What the Chancellor's statement means for YOU

GEORGE Osborne's claim that "we're all in it together" has been ridiculed following his Autumn Budget Statement as it emerged people on low incomes will lose out the most.

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Chancellor George Osborne
Chancellor George Osborne

The Chancellor announced more austerity measures and said: "Britain is on the right track and turning back now would be a disaster."

He said the rich would bear the burden and pay their share to reduce the Government's deficit, but campaigners and opposition politicians said the poorest were again being hit the hardest.

Treasury analysis of the Statement on the impact on households shows that while people in the highest 10% of income will lose out by £1500 a year and those in the bottom 10% by £200 a year the percentage of net income lost is almost the same.

Anti-poverty campaigners said the people at the 'bottom' cannot afford the cuts and more will be pushed into poverty.

The lowest 10% of income, a family of two adults and one child earning up to £17,300, will lose out by £200, while two adults and one child with income of up to £30,400 will lose out by £300.

At the top, a two adult, one child family on at least £59,300 will lose out by £1500 while middle earners on £30,000-£38,000 will gain slightly.

The bottom 50% all lose out with those just above the middle better off slightly and the top 20% losing out.

The bottom fifth of earners will see a reduction in income of 3.8% while those in the top will lose out by 4.2%

Sarah Jackson, chief executive of Working Families, said: 'The Chancellor's Statement does not give low income working parents confidence he is on their side.

"With inflation at 2.7%, his proposed 1% increase in benefits will hit many working parents in receipt of tax credits and child benefit hard, when they are already struggling with pay freezes and rising costs, including childcare."

Jackie Brock, chief executive of Children in Scotland, said: "While we welcome some of the announcements, including the increase in personal tax allowance, which we hope will assist the number of families across the country experiencing in-work poverty, we would be concerned that the decision not to do the same for others on welfare will push some of the most vulnerable individuals and families further into poverty."

Grahame Smith, Scottish Trades Union Congress general secretary said: "The Chancellor abandoned any pretence that 'we're all in this together'. The Treasury's own analysis shows that next year, the net income of the bottom five income groups will fall significantly more than those at the top."

stewart.paterson@ eveningtimes.co.uk

GEORGE Osborne's claim that "we're all in it together" has been ridiculed following his Autumn Budget Statement as it emerged people on low incomes will lose out the most.

The Chancellor announced more austerity measures and said "Britain is on the right track and turning back now would be a disaster."

He said the rich would bear the burden and pay their share to reduce the Government's deficit, but campaigners and opposition politicians said the poorest were again being hit the hardest.

Treasury analysis of the Statement on the impact on households shows that while people in the highest 10% of income will lose out by £1500 a year and those in the bottom 10% by £200 a year the percentage of net income lost is almost the same.

Anti-poverty campaigners said the people at the 'bottom' cannot afford the cuts and more will be pushed into poverty.

The lowest 10% of income, a family of two adults and one child earning up to £17,300, will lose out by £200, while two adults and one child with income of up to £30,400 will lose out by £300.

At the top, a two adult, one child family on at least £59,300 will lose out by £1500 while middle earners on £30,000-£38,000 will gain slightly.

The bottom 50% all lose out with those just above the middle better off slightly and the top 20% losing out.

The bottom fifth of earners will see a reduction in income of 3.8% while those in the top will lose out by 4.2%

Sarah Jackson, chief executive of Working Families, said: 'The Chancellor's Statement does not give low income working parents confidence he is on their side.

"With inflation at 2.7%, his proposed 1% increase in benefits will hit many working parents in receipt of tax credits and child benefit hard, when they are already struggling with pay freezes and rising costs, including childcare."

Jackie Brock, chief executive of Children in Scotland, said: "While we welcome some of the announcements, including the increase in personal tax allowance, which we hope will assist the number of families across the country experiencing in-work poverty, we would be concerned that the decision not to do the same for others on welfare will push some of the most vulnerable individuals and families further into poverty."

Grahame Smith, Scottish Trades Union Congress general secretary said: "The Chancellor abandoned any pretence that 'we're all in this together'. The Treasury's own analysis shows that next year, the net income of the bottom five income groups will fall significantly more than those at the top."

stewart.paterson@ eveningtimes.co.uk

GLASGOW'S 'SHOVEL-READY' PROJECTS TOTAL £65M

SCOTLAND will benefit from hundreds of millions of pounds of building projects after the Chancellor announced cash to get the economy growing.

George Osborne revealed cuts to the welfare budget would pay for a fund of £5.5bn for capital projects, from which Scotland will receive £330million over the next two years.

Finance Secretary John Swinney had previously produced a list of 'shovel ready' projects totalling £800m that could go ahead, including:

l Clyde Gateway: Office, industrial developments £63m.

l National Theatre Of Scotland: Glasgow regeneration project £2m.

l Irvine Enterprise Area: infrastructure and innovation campus, and Irvine Ailsa Road industrial units £5.9m.

l NHS Lanarkshire: Monklands – additional backlog investment £10m.

Mr Osborne said the programme would be funded by Government departments taking a cut of 1% next year and changes to welfare saving £3.7bn by 2015/16.

The basic income tax threshold is to be raised by £235, to £9440 and the planned 3p rise in fuel duty has been cancelled.

The basic State pension is to rise 2.5% next year to £110.15 a week and child benefit will rise 1% for two years from April 2014.

Families

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