Tuesday, 5 October 2010

George...Don't Do That


'Brilliant' Chancellor George Obsorne, got his first feel of a British political backlash yesterday, after he announced child benefit would no longer paid to the top 15 percent of earners.
For the public, it was quite an unpalatable measure, particularly as exactly a year ago Osborne had promised unequivocally, "we will preserve child benefit."
These cuts would raise a measly £1Bn but they hold a greater symbolic significance by making the first blow against universal benefits. No-one could now accuse them of being 'liberal' again. But instead of introducing a means test, George simply attached identical tax disbenefits to those in 40 percent tax bracket because of the "need to reflect the British sense of fair play. "
Admittedly a means test would have been a worse option, as it puts off many people claiming who are in genuine need. But the outcome of George's little weeze is an obviously unbalanced policy, unfairly punishing families with only one good earner. Families with a dual income of up to £87K will keep child benefit: families with single income of £44K will lose it. Dave said he would try and find other ways of helping, "stay-at-home mothers". So much for the new men of the Tory party.
George and Dave obviously weighed up this 'anomaly' to those little middle class folk and judged it were preferable to a messy system of assessment. Not so, say Middle England (short hand for the Daily Mail) who are thoroughly put out at the unfairness and suggestion that £44K amounts to a wealthy household after mortgage, utilities, council tax, food and clothes are paid for.
Already, Dave has begun to wobble and promised there could be tax reilef for married couples but that does not fill the hole felt by all the 'Mr-and-Mrs-plus-2.4-kids' who voted Tory. The PM may yet learn constantly repeating he is driven by a sense of "fairness" is not enough to convince people who are struggling to pay the bills.
"In the end, politics comes down to guts," said Dame Shirley Williams. This Government's first flirtations with unpopular cuts may be too much for the Tory backbenches who are calling for "compensating measures". The policy could yet be slowly killed through the 1922 Committee.
Unfortunately next time, I fear, George will be determined to make us meet our pain. It won't be long.

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