The Budget - a missed opportunity

23 Mar 2006

Yesterday, Gordon Brown delivered his tenth budget as Chancellor of the Exchequer. The Chancellor is trying to boost his image before, he hopes, taking over as Prime Minister, but more and more people are feeling let down by New Labour.

Missed Opportunity

In a period of relative stability, the Chancellor had an opportunity to show his worth. He could have tackled the unfair tax system; he could have made the environment a priority; he could have faced up to the pensions crisis. He failed to do so.

Honest choices

The Liberal Democrat team in Parliament has won a reputation for putting honest choices before spin. Our MPs took the lead in exposing the tax credit fiasco and are demanding urgent action to tackle the growing personal debt crisis. You can find out more about our policies at www.libdems.org.uk/economy

Environment

At the same time we are calling on the Government to deal with the major threats of climate change by taking effective action to protect our environment. The Chancellor took timid action, raising the car tax on the worst "gas-guzzling" vehicles by less than the cost of a tank of petrol - to £210. This is a half-hearted attempt to turn around the Government's lack of commitment on the environment. It brings with it no protection for the small number in rural areas who have a genuine need for four wheel drive vehicles.

Jobs and debt

Unemployment has risen in 12 of the last 13 months while personal debt levels have ballooned. Here in the Chelmsford area, unemployment has risen by 414 in one year, which is up over 25%. Official estimates show £1 in every five spent in Britain goes on servicing the cost of borrowing.

Pensioners hit as council tax rebate scrapped

The Budget papers reveal that the £200 council tax rebate offered to pensioners last year is a one-off. It means a rise in pensioners' bills of at least £200 and shows that last year's payment was a pre-election bribe. We have had enough of tinkering: this tax must be replaced by one based on ability to pay.

Where's the money gone?

Businesses and our vital public services are drowning in red tape. NHS Trusts are beginning to announce cuts in the number of nurses as many of them plunge into debt. No wonder people are asking where all the money has gone.

The tax system is too complicated for business and for individuals; Labour must stop tinkering with the tax system. Low and middle income families are now caught while the rich pay accountants to organise avoidance.

The Chancellor has done nothing to address the unfairness that the top 20% of earners pay less of their income in tax than the bottom 20%.

The REAL alternative

Liberal Democrats want an economy that is stable and well managed, and based on fairer, not higher, taxes and honest choices. If you agree, why not help our local campaigns or make a donation? Follow the links on the left.

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