Britain’s austerity plan will hit poor: Economists

A protester holds a banner suggesting a cut in Britain's Trident nuclear submarine fleet as thousands of people march to Downing Street in London to protest against spending cuts, on Wednesday. Photo: AP.

Economists say British austerity measures which will slash benefits and services are likely to hit poor people the hardest.

Treasury chief George Osborne has announced 81 billion pounds ($128 billion) in spending cuts through 2015, aiming at reducing record debts and clearing a spending deficit.

About 500,000 public sector jobs could be lost, while scores of welfare payments will be trimmed or axed and government services savaged.

Ordinary Britons say they’re deeply worried about the impact.

The Institute for Fiscal Studies said on Thursday its analysis shows “the bottom half will lose more than the top half” of British society.

Mr. Osborne insists cuts are the unavoidable remedy after Britain piled up debts during the global financial crisis.