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| Reaction to the 'proper Conservative' budget – Politics live | Reaction to the 'proper Conservative' budget – Politics live |
| (35 minutes later) | |
| 10.58am BST10:58 | |
| Former guitarist with the Smiths, Johnny Marr, has also weighed in ... | |
| Do Cameron & Osborne actually think that people in the north are ok with the term "Northern Powerhouse ?". Patronising and thick or what ? | |
| 10.36am BST10:36 | |
| Alistair Darling tells an audience at Edelman: "Lab is in disarray... We are paying the price of not having a credible econ policy." | |
| 10.33am BST10:33 | |
| The Green party’s only MP, Caroline Lucas, has written in the New Statesman about the welfare cap. Osborne announced yesterday that he would be lowering the welfare cap to £20,000 per family (£23,000 in London) down from the previous cap, introduced by the coalition government, of £26,000. | |
| The welfare cap appeals to the very worst in human nature. It’s part of a narrative that chooses to ignore the underlying causes of poverty or inequality, justifies punishing anyone out of work, and breeds resentment towards anyone who falls on hard times. Sadly, it’s a narrative that the shadow frontbench will not risk challenging – and many are even willing to go along with it. | |
| 10.15am BST10:15 | 10.15am BST10:15 |
| It’s likely that other aspects of the budget will start attracting attention as the day progresses, but this moment – which came at the end of Osborne’s hour-long speech – is the main focus of attention this morning. | It’s likely that other aspects of the budget will start attracting attention as the day progresses, but this moment – which came at the end of Osborne’s hour-long speech – is the main focus of attention this morning. |
| Shadow health secretary and Labour leadership candidate Andy Burnham has written for Huffington Post, focusing on the fact that the new ‘National Living Wage’ will only kick in for 25-year-olds. | Shadow health secretary and Labour leadership candidate Andy Burnham has written for Huffington Post, focusing on the fact that the new ‘National Living Wage’ will only kick in for 25-year-olds. |
| A Two Generations Budget, Cementing the Divide Between Young and Old | A Two Generations Budget, Cementing the Divide Between Young and Old |
| ...the biggest slap in the face for young people in this Budget is what George Osborne has done on pay. His flagship proposal of a ‘National Living Wage’ only kicks in at 25, but his cuts to tax credits affect people of all ages. He was not honest about this before the election and has no mandate for his plans. There is a real risk this will cement a two-tier workforce between young and old as he brings down the deficit on the backs of young people. | ...the biggest slap in the face for young people in this Budget is what George Osborne has done on pay. His flagship proposal of a ‘National Living Wage’ only kicks in at 25, but his cuts to tax credits affect people of all ages. He was not honest about this before the election and has no mandate for his plans. There is a real risk this will cement a two-tier workforce between young and old as he brings down the deficit on the backs of young people. |
| Updated at 10.17am BST | Updated at 10.17am BST |
| 9.47am BST09:47 | 9.47am BST09:47 |
| Analysis roundup | Analysis roundup |
| Say what you like about yesterday’s budget, it wasn’t lacking in big talking points. And the commentary in today’s papers reflects that. Here’s some of the best post-budget analysis. | Say what you like about yesterday’s budget, it wasn’t lacking in big talking points. And the commentary in today’s papers reflects that. Here’s some of the best post-budget analysis. |
| George Osborne seeks to be a progressive, but he’s still in thrall to Thatcherism, Steve Richards in the Independent | George Osborne seeks to be a progressive, but he’s still in thrall to Thatcherism, Steve Richards in the Independent |
| But before very long Osborne was deploying the language of the 1980s, a decade during which Margaret Thatcher strode away from one-nation Toryism. When reflecting on his plan to slash spending Osborne stated that “there can be no turning back”, a double whammy that echoed Thatcher’s defiant declaration that she was “not for turning” in relation to her economic policy and paid homage to the Thatcherite “no turning back group”. Later Osborne proudly declared that he was raising more cash from privatisations than at any point since 1987, when Thatcherism was at its height. | But before very long Osborne was deploying the language of the 1980s, a decade during which Margaret Thatcher strode away from one-nation Toryism. When reflecting on his plan to slash spending Osborne stated that “there can be no turning back”, a double whammy that echoed Thatcher’s defiant declaration that she was “not for turning” in relation to her economic policy and paid homage to the Thatcherite “no turning back group”. Later Osborne proudly declared that he was raising more cash from privatisations than at any point since 1987, when Thatcherism was at its height. |
| Osborne focuses on the right place, Stephanie Flanders in the Financial Times | Osborne focuses on the right place, Stephanie Flanders in the Financial Times |
| He likes to honour past battles, this chancellor. With the decisions in this Budget, Mr Osborne has opened the way for many future ones — about the nature of the state and its role in a modern economy. He does not have all the answers, and some that he does have will seem profoundly wrong to many on the left. But he is, finally, focusing the country’s attention in the right place. | He likes to honour past battles, this chancellor. With the decisions in this Budget, Mr Osborne has opened the way for many future ones — about the nature of the state and its role in a modern economy. He does not have all the answers, and some that he does have will seem profoundly wrong to many on the left. But he is, finally, focusing the country’s attention in the right place. |
| There’s a reason Iain Duncan Smith looked so happy, Christian Guy in the Telegraph | There’s a reason Iain Duncan Smith looked so happy, Christian Guy in the Telegraph |
| For many years the Left took the easy way out when it came to helping our poorest families. Rather than encouraging work and rewarding those who took personal responsibility, too often they grew the welfare bill in the hope of short-term success. Lift groups of people above an income line by increasing their welfare payments, so the thinking went, and poverty would be dealt with. But Labour tested to near destruction the idea that you can tackle poverty through higher welfare spending. It sounded compassionate but it failed to change lives. | For many years the Left took the easy way out when it came to helping our poorest families. Rather than encouraging work and rewarding those who took personal responsibility, too often they grew the welfare bill in the hope of short-term success. Lift groups of people above an income line by increasing their welfare payments, so the thinking went, and poverty would be dealt with. But Labour tested to near destruction the idea that you can tackle poverty through higher welfare spending. It sounded compassionate but it failed to change lives. |
| Osborne’s budget stole Labour’s best election promises like a relative rummaging in the wardrobe, Jonathan Freedland in the Guardian | Osborne’s budget stole Labour’s best election promises like a relative rummaging in the wardrobe, Jonathan Freedland in the Guardian |
| His chosen approach is devilishly simple. His goal is to recast the Tories as the champion of all those who enjoy the admiration or sympathy of their fellow voters – workers, especially in the private sector, pensioners, soldiers – and to let Labour be the advocate of everyone else. He wants the Conservatives to be the party of working people, leaving Labour as the party of worklessness and welfare. He’ll speak for the strivers, they can have the skivers – along with all those who either don’t vote or whose votes he’s happy to write off. | His chosen approach is devilishly simple. His goal is to recast the Tories as the champion of all those who enjoy the admiration or sympathy of their fellow voters – workers, especially in the private sector, pensioners, soldiers – and to let Labour be the advocate of everyone else. He wants the Conservatives to be the party of working people, leaving Labour as the party of worklessness and welfare. He’ll speak for the strivers, they can have the skivers – along with all those who either don’t vote or whose votes he’s happy to write off. |
| To that end, like a grasping relative rummaging through the cupboard of a dying family member who lies helpless on the bed, Osborne set about stealing any item of Labour clothing that took his fancy – picking out all those with mainstream appeal. | To that end, like a grasping relative rummaging through the cupboard of a dying family member who lies helpless on the bed, Osborne set about stealing any item of Labour clothing that took his fancy – picking out all those with mainstream appeal. |
| Updated at 10.16am BST | Updated at 10.16am BST |
| 9.41am BST09:41 | 9.41am BST09:41 |
| Thursday will be dominated by reaction to the budget, which saw Osborne hike up the minimum wage and cut tax credits. Parliament will continue debating Wednesday’s announcements and the Institute for Fiscal Studies will be doing its post-budget briefing around 1pm. | Thursday will be dominated by reaction to the budget, which saw Osborne hike up the minimum wage and cut tax credits. Parliament will continue debating Wednesday’s announcements and the Institute for Fiscal Studies will be doing its post-budget briefing around 1pm. |
| George Osborne has been speaking to broadcasters about yesterday’s announcements. Talking on the Today programme, he repeated that he wanted a country that lives within its means. He responded to the idea that he had adopted policies proposed by the Labour party ahead of the election – like cracking down on non-doms and increasing he minimum wage. | George Osborne has been speaking to broadcasters about yesterday’s announcements. Talking on the Today programme, he repeated that he wanted a country that lives within its means. He responded to the idea that he had adopted policies proposed by the Labour party ahead of the election – like cracking down on non-doms and increasing he minimum wage. |
| My opponents were proposing to spend more money, to increase the welfare bill and the like, and we’re not proposing that. I think people need to be very clear, there are difficult decisions to be taken on public expenditure and welfare ...the net effect is that the deficit is reduced at the same pace as the last parliament. Not faster, not slower, but at the same pace. | My opponents were proposing to spend more money, to increase the welfare bill and the like, and we’re not proposing that. I think people need to be very clear, there are difficult decisions to be taken on public expenditure and welfare ...the net effect is that the deficit is reduced at the same pace as the last parliament. Not faster, not slower, but at the same pace. |
| Osborne was asked if his national living wage was essentially just a higher national minimum wage. “It is a national living wage. It is set, obviously, at a much higher rate than the current minimum wage, which will still apply to younger people.” | Osborne was asked if his national living wage was essentially just a higher national minimum wage. “It is a national living wage. It is set, obviously, at a much higher rate than the current minimum wage, which will still apply to younger people.” |
| He said the policy had been influenced by a recommendation by the Resolution Foundation, which Osborne himself said was on the centre-left of British politics. The higher minimum wage would go along side welfare savings and business tax cuts. “The reason it is a Conservative budget is because all those three things are put together.” | He said the policy had been influenced by a recommendation by the Resolution Foundation, which Osborne himself said was on the centre-left of British politics. The higher minimum wage would go along side welfare savings and business tax cuts. “The reason it is a Conservative budget is because all those three things are put together.” |
| I’ll post more about Osborne’s appearances this morning shortly. | I’ll post more about Osborne’s appearances this morning shortly. |
| The shadow chancellor, Chris Leslie, has also been doing the broadcast rounds commenting on the budget announcement. He told the Today programme that he welcomed the increase in the minimum wage for over 25s, but argued that it was outweighed by the £4.5bn cuts to tax credits. | The shadow chancellor, Chris Leslie, has also been doing the broadcast rounds commenting on the budget announcement. He told the Today programme that he welcomed the increase in the minimum wage for over 25s, but argued that it was outweighed by the £4.5bn cuts to tax credits. |
| He said tax credits were vital for “making work pay” and has described the measures as a work penalty, which will disincentivise people to work. Ahead of the election, Labour pledged an increase of the minimum wage to £8 for all adults in 2020, one pound less than Osborne promised for over 25s by the same date. | He said tax credits were vital for “making work pay” and has described the measures as a work penalty, which will disincentivise people to work. Ahead of the election, Labour pledged an increase of the minimum wage to £8 for all adults in 2020, one pound less than Osborne promised for over 25s by the same date. |
| “If he wants to steal policies in our manifesto, then fine,” said Leslie, who added that Osborne’s national living wage was simply a rebranding of the minimum wage. | “If he wants to steal policies in our manifesto, then fine,” said Leslie, who added that Osborne’s national living wage was simply a rebranding of the minimum wage. |
| The cut in tax credits would pull the rug from underneath working people’s feet, said Leslie, citing calculations that suggested a couple with two children working full-time on average earnings would lose £2,000 a year as a result of the measures. For every £1 this family gains from the minimum wage increase, they will lose £2 from the cut in tax credits, he said. | The cut in tax credits would pull the rug from underneath working people’s feet, said Leslie, citing calculations that suggested a couple with two children working full-time on average earnings would lose £2,000 a year as a result of the measures. For every £1 this family gains from the minimum wage increase, they will lose £2 from the cut in tax credits, he said. |
| Sorry for the delayed launch this morning (see here - London grinds to a halt). I’m filling in for Andrew Sparrow today and will be covering the breaking political news as it happens, as well as bringing you the best reaction, comment and analysis from the web. | Sorry for the delayed launch this morning (see here - London grinds to a halt). I’m filling in for Andrew Sparrow today and will be covering the breaking political news as it happens, as well as bringing you the best reaction, comment and analysis from the web. |
| If you want to follow me on Twitter, I’m on @fperraudin | If you want to follow me on Twitter, I’m on @fperraudin |
| Updated at 9.57am BST | Updated at 9.57am BST |