Climbdown

The Prime Minister was forced into a humiliating climb down yesterday (March 21) on plans announced in the Budget to reduce the deficit by cutting personal independence payments (PIP) for disabled people, after a widespread Conservative rebellion left the party in turmoil.

David Cameron also conceded that further attempts to plug the £4.4bn black hole created by the U-turn would not include more cuts to welfare payments. The move came after Iain Duncan Smith (IDS) resigned from the Cabinet and launched a blistering attack on chancellor George Osborne’s “indefensible” and “deeply unfair” welfare policies.

Although some have questioned whether IDS’ motives are as clear as he makes out, pointing to the Eurosceptic’s split with Cameron and Osborne over the EU, there was resounding agreement when he commented that the cuts had been concocted during a “desperate search for savings”.

In a statement released to the media, former Department of Work and Pensions secretary IDS said, “I have for some time and rather reluctantly come to believe that the latest changes to benefits to the disabled and the context which they’ve been are, a compromise too far.

“I am unable to watch passively whilst certain policies are enacted in order to meet the fiscal self-imposed restraints that I believe are… distinctly political rather than in the national economic interest.”

“Profound unfairness”
Criticism of Osborne’s unfair Budget, which punished the disabled and working poor whilst giving the wealthy a tax break, also came from other corners of the Conservative party. MP Boris Johnson said he believed the PIP cuts were a mistake, while a number of bank bench Tory MPs openly attacked the Chancellor, who insisted the Budget was “compassionate.”

Labour leader Jeremy Corbyn called for Osborne to follow the example of IDS and for the government to rethink its’ failing economic policies.

“The resignation of Iain Duncan Smith reveals a government in disarray and a Chancellor who has lost the credibility to manage the economy in the interests of the majority of our people,” Corbyn said.

“The Budget has exposed George Osborne’s record of profound unfairness and economic failure. Not only must the cuts to support for disabled people be abandoned, but the Government must change economic course.

“The Chancellor has failed the British people,” he added. “He should follow the honourable course taken by Iain Duncan Smith and resign.”

Osborne is on course to miss his target to cut the budget deficit in the current financial year, according to the latest Office for National Statistic figures – signalling another nail in the coffin for his much derided goal to run a surplus by 2020. GDP growth per head is at its lowest point for more than half a century and has been since the Tories took power in 2010.
Put the pressure on
Despite the Chancellor missing every target he has ever set himself, he is expected to continue with the same slash-and-burn approaches that starve investment and cut off growth.

In response the Labour Party has introduced a fiscal responsibility rule which would drive investment whilst tackling the deficit – a move that Unite supports.

“Disabled people who have already experienced cut after cut and language many hold responsible for increasing hate crime will not now suffer this further loss Osborne and Cameron planned to inflict,” said Unite assistant general secretary Steve Turner.

“Any forced U-turn this government can be driven into should be taken as an important victory against their cruel and unnecessary austerity agenda,” he added.

“It shows the need to keep putting pressure on, opposing each cut the Tories put forward as Labour stakes out its vision of how we can all be better off under their plans to invest and sustainably grow the economy to better fund the services and benefits as a society we need.”