly on 4 June last year ... Read more »

India records 9,419 new COVID-19 cases, 159 deaths in last 24 hours

© Provided by Zee News New Delhi: India recorded 9,419 new COVID-19 cases, 159 deaths in the last 24 hours, pushing the overall caseload to 3,46,66,241 and the total death toll ... Read more »

Australia's deputy prime minister tests positive for Covid-19

© Rob Griffith Barnaby Joyce has tested positive for the coronavirus while travelling in Washington DC (Rob Griffith/AP, File) Australia’s deputy prime minister has tested positive for the coronavirus while ... Read more »

Pakistani Major's Tweet in Punjabi Condoling Bipin Rawat's Death is a Message of Peace

© Provided by News18 Pakistani Major’s Tweet in Punjabi Condoling Bipin Rawat’s Death is a Message of Peace The entire country was joined together in grief on Wednesday after an ... Read more »

Royal Navy flagship returns home without £100m fighter jet

The Royal Navy flagship is to return home following the first operational deployment of the carrier strike group (CSG), which has been dogged by incidents including the loss of a ... Read more »

CDS General Bipin Rawat Survived Chopper Crash in Nagaland's Dimapur in 2015. Know More About It

© Provided by News18 CDS General Bipin Rawat Survived Chopper Crash in Nagaland’s Dimapur in 2015. Know More About It Chief of Defence Staff (CDS) General Bipin Rawat, onboard an ... Read more »

With eyes on UP Polls, BJP holds programmes to woo Dalits in state

With eyes on UP Polls, BJP holds programmes to woo Dalits in state Gearing up for a tough battle in the Uttar Pradesh Assembly Elections, the BJP is now focusing ... Read more »

Punjab drugs case: AAP's Raghav Chadha alleges secret deal between Congress, Akali Dal

After being reprimanded by the Punjab and Haryana High Court for inaction in the synthetic drugs case, the Punjab government is now under attack from the Aam Aadmi Party. AAP ... Read more »

Media mogul Jimmy Lai convicted for taking part in banned Tiananmen vigil

This file photo taken on February 1, 2021 shows Hong Kong media tycoon Jimmy Lai (R) being escorted into a Hong Kong Correctional Services van outside the Court of Final ... Read more »

Hong Kong democracy activists found guilty over Tiananmen vigil

© Provided by Al Jazeera People hold up their phones with the light on in the Causeway Bay district of Hong Kong on June 4, 2021, after police banned the ... Read more »

Ate Vi shookt sa babaeng kamukha niya sa 1920s family photo album

© Provided by Isang babaeng kamukhang-kamukha ni Vilma Santos ang nasa isang lumang family album. Ang 200-page photo album ay natagpuan ni Lia Consuelo San Mateo sa kanilang ancestral house ... Read more »

So viel Geld haben wir gespart, weil wir im letzten Jahr kaum reisen konnten

© shutterstock Ferien in der Schweiz lagen 2020 im Trend. Deutlich weniger Flugreisen, mehr Ferien in der Schweiz und kaum mehr Geschäftsreisen: So hat die Schweizer Wohnbevölkerung im Pandemie-Jahr 2020 ... Read more »

Top eight most expensive properties on the UK market right now

South Street, Mayfair. Photo: Rightmove The UK property market has had another strange year. Many people have reassessed their living arrangements in the wake of COVID, looking for more space ... Read more »

Video: Biden's private vaccine mandate is dead in the water: Centrist Democrat senators Joe Manchin and Jon Tester join 50 Republicans to vote down proposals that would have forced COVID shot on 31m 

Read more »

Ralf Rangnick gives verdict on Dean Henderson's Manchester United performance

Ralf Rangnick praised Dean Henderson’s ‘proactive’ performance in his Champions League home debut for Manchester United. Henderson made just his second start of the season in the 1-1 draw with ... Read more »

City Hatchback Serba Baharu lebih berjiwa muda, ini fakta menarik jentera berteknologi termaju segmen B

HONDA Malaysia buat pertama kalinya memperkenalkan model City terbaharu dalam bentuk hatchback yang menampilkan gaya lebih sporty dan premium khas buat generasi muda. Lebih menarik, City Hatchback Serba Baharu itu ... Read more »

Selangkah, aplikasi penjejak kenalan dan pemvaksinan kini ada dompet elektronik

Aplikasi penjejak COVID-19 dan kesihatan yang digunakan kerajaan Selangor, Selangkah kini dilengkapi ciri baharu dompet elektronik. Selangkah bekerjasama dengan platform KiplePay oleh Green Packet untuk mengaktifkan fungsi baharu Selangkah Wallet. ... Read more »
On you will find lots of free English exam practice materials to help you improve your English skills: grammar, listening, reading, writing, ielts, toeic