SPERI Research Fellow Craig Berry responds to Osborne’s budget announcement in both the latest Policy Brief series and in the video below, arguing that changes to tax allowances will not help the lowest paid in Northern regions.
Berry argues that the lowest-paid workers do not benefit at all from the Budget measure to increase the income tax personal allowance and because Northern regions have a higher proportion of employees earning less than £10,000 than London and the South-East, the North of England will benefit far less from this change. The measure therefore does nothing to alleviate regional pay inequality.
The report points to the limitations of tax exemptions to help low-paid workers, who are concentrated in the North, and calls instead for changes to increase the progressiveness of the income tax system.
Today’s publication is the third in a new series of SPERI British Political Economy Briefs.
Download the report here: