A ‘regressive’ budget?
The IFS has given the coalition’s opponents powder for their muskets, only it’s a little damp. The IFS’ analysis is drawn exclusively from straight tax and spend figures; it does not account for the future financial benefits brought by structural public service reform – so Gove’s and IDS’ reforms, both of which aim to alleviate poverty, have not been evaluated. Matthew Sinclair explains why this means the IFS has exaggerated the severity of Osborne’s Budget: ‘Suppose you invented a policy, some kind of economic miracle, which doubled the incomes of the poorest ten per cent of families without the Government spending a pound. That would reduce benefit spending. It would