News

Osborne announcing Summer Budget 2015

The upcoming Summer Budget 2015 is due to be announced by the Chancellor, George Osborne on Wednesday.

It is expected that the focus will be on housing benefit, tax credits and incentives for employers to pay the living wage. The Conservatives were elected on the promise of cutting a further £12bn from the welfare budget.

The cuts are expected to affect predominantly ‘hardworking taxpayers’, although Osborne told Andrew Marr; “we’ve got to make sure this is a fair Budget, that we’re all in this together” [1].

But not everybody is convinced. In an article for The Independent on Sunday, Labour shadow Health Secretary Andy Burnham accuses Osborne of rushing these changes through and “craving for political positioning” and states that “support for the low-paid and vulnerable is the root of Britain’s problems”. He then later admits the public couldn’t trust labour with the economy and will “fight to win back the trust of the British people” [2].

Osborne is also promising a £5bn crackdown on tax avoidance and planning, and to increase taxes on pension contributions for high earners. In addition to this, he would like to strengthen Britain’s protection against economic shocks, such as Grexit (the possibility of Greece leaving the Eurozone).

This will be his first fully Conservative Budget so he wants to stay true to his word but ensure the impact is not felt at the next election.

[1] BBC News. ‘Summer Budget 2015: Osborne eyes pain now for gain later’. http://www.bbc.co.uk/news

[2] The Independent. ‘Budget 2015: Time to take on the Tories’ brutal myths and give George Osborne the fight he has had coming for a long time’. http://www.independent.co.uk/