Fallout over UK spending cuts

David Cameron and his deputy Nick Clegg have rejected claims the Spending
Review cuts were “unfair”.

respected IFS think-tank says poorer families with children would be the
“biggest losers”.

Mr Cameron said higher earners would pay more, while Mr Clegg said those who
said the measures were unfair “were not being straight with people”.

they are frightening people and that is not right,” said Mr Clegg.

Chancellor George Osborne said that, including June’s Budget’s measures, the
top 10 per cent of earners would be hit hardest, although everyone would have
to make a contribution to cutting the deficit.

called the $127 billion cuts – the biggest since the 1970s – a “reckless
gamble” with the economy.

has been estimated that the measures will lead to the loss of 490,000 public
sector jobs – with the Local Government Association saying 100,000 of them will
be at local authorities, which are facing a budget squeeze.

Mr Osborne told MPs on he had acted
to restore “sanity to our public finances” and deal “decisively” with Britain’s record peacetime

says he expects many more private sector jobs to be created over the four year
cuts programme – but shadow chancellor Alan Johnson says the redundancy bill
alone for the lost public sector jobs will be $12 billion.

IFS think tank cast doubt on the chancellor’s analysis of who would feel most
of the pain from the cuts.

the wealthiest 2 per cent of the population, who it assesses will be the
hardest hit, it said the plans would be regressive in their impact since those
in the bottom half of the income scale would be affected more than those in the
top half as a result of cuts to benefits and public services.

to economists the bottom 10 per cent will, on average, lose about 5.5 per cent
of their net income compared to roughly 4 per cent for the top 10 per cent.