Outlining his spending review in the House of Commons today, George Osborne said the proposed £4.4bn in tax credit cuts – which has caused an outcry across the country – could be shelved due to an improvement in public finances.
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The changes to the tax credit system would mean that £4.4 billion would be saved, but those against the plans said that people would struggle elsewhere and the savings would not end up happening.
“I’m proud of my officers and staff and the work they put in each day to protect Londoners”.
The surprise announcement about tax credits came after the House of Lords threw out the original proposals.
The other issue surrounded the NHS, particularly cuts to student nurse bursaries which could have a further impact on already struggling staffing numbers. We will maintain funding for free infant school meals, protect rates for the pupil premium, and increase the cash in the dedicated schools grant.
The Government had faced pressure from senior police officers over budget cuts, especially in the wake of the Paris terror attacks.
While families and individuals relying on tax credits rejoiced, there was some bad news.
And finally, on the back of his announcement about the creation of a Permanent Pothole Fund, just how many potholes will it fill, Mr Osborne?
Scrapping them altogether will be welcomed by many Tory backbenchers who were uneasy with the plans.
Paul Johnson, the IFS chief executive, said: “He really is cutting spending on non-pension benefits to its lowest level – relative to national income – for 30 years”.
But the IFS – which releases a closely watched analysis after each British budget statement – said Osborne had little room for manoeuvre if growth was weaker than expected, tax revenues fell short or spending proved intractable.
Residents in Hertfordshire will be affected by chancellor George Osborne’s spending review.
“The more optimistic outlook and modelling changes from the Office for Budget Responsibility (OBR) have undoubtedly made the Chancellor’s job easier, enabling a far more positive statement than was predicted”. The joint Autumn Statement and Spending Review reflect the current spending priorities for Government departments.
Housing – from the 1st of April 2016 stamp duty will increase by 3% for buy-to-let and second home buyers.
– Protecting our economic security – taking the hard decisions to live within our means and bring our debts down.
Osborne stuck to his commitment of turning a budget deficit into a surplus by 2020 in a mid-year budget update on Wednesday, confounding predictions that he might have to rein in his ambitions for putting public finances in the black.
A “victory for Labour” was how John McDonnell, the shadow chancellor, described Osborne’s change of heart.
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He said: “We are pleased for the people of London that the government has decided not to cut overall spending on the police”.
