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You can find the current article at its original source at http://www.theguardian.com/politics/live/2015/jul/09/reaction-summer-budget-conservative-george-osborne-politics-live
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| Reaction to the 'proper Conservative' budget – Politics live | Reaction to the 'proper Conservative' budget – Politics live |
| (35 minutes later) | |
| 12.07pm BST12:07 | |
| Yvette Cooper opposes 1% public sector pay cap | |
| Yvette Cooper, one of Labour’s four leadership candidates, has announced that she opposes the government’s planned five year 1% cap on public sector pay. | |
| In a statement, Yvette Cooper has said: | |
| This is an ideological assault on public services from George Osborne, not a sensible policy, and it isn’t fair. Is the Chancellor really saying he can afford to cut inheritance tax for estates worth £1million but the people who care for us and keep us safe should have to face five more years of real term pay cuts? And it is an utter disgrace that the Prime Minister is still considering letting an unacceptable 10% pay increase for MPs go ahead, while forcing public sector workers to fall further behind. | |
| We need a responsible approach to pay that helps our public services cope with tighter budgets - supporting jobs and maintaining the quality of service. And that also means respecting the people who work so hard to care for us when we are sick or old, to teach our children, to keep our streets clean, to keep us safe from terror threats or to risk their lives defending our country. | |
| I will not support this five year 1% cap, and I believe Labour must have the confidence to stand up for what is right for our public services and fair for hard working people. The Government needs to change track before our vital services pay the price. | |
| At a lobby briefing yesterday, Chris Leslie – who is currently attacking the chancellor’s budget in parliament – suggested it was not something he would oppose. | |
| It is very difficult, I think we’ve got to weigh up some of these changes and be more thoughtful in the way that we don’t just literally oppose everything, as Harriet was saying, tempting though it might be to oppose everything. We don’t want to see public sector jobs being lost in the way that would happen if you found departments choosing to raise pay but making people redundant. And that is a very difficult and somewhat invidious choice for those departments. Ultimately, I think a level of restraint is probably necessary.” | |
| 11.59am BST11:59 | |
| Iain Duncan Smith, the work and pensions secretary, has intervened to dispute Leslie’s anecdote, which he has repeated a lot today, about the effects of yesterday’s budget on a two parent family on an average salary. Leslie says they will be £2,000 poorer. IDS says they will be better off as a result of yesterday’s budget. | |
| 11.55am BST11:55 | |
| We learned more about Tory plans to cut welfare in one hour of the chancellor’s budget speech yesterday than we did in a whole general election campaign, says Leslie. The Conservatives did win a majority, but they concealed their plans from the electorate. | |
| The Conservative manifesto said there would be a two year freeze in working age benefits, but yesterday the chancellor doubled that, he says. It was “one of the fastest broken promises in political history.” | |
| 11.45am BST11:45 | |
| “The power house has become a power cut”, says Leslie of the chancellor’s Northern Powerhouse plans. | |
| Alex Salmond reminds Leslie that in the run-up to the Scottish referendum the former SNP leader described Darling as a “Tory front man”. Does the shadow chancellor think that this is a fitting description in light of Darling’s comments this morning? Leslie repeats that he hasn’t read Darling’s remarks, so can’t comment. | |
| 11.36am BST11:36 | |
| MPs in parliament are now continuing the debate on the budget. | |
| It was a budget entirely concerned with chasing headlines and furthering the political ambitions of the chancellor, says shadow chancellor Chris Leslie. | |
| Leslie is interrupted to be asked what he thought of comments made by former chancellor Alistair Darling, who addressed an audience at Edelman this morning. Darling is reported to have said that Labour is in disarray and are paying the price of not having a credible economic policy. | |
| Leslie says he hasn’t read Darlings comments. | |
| 11.30am BST11:30 | 11.30am BST11:30 |
| Evel vote climbdown shows how important the votes of the DUP could be over the next five years - to both sides... http://t.co/SgIpmJJ7hn | Evel vote climbdown shows how important the votes of the DUP could be over the next five years - to both sides... http://t.co/SgIpmJJ7hn |
| 11.27am BST11:27 | 11.27am BST11:27 |
| The government announces EVEL delay | The government announces EVEL delay |
| The government will re-write its EVEL (English Votes for English Laws) plans – which would give MPs representing English constituencies a veto over laws affecting England only. | The government will re-write its EVEL (English Votes for English Laws) plans – which would give MPs representing English constituencies a veto over laws affecting England only. |
| Leader of the Commons, Chris Grayling, told parliament that the vote – which had been due to take place last week – would be delayed until after the summer recess and that there would be a two-day debate on a modified set of proposals. | Leader of the Commons, Chris Grayling, told parliament that the vote – which had been due to take place last week – would be delayed until after the summer recess and that there would be a two-day debate on a modified set of proposals. |
| Majority of 12 not quite as big as it felt a month ago, eh? https://t.co/seblHGp9YP | Majority of 12 not quite as big as it felt a month ago, eh? https://t.co/seblHGp9YP |
| 11.18am BST11:18 | 11.18am BST11:18 |
| The budget is a "new contract with the country", says George Osborne | The budget is a "new contract with the country", says George Osborne |
| The chancellor has been all over breakfast television this morning, answering questions about the first budget from a Conservative majority government since 1996. Here’s a summary of the highlights – | The chancellor has been all over breakfast television this morning, answering questions about the first budget from a Conservative majority government since 1996. Here’s a summary of the highlights – |
| The budget offers a new contract with the country, Osborne told Sky News. | The budget offers a new contract with the country, Osborne told Sky News. |
| It says to businesses ‘we are going to cut your taxes but you have to pay higher salaries’. It says to people ‘we are going to make sure you get a proper wage, a National Living wage, but there are going to be less benefits’. And it says to the country ‘we are going to spend less but we are going to live within our means and have economic security’.” | It says to businesses ‘we are going to cut your taxes but you have to pay higher salaries’. It says to people ‘we are going to make sure you get a proper wage, a National Living wage, but there are going to be less benefits’. And it says to the country ‘we are going to spend less but we are going to live within our means and have economic security’.” |
| Appearing on the Today programme, Osborne was asked about his national living wage announcement: “I also gave Britain the lowest business tax rate of any major economy in the world: 18%. I also cut taxes for small businesses and cut their national insurance bills so they can adjust as well. So I think it’s important to remember it is part of a package.” | Appearing on the Today programme, Osborne was asked about his national living wage announcement: “I also gave Britain the lowest business tax rate of any major economy in the world: 18%. I also cut taxes for small businesses and cut their national insurance bills so they can adjust as well. So I think it’s important to remember it is part of a package.” |
| The chancellor was asked about Tim Montgomerie’s column in the Times today, which quotes an unnamed cabinet minister as saying that the minimum wage announcement was designed to “kick lazy British businesses up the arse”. | The chancellor was asked about Tim Montgomerie’s column in the Times today, which quotes an unnamed cabinet minister as saying that the minimum wage announcement was designed to “kick lazy British businesses up the arse”. |
| I don’t know exactly who said that but I’d use slightly more diplomatic language which is there are some really great British companies – I’m at one today here in Lancashire, they’re hiring apprentices, they’re providing great skills for their workforce – and there are other businesses that, frankly, have taken a free ride on that because they’re not training their own workforces. They use training that others have provided.” | I don’t know exactly who said that but I’d use slightly more diplomatic language which is there are some really great British companies – I’m at one today here in Lancashire, they’re hiring apprentices, they’re providing great skills for their workforce – and there are other businesses that, frankly, have taken a free ride on that because they’re not training their own workforces. They use training that others have provided.” |
| Osborne was asked about the plans to limit child tax credit support to two children. “It doesn’t affect people today, the policy on children; that is for future families,” he said. | Osborne was asked about the plans to limit child tax credit support to two children. “It doesn’t affect people today, the policy on children; that is for future families,” he said. |
| It’s part of saying to our country: look, we’ve got to have a better contract. We can pay this national living wage but we can’t have this welfare system that just grows and grows and grows, crowds out the kind of spending I think we should be making on things like education and infrastructure in our country to provide for the real welfare of the country in the future.” | It’s part of saying to our country: look, we’ve got to have a better contract. We can pay this national living wage but we can’t have this welfare system that just grows and grows and grows, crowds out the kind of spending I think we should be making on things like education and infrastructure in our country to provide for the real welfare of the country in the future.” |
| 10.58am BST10:58 | 10.58am BST10:58 |
| Former guitarist with the Smiths, Johnny Marr, has also weighed in ... | 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 ? | Do Cameron & Osborne actually think that people in the north are ok with the term "Northern Powerhouse ?". Patronising and thick or what ? |
| Updated at 11.18am BST | Updated at 11.18am BST |
| 10.36am BST10:36 | 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." | 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 | 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 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. | 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 |