84 Percent of The Income Tax Cuts Announced Yesterday Will Go to The Top Half of The Income Distribution Next Year Say the Resolution Foundation

The Resolution Foundation’s budget verdict is the other key independent assessment worth looking out for today, and is due to be published at around 7 a.m. There are certainly some unhappy truths awaiting the Treasury. Crucially those big tax cuts for 32 million workers plastered across the front pages of the Sun and the Express, among others, are largely going to the best-paid people in society. The Resolution Foundation calculates a whopping 84 percent of the income tax cuts announced yesterday will go to the top half of the income distribution next year.

And there’s more: The think tank points out that while families will benefit for the £1.7-billion boost to Universal Credit by up to £630 each, there is still plenty of pain coming their way. The report concludes around half of the welfare cuts announced by George Osborne in 2015 have yet to be rolled out. Most of the benefit cuts aren’t related to UC, it says, and are still in place — the biggest single example being the working age benefit freeze, which is continuing next year.

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