Press Story

From ippr's Co-Director, Carey Oppenheim:

ippr on the path set out for deficit reduction
"The Chancellor was right to stick with his plan to more than halve the budget deficit by 2013/14 but also right to ignore calls for a faster pace of reduction. To do more would put the economic recovery at risk given the limited room for manoeuvre. It is welcome that he prioritised extra support for the unemployed. "

ippr on the Green Investment Bank
"Making the transition to a low carbon economy will require unprecedented levels of investment. The proposed Green Investment Bank will go some way towards achieving that and we're pleased to see the Government commit new public money to part fund it, although it will need to prove successful in leveraging in a much larger amount of private investment in order to make a real difference."

ippr on measures to help the unemployed
"The Chancellor's decision to extend until March 2012 the guarantee of work or training to anyone under the age of 24 who has been out of work for six months is welcome. A long time spent out of work at a young age can scar an individual for life."

ippr on bank accounts for all citizens

"We welcome bank accounts for all citizens. The government has done a good job in widening access to bank accounts in the last year and this should be welcomed. But access to financial products is only part of the problem that many low income families face. Our research (Strength Against Shocks) found that poverty and job insecurity increase vulnerability to debt. Low pay and certain contractual conditions, such as temporary and zero-hour contracts, can create considerable financial insecurity."

ippr on investment spending
"It is disappointing that the Chancellor still plans to cut capital spending by over 10% in 2010/11, with further cuts in later years. Governments always find it easier to cut capital spending because there is little immediate effect on services, but experience has shown that by doing so they are just building up problems for the future. Spending on investment projects boosts the economy's competitiveness and growth rate in the medium-term."

ippr on tax evasion and avoidance
"Tax avoidance and evasion are major problems in this country and are two of the reasons why the top quintile of earners pay proportionately less of their incomes in tax than do the bottom quintile. It has been estimated that tax avoidance by companies and individuals might cost the Exchequer as much as £25 billion a year (enough to cut the basic rate of tax to 13p in the ?). The Chancellor's announcement that he is protecting £4 billion in revenues and bringing in an extra ? 1/2 billion has to be seen in this context"

ippr on inheritance tax and social care
"We welcome the decision to freeze the threshold for inheritance tax for four years and to use the money to help elderly people afford the cost of care. But this is a short-term measure and it does not mean the Government can put off difficult decisions about how they will pay for social care now and in the future. There needs to be public engagement to build consensus around paying for care. Our latest research (When I'm 94) highlights that the public are not prepared to face up to the challenges of paying for social care. Politicians need to engage with and remember that citizens are important stakeholders in determining the future of social care."

Contact:

Tim Finch, head of strategic communications, 07595920899 / 020 7470 6106 / t.finch@ippr.org

Monica Evans, interim media officer, 020 7470 6112 / m.evans@ippr.org