St Helens South
Westminster
Northern Ireland
Blog
- Olympics 2008
- Big Brother's Local Brother
- Third successive triumph?
- More great news for Saints
- A good year for the Northern Ireland Executive
- Stadium go ahead
- The Day After Tomorrow
- Chancellor's statement heralds a better deal for all
- French President addresses Houses of Parliament
- A budget that spells out stability, fairness and opportunity
A budget that spells out stability, fairness and opportunity
Today the Chancellor, Alistair Darling, delivered his Budget to the House of Commons, helping to deliver fairness and stability for all.
The Budget delivers on the government’s commitment to provide more for pensioner households and families whilst strengthening our work on tackling climate change. What I find incredibly exciting is the further financial support for families with children which will lift 250,000 children out of poverty.
Alongside this the government will deliver – in addition to the Winter Fuel Payment – £100 to over-80 households and £50 to over-60 households in 2008-9; this will benefit around 9 million households.
The Tories are making much of their claims that the government cannot be trusted during an expected worldwide economic downturn, yet it is their sums which are woefully uncosted and prove just how much of a financial risk they pose to the UK’s economy.
When asked how he would fund the Tories many spending commitments in health and other areas, George Osborne has said he expects the resources to come from welfare savings. However on the same day David Cameron said that welfare savings would be used to plug his £10bn tax black hole. The Tories have spent their welfare ‘savings’ twice.
The Tories’ unfunded tax-cutting measures, in conjunction with up to £10bn worth of further uncosted spending commitments, stands in real contrast to Labour’s policies on lifting the most vulnerable in society out of poverty whilst maintaining the economic stability that means we can continue to deliver on our child poverty targets.
Copyright © 2008 Shaun Woodward MP
Recent comments
22/04/2008 10:51 am Paul Allen
Dear Sir,
Your reply avoids answering the question of tax increases for lower earning employees who are below the 20% / 22% level. We live in St Helens and do not have children at home. We do receive any 'credits' only the £5600 tax Personal Allowances, and earn less than ~£19000 22% tax level. Accordingly you answer should have acknowledged people who earn below £19,000 will have their PAYE tax increase from 10% to 20%.
My wife works for St Helens (Merseyside) Police and earns £15,000 so her tax, and my tax, will increase dramatically. This 'balanced' budget is clearly penalising lower earners and effectively doubling tax from 10% to 20%, but I acknowledge it does benefit higher earners.
A comment on Radio 4 Morning programme today said Gordon Brown was looking for lower earners to raise their game to improve their salaries. This is unrealistic and basically puts pressure on recovering tax by pay rises.
Labour should think again as poorer people who will be paying higher taxes will feel the financial burden over the next months and are eligible to vote !!!
I look forward to your acknowledgement and objection to increasing taxes.
Shaun's reply:
Paul, Alan and A.B Rooney - Thank you for your comments.
The Chancellor has outlined the government’s proposals for providing financial assistance to those adversely affected by the removal of the 10 pence tax band.
All basic rate taxpayers up to the age of 65 will benefit from the measures announced today. The personal tax allowance has been raised by £600 to £6035 meaning that 22 million people on low and middle incomes will receive an additional £120 a year.
It will also mean that 4.2 million households out of the 5.3 million households will receive as much – or more than – they originally lost, with the remaining 1.1 million households seeing their loss at least halved. Eighty per cent of households are fully compensated with the remaining twenty per cent compensated by at least half. And in addition 600,000 people on low incomes will be taken out of tax altogether.
People aged between 60 and 64, whose average loss was £100 will also get the advantage of the increased personal allowance worth up to £120. They also receive the additional £50 Winter Fuel Payment for this year, which was announced in the Budget.
The increased personal allowance will apply to all income for this tax year and so will be backdated to 6 April. For future years the Government’s aim is to continue the same level of support for those on lower incomes. The Chancellor will bring forward proposals to do this at the Pre-Budget Report.
This measure represents the fairest and most effective way to help all those affected as a result of the changes proposed last year. In addition, this family tax cut provides support this year for those on middle incomes at a time where they face increased bills, so supporting the economy.
If you require additional information please do not hesitate to contact my Office.
Shaun