Osborne’s economic incompetence is becoming clearer by the day, as economists have warned that if he is to achieve his general election pledge to reduce taxes for middle and low income earners he will either have to make even deeper austerity cuts or impose tax increases elsewhere. Perhaps this is, in fact, a deliberate political move to justify cuts and keep pay down?
The Institute for Fiscal Studies has said that if tax revenues rise by just 1% less than forecast by 2019/20 then the Exchequer would lose around £5 billion in income tax and national insurance. In addition the fall in share prices could cost a further £2 billion by 2020.
Osborne’s election bribe of raising the personal allowance for the 40 pence threshold has always been unfunded and is estimated to cost £8 billion per annum and is now in tatters. In other words he lied to the electorate when he claimed to be competent and made promises that he knew he had little chance of keeping.
Much of Osborne’s spending plans are based on restricting pay in the public sector which are at 25 year low when compared to workers in the private sector – an unsustainable position.
As trade unionists we need to mount an all-out campaign to ensure workers in the public sector do not suffer any longer at Osborne’s hands. The policy of austerity has to stop and it has to stop now. We need an economic plan that brings prosperity to all workers not simply the 1%; we need Osborne to go and for his rag bag neoliberalist ideology to become a thing of the past.