Ashford Liberal Democrats

Lib Dem response to the 2009 Budget

Responding to Alistair Darling's Budget, Liberal Democrat Leader Nick Clegg said:

"Today we got a pick and mix Budget of recycled announcements from a government skilled in raising people's hopes but incompetent at actually delivering help.

"This Budget is a political supermarket sweep of random promises, without even a hint of a plan or any likelihood the promises will be put into practice.

"The biggest disappointment in this Budget is its failure to sort out Britain's unfair tax system. To put money into people's pockets to help them make it through this recession.

"Britain's taxes are too heavy on those who can least afford it. And too easy to avoid for those who know how.

"The 50p rate will further encourage the very wealthy to avoid tax unless we tackle the unfair loopholes they exploit.

"The Liberal Democrats would get practical help to people who are struggling and cut the vast majority of people's Income Tax bills by £700, paid for by taking aggressive action to clamp down on all the loopholes and exemptions that benefit the richest people and biggest businesses.

"We would take big choices about what government should and shouldn't do.

"With a shocking deficit this year of £175bn we need a national debate about what the state can and cannot afford in the future.

"That is the responsible way - the honest way - to reduce spending in the years ahead and avoid painful higher taxes.

"But Labour is out of ideas and out of steam.

"Today they have condemned us to years of unemployment and a decade of debt.

"The country deserves something different."

Read a summary of the party's Economic Recovery Plan at www.LibDems.org.uk/RecoveryPlan

You should be able to read Nick Clegg's Budget response in the House of Commons at http://www.publications.parliament.uk/pa/cm/cmtoday/cmdebate/home.htm from around 5pm today

Key points of 2009 Budget

TAX

• Income tax for those earning more than £150,000 to rise to 50% from April 2010

• Tax relief on pensions to be reduced for people on more than £150,000 a year from April 2011

UK ECONOMY

• Economy forecast to shrink 3.5% in 2009

• Growth expected to pick up in 2010, expanding by 1.25%.

• Economy to grow by 3.5% annually from 2011

• Public borrowing to increase to £175bn this year

• Borrowing levels to rise by £173bn, £140bn, £118bn and £97bn in years after

• Consumer price inflation to fall to 1% by end of year.

• Capital investment to continue at historically high levels until 2012

JOBS AND TRAINING

• Government support for economy to protect 500,000 jobs

• All long-term unemployed under 25s to be offered job or training

• £1.7bn additional resources for Job Centre network

• £250m funding to help people get work experience in growth industries

• Funding to create 54,000 new places in sixth form education

HOUSING

• Scheme to guarantee mortgage backed securities to boost lending

• Stamp duty holiday for homes up to £175,000 to be extended to end of year

• Extra £80m for shared equity mortgage scheme

• £500m to kickstart stalled housing projects - including £100m for local authorities to build energy efficient homes

• £50m to upgrade housing for the armed forces

ENVIRONMENT

• Britain commits to cut carbon emissions by 34% by 2020

• An extra £1bn to help combat climate change by supporting low-carbon industries

• £525m for offshore wind projects over the next two years

• £435m support for energy efficiency schemes for homes, firms and public buildings

• £405m to encourage low-carbon energy and advanced green manufacturing

CAR SCRAPPAGE SCHEME

• From next month until March 2010 motorists to get £2,000 discount on new cars if they trade in cars older than 10 years

GOVERNMENT SAVINGS

• Tax loopholes and schemes identified which could provide £1bn of extra revenue over the next three years if closed

• An extra £9bn in efficiency savings is planned

• Public spending to be cut from 1.1% next year to 0.7% in 2011-2012

BENEFITS

• Child tax credit to rise by £20 by 2010

• Child trust funds for disabled children to rise by £100 a year, £200 a year for severely disabled children

SAVINGS

• Annual limit for tax-free ISAs to rise to more than £10,000 for over-50s this year and for everyone else next year

PENSIONERS

• Grandparents of working age who care for their grandchildren will see that work count towards their entitlement for the basic state pension

• Winter fuel allowance to be maintained at higher level - £250 for over 60s and £400 for over-80s - for another year

• The basic state pension will be increased by at least 2.5%, regardless of inflation

CIGARETTES, ALCOHOL AND FUEL

• Alcohol taxes to go up 2% from midnight - one estimate is that it would put 5p on the average pint of beer

• Tax on tobacco to go up by 2% from 6pm

• Fuel duty to rise by 2p per litre from September, then by 1p a litre above indexation each April for the next four years

HELP FOR BUSINESS

• Help for loss-making companies extended - they will be able to reclaim more taxes paid in the last three years until November 2010

• Businesses' main capital allowance rate doubled to 40%

• New £750m strategic investment fund to help emerging technologies and regionally important sectors

(source: http://news.bbc.co.uk/1/hi/uk_politics/8011882.stm)