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Twice as much in tax cuts for bank profits than catch-up for children - an out of touch Budget say the Liberal Democrats

October 28, 2021 5:19 PM

Analysis by the Liberal Democrats shows that reducing the banking surcharge will cost the Treasury over £3.8 billion over the next four years. This compares to just £1.8 billion of additional catch-up funding in yesterday's Budget. That is the equivalent of £1 of extra catch up funding per child every school day.

Liberal Democrats Leader Ed Davey said: "This was an out of touch Budget that is taking ordinary families for granted, hiking up people's taxes while failing to help them with soaring energy bills this winter. We've seen a lot of spin but very little on the three big crises we face: the cost of living, the climate emergency and children's lost learning.

"Parents are crying out for the catch-up funding our children desperately need. The Chancellor let them down today, offering less in extra catch up funding than his tax cut for the big banks.

"Chancellor Rishi Sunak has sent a clear message to children and parents across the country: they are worth less to him than his investment banker chums in the City. We can see clearly what his priorities are, and they are not those of the British people.

The Chancellor let down parents today, providing less in extra catch up funding than his tax cut for the big banks.

The £4.9 billion total catch up funding (including £1.7 billion announced in 2020, £1.4 billion in June 2021 and £1.8 billion announced today) divided amongst 8.3 million students over three years comes out at £200 per child per year. Over the course of 180 school days in a year, each child will be given just £1.11 each school day to catch up on vital learning.

According to the Treasury's policy costings, the cut to the Bank Surcharge will cost £3.82 billion in the four years from 2023-24 to 2026-27. In 2026-27 alone, it will cost £1.02 billion.