Skip to main content

Autumn Statement: Presents? Only for his chums

Osborne dishes out Christmas gift of £25 billion in cuts to vital services

CHANCELLOR George Osborne stopped short of cancelling Christmas yesterday - but revealed two more cold winters of callous cuts are stashed under the Tory tree.

Mr Osborne proudly unwrapped plans to slash public spending by another £25 billion if the nasty party are gifted another term in government.

And he warned there would be "very substantial savings" to address his £90bn deficit, which he originally promised would be gone by May 2015.

He tried to divert the public's attention from his failure by claiming Britain would be running a surplus by 2020 as he hung a few flashy policy "baubles."

Plans to cut stamp duty for low-cost homes and hike it for high-end houses was the sparkling tinsel designed to mask another austerity autumn statement.

Homes worth more than £2,100,000 will be subject to a bigger 7.9 per cent tax in a move that mirrors but falls short of Labour's popular mansion tax.

The Chancellor boasted: "I'm cutting stamp duty for millions of homebuyers in the this country. Ninety-eight per cent will be better off."

But left Labour MP John McDonnell said: "Tinkering with stamp duty won't mask the insecurity, low pay and cuts that ordinary people will continue to experience.

"The Chancellor's presents were empty boxes, baubles to distract from the real issues people face."

A government spokesman refused later to reveal what would be cut if the Tories are allowed to unleash two more winters of austerity.

He told the press the cuts will remain a post-election surprise.

Mr Osborne did admit that more pay cuts for public-sector workers will be in his red box if the Tories retain power.

He also told MPs that he was taking "further steps to control benefit spending" by cutting in-work tax credits and ending unemployment benefit for migrants.

The Chancellor insisted though that he was "proving we're all in this together" by making banks pay their fair share and cracking down on offshore tax avoidance.

"The rich are making the biggest contribution to deficit reduction," he claimed.

But the £4bn raised from banks and £1bn raised through a "Google tax" on multinationals is less than half of the £12bn being raised by attacks on public-sector pay.

And Mr Osborne's bid to show everyone is benefiting from the economy received a blow from the Office for Budget Responsibility.

It slashed forecasted wage growth for next year from 3.2 per cent to 2 per cent yesterday.

Slicing through Mr Osborne's spin, the independent body also braced the public for cuts that TUC leader Frances O'Grady labelled "terrifying."

"Making the cuts on the Chancellor's timetable will slash public spending per head from £5,650 to £3,880," said Ms O'Grady.

"That will take us back at least to the level of spending in 1948 and probably to the lowest spending levels for 80 years.

"All of this is the price of failure of the Chancellor's strategy."

Shadow chancellor Ed Balls pointed out the Tory had smiled as he announced tax cuts for working people who are £1,600-a-year worse off since 2010.

Setting out Labour's alternative, Mr Balls said: "We need a recovery for the many, not just a few.

"We need to balance the books in a fair way with a long-term plan to save our NHS.

"That's the autumn statement we needed, it will take a Labour government to deliver it."

OWNED BY OUR READERS

We're a reader-owned co-operative, which means you can become part of the paper too by buying shares in the People’s Press Printing Society.

 

 

Become a supporter

Fighting fund

You've Raised:£ 13,288
We need:£ 4,712
3 Days remaining
Donate today