Browse IFS
Publication types
Impact on Society
01 September 2010
Was the June 2010 Budget progressive or regressive?
Impact on Society
The coalition government claimed that the measures in its June 2010 budget were “progressive”. This was based on distributional analysis by HM Treasury which showed that, in the words of the Chancellor “everyone will pay something but the people at the bottom of the income scale will pay proportionately less than those at the top”. However, this analysis only included a subset of the measures announced in the Budget. IFS researchers showed that once all measures were taken into account, the overall package was actually regressive, with lower income households losing most from cuts to housing benefit, disability benefits and changes to the inflation measure used for uprating benefits. The report received a large amount of media coverage and the Deputy Prime Minister responded to the research in an article in the Financial Times the day after it was released.