Today’s Emergency Budget, the first budget of the new Coalition Government, contained a lot for Liberal Democrats up and down the country to smile at. The Budget is tough, the problems we have face are tougher and this budget truly will make Britain Fairer.
- · The £1,000 increase in the Income Tax allowance will mean that 880,000 low paid workers will be freed from Income Tax altogether. This is the first step towards delivering our manifesto commitment to ensure no-one pays tax on the first £10,000 they earn.
- · The Budget puts in place our promise of a new tax on banks, ensuring that they help to pay to clear up the mess left by the financial crisis
- Top earners will pay a full 10% more in Capital Gains Tax than under Labour, with no loopholes or tapers or get-out clauses. That change helps ensure those with the broadest shoulders take the greatest strain.
- We will guarantee that pensioners get a fair deal, putting into effect the Liberal Democrat manifesto commitment for a “triple lock”, so state pensions rise every year in line with earnings, inflation, or by 2.5%, whichever is the highest. Never again will pensioners be allowed to fall behind.
- The Coalition Government will not let regions, towns or cities that depend heavily on the public sector be forgotten. That’s why this Budget establishes a regional growth fund to ensure those parts of the country get meaningful support to help create jobs and opportunities for all.
- Tackling Child Poverty remains at the heart of the government’s approach. So while we have decided to cut child tax credits for those who can most afford it, we have increased tax credits for the poorest families and put up to £ 2 billion into child tax credits to help ensure children of all backgrounds get a fair start in life.
Commenting on today’s budget, Liberal Democrat Deputy Leader Simon Hughes said:
“Today’s budget clearly reflects many of the tax priorities which won the Liberal Democrats almost seven millions votes at the election. As a result of this budget millions of pensioners and those on low incomes will be helped and people with greater wealth will contribute most.
Of course today’s budget required compromise, but the country can clearly see the Liberal Democrats have a major influence on UK economic policy. From now on, Britain will be a fairer place.
Liberal Democrats made the correct judgement last month to be influential partners in a majority coalition, rather than be marginalised opponents of a minority Government entirely implementing Conservative policies. We will make sure that the spending reductions reflect Liberal Democrat priorities and always protect the needy and the vulnerable.”
