The Gown – student newspaper at Queen's University Belfast.

NEWS: “Tough but fair” – Emergency budget 2010

The 2010 UK budget was delivered by Chancellor of the Exchequer, George Osborne, to the House of Commons on Tuesday 22^nd June 2010. It has been dubbed the ‘emergency budget’ as it aims to reduce the colossal national debt accumulated by the Labour Government. This is the first budget to come from the Conservative-Liberal Democrat coalition which was formed after the general election in May of this year.

BY KERRI-ANNE CAMPBELL
Labour interim leader Harriet Harman responded for the opposition by calling it a ‘Tory Budget’ and predicting that it would increase unemployment and stifle growth. However, Mr Osborne has defended his drastic budget, which is clearly dominated by spending cuts and tax increases, as “unavoidable” and “tough but fair”. The Coalition has promised that the burden will fall on the richest and the poor will be protected. However, researchers claim that the chancellor’s slew of tax rises and massive benefit cuts will hit the poorest hardest.

The new budget will take 880,000 people out of the tax system and give basic rate taxpayers a tax cut of £200 per year. However, this may seem less significant considering that VAT will rise to 20% on 4^th January of next year; a change that will definitely impact day to day student life. There will be no increase in duties on cigarettes, alcohol and fuel; something that many students may appreciate.

As a result of the budget there will also be a two year public sector pay freeze on staff earning more than £21,000. People earning less than £21,000 will each receive a flat pay rise worth £250 in each of the two years. Weekly columnist and former editor-in-chief of The Observer, Will Hutton, has been appointed by the Government  to draw up plans for fairer pay across the public sector so that those at the top of organisations are paid no more than 20 times the salaries of those at the bottom.

Chancellor Osborne stated that he will publish a paper on rebalancing the Northern Ireland economy later this year. What is certain is that from 2013 the large number of Disability Living Allowance claimants in Northern Ireland will face a new medical assessment.

The impact upon university funding still remains unclear. Chancellor Osborne has suggested that there could be cuts of up to 25 per cent of its expenditure. It is feared that universities across the UK will be forced to reduce undergraduate numbers and slash thousands of jobs in order to service the national debt. There are growing concerns that cuts will increase the chances of an increase in tuition fees as the government turns to students to plug a hole in university budgets.

UCU (University and College Union) general secretary, Sally Hunt, said, “Starving education of funds and making families pay more to access a university education, while authorising billions in tax giveaways to big business would be a disaster for the UK. The Corporation Tax cut could have funded university places for all students forced to cough up for university fees.”

Queen’s is a member of the Russell Group which is a collaboration of twenty UK universities that together receive two-thirds of research grant and contract funding in the United Kingdom. In response to the Emergency Budget, Dr. Wendy Piatt, Director General of the Russell Group of research-intensive universities, said, “We sincerely hope that this Government recognises the vital role that leading research-intensive universities play in boosting the economy and improving quality of life and does not subject higher education to cuts of the truly alarming magnitude of 25%… Further cuts would be hugely damaging, threatening the UK’s status as home to world-leading universities.”

Student leaders at Queen’s have already set out plans to oppose any scheme to raise admission fees and opposition will take the form of political pressure on the Stormont Executive.

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