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What does the budget mean for young people?

by Jackie Porter on 14 July, 2015

Since 2010, Liberal Democrats have been blamed for the assault on young people as the cost of being a student rose.
But we must remember that the coalition was a business arrangement to get the country back on its feet again, and now, without the conscience of the Lib Dem team in cabinet, Osborne has given university students yet another challenge, and another reason to be disillusioned by politics.
In his Conservative budget on July 8 2015, George Osborne, the Conservative Chancellor introduced a range of measures many of which gave more to the older and well off and many of which present disappointing news to young people – particularly university undergraduates.

The speculation that this budget would be a swingeing cut for those needing welfare support was quickly apparent. In my opinion, the sell off of social housing (that will never be replaced at the same location or with the same land for children to play) is a cynical move to put more money in the hands of buy to let barons. We need more good quality public housing to rent at an affordable rate, not less.

The proposal for a National Living Wage (set to £7.20 by next April and £9 by 2020) may be a comfort for those in full time (or near full time) work over 25, but will not apply to younger workers who will still have to contend with a £6.50 minimum wage. This means that young people who have just left university or training will have to make their earnings stretch further to cover the rising cost of living.
Personally, I still do not think that £9 will go very far in 2020.

Things are looking even gloomier for future university students. In the last government, the Liberal Democrats fought hard against uncapped tuition fees to cap them at £9,000.
Osborne’s budget removes this limit.
Osborne calls for limitless tuition fees but gives a hint that more favourable tuition fees will be available for STEM (Science, technology, English and Maths) subjects in the future.
This is bad news for somewhere like Winchester University which has a range of studies in non STEM subjects which lead to 21st century jobs. Student maintenance grants for poorer students will be scrapped, making it imposssible to live away from home unless your family can provide the finance. Housing benefit for younger people has been scrapped too, so if your family can’t provide a home, the state is not going to help you either.

What about job prospects for those leaving University?
The Budget included a lower corporation tax from 20% to 18% by 2020. Attractive for multi-national companies who make large profits, but this benefit is questionable. Small businesses are at the heart of many communities, certainly here in Winchester, and a business rate reduction could have been of more practical use to this group of employers.
Cameron’s pledge for the EU referendum by 2017 has already resulted in hesitation from big multi national investors, and decisions will slow even further as we near the referendum date

The budget has been described as an ‘assault on the poor’. I think it is an assault on the young and the poor. Estimates put the voter turnout rate at 43% for 18-24 year olds in the General Elections in May 2015, so George Osborne reckons he is on to a good thing. But our job as Liberal Democrats is to show young people that their voice counts- and hopefully in May 2020, more young people will feel it is worth voting for their voice to be heard.

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