George Osborne has just announced his budget for the CON DEM coalition. The rate of VAT will rise from 17.5% to 20% from 2011 thus reducing working class people’s living standards in one swoop.
The government will accelerate the increase in state pension age to 66, bring in harsher tests for disabled people and freeze lecturers and teachers pay for two years. The public services that people work in and depend on will face on average budget cuts of 25% over four years (except health and international aid which standards at 0.1% of GDP). Other cuts include the freezing of child benefit which is paid to all families and the axing of the health in pregnancy grant.
That’s the bad news; the good news is only for the rich! Corporation Tax will be cut next year to 27%, and by 1% annually for the next three years, until it reaches 24%.