Budget 2009 - Building Britain's Future
The Chancellor Alistair Darling yesterday unveiled the 2009 Budget.
I think it delivered measures that will give real help now to get people, especially young people, quickly back into work, and support businesses and homeowners facing problems.
You can read the full budget speech online http://www.labour.org.uk/budget_2009_speech
We are undoubtedly in a serious global downturn. People are suffering because the economy is suffering. That leaves us faced with a stark choice: do nothing, as the Tories have been suggesting, or intervene and invest to protect jobs and communities. In the last recessions of the 80s and 90s under the Tories people and businesses were left to sink or swim according to the vagaries of the 'market'. The result was boarded up shops, persistent unemployment and devastated communities.
The Labour Party has therefore taken, in my opinion, the correct decision by investing. If we don't act now, it will cost us all more in the long run. The Budget measures will support families and pensioners, help people back into work and support investment in the growth industries of the future on which Britain's success will be built.
In yesterday's recession fighting budget there were several particularly eye catching measures: savers will benefit from an increase in the annual investment limit for Individual Savings Accounts (ISAs) to 10,200, up to 5,100 of which can be saved in cash. Pension Credit is up to 130 per week (198.45 for couples) with the amount of savings to be disregarded up to 10,000 - this will help 6,000 pensioners in Hastings and Rye alone.
A 2000 payment will also be made to anyone who scraps their car for a new one. This will help support our manufacturing base – a similar scheme was introduced in Germany and car registrations are up 40% compared to last year. I hope we see a similar affect here. The environment should hopefully benefit too as smaller, greener cars are proving increasingly popular.
The new 50% tax rate for people earning over 150,000 is also worthy of mention. Investment costs and I think it only right that those with the broadest shoulders bear the most weight at this time. I think this policy highlights the different ideas of Labour and the Conservatives. In contrast they are suggesting raising the Inheritance Tax threshold – offering a handout to the richest people in the country. Considering we are in a downturn I think they have got their priorities entirely wrong.
The downturn is undoubtedly serious and that is precisely why it is right to invest and grow our way out of recession. That's exactly what the budget proposes: stimulating growth while protecting jobs. That is the right thing to do.
To keep up to date on what I'm doing stop by my website http://www.michaelfoster.org.uk/ .
You can also receive a monthly update on my activities by sending an email to mp@1066.net with 'MPFree' in the subject line.
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Saturday 11 February 2012
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