If the rumors are true that the Liberal Democrats agreed to macho hacking of the budget while telling voters something else, this will be their last victory for decades. It comes as no surprise that the Tories are delivering tax cuts for the haves and plain old cuts for the have-nots. Didn't the US just see how tax cuts during tough times do not help and only hurt recovery? What else should people expect from the Conservatives?
George Osborne will announce plans for the biggest-ever assault on welfare benefits in Tuesday's emergency budget as part of an estimated £85bn package of savings and tax rises to reduce Britain's unprecedented peacetime deficit.
The chancellor believes that, by slashing the £180bn-a-year welfare bill, he can help protect spending in other areas, such as education, defence and transport, as well as safeguarding capital projects vital to the economy.
"If we drive down the welfare bill, that allows more money to be allocated to departments," a government source said.
The focus on welfare and benefit reform is likely to include cuts in tax credits for wealthier families and could see the end of child benefit payment to higher earners. But it will also put Osborne on a collision course with unions, which fear the poor will be hit hardest. The coalition government hopes to soften the impact of deep reductions in public spending – and deflect criticism from those who say the cuts will put economic recovery at risk – by presenting a parallel growth strategy for the public sector, based on safeguarding infrastructure projects, education reform and tax incentives for business.
