A chancellor tinkering at the margins - Womens Budget Group · pensions, savings, social security,...

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AchancellortinkeringatthemarginsWomen’sBudgetGroupresponsetoAutumnBudget2017

ContentsExecutiveSummary................................................................................................................................2

Introduction...........................................................................................................................................6

Economicandfiscaloutlook...................................................................................................................6

GenderEqualityimpactassessments.....................................................................................................7

EmploymentandPay.............................................................................................................................9

Taxation..................................................................................................................................................9

SocialSecurity......................................................................................................................................10

Savings..................................................................................................................................................11

Pensions...............................................................................................................................................12

SocialCare............................................................................................................................................13

Health...................................................................................................................................................14

Childcare..............................................................................................................................................14

Education.............................................................................................................................................15

Housing................................................................................................................................................17

Transport..............................................................................................................................................19

Regionalinvestmentandinfrastructure..............................................................................................19

Violenceagainstwomenandgirls........................................................................................................21

Conclusion............................................................................................................................................22

Acknowledgements..............................................................................................................................23

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ExecutiveSummaryTheChancellor,PhillipHammond,startedhisspeechintroducingtheAutumnBudget2017withavisionof“afuturethatwillbefullofchange;fullofnewchallengesandaboveallfullofnewopportunities”andapromisetomeetthechallengesahead.1ButthiswasaBudgetwhichdidnothingambitiousorsignificanttoaddressmanyoftheurgentchallengesfacingtheUK,includingthecrisisinsocialcare,fallingrealwages,asocialsecuritysystemthatisleaving4millionchildreninpovertyandwidespreadviolenceagainstwomenandgirls.

TheChancellor’spositivemessagethattheeconomy“continuestogrow,continuestocreatemorejobsthaneverbeforeandcontinuestoconfoundthosewhoseektotalkitdown”wasswiftlyovershadowedbytheprojectionsongrowthandproductivityfromtheOfficeforBudgetResponsibility(OBR),whichpredictedthatGDPwouldgrowbyonly1.4%annuallyoverthenextfiveyearsandwouldbe2%lowerby2022thanpreviouslyestimated.Actualgrowthmaybelowerstill;theOBRwasclearthatitwasunabletomodelthepotentialimpactsofthedifferentformsthatBrexitmighttake.ApoordealwiththeEU,orafailuretoreachadealatallislikelytohaveasignificantnegativeimpactoneconomicperformanceformanyyearstocome.2

Inresponsetothislowgrowth,risinginflationandstallinghouseholdincomestheGovernmentshouldincreasepublicinvestment.So,wewelcometheadditionalinfrastructurespendingannouncedinthisBudget,includingthespendingonhousing.However,theeconomy(andsociety)reliesonsocialinfrastructure(health,education,socialcareandsoon)asmuchasphysicalinfrastructure.WhiletherewassomewelcomeadditionalinvestmentintheNHS,andsomenewmoneyformathsandcomputerscienceinschools,thiswasnotenoughtoreverselong-termunder-funding.YearsofcutstopublicserviceshaveunderminedoursocialinfrastructureandtheBudgetmissedanopportunitytoaddressthis.

TheKeyfindingsofouranalysisare:

Equalityimpactassessment(EIA)

AsinpreviousyearstheTreasuryhasfailedtocarryoutameaningfulequalityimpactassessmentofitspolicies.AlimitedimpactassessmentofsomechangestotaxpolicywasprovidedintheTaxInformationandImpactNotesbutthesedidnotincludethefreezeinfueldutiesandalcoholtaxrates,bothofwhichhaveagenderimpact.IntheabsenceofanypublishedEIAtheTreasuryisunabletodemonstratewhetherithascompliedwithitsobligationsunderthePublicSectorEqualityDutytohavedueregardtoequality.

Employmentandpay

TheBudgetfailedtoaddresstheon-goingproblemofstagnationinwageswithnoadditionalmoneyforpublicsectorwagesandaNationalLivingWagethatwouldstillremainwellbelowanactuallivingwage.

1HMTreasury(2017)AutumnBudget2017:PhilipHammond’sspeech(http://bit.ly/2Alrr1f)2WBG(2017)EconomicImpactofBrexitonWomen(http://bit.ly/2jB1FMq)

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Tax

Freezesinalcoholandfueldutieswillcostmorethan£1bnayearbetweenthemandmainlybenefitmenwhodrinkmoreandwhodrivemorethanwomen.

However,theWBGwelcomesthedecisionnottoincreasepersonaltaxallowancesbymorethaninflation.Previousaboveinflationincreaseshavenotbenefitedthosewiththelowestornoearnings,themajorityofwhomarewomen3andcostmoneythatcouldbebetterspentonpublicservices.

Socialsecurity

Theadditional£1.5billionfundingoverfiveyearsannouncedinresponsetowidespreadconcernsabouttheimpactonnewUniversalCredit(UC)claimantsofthelongwaitforpayment(6weeksformany,oftenlonger)waswelcome.However,therewasnoactiontoaddresstheunderlyingflawsinthesystemortheimpactofthefreezeonbenefitlevels,thetwo-childcapandotherchangestosocialsecuritythathavedisproportionatelyaffectedwomenandBMEwomeninparticular.4

Pensions

TherewasnomentionofpensionersintheBudgetspeech.TheBasicStatePension,PensionCreditandnewStatePensionwillincreaseinApril2018by3%inlinewithinflation,thelargestelementinthetriplelock.NothingwasdonetoprotectpensionersfromthefuelpovertyrisksofinflationortohelpthoseolderwomenpushedintopovertythroughtheraisingoftheStatePensionAge.

Socialcare

TheBudgetcontainednoannouncementsonsocialcare,despitegeneralrecognitionthatthesystemisincrisis.Continuedreductiontolocalgovernmentbudgetsdespiterisingdemandhasleft1.8millionpeopleover50withunmetcareneeds.Womenaredisproportionatelyaffectedbecausetheyarethemajorityofthoseneedingcareandthemajorityofthoseprovidingit,bothpaidandunpaid.Significantpublicinvestmentisurgentlyneeded.TheGovernmentannouncedaconsultationonsocialcareintheSpringBudget,whichwasthenpostponeduntil2018.Thisfurtherpostponestheimplementationofsolutionsproposedintwomajorreportsoverthepast11years.

Health

Theadditional£6.3bnannouncedforNHSfundingovertheparliamentiswelcome.However,the£1.96bninadditionalrevenuefundingfor2018/19islessthanhalfthe£4bnthattheKing’sFund,NuffieldTrustandHealthFoundationhaveestimatedisneededtomeetdemandsontheNHSnextyear.5ThepressuresontheNHSareexacerbatedbythecrisisinsocialcare.

Childcare

TherewasnomentionofchildcareintheBudgetdespitesignificantandsevereunderfundinginthesector.Lackofaccesstogoodqualityaffordablechildcarestillactsasabarriertomanywomenintheworkplace.

3WBG(2017)GenderImpactofTaxationp.2(http://bit.ly/2j74oOh)4WBG(2017)Pre-AutumnBudgetPressRelease(http://bit.ly/2ix1q8C)5NuffieldTrust,HealthFoundationandKing’sFund(2017)TheAutumnBudget:Jointstatementonhealthandsocialcare(https://bitly.im/8TJWQ)

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Education

TheBudgetincludedadditionalfundingtosupporttheteachingofmathsandcomputerscience,topayforteachertrainingandtoencouragemoregirlstostudySTEMsubjects.Thisiswelcomebutsuchadditionalfundingdoesnotaddressthesustainedunder-fundingoftheeducationsectorovermanyyears.Schoolsarefacingthelargestcutinperpupilfundingoverafour-yearperiodsinceatleasttheearly1980s.ConsideringthelowproductivityforecastfromtheOBR,thefailuretoinvestmoreineducationisaseriousomission.

Housing

TheGovernment’spledgetoinvest£44bnisasignificantamountforincreasinghousebuilding.Howeverthiswillnotautomaticallytranslateintomoreaffordablehomes,whicharebestprovidedthroughmoresocialhousingandbenefitwomenmore.6ThelargestsinglehousingmeasureintheBudgetwasa£3.2bncuttostampdutyforfirst-timebuyers.TheOBRforecaststhatthispolicywillleadtoanincreaseinhousepricesforfirst-timebuyersandwillonlyleadtoanadditional3,500first-timebuyersovertheperiod.

Transport

TheBudgetincludedawelcome£1.7bnfortheTransformingCitiesFund,ring-fencedfundingforlocalauthoritiestoinvestinlocaltransportlinks.However,muchwilldependonhowandinwhichmodesoftransportationthismoneywillbeinvested.Womenaremorelikelytodependonbusservicesthanotherformsofpublictransport.Spendingonbusesfellby£98.5millionfrom2010to2016/17.7Itisthereforeimportantthatthisinvestmentinpublictransportisusedtoaddressrecentcutsinlocalbusprovisionandmeetthetransportneedsofwomen.

Regionalinvestment

Therewerewelcomeannouncementsoninfrastructureinvestment,butthefocusisstillonphysicalinfrastructurewithnomentionofthesocialinfrastructurethatisequallyvitaltotheeconomy.WBGanalysisfortheITUCshowsclearlythatinvestmentof2%ofGDPincareserviceswouldcreateagreaternumberofjobsoverallandmanymorejobsforwomenthanasimilarsizeinvestmentinconstruction.8Whileinvestmentinphysicalinfrastructuretendstowidenthegenderemploymentgaps,investmentinsocialinfrastructurewouldreduceit.

ViolenceAgainstWomenandGirls

TherewasnoadditionalfundingforVAWGservicesintheBudget.Increasedfundingfromcentralgovernmentannouncedinpreviousbudgetshasnotcompensatedforthecutstofundingfromlocalauthoritybudgets.ChangestotherulesonHousingBenefitannouncedinOctober,whichwouldmeanwomeninrefugeswouldnolongerbeabletoclaimHousingBenefit,haveworryingimplicationsforthesector.ThereisnoguaranteethatnewfundingforlocalauthoritiestomakeupforthelossofHousingBenefitwillbeusedtofundspecialistwomen’sservices.

6WBG(2017)HousingandGender(http://bit.ly/2zOqSOf)7WBG,RunnymedeTrust,RECLAIMandCoventryWomen’sVoices(2017)IntersectingInequalities:TheimpactofausterityonBlackandMinorityEthnicwomenintheUK(http://bit.ly/2jLave5)8DeHenau,J.,Himmelweit,S.Łapniewska,Z.andPerrons,D.(2016).InvestingintheCareEconomy:AgenderanalysisofemploymentstimulusinsevenOECDcountries.ReportbytheUKWomen’sBudgetGroupfortheInternationalTradeUnionConfederation,Brussels(http://bit.ly/2ivi7kJ)

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ThisreportprovidesacomprehensivegenderanalysisofthemeasuresannouncedintheAutumnBudget2017inthecontextofongoingchangestopublicspendingandtaxation,andtheworseningeconomicforecast.

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IntroductionThisanalysisfocussesonthemeasuresannouncedinoraroundtheAutumnBudget2017.

Thefirstsectiongivesanoverviewofthefiscalandeconomicsituationandthecontextinwhichpolicychangesarebeingdeveloped.ThisisfollowedbyacriticalreviewoftheTreasury’simpactassessment.

TheremainderofthereportprovidesagenderassessmentofthechangesannouncedintheBudget,andhighlightsimportantareaswherenoactionwastaken.

PriortotheBudget,theWBGpublishedaseriesofbriefingstoprovidebackgroundinformationonarangeoftopics.BriefingsonBrexit,childcare,education,employmentandpay,health,housing,pensions,savings,socialsecurity,socialcare,taxandviolenceagainstwomenandgirlsareavailableontheWomen’sBudgetGroupwebsite.9

EconomicandfiscaloutlookFacedwithgloomierforecasts,theChancellorismissingacrucialopportunitytocreatemorefiscalspacebyinvestinginpublicservicesandboostingtheeconomy.

ThemostimportantannouncementinthisBudgetwasnotanyparticularpolicymeasurebuttheOBRrevisedforecastofproductivitygrowth.After16fiscaleventssinceJune2010wheretheOBRpredictedthatproductivitygrowthwouldreturntoitspre-crisistrendof2%,theOBRhasnowforecastmuchslowergrowthfortheforeseeablefuture.10YetastheIFShaspointedout,11theforecastof1%annualgrowthinfive-years-timestilllooksquiteoptimisticcomparedtotheactualtrendinannualproductivitygrowthobservedoverthelasttenyearsof0.2%.PredictedcumulativeGDPgrowthfortheperiod2017/18-2021/22wasdowngradedfrom7.5%(theirestimateinMarch)to5.7%.TheseforecastsdonottakeintoaccounttheimpactofanyspecificBrexitdealastheGovernmentcouldnotprovidetheOBRwithenoughinformationastowhatitwouldlooklike.Asaseriesofexpertimpactanalysesunanimouslyshowed,forecastsfortheeconomyofpost-BrexitBritainareallnegative.12So,ifanythingtheseproductivityandgrowthdowngradesarestillquiteoptimistic.

Asfarasthefiscaloutlookisconcerned,eventheextraheadroomtheChancellorallowedhimselfintheAutumnStatement–nottobeconstrainedbythepreviousChancellor’sself-imposedtargetofreachingabudgetsurplusby2020–seemstohavebeenwastedasthetaxrevenueforecastswerereviseddown.TheIFSestimatesanyreturntosurpluswillhavetobepushedbacktillthe2030s,insteadofthemid-2020sasthisChancellororiginallyplanned.TheWBGhaslongargued,alongwithotherexperts,thatatargetofreachingafiscalsurplushadnoeconomicsenseperseandshoulddependonthestateoftheeconomy,inparticularthattheGovernmentshouldtakeintoaccountboththelevelofaggregatedemandanditsdutytoaddresssocialneeds.WithrisinginflationandtheuncertaintiesbroughtaboutbyBrexitthathasstalledrealhouseholdincomesandprivate9http://bit.ly/2Aqkeel10OBR(2017)Economicandfiscaloutlook–November2017(http://bit.ly/2zGMiZs)11IFS(2017)AutumnBudgetanalysis2017:openingremarksandsummarybyPaulJohnson(http://bit.ly/2zSnxhb)12WBG(2017)EconomicImpactofBrexitonWomen(http://bit.ly/2jB1FMq)

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investmentwhileunmetneedsarerising,theGovernmentshouldstepintoboosttheeconomy,employmentandwagesandaddressthosesocialneedsthroughpublicservices.

TheChancellor’splantotargethigh-techsectors,physicalinfrastructureandmathskillsiswelcomeasinvestmentspending.However,whenpublicservicesaresufferingfromchronicunderinvestment,establishingavirtuouscircletohelptheeconomyinthelongtermrequiresmorethanthis.Publicservicessuchashealth,educationandcarearecrucialinmaintainingthesocialinfrastructurewithoutwhichnoeconomy(andindeednosociety)canfunction.Publicinvestmentshouldincludeinvestmentinthesesocialinfrastructureservicesalongsideinvestmentinphysicalinfrastructure.Despiterelaxingthepreviousgovernment’sself-imposedfiscalrules–itsgroundsfortheimpositionofausterity–thisBudgetdoesnotshowanysignofanendtoausteritywithmorecutstopublicservicesandsocialsecurityspendingstilltobite.

Thesecutswillhitwomenparticularly.However,totalgenderblindnessindesigningmacroeconomicandfiscalpoliciescontinuestobedemonstratedbythelackofadequateequalityimpactassessmentandauditofthemeasuresannouncedinthisBudget.

GenderEqualityimpactassessmentsYetagainHMTreasuryhasfailedtopublisharobustassessmentofthepotentialequalityimpactsofitsBudgetdecisions.

UnderthePublicSectorEqualityDutyallpublicbodies,includingtheTreasury,areobligedtohave‘dueregard’totheimpactoftheirpoliciesonequality.ThemainwaypublicbodiesdothisisthroughcarryingoutEqualityImpactAssessments.

AsinpreviousyearstheTreasuryhasfailedtocarryoutafullequalityimpactassessmentofBudgetpolicies.13TheonlyimpactassessmentintheBudgetdocumentsaretheTaxInformationandImpactNotes(TIINS)forsomemeasuresthatineachcaseincludeasentenceortwoon‘Equalitiesimpacts’–usuallytodenythatthereisanyimpactonthosewithprotectedcharacteristics.However,therearenoTIINsfortwomajorgive-aways,thefreezesinfuelandalcoholexcisedutyrates,bothofwhichprimarilybenefitmen,whodrivemoreanddrinkmorethanwomen.ThisisdespitetheircoststotheTreasurybeingrecordedassubstantive.Wecanonlyassumethatthisisbecausefreezesarenotconsideredtobechangesthathaveanimpact.However,comparedtopreviousplans,suchfreezescosttheTreasuryrevenuethatwillsavedriversanddrinkersmoney,sotheirequalityimpactshouldbeassessed.Indeed,theTreasuryclaimsthat,aspartofitsmeasures“toreducecostsofliving”thefreezingoffueldutywillsave“theaveragedriver£160ayear”butgivesusnoequalityimpactassessmentofwhothatdriverislikelytobe.14

Ofthetaxmeasuresthatdogetanequalityimpactassessment,theonlyoneswhereagenderimpacthasbeenidentifiedareoneswherethenegativeimpactisdisproportionatelyonmen:

13FortheWBG’sowncumulativeimpactassessmentbygenderandethnicityseehttp://bit.ly/2ix1UvuandfortheEHRC’sseehttp://bit.ly/2jC00pB14HMTreasury(2017)AutumnBudget2017,p3.(http://bit.ly/2iwyVYK)

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• Changesintobaccoproductsdutyrateswhereitiscorrectlynotedthat“Duetodifferencesintobaccoconsumption,anychangetotobaccodutieswillhaveanequalitiesimpact.Menareslightlymorelikelytosmokethanwomen”.15

• AndfortheintroductionofasupplementarychargefordieselcarsinbothVehicleExciseDutyandwhencountedasabenefitinkindforincometaxpurposes,itnotesthatbothcarbuyersandcompanycardriversaremorelikelytobemalethanfemale.16

Giventhatlastpoint,itisstrangethattheequalityimpactofthemuchmorecostlymeasureoffreezingfueldutythatfavoursmenisnotnoted.

TherearenootherequalityimpactassessmentspublishedwiththeBudgetpapers.Itisexpectedthatindividualdepartmentswillcarryoutimpactanalysisforthemeasuresthatfallwithintheirremitsastheyareimplemented.However,noneoftheHMTreasuryBudgetdocumentsmentionequalityanalysisormakeitclearwhenandhowequalityauditingwilltakeplace,norwheretheresultswillbeavailable.

DelegatingimpactassessmentsforBudgetmeasurestoindividualdepartmentsandpublicbodiesisinadequateforanumberofreasons:

• Equalityauditsshouldbecarriedoutatthedevelopmentstageofanypolicyormeasuretoexaminethepotentialdifferentialimpactsanddesigninanymitigatingmeasuresnecessary.Tocarryouttheassessmentafterthemeasurehasbeendecidedwillbeunlikelytoresultinitsbeingmodifiedtoaddressanydifficultiesidentified.IfdepartmentsdoindeedcarryoutequalityimpactassessmentsonproposalsbeforetheyareincludedintheBudget,thenthatshouldbestatedandtheassessmentmadeavailable.

• OnlyHMTreasuryitselfhastheinformationandresourcestoassesswhatimpactthetotalpackageofproposalswillhaveonpeoplewithprotectedcharacteristics.Impactanalysisbyindividualdepartmentscannotbringtogetherthenecessarydataandunderstandingtodetermineoverallgainsandlosses.

• Theimpactassessmentsthathavebeenpresentedareverycursoryanddonotsetoutwhatcriteriahavebeenadoptedandhowthelevelofimpacthasbeenjudged.

TheTreasuryitselfhasnotreportedonequalityimpacts,eitherfortheindividualmeasuresincludedinthisBudget,exceptforalimitednumberofmeasuresthroughtheHMRC,orforitsoverallimpactonpeoplewithprotectedcharacteristicsunderthe2010EqualityAct.Onlyaveryfewdatasourceslistedinthesupportingdocumentsrelatetogenderdata.Itwouldthereforeseemthatmeaningfulequalityauditinghasnotinfactbeencarriedoutformostofthemeasuresannounced.

WBGrecommendsthatHMTreasurytakesapro-activeroleindirectingandreportingongenderequalityimpactsoffinancialandpolicymeasuresincludedinfutureBudgetstatements.

15HMRC,OverviewofTaxLegislationandRates,22November2017,p.15116Ibid,pp86and145

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EmploymentandPayTheBudgetfailedtoaddresstheon-goingproblemofstagnationinwageswithnoadditionalmoneyforpublicsectorwagesandaNationalLivingWagethatisnotenoughtoliveon.

Realwagesarestagnating,andformanyfalling.WhileineverypreviousforecasttheOBRexpectedrealwagestoregaintheir2007levelsbeforetheendoftheparliament,ithasnowdowngradeditsforecastforaveragewagesin2020/21by£800peryear.That’s14yearsoflostrealwagegrowth,withnoendinsight.Moreover,women’semploymentratescontinuetolagbehindthoseofmenandwomenremainoverrepresentedinlow-paid,part-timeandinsecureformsofemployment.17

Itwasasurprisethat,withtheexceptionofthoseintheNHS,publicsectorworkersweren’tevenmentionedintheChancellor’sspeech.Publicservantshavebeenwaitingsevenyearsfortheendofthecutsintheirrealwagesthathaveresultedfromafreezefollowedbyapaycapof1%maximumuprating.Asaroundtwo-thirdsofthoseworkinginthepublicsectorarefemale,thesecutsintheirrealwageshavedisproportionatelyhitwomen.

The1%paycaphas,rightfully,nowbeenended.However,asidefromforthoseintheNHS,nonewmoneyhasbeenpromisedtopayforthis.Thelikelihoodisthatanyrises,ifthey’regiven,willneedtocomefromalreadyoverstretchedbudgets.

TheNationalLivingWage(NLW)remainsunworthyofthename.Theriseto£7.83willkeepitonpacetohittheGovernment’stargetof60%ofmedianearningsby2020.However,bycurrentplans,theOBRforecaststhattheNLWwon’thitthe£9anhourthatwaspromisedby202018andinanycasewouldstillbealongwayofftheactuallivingwagecalculatedbytheLivingWageCommission.

Thesedevelopmentsareunlikelytoredressthemanygenderinequalitiesandworseningemploymentconditionsidentifiedinthepre-Budgetbriefingonemployment.19

TaxationTheriseinpersonaltaxallowanceswasnomorethaninflationthisyear,awelcomedecisionsincethesetaxgiveawaysdonothingforthoseonlowornoearnings,themajorityofwhomarewomen.However,othertaxgive-awaysonalcoholandfuelduty,favouringmen,continue.

Taxisagenderedissue.Itisthemainwaywepayforpublicservicesandsocialsecurity,whichwomenrelyonmorethanmen,largelybecausewomenaremorelikelytolookafterothers,oftenattheexpenseoftheirownincomesintheshortandlongerterm.20

17TheFawcettSociety(2014)TheChangingLabourMarket2:Women,lowpayandgenderequalityintheemergentrecovery(http://bit.ly/1rMAKsZ)18Seehttp://on.ft.com/2zUuu1n19WBG(2017)Women,EmploymentandEarnings(http://bit.ly/2Br1bQg)20WBG(2017)Genderimpactoftaxation(http://bit.ly/2Btaj6R)

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TheChancellorannouncedthatin2018-19thepersonalallowancewouldbeincreasedto£11,850andthehigherratethresholdto£46,350.Hepointedoutthatthismeansthatin2018-19atypicaltaxpayerwillpayatleast£1,075lesstaxthanin2010-11,asthoughthelatestrise,likepreviousones,wasamoveforwhichtheGovernmentcouldclaimcredit.However,thelatestrisesinboththresholdsarejustinlinewithinflation,thedefaultupratingthathasbeeninplacesincelongbefore2010(andallowedforintheTreasury’sexistingaccounts,sothatthelatestrisescosttheExchequernothing).

Inpractice,thismeansthattheGovernmenthasbeenabletoimplythatitisboostingthenetincomesoftaxpayers,wheninrealtermsthosenetincomesarefallingexactlyinlinewithgrossincomes(becauseofthehigherinflationcausedbytheresultoftheBrexitreferendum).TheWBGhopesthatthisnewformofobfuscationdoesnotbecomeahabitfortheGovernment.

TheWBGwelcomesthedecisionnottoraisetaxthresholdsinrealterms.Risesintaxthresholdsdonotreachthosewiththelowestornoearnings,themajorityofwhomarewomen.21Further,risesinthosethresholdsgiveawaymoretothebetter-offandcostagreatdealthatcouldbemuchbetterspentonpublicservices.

TheChancelloralsoannouncedtwotaxmeasures,freezesinfuelandalcoholduties,thatwillbetweenthemcosttheExchequermorethan£1billionperyear,andpredominantlybenefitmenwhodriveanddrinkmorethanwomen.

TheWBGpre-Budgetbriefingontaxationgivesmoredetailsongenderissuesintaxation.22

SocialSecurity£1.5bnfundingoverfiveyearstoreducethewaitingtimeforUniversalCreditdoesnothingtoaddressfailuresinthedesignofUCortheimpactofthebenefitfreezeandothercutsthataffectwomendisproportionately.

Cutstosocialsecuritybenefitsaffectwomenmorethanmenbecausewomenaremorelikelytobeinreceiptofbenefitsasaresultoftheirgenerallylowerincome,longerlivesandgreaterwillingnesstotakeoncaringresponsibilities.23

Additionalfundingworth£1.5billionoverfiveyearswasannouncedinresponsetowidespreadconcernsabouttheimpactonnewUniversalCredit(UC)claimantsofthelongwaitforpayment(6weeksformany,oftenlonger).Themeasuresarewelcomeinthemselves.ButtheydonotaddressproblemsinthedesignofUC,particularlyfromagenderperspective,highlightedbytheWBG.Andtheydonotmakeupforsignificantcutsannouncedin2015,whichhaveparticularlyaffectedwomen,whoaremorelikelytobeinreceiptofUCorotherbenefits.

Themeasuresannouncedinclude:24

21WBG(2017)Genderimpactoftaxation,p.2(http://bit.ly/2Btaj6R)22WBG(2017)Genderimpactoftaxation(http://bit.ly/2Btaj6R)23WBG(2017)Austerityisreducingsocialsecurityforwomen(http://bit.ly/2kd8JTl)24StatementtoHouseofCommonsbySecretaryofStateforWorkandPensions,23November2017

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- fromJanuary2018,thepossibilityofreceivingupto100%asanadvanceofUC(ratherthanthecurrent50%),toberepaidover12months,ratherthan6;

- from“Spring”,thepossibilityofapplyingforanadvanceonline;- fromFebruary,theabolitionofthe7-daywaitingperiod(whichcurrentlyappliestomost

newclaimantsexceptthosecomingofflegacybenefits);- fromApril,a2-weeknon-repayablerun-onofhousingbenefitforthosealreadyonit;- fromDecember,makingiteasierforprivatesectortenantstohavethehousingelementof

UCpaiddirecttotheirlandlord(as30%alreadydowithhousingbenefit);- fromApril,ashort-termchangeinhowclaimantsintemporaryaccommodationgetsupport

fortheirhousingcosts,withlonger-termsolutionstobeconsidered;- £8million,toexperimentwithdifferentapproachestohelpthoseonUCtoearnmore.

UCcreditroll-outwillalsobesloweddown,butwiththefinalfullroll-outdateunaffected.

ThemeasurestoreducethewaitforUCwillclearlyhelp.Therun-onofHousingBenefitisparticularlywelcome.Itwillhelp2.3millionwithanaverageof£233each,atacostof£550million.

Buttheimplementationofmostoftheseconcessionsisdelayed,andwillnotgivemeaningfulhelptothoseclaimingbeforeChristmas.TheGovernmenthasnottakenupthemoreradicalsuggestionsof,forexample,PolicyinPractice,tobackdatethestartoftheassessment.25

TheBudgetdidnotaddressthemoresubstantiveissuesinthedesignofUC,worsenedbycutsin2015,whichunderminethestatedaimofmakingworkpay,particularlyforsecondearners.Nordidthechancellordoanythingtohelpthosehitbythebenefitfreeze,two-childcapandothercutsandchangestobenefitsandtaxcredits.Thesechangesdisproportionatelyaffectwomen,andBMEwomeninparticular.26

Infact,ChildBenefithasbeentheonlymoneymanyfamilieshavereceivedreliablyandregularlyduringthewaitforUCandbeyond.Butthefailuretoliftthe4-yearbenefitfreezemeansitsvaluewillcontinuetobeeroded.Thisisonlyoneofanumberofbenefitswhosefreezingiscausinghardshiptomany.AgainwhatwasnotdoneintheBudgetwasthusevenmoreimportant.

TwobriefingsbytheWBGgivemoredetailsontheproblemsinherentinUniversalCreditandtheimpactofsocialsecuritychangesonwomen.27

SavingsTwosmallbutwelcomemoves:areductionintaxbreaksthatdolittletohelpwomenandtheremovalofadiscriminatoryruleinasavingschemeforemployees.

Women,oncetheyhavechildren,aremorelikelythanmentohavelittleornothinginthewayofsavingsandinvestmentsasaresultoftheirlowerincomeandgreaterresponsibilitiesforcare.28The

25PolicyinPractice(2017),UniversalCredit:Optionstosmooththeimplementationforclaimants(http://bit.ly/2AmQrTv)26WBG,RunnymedeTrust,RECLAIMandCoventryWomen’sVoices(2017)IntersectingInequalities:TheimpactofausterityonBlackandMinorityEthnicwomenintheUK(http://bit.ly/2jLave5)27Austerityisreducingsocialsecurityforwomen,availableathttp://bit.ly/2kd8JTlandUniversalCredit:AbriefingfromtheUKWomen’sBudgetGroup,availableathttp://bit.ly/2kcxXkJ28WBG(2017)Taxonsavingsandinvestments:genderissues(http://bit.ly/2zE3UW3)

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Budgethadlittletosayaboutsavings,though,withpreviouslyannouncedmeasures,themainthrustisareductionintaxincentives(includingfreezingtheadultISAallowance,theendingofCGTindexationforcompanieswithaconsequentincreaseintaxationofinvestment-typelifeinsurancefundsandareductioninDividendTaxAllowanceto£2,000fromApril2018).WBGhaslongarguedthatsuchincentivesarenotthebestuseoftaxrevenuesanddolittletohelpwomenwhotendtohavelowerlevelsofsavingsandinvestmentsthanmen.

However,therewasonesmallmeasurethatwillbenefitsomefemalesavers.ThisistheextensionofthepauseallowedinmakingcontributionstocompanySharesaveschemes(Save-As-You-Earn)from6to12monthsforparentstakingmaternityorparentalleave.29Previouslyalthoughwomencouldtakeuptoayear’smaternityleavetheycouldonlytakeasix-monthbreakintheircontributionstoSharesave,atax-incentivisedschemeforbuyingsharesintheiremployer’scompany.Whileawelcomeremovalofarestrictionthatindirectlydiscriminatedagainstwomen,thenumbersaffectedaretiny,withjust1%ofwomenbelongingtoanytypeofcompanysharescheme,comparedwithtwicetheproportionofmen.30

TheWBGbriefingonsavingsgivemoredetailsongenderissuesrelatingtosavings.31

PensionsNothingwasdonetoprotectpensionersfromfuelpovertyortohelpthoseolderwomenpushedintopovertythroughtheraisingoftheStatePensionAge.

Themajorityofpensionersarewomen,butstateandprivatepensionsweredesignedarounda‘masculine’lifecourseandwomenarethemajorityofthepoorestpensioners.32

TheChancellordidnotmentionpensionersatallinhisBudgetspeech.However,theBudgetdocumentsconfirmedthatthroughthetriplelocktheBasicStatePensionwouldriseby3%(inlinewithinflation),acashincreaseof£3.65perweek.PensionCreditwillalsoincreasebythesameamountincashterms.ThefullnewStatePensionwillincreaseby£4.80aweek.TheChancellorhaslefttheWinterFuelPaymentfrozen,whilethepriceofgasandelectricityfordomesticheatingcontinuestoincreasefasterthanstatepensions,putting1.4millionolderpeopleinfuelpoverty.Excesswinterdeathsforallageswere34,300intotalin2016-2017,58%ofthemwomen.Thesepreventabledeathsaremorecommonamongtheoldestagegroupsandamongwomenineachagegroup.33

TheChancellorannouncedthatthePensionsRegulatorwilladvisePensionFundTrusteesonhowtheycaninvestinhelpinginnovativecompaniesgrow.However,therewasnomentionofconsultingmembersofpensionschemesastotheirpreferences,despiteagrowingcampaignfordivestment29HMTreasury(2017)AutumnBudget2017,para3.24.(http://bit.ly/2iwyVYK)30ONS(2017)‘TableS1.7’inFamilyResourcesSurvey2015-16(http://bit.ly/2BtcJlX)31Taxonsavingsandinvestments:genderissues,availableathttp://bit.ly/2zE3UW332WBG(2017)Thegendergapinpensions(http://bit.ly/2izT3Jk)33TheExcessWinterMortality(EWM)indexisdefinedaswinterdeathsminusaveragenon-winterdeathsasapercentageofaveragenon-winterdeaths.Thefiguresformenandwomenare12%and10%(underage64)11%and15%(65-74)18%and20%(75-84)27%and31%(85+).Source:ONS(2017)ExcessWinterMortalityinEnglandandWales2016-2017(http://bit.ly/2zHiRX9)

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fromharmfulindustriessuchasweapons,fossilfuelsandtobacco,orofinvestinginimprovedsocialinfrastructure,thatmighthelppensionersinparticular.

Therewasalsonothingtoeasetheincreasingpovertyamongolderwomenasthestatepensionageforwomencontinuestorisetocatchupwiththeageformenby2018,achangethathasleftmanyolderwomenunabletogetwork,includingmanywithcaringresponsibilities,inpoverty.34Inthisarea,likesomanyothers,itiswhatwasnotdoneintheBudgetthatwasmoreimportanttowomenthanwhatwasinit.

FormoreinformationonpensionsseetheWBGpensionsbriefing.35

SocialCareTheBudgetcontainednothingonsocialcare,despitenearlytwomillionolderpeoplehavingunmetcareneedsandaloomingshortageofcareworkersthatBrexitcanonlyworsen.

Womenarethemajorityofthoseneedingcare,andthemajorityofthoseprovidingitbothpaidandunpaid.36

TheGovernmenttoldtheCommunitiesandLocalGovernmentSelectCommitteeinOctoberthisyearthat:“adultsocialcareisakeypriorityforthisgovernment.”ButintheChancellor'sBudgetsocialcareisnotmentioned,notevenasatemporarystickingplasterforthecurrentcrisiswhileanewsettlementisfound.Inevitablynoextramoneywillmeanfurthercutstoservices,deepeningthatcrisis.Already1.8millionagedover50haveunmetcareneeds.37Womenaredisproportionatelyaffectedbecausetheyarethemajorityofthoseneedingcare,ofthoseprovidingunpaidcareandofthepaidcareworkforce.38

TheWomen’sBudgetGrouphaslongadvocatedforincreasedinvestmentindevelopingtheskillsofcareworkersnotonlytohaltworseningconditionsinsocialcarebutalsotoimprovethequalityofcare.39ThiswillbecomeevenmoreurgentiftheoutcomeofBrexitreducestheavailabilityofcareworkersfromtheEUandelsewhere.40TheWomen’sBudgetGroupcallsforanewsettlementforsocialcarethatprovidesastableandsustainablefundingbasetoensurethatrisingcareneedsaremetnowandintothefuture.Unfortunately,thisBudget,byfailingtorecognisetheneedtoinvestthisvitalpartofoursocialinfrastructure,takesusnoclosertoachievingthis.

TheWBGsocialcarebriefinggivesmoredetailsonthecrisisinsocialcare.41

34WASPI–WomenAgainstStatePensionInequality(http://bit.ly/2kdI5d9)35WBG(2017)Thegendergapinpensions(http://bit.ly/2izT3Jk)36WBG(2017)Socialcare:Asystemincrisis(http://bit.ly/2AkJe8r)37Ibid,p.238Ibid,p.639Ibid,p.440Ibid,p.5andp.2;WBG(2017)EconomicImpactofBrexitonWomen(http://bit.ly/2jB1FMq)41WBG(2017)Socialcare:Asystemincrisis(http://bit.ly/2AkJe8r)

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HealthTheadditional£6.3bnannouncedforNHSfundingovertheparliamentiswelcomebutstillfallsfarshortofthesumsneededtoaddresspressuresontheNHS.

WomenbearthebruntofcutstohealthservicesastheyaccountforthemajorityofpatientsandstaffintheNHSandthemajorityofunpaidcarers.42

TheChancellorannouncedanadditional£2.8bninrevenuefunding,(fordaytodayservices)and£3.5bnincapitalfunding(forbuildingsandequipment)overthelifetimeoftheParliament.Thefundingannouncedcoverstheperioduptotheendof2018/19(£335millionthisyeartoaddresswinterpressures,£1.96bnin2018/19and£900millionin2019/20).Thecapitalfundingannouncementstakethetotalamountofcapitalfundingannouncedthisyearto£3.925bn.

Thisadditionalmoneyistobewelcomed.However,the£1.96bninadditionalrevenuefundingfor2018/19islessthanhalfthe£4bnthattheKing’sFund,NuffieldTrustandHealthFoundationhaveestimatedisneededtomeetdemandsontheNHSnextyear.Thesethreeorganisationsestimatethattherewillstillbea£20bnfundinggapby2022/23.43Commitmentsoncapitalfundingfallshortofthe£10bnadditionalcapitalinvestmentpromisedbythePrimeMinisterfollowingtheNaylorreview.44TheGovernment’sexpectationisthattheNHSwillbeabletoraiseatleast£3.3bnthroughthesaleoflandandbuildings,45afiguretheKing’sFunddescribesas“questionable”.46

Thecrisisinsocialcare(seeabove)hascreatedon-goingpressuresontheNHS,whichthisBudgethasdonenothingtoaddress.Theon-goingunder-fundingoftheNHShasledtoincreasedwaitingtimes,rationingofservices,staffcutsandincreaseddemandsonremainingstaff.47

TheWBGhealthbriefinggivesmoredetailsontheunresolvedissuesplaguingthehealthcaresystem.48

ChildcareTherewasnomentionofchildcareintheBudgetdespitesignificantandsevereshortcomingsinthesector.

Lackofaccesstogoodqualityaffordablechildcarestillactsasabarriertomanywomenintheworkplace,aswellasmeaningthatmanychildrenarenotreceivingchildcarefromwhichtheywouldbenefit.

42WBG(2017)Healthandgender(http://bit.ly/2AMUTOw)43NuffieldTrust,HealthFoundationandKing’sFund(2017)TheAutumnBudget:Jointstatementonhealthandsocialcare(https://bitly.im/8TJWQ)44DepartmentofHealth(2017)NHSpropertyandestates:Naylorreview(http://bit.ly/2s4i16x)45HMTreasury(2017)AutumnBudget2017(https://bitly.im/JhCxD)46NuffieldTrust,HealthFoundationandKing’sFund(2017)TheAutumnBudget:Jointstatementonhealthandsocialcare(https://bitly.im/8TJWQ)47WBG(2017)Healthandgender(http://bit.ly/2AMUTOw)48WBG(2017)Healthandgender(http://bit.ly/2AMUTOw)

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ThelackofanymentionofchildcareintheBudgetisconcerning.Childcareisunaffordableformanyfamilies,andcostscontinuetoincreasefaraboveinflationorwages.Thisleavesmanyfamiliespayingahighproportionoftheirincomeonchildcare,andmanyotherparentslockedoutofthelabourmarketentirely,astheyareunabletoaffordchildcare.49Therearealsoissuesofequity,withsignificantsocio-economicgradientsinaccesstohigh-qualityeducationandcare.Recentgovernmentreformsarelikelytoexacerbatetheseinequalitiesdespitetheirclaimofprovidingadditionalfunding.

Recentreformsarealsorunningintotrouble:

- Tax-freechildcareissufferingfromlowtake-up.- TheincomingUniversalCreditsystemwillshort-changesecondearners,andunder-funding

ofthefreeentitlement(exacerbatedbyitsrecentextensionto30hoursfor3-and4-year-oldswithworkingparents)islikelytoresultinclosuresandadropinqualityofcare.

- Inaddition,cutstolocalauthoritybudgetshaveandwillcontinuetoresultintheclosureofSureStartchildren'scentres,anessentialresourceformanyfamilies,particularlythoseonlowerincomes.

Urgentactionisrequiredtooverhaulthechildcaresystem.Thisrequiresadequatefundingforproviders,aswellasbettertrainingfortheworkforceandincreasedsupportforsecondearners.

TheWBGchildcarebriefinggivesmoredetailsontheunresolvedfundingissuesinchildcare.50

EducationTheBudgetincludedadditionalfundingtosupporttheteachingofmathsandcomputerscienceandforteachertraining,butthiswilldolittletoreversethedramaticfallinspendingoneducationsince2010.

Educationalopportunitieshavealife-longimpactonthelifechancesofgirlsandwomen.

• TheBudgetincludedadditionalfundingfortheteachingofmathsinschools:£27milliontoexpand the successful Teaching for the Mastery maths programme into a further 3,000schools;

• £600 for every extra pupil who decides to takeMaths or FurtherMaths A-levels or CoreMaths–withover£80millionavailableinitially,andnocaponnumbers;

• £18millionto fundanannual£350,000foreveryschoolunderthespecialistmathsschoolmodelwhichincludesoutreachwork;

• £8.5millionpilottotestinnovativeapproachestoimproveGCSEMathsresitoutcomes;• £40milliontoestablishFurtherEducationCentresofExcellenceacrossthecountrytotrain

mathsteachersandspreadbestpractice.

Therewerealsoannouncementsonadditionalfundingforcomputerscience:

49WBG(2017)Childcare:Keypolicyissues(http://bit.ly/2AluFBT)50Ibid.

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• £84milliontoupskill8,000computerscienceteacherstoensureeverysecondaryschoolhasafullyqualifiedcomputerscienceGCSEteacherandbringingtotaloftrainedteachersupto12,000.

• TheGovernmentwillalsoworkwithindustrytosetupanewNationalCentreforComputingtoproducetrainingmaterialandsupportschools.

• Upto£20milliontohelpFEcollegesprepareforT-levelsannouncedinSpringBudget2017andduetobeimplementedin2020.

Thisadditional funding iswelcome.However,asonly20%ofgirlsdidFurtherMathsatA-level lastyearandonly10%chosecomputerscience,accordingtotheJointCouncil forQualifications,therewillstillbegender inequality. InitiativesareneededatPrimarySchool levelto involvegirlsearly inthecurriculumincludingmorewomencomputerscienceteachersasrolemodelsandmakingthesesubjectsmoreaccessibleandappealing togirls.TheChancellor referred to thegenderdisparity inthe numbers of girls choosing to study STEM subjects at A-level and progressing into highereducation and careers in STEM, saying that the Government will explore how to improve theaccessibilityandtransparencyofdataonthis issueby institutionandsubject.However,nobudgetwasspecifiedforthiswork.

AsubstantialamountisgoingtowardsaTeacherDevelopmentPremium:

• £42million for a pilot to test the impact of a £1,000 budget for high-quality professionaldevelopment for teachers working in areas that have fallen behind. This will support theGovernment’s ambition to address regional productivity disparities through reducing theregionalskillsgap.

TheGovernment says itwill tackle the problem of graduates overpaying their student loans. TheStudent Loans Company and HMRC will update their processes by 2019, to share data morefrequentlyandstoppaymentsafteraborrowerhas fully repaid. The lowercapof£7,500 for feeshopedforbysomedidnotmaterialise.

TheGovernmentwillcontinuetoworkwithemployersonhowtheapprenticeshiplevycanbespentsothatitworkseffectivelyandflexiblyforindustryandsupportsproductivityacrossthecountrywiththeaimof3millionapprenticeshipstartsby2020.Thenumberofapprenticeshipshasdroppedby59%in2016/17apparentlyduetocomplexrulesanddifficultyinaccessingfunds.51Itisstillthecasethat very few women enter apprenticeships in engineering and construction, and theapprenticeshipsthatwomentendtoenterleadtolower-paidprofessions.

TherewassomegoodnewsforlifelonglearninginaformalskillspartnershipwiththeTUCandtheCBItosetthestrategicprioritiesforandtheimplementationofaNationalRetrainingScheme.Thepriorityistoboostdigitalskillsandsupportexpansionoftheconstructionsector:

• £30milliontotesttheuseofAIandinnovativeEdTechinonlinedigitalskillscourses.• £8.5millionoverthenexttwoyearstosupportUnionLearnforworkplacelearning.

This additional funding, while welcome, does not address the sustained under-funding of theeducationsectorovermanyyears.Schoolsarefacingthelargestcutinperpupilfundingoverafour-year period since at least the early 1980s. Funding pressures are adversely affecting the largelyfemaleworkforceofteachers(80.1%),TeachingAssistantsandSENSupportStaff(95%).Considering

51TheGuardian(23November2017)Callsforchangetoapprenticeshipsafternumbersfallby59%(http://bit.ly/2jY3bMx)

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the low productivity forecast from the OBR the failure to invest more in education is a seriousomission.

Theomissionofanymentionof fundingforthe introductionofSexandRelationshipEducation,asrecommendedbytheWomenandEqualitiesCommission,wasabigdisappointmentwhensupportandchangesindetrimentalbehaviourtowardsgirlsmainly,butboystoo,isbadlyneeded.

The WBG briefing on Education has more details on the funding of education, includingapprenticeships.52

HousingTheGovernment’spledgetoinvest£44bnisasignificantstepinincreasinghousebuildingbuttherewaslittleactiontohelpthosewiththemostseverehousingneeds.

Women’shousingsituationdiffersfromthatofmen.Womenarethe‘householdreferenceperson’in56.6%ofsocialtenanciesbutonly39%ofprivatetenancies,5342%ofthoseowningoutright,and31%ofthosebuyingwithamortgage.54

Since2010,theGovernmenthasshiftedsupportfromsocialhousingtoencouragingadditionalhomebuildingandaccesstohomeownershipforpeopleinmiddleincomes.55ThisapproachwaslargelycontinuedinthisBudget,withtheGovernmentabolishingstampdutyformostfirst-timebuyersandinvesting£44bninhomebuilding.

Housebuilding

TheannouncementsonhousingwereamongthemostsignificantinthisBudget.TheGovernmentdeclareditsintentionofincreasingthenumberofhousesbuiltto300,000newhomesayearbythemid-2020sonwards.ToachievethistargettheGovernmentintroducedthefollowing:

• £15.3bnofnewfinancialsupportforhousingoverthenextfiveyears,bringingtotalsupportforhousingtoatleast£44bnoverthisperiod.Theamountofdirectpublicspendingisactuallyonly£1.5bnayear,therestbeingfacilitationofloansandguaranteestosupportprivatedevelopment;56

• £204millionoffundingforinnovationandskillsintheconstructionsector,includingtotrainaworkforcetobuildnewhomes;

• planningreformsthatwillensuremorelandisavailableforhousing,andthatbetteruseismadeofunderusedlandincitiesandtowns.

Stampduty

52WBG(2017)Education:backgroundbriefing(http://bit.ly/2Ap2gJ6)53DepartmentforCommunitiesandLocalGovernment(2017)EnglishHousingSurvey:Socialandprivaterenters(http://bit.ly/2zQlWFc)54WBGcalculationfromTableCT0621,Census2011,lastaccessedNovember2017viawww.nomisweb.co.uk55SeeWBG’sbriefingonhousing(2017)HousingandGender(http://bit.ly/2zOqSOf)56IFS(2017)AutumnBudgetanalysis2017:openingremarksandsummarybyPaulJohnson(http://bit.ly/2zSnxhb)

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Themajorityofthefundingforhousingisaimedatincreasingthesupplyofhousing.However,thesinglemostcostlymeasureannouncedintheBudgetis£3.2bnforraisingthethresholdatwhichapropertybecomesliabletostampdutyto£300,000forfirst-timebuyers.Thereliefwillnotapplyforpurchasesofpropertiesworthover£500,000.TheOBRforecaststhatthispolicywillleadtoanincreaseinhousepricesforfirst-timebuyersandwillonlyleadtoanadditional3,500first-timebuyersovertheperiod.Moreover,afirst-timebuyerpurchasinganaveragepricedpropertywouldexperiencea£3,200priceincreaseofwhichonly£1,600wouldbeoffsetbythetaxcut(althoughthestampdutycutwillreducetheamountofmoneythathastobefoundupfront).57

Thecutsinstampdutywillaffectwomenandmendifferently.Womenarethe‘householdreferenceperson’of31%ofthosebuyingwithamortgage.Thismeansthatstampdutyreductionwilldisproportionallybenefitmen.TheIFSexplainsthatthepricerisemaystillbenefitfirst-timebuyersasthefallinstampdutyaffordsthemalargerdepositandgreaterleveragebutthemagnitudeofsucheffectswillbehighlyscrutinised.58

Inourhousingbriefingpublishedearlierthismonth,theWomen’sBudgetGrouparguedthatincreasinghousebuildingdoesn’tautomaticallytranslateintomoreaffordablehomes.59Buildingnewsocialhousingisthesurestoptionforincreasingthenumberofaffordablehomes.TheResolutionFoundationhascalculatedthatthe£3.2bnspentonreducingstampdutywouldbesufficienttosupportthebuildingof40,000social-rentedpropertiesinhigh-demandareas.60

LiftingtheborrowingcapontheHousingRevenueAccountoflocalcouncils

TheChancellorliftedtheborrowingcapontheHousingRevenueAccount(HRA)oflocalcouncilsinareaswheretherearehighpressuresonrentaffordability.Thismeansthatsomelocalcouncilswillbeabletoborrowtoinvestinnewsocialhousing,inabidfromthegovernmenttoboosttheroleoflocalauthoritiesinhomebuildingtoachievethetargetof300,000newhousesperyearbythemid-2020s.Thiscomesinacontextofasharpreductionof45%inlocalauthorityspendingonhousingbetween2010/11and2014/15.TheliftingoftheborrowingcaponHRAisthereforeawelcomepolicydevelopmentinordertoincreasetheamountofnewsocialhousinginthenextfewyears.However,themaximumallowedforallcouncilstoborrowis£1bn.Councilswillhavetobidbeforebeingallowedtoborrowandthiswillonlycomeintoeffectin2019-2020.

HousingBenefit

IntheSummerBudget2015,GeorgeOsbourneannouncedafour-yearbenefitfreeze(whichstartedinApril2016)thatwouldseemostworking-agebenefitsnotuprateduntilApril2020.TheexceptiontothisrulerelatestoanupratingofLocalHousingAllowancesinareasexperiencingrelativelyhighincreasesinrent.Thisupratingwillhelproughly140,000households(10%ofprivaterentersonHousingBenefit).AstheResolutionFoundationnotes,thisadditional£85millionayearwillhelptoreducepressureonlivingcostsforahandfulofhouseholdsbutreturnsonlyafractionofthemoneythatthefreezeistakingfrombenefitrecipients.61

57ResolutionFoundation(2017)FreshlySqueezed:AutumnBudget2017response,p.38(http://bit.ly/2i0TE2V)58Joyce,R.(2017)Housingmeasures,IFSanalysisofAutumnBudget2017(http://bit.ly/2zEU7z3)59WBG(2017)HousingandGender(http://bit.ly/2zOqSOf)60ResolutionFoundation(2017)FreshlySqueezed:AutumnBudget2017response(http://bit.ly/2i0TE2V)61ResolutionFoundation(2017)FreshlySqueezed:AutumnBudget2017response,p.28(http://bit.ly/2i0TE2V)

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TheWBGbriefingonHousinghasfurtherdetailsongenderissuesinthecurrenthousingcrisis.62

TransportAwelcomeadditionof£1.7bnforpublictransportfundingwasannounced,howeveritisnotclearwhetheritwillbespentonmodesoftransportthatwomenuse.

Womenandmenhavedifferentpatternsoftransportuse,withwomenmorelikelytousepublictransportandlesslikelytodrive.63

TheBudgetincluded£1.7bnfortheTransformingCitiesFund,ring-fencedfundingforlocalauthoritiestoinvestinlocaltransportlinks.Thisisawelcomedevelopment.However,muchwilldependonwhichmodesoftransportationthismoneywillbeinvestedon,andinwhatways.

AccordingtofiguresfromtheDepartmentofTransport,64womenusebusesmorethantrains.Womenmakemoreweekdaytripsthanmen,andthepresenceofchildrenintheirhouseholdincreasestheirtripnumberby23%,reflectingthatwomenaremorelikelytoaccompanychildrentoschool.Youngwomenonlowincomesareparticularlydependentonlocalbusestogettotheirworkplaceandtaketheirchildrentonurseryorschool.Loneparentsaremorelikelytosaytransportisaproblemintheirabilitytogettrainingoremployment.65Recentcutstolocalauthorities’budgetshavetakentheirtollontheavailabilityandreliabilityoflocalbusesinmanypartsofEngland,withspendingonbusesbeingslashedbyathirdin2010andtotalcutsofover£98.5millionfrom2010to2016/17.66Itisthereforeimportantthatthisinvestmentinpublictransportisusedtoaddressrecentcutsinlocalbusprovisionandmeetthetransportneedsofwomen.

FiguresfromtheDepartmentforTransportalsoshowthatmenaremorelikelythanwomentodriveacarandforlongerdistancessotheywillreapmostofthebenefitsoftheannouncedfueldutyfreeze.Menarealsomorelikelythanwomentousethetrain,particularlyinthe30-59agegroup,reflectingtheheavyuseoftrainsbycommuters.Peopleinthehighestincomelevelmakenearlyfourtimesmorerailtripsthanpeopleinthelowest.67The£300minvestmentonHS2(seebelowunderRegionalinvestmentandinfrastructure)willthusalsodisproportionatelybenefithigherincome,male,commuters.

RegionalinvestmentandinfrastructureTherewerewelcomeannouncementsoninfrastructureinvestment,butthefocusisstillonphysicalinfrastructurewithnomentionofsocialinfrastructurewhichisequallyvitaltotheeconomy.

62WBG(2017)HousingandGender(http://bit.ly/2zOqSOf)63DepartmentforTransport(2016)NationalTravelSurvey:England2016(http://bit.ly/2tG9pQR)64Ibid.65DepartmentforTransport(2009)Womenandpublictransport:Thechecklist(http://bit.ly/2Apv1Yj)66WBG,RunnymedeTrust,RECLAIMandCoventryWomen’sVoices(2017)IntersectingInequalities:TheimpactofausterityonBlackandMinorityEthnicwomenintheUK(http://bit.ly/2jLave5)67DepartmentforTransport(2016)NationalTravelSurvey:England2016(http://bit.ly/2tG9pQR)

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Tacklinglowgrowthandlowproductivitytogether,alongwithpreparingtheUKforthetechnologicalrevolutionahead,formthecontextforincreasinginvestmentininfrastructureexpenditure.Themainfocusoftheinvestmentisonroads,railways,innovativetechnologiesandforrebalancingtheUKeconomyawayfromLondon.ByinfrastructureitiscleartheGovernmentonlyenvisagesphysicalinfrastructure.

TheChancellorannouncedanadditional£8bnfortheNationalProductivityInvestmentFund,launchedinAutumn2016forhigh-valueinvestmentininfrastructureandinnovation.Themajorityoftheexpenditurewillgotoroadsandrailways(seeaboveunderTransport)includingcontinuingsupportforHS2andCrossrailprojects.

Afurther£2.3bnistobeavailableforinvestmentinResearchandDevelopment(R&D)withtheaimofdrivingupR&Dinvestmentacrosstheeconomyto2.4%ofGDP.TheR&Dtaxcreditwillalsoberaisedto12%.£500mwillbeinvestedinarangeofinitiativestosupportdisruptivetechnologiesincludingrobotics,biotechanddriverlessvehiclesystemsaswellas£16mtocreatea5Ghubtotrialtheforthcomingmobiledatatechnology.Additionalinvestmentwillbemadeinchargingpointsforelectriccarsandpeoplewhochargetheircarsatworkwillnotfaceataxonthisbenefitinkind.£10billionofcapitalinvestmentfortheNHSwasalsoannounced.

FurthersupportisgiventotheNorthernPowerhouse,theMidlandsEngineandelectedmayorsacrosstheUKsimilarlyfocusedontransportandthedigitaleconomy.Thereistobeanew£1.7bnTransformingCitiesFund–halffortheelectedmetromayorsandtheotherhalftobecompetedforbyothercities.FundsaretobeavailableforensuringconnectivitybetweenHS2andregionalsystemsandforparticularroutes,includingimprovingthemobileanddigitalconnectivityontheTransPenninerouteandforupgradingtherailstockontheTyneandWearMetro.£1bnofdiscountedlendingistobeavailabletolocalauthoritiesacrossthecountrytosupporthigh-valueinfrastructureprojects.InvestmentfundswerealsoannouncedforScotland,WalesandNorthernIrelandlikewisetargetedatinfrastructure.

Giventhatoneofthepurposesofthesefundsistorebalancetheeconomy,itissurprisingthatmostseniorpositionsassociatedwiththeNorthernPowerhousearebasedinLondon,asistheseniorofficialappointedforoverseeingthe£123minvestmentforpreparingtheRedcarSteelworksSiteforredevelopment.Furthermore,theGovernmentistopilot100%businessratesretentioninLondonnextyearandiscontinuingtoworkwithTfLonthefundingandfinancingofCrossrail2.Giventhebalanceoffundingandthelimitedextenttowhichcontrolisreallydevolved,thereislittleindicationthatthemeasuresproposedwillredresstheNorth/Southdivide.

TheChancellor’smeasuresshouldsucceedinboostinggrowthdirectlybyraisingdemandandemployment,whichshouldthenhavemultipliereffectsontherestoftheeconomy.Butgiventhecurrentgenderorder,menaremorelikelytobenefitthanwomen.Constructionworkwhichisheavilymaledominatedwillexpandmaleemploymentconsiderably,unlessthereisconsciousefforttoundertakeamassiveandunprecedentedboostintrainingwomen.Menarealsooverrepresentedinthedigitalsector.

TheWomen’sBudgetGrouphasrepeatedlyarguedthattheGovernmentshouldalsoinvestinsocialinfrastructure,foritslong-termbenefitsonproductivityandwell-being,aswellitsgreateremploymenteffectsthanequivalentinvestmentinconstruction.WBGanalysisfortheITUC68shows

68WBG(2017)InvestingintheCareeconomytoboostemploymentandgenderequality(http://bit.ly/2ALM47A)

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thatinvestingincareservicescreatesmorejobsoverallandmanymoreforwomenthanasimilarsizeinvestmentinconstruction.69Thetwotypesofinvestmentshouldbeconsideredtogetherasnecessaryimprovementsininfrastructure,withinvestmentinsocialinfrastructureaparticularprioritybecauseoftheurgentneedtoaddressgenderinequalitiesandresolvethecarecrisis.

TheWBGreportonInvestingintheCareEconomyhasmoredetailsontheemploymentandgendereffectsofinvestinginsocialinfrastructure.70

ViolenceagainstwomenandgirlsTheBudgetwassilentononeofthegravestformsofinequality–violenceagainstwomenandgirls.

Itisestimatedthat4.3millionwomensufferdomesticviolenceovertheirlifetime,1.2millionwomensufferdomesticviolenceeachyear71and450,000womenarevictimsofsexualviolenceannually.

TherewasnoadditionalfundingforVAWGservicesannouncedinthisBudgetdespitefundingtotackleviolenceagainstwomenandgirlsandtosupportsurvivorsbeingwoefullyinsufficienttomeetthescaleoftheproblem.Centralgovernmentfundingof£20millionayearcannotcompensateforthecutstofundingforlocalgovernment,whichprovidesasignificantproportionoffundingforlocalservices.

Furthermore,changestothehousingbenefitsystemwillworsenthefundingcrisisfordomesticviolenceservices.InOctober,theGovernmentannouncedplanstoremovewomen’srefugesfromthewelfaresystem,sothatwomenwillnotbeabletopayforplacementsusingHousingBenefit.72HousingBenefitmakesuparound50%oftheincomeforrefuges.73TheGovernmentproposesthatHousingBenefitshouldbereplacedbyring-fencedfundingforlocalauthoritiestocommissionsupportedhousing.However,aswellaswomen’srefuges,thisfundingwillalsohavetocoversupportedhousingforolderpeople,homelesspeople,offenders,peoplewithmentalillnessesanddrugaddicts.Refugeprovidersareconcernedthatlocalauthoritiesmaynotprovidesufficientfundingtomeetdemandandthatsmallspecialisedservicesmaybesqueezedoutbygenericprovidersthroughthecommissioningprocess.Women’sAidhaswarnedthat39%ofrefugeswillhavetocloseifthischangetohousingbenefitentitlementgoesahead.74

69DeHenau,J.,Himmelweit,S.Łapniewska,Z.andPerrons,D.(2016).InvestingintheCareEconomy:AgenderanalysisofemploymentstimulusinsevenOECDcountries.ReportbytheUKWomen’sBudgetGroupfortheInternationalTradeUnionConfederation,Brussels(http://bit.ly/2ivi7kJ)70WBG(2017)InvestingintheCareeconomytoboostemploymentandgenderequality(http://bit.ly/2ALM47A)71HouseofCommonsLibrary(2017)DomesticViolenceinEnglandandWales(http://bit.ly/2cupnr0)72DepartmentforCommunitiesandLocalGovernmentandDepartmentforWorkandPensions(2017)FundingSupportedHousing:PolicyStatementandConsultation(http://bit.ly/2Box77R)73TheGuardian(26November2017)‘Everyrefugewillclose’:whatfundingchangescouldmeanforwomen(http://bit.ly/2AjJV2a)74TheGuardian(29November2017)Surveyrevealsimpactofproposedfundingcutsonwomenfleeingabuse(http://bit.ly/2AMUbAX)

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ConclusionThiswasaBudgetmarkedbygloomyeconomicforecastsinwhichtheOBRreviseddownitsprojectionsforGDPtobe2%lowerthanpreviouslypredictedby2022whileproductivitylevelscontinuetogrowatasluggish0.2%peryear.AstheindependentInstituteforFiscalStudiesremarked,thisdoesn’ttakeintoaccounttheeconomicimpactofanyspecificBrexitdeal,asnosubstantialinformationexistsyetontheformthenewrelationshipwiththeEUwilltake,althoughapoordealorfailuretoreachadealwilllikelytohaveasignificantnegativeeconomicimpactontheUK.

TheChancellor’sopeningstatementpromisingtomeetBritain’schallengeswascompromisedbyafailuretotacklesomeofthemostpressingissuesinBritishsocietyatthemoment,includingthecrisisinsocialcare,fallingrealwages,asocialsecuritysystemthatisleaving4millionchildreninpovertyandwidespreadviolenceagainstwomenandgirls.

Therewassomewelcomeinvestmentonphysicalinfrastructureincluding:

- £44bnforincreasinghousebuilding.However,anddespitetheliftingthecapontheHousingRevenueAccountforcouncilsexperiencinghighrentpressures,itisunclearhowmuchthisinvestmentwilltranslateintoaffordablehomesorsocialhousing.

- £1.7bnfortheTransformingCitiesFund,amoneypotforlocalauthoritiestoinvestinlocaltransportlinks.

- Regionalinvestmentonroads,railwaysandinnovativetechnologies,inabidtorebalancetheUKeconomyawayfromLondon.

However,investmentinsocialinfrastructurehasbeenmostlyoverlooked,withnegativeconsequencesforwomen’semploymentandrelianceonpublicservicessuchassocialandchildcare.

- TheNHShasreceived£1.96bninadditionalrevenuefundingfor2018/19,althoughthisfallsfarshortofthe£4bnthattheKing’sTrust,NuffieldTrustandHealthFoundationhaveestimatedisneededforthenationalhealthservicetomeetitsservicerequirementsoverthenextyear.

- SocialcareandchildcarewerenotmentionedatallintheBudget,despitebeingtwosectorswithseverepressuresontheirservicesandlargeunmetneedsinthepopulation,withconsequencesforwomen’swell-being,unpaidworkandtheiremploymentopportunities.

- AdditionalfundingforUniversalCreditwilldonothingsubstantivetohelpthosemanywomenaffectedbyitsflaweddesignandpreviouslyannouncedcutsandfreezes.

NoseriousattemptwasmadetoreversethebenefitcutsandtaxchangesthathavehadadisproportionatenegativeimpactonwomenandBMEhouseholds.75TheGovernmentcontinuestoignoreitsownlegislationonthepublicsectorequalitydutybynotshowinganyevidenceofhavingconductedacomprehensiveequalityimpactassessmentofthetaxandpolicymeasuresincludedinthisBudget.

75WBG,RunnymedeTrust,RECLAIMandCoventryWomen’sVoices(2017)IntersectingInequalities:TheimpactofausterityonBlackandMinorityEthnicwomenintheUK(http://bit.ly/2jLave5);WBGandRunnymede’spre-AutumnBudgetpressrelease(2017)(http://bit.ly/2zTSAbv)

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AcknowledgementsThisresponsewascompiledandeditedbyJeromeDeHenau,SueHimmelweit,SaraReisandMary-AnnStephenson.

Fortheircontributionsandhardwork,withoutwhichthisanalysiswouldnothavebeenpossible,theWomen’sBudgetGroupwouldliketothank:FranBennett,PamCole,GiselleCory,JeromeDeHenau,JayGinn,ScarletHarris,SueHimmelweit,HilaryLand,JonquilLowe,KathrynMackridge,IsabelQuilter,DianePerrons,SaraReis,AstridRichardson,Mary-AnnStephensonandJanetVeitch.

TheWomen’sBudgetGroupisanetworkofleadingfeministeconomists,researchers,policyexpertsandcampaignerscommittedtoachievingamoregenderequalfuture.Wehaveworkedtowardsthissince1989.

Formoreinformation,[email protected].

Copyright:Women’sBudgetGroup,November2017.

A chancellor tinkering at the margins - Womens Budget Group · pensions, savings, social security,...

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