UK Austerity to cut 10 billion pounds in Social Benefits

By LUIS MIRANDA | THE REAL AGENDA | OCTOBER 9, 2012

The British Minister of Economy, George Osborne, said Monday that he intends to cut another 10,000 million pounds in spending by cutting the expenses on social benefits by 2016-17. Osborne said the goal is to reduce the deficit.

While speaking to a crowd of Tories, Osborne said that he wants to eliminate aid to large families and housing subsidies for people who are under 25 years of age.

These cuts would be in addition to the reduction of 18,000 million pounds taken from government obligations through the approval of a bill announced in 2010, which affected pensions and subsidies and has involved hundreds of thousands of layoffs in the public sector.

In his speech to the militants “Tories” who met during the annual Conservative Party gathering, the Minister of Economy insisted on saying that while the wealthiest people should bear the  brunt of the crisis, it is also “fair” that the cuts are distributed throughout the whole population, including citizens who are dependent on state-sponsored programs. Osborne refused in multiple occasions to impose higher taxes on the richest people in the UK.

He promised however, to limit the income of citizens receiving social benefits, as well as aid given to the unemployed, the young, single mothers, disabled and low-income families; so that these people do not receive anymore help than those who go out looking for work.

Osborne announcement of the reduction of social benefits was immediately received with criticism dependent groups, while the minister said he will rule out raising taxes on high incomes. How is it that the wealthiest will bear their brunt of the crisis then?

He also dismissed the idea of ​​a new tax on mansions of more than two million pounds (2.47 billion euros), an idea first introduced by the Liberal Democrats, partners in the coalition government.

The minister warned the people that he would combat tax evasion in order to increase revenues. He said that he would fight “mercilessly” tax evasion and penalize those who attempt to evade payment by way of accounting maneuvers.

“We will finish what we started,” Osborne said to his fellow party allies, as he reminded the crowd about the government’s plan to reduce the deficit and debt which he associated with cutting help to the neediest people, while the size of government remains the same.

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