The 22 June emergency budget is only the starter. George Osborne promised to cut spending in all government departments by 25 percent with the exception of health & overseas development.The Con Dem emergency budget will cost each family £450 a year through the increase in VAT to 20 percent.The Institute for Fiscal Studies rejects Cameron, Clegg & Osborne’s argument that the budget was ‘firm but fair’ because it targeted rich and poor, pointing out the poorest 20 percent will pay the most.

The state pension age has been increased to 66 – pension’s minister Ian Duncan Smith has suggested it be upped to 70.

George Osborne has said spending on education, transport & energy efficiency will be cut by even more than 25 percent in financial statement he’ll make on 20 October. He talked of cuts of 30 percent in these areas.

The ‘Financial Times’ reports on 24 June, ‘Ministerswarn they may have to tear up some untargeted welfare promisses – such as the £4 billion spent on subsidising bus travel, winter fuel and television licences for older people.’

This autumn will see fresh cuts in benefits & welfare spending plus increased pension contributions for public sector workers.

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