Campaigners have hit out at measures in the Budget which they describe as ‘short-sighted’ and at odds with the coalition’s pledge to ensure fairness. The charity Railway Children warned the 25% cut to departmental budgets would almost certainly hit initiatives designed to protect the most vulnerable, particularly when combined with a rise in VAT and cuts to welfare benefits.

The charity’s work focuses on children and young people who live on the streets. Chief executive Terina Keene said: ‘Cuts are inevitable but cutting off support for low income families is dangerously short-termist and unfair as it forces the poorest children to pay the long-term cost of clearing debts of the richest banks.

‘Continued investment in successful initiatives for children will ensure future governments will not face greater costs and lower revenue from poor health, education and skills.’

Her sentiments were echoed by Toby Blume, chief executive of Urban Forum, who described the decision to increase VAT top 20% as ‘deeply regressive’. He added that the freeze on child benefit ‘appears at odds with the “we’re all in this together” rhetoric’.

‘Everyone knew the government faced some terribly difficult decisions, but the Budget’s impact is likely to place tremendous strain on the demand for the services of charities and community groups,’ he said.

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