Karin Smyth, MP for Bristol South, has shared her deep concern that the Tory Government looks set to fill in the black hole created by the Mini Budget by slashing welfare support. This comes following news from the respected independent Institute of Fiscal Studies who have determined the unfunded tax cuts for the top 1% will require £60 billion of cuts.
The IFS have noted that one option being considered is indexed working age benefits to earnings and not inflation, reducing the uplift to about 5% from 10%, to save £13bn. A reduction in public investment by a third to 2% would save £14bn, while a return of austerity across most Whitehall departments – excluding health and defence – could save £35bn.
To put the £60 billion figure in context, the Coalition Government cut expenditure by £14bn in the name of austerity. The cuts needed to plug the Tory Government’s black hole will dwarf George Osborne’s previous efforts.
In Bristol South, there are currently 6,719 women and 4,745 men claiming Universal Credit. Each person will likely lose £290 per year. This comes on top of the average increase in mortgage costs of £500 if their fixed-rate mortgage is coming to an end. 40% of all claimants of Universal Credit are already in work.
Karin Smyth, MP for Bristol South, said:
“The economic chaos facing the country was created in Downing Street and is being paid for by working people here in Bristol. The financial markets are still nervous over the Government’s economically illiterate Mini Budget which landed our nations finances into a deep black hole. It’s clear that the Bank of England has done its best to stabilise the economy, but they can only do so much.
“The Government must do a full reversal of the Mini Budget, especially as the main choice they look set to adopt is further austerity: balancing tax cuts for the top 1% of earners on the backs of working people in south Bristol. This is unacceptable.
“The data is clear. If the Tories pursue this policy, it will hurt women in south Bristol the most. When the cost-of-living crisis is already hitting households hard. Only a Labour Government will give everyone the certainty they need, and the sound care of the nations finances we so desperately need.”