Middle class £10,000 worse off after spending review
Provisional figures seem to indicate that middle-class families in the UK will be around £10,000 worse off over the next four years as a result of government changes, benefit reductions and tax increases. Many will be surprised to learn that it is the middle-class families in the UK who appear to be taking the brunt of the budget cuts, the very people who put the coalition government into power. Is this political suicide or does the coalition government have no choice?
There is no doubt that in a perfect world the coalition government would not be taking an average £10,000 off middle-class families over the next four years. However, the UK finances are in such a state that an immediate reduction in the budget is required to not only protect the UK sovereign credit rating but also allow the authorities to look further ahead. It will also reduce the impact of opposition political party attacks on the coalition authorities due to the fact they have in many ways reduced the impact as far as possible on low-income families.
However, the truth is there are no winners in the comprehensive spending review and the next four years will be very difficult for the UK population and the UK economy.
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