IFS report confirms that the richest have shouldered the highest share of the burden

January 23, 2015 10:55 AM
Originally published by UK Liberal Democrats

The IFS report released today (Friday 23 January) confirms that the richest have shouldered the highest share of the burden as we move to repair the public finances.

The Liberal Democrats have been clear that we expect those with the broadest shoulders to pay their fair share towards deficit reduction.

Treasury analysis has shown throughout the parliament that the richest 10 per cent of households have made the largest contribution to reducing the deficit.

The Treasury presents the most complete, rigorous and detailed record of the impact of this government's policies on households, so unlike the IFS's work this includes impact of key Liberal Democrat policies such as the introduction of the Pupil Premium and support for childcare for disadvantaged two year olds, directly supporting low income families with children.

The Treasury publishes this analysis twice a year and every time it has shown the same thing-everyone has done their bit, but the best off have contributed the biggest share of their income to pay down the deficit.

And at the Autumn Statement in December this confirmed that the richest 20 per cent of households will contribute more to reducing the deficit than the remaining 80 per cent put together.

Danny Alexander has also been clear that fairness will be at the heart of the economic policy of any government that we are part of in the next Parliament, which is why he proposed a "fairness rule", so that the best off continue to contribute the biggest share of their income to help pay down the deficit.

Any plan to deal with the remainder of the deficit without further tax rises on the wealthy-as proposed by the Conservatives-would clearly fail this test."