Budget Little More Than A Sticking Plaster For Election - Kennedy (Birmingham Liberal Democrats)

Birmingham Liberal Democrats <info@birminghamlibdems.org.uk>

Budget Little More Than A Sticking Plaster For Election - Kennedy

March 16, 2005 9:22 PM

Responding to the budget, Liberal Democrat Leader, Charles Kennedy MP, said "We are lucky in this country. Britain has the 4th largest economy in the world. So how can it be right in Britain today that the poorest 20% pay more in tax, as a proportion of their income, than the richest 20%? Over the last eight years the Chancellor has tinkered an awful lot, but he has failed tackle fundamental unfairness in the system. This budget is just more of the same. "

Mr Kennedy criticised Gordon Brown for failing to mention Council Tax revaluation, he said "The tax rise the Chancellor didn't mention is Council Tax revaluation which is due to start on 1st April. The Welsh experiment suggests that 7 million people in England will pay significantly more after revaluation. The Government cannot keep on patching up this unfair tax. It is high time that this is replaced by a local tax based on the ability to pay. Such a system, as proposed by the Liberal Democrats, will benefit the typical household by over £450 per year."

Commenting on the increase in help for pensioners to pay Council Tax, Mr Kennedy said "This increase will be welcomed by pensioners but the Chancellor still has done nothing to fundamentally fix this tax. Under Liberal Democrat plans, 6 million pensioners will not pay Local Income Tax and an average single pensioner will benefit by £209 a year."

Commenting on the increase in Pension Credit, Mr Kennedy said "This increase will be welcomed by pensioners but the Chancellor still has done nothing to fundamentally fix pensioner poverty. Why does he offer a pension that is 25% below the poverty line - then make them jump through hoops to get their head above water. We are still in a situation in which 2 in 5 pensioners eligible for Pensions Credit do not claim it. There is now an urgent need to introduce a Citizen's Pension that ends the discrimination against women and ends means testing for the oldest pensioners."

Commenting on the raising of the Stamp Duty threshold to £120,000, Mr Kennedy said "Although this will be welcomed by some it is a shame that the Chancellor couldn't commit as much as the Liberal Democrats, who have proposed to raise this to £150,000, and genuinely help first time buyers who on average pay £131,000 for a property."

Summing up Mr Kennedy said "The Chancellor talks about British economic success - but for us that is also about having a Government dedicated to fairness. Our policies will make social justice a priority while ensuring financial discipline and tough choices. It is the Liberal Democrats who are offering the real solutions and we are the real alternative."