Tories’ £31bn bill to end austerity
ENDING austerity will cost Philip Hammond £31billion – but it can be done if he starts in next week’s Budget, a leading think tank claim. Theresa May’s conference pledge “to end austerity” would mean the Chancellor would have to promise billions for public sector pay, benefits and other spending, according to a study by the Resolution Foundation. Their report found that ending austerity carries a huge price tag that will rise to more than £31billion by 2023. It could be done by: ● Cancelling the final year of the benefit freeze and uprating benefits by 2.4 per cent next April.
This would cost about £1.5billion in the first year and prevent a low-income family with kids losing around £250 next year. ● Reversing the cuts to work allowances in Universal Credit. ● Ending day-to-day departmental spending cuts and preventing any further cuts, as well as maintaining spending commitments on the NHS. ● Giving additional spending of £26.3billion to defence and International aid.
Matt Whittaker, deputy director at the Resolution Foundation, said: “The Chancellor has a seemingly impossible task in his Budget of ending austerity, reducing the national debt and keeping the public finances protected against any Brexit uncertainty.
“Ending austerity, while also keeping debt falling as a share of the economy, will require tax rises.”