Socialist Worker

George Osborne set to grab billions in fresh spending review cuts

The Tory chancellor is set to slash more jobs and services to make the rich richer, writes Simon Basketter

Issue No. 2359

George Osborne - always happy to make cuts

George Osborne - always happy to make cuts (Pic: The Prime Minister's Office)


Bungling baron George Osborne was set to announce billions more in cuts on Wednesday of this week.

He wants to cut an extra £11.5billion in the year to 2015.

The government’s spending review is the method by which the government sets the limits for all public spending.

It creates the targets that workers will be told they have no choice but to meet.

For instance as much as £2 billion will be cut from higher education and preschool budgets. Yet more will come from further education. 

And council budgets are again to be slashed.

A treasury spokesman gloated, “We’ve completed the spending round savings early and without all the arguments you normally get.

“This shows our determination to take the tough decisions needed to deliver our economic plan and to turn Britain around.”

For people on benefits and those already in poverty, life will get still harder.

Osborne’s arrogant response is to claim this is fair. 

He says we have no option but to make cuts and that everyone is paying their share. 

He previously claimed that his cuts were a temporary measure to get out of recession.

Lied

But Osborne lied. Government borrowing increased last year, despite the cuts. 

Osborne has admitted he will not meet his own debt target until 2017-18.

According to the Institute of Fiscal Studies, Osborne has to keep making cuts until after 2020 to hit his targets.

And average household income will be lower by almost £100 a week in real terms by 2015, according to the TUC.

This is after taking into account the public sector pay freeze and the combined impact of tax, tax credit and benefit changes, including Universal Credit.

Over half a million children  living in households where both parents work will be plunged into poverty by 2015 as a result of the cuts. 

Tragically, even this round of brutal cuts is largely a holding exercise designed to paper over cracks in the coalition until after the general election.

Osborne admitted that free bus passes and TV licences plus winter fuel payments may go if the Tories win the next election.

The Tories are smashing up our welfare state because they want ordinary people to pay for the crisis instead of the rich. 

Their cuts are a choice, not a necessity. There is no need to cut any job or service. There are plenty of other ways to raise cash.

The government could raise money by increasing corporation tax and taxing the super-rich. 

Yet Osborne insists on cutting corporation tax on the bosses profits every year.

The Tories want to rob the poor to make the rich richer—and we can’t let them get away with it. 


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