Sunday, 13 December 2009

To Con or not to Con, that is the question


Chancellor Alistair Darling has hit back at Tory claims his decision to increase some benefits in his pre-Budget report was a "pre-election con".

The claim came after it emerged Mr Darling did not set aside funding to pay for rises for more than one year.

Mr Darling told BBC Radio 4's Today the increases, in child and disability benefit, were "not temporary".

It comes as a think tank says the cost to families of paying back the national debt is £2,400 over eight years.

The Institute of Fiscal Studies said the pre-Budget report implies £15bn in spending cuts not yet identified by the government between 2011 and 2014 - which taken together with tax increases will impact on family finances.

The think tank says the government will have to cut 6.4% per year in order to protect schools, hospitals and increase overseas aid.

Defence, higher education, transport and housing are most likely to be hit, the IFS say.

In Wednesday's pre-Budget report, Mr Darling announced a 1.5% rise in child benefit and disability benefits from April - just weeks ahead of the expected date of the general election.

He also announced an above-inflation 2.5% increase in the basic state pension.

This was followed on Thursday by an announcement that jobseeker's allowance and incapacity benefits would rise by 1.8% from April next year.

Mr Darling said he was waiving the normal requirement to link the rise to the rate of inflation the previous September, as this would have led to the benefits being frozen because inflation was negative at that point.

What the Tories do if they win the next election in May or what will labour do if they call an election in March? Remember the chancellor’s statement “increases, in child and disability benefit, were "not temporary". “


Time will tell.


Angus

Angus Dei on all and sundry

AnglishLit

Angus Dei-NHS-THE OTHER SIDE

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