Jim Shannon – 2016 Parliamentary Question to the HM Treasury

The below Parliamentary question was asked by Jim Shannon on 2016-04-18.

To ask Mr Chancellor of the Exchequer, what assessment he has made of the analysis by the Women’s Budget Group, that the distributional analysis that was produced alongside the Budget fails to adequately analyse the impact on women and men, either as individuals or across different types of households.

Harriett Baldwin

The government’s distributional analysis at Budget shows the proportion of tax paid and public services spending received by households. It shows that the richest fifth of households will be paying a greater proportion of taxes in 2019-20 than in the 2010-11 system as a result of government policy, while half of all spending on welfare and public services is still going to the poorest 40% of households.

In contrast with the government’s approach, the analysis produced by the Women’s Budget Group focuses on immediate cash impacts and assumes that extra government borrowing can make everyone better off. This ignores the fact that borrowing needs to be paid for and harms our long term economic security.