Huddersfield reaction to the Budget

Mar 25 2010 Huddersfield Daily Examiner

ALISTAIR Darling turned the screw on the better off as the battle lines were drawn for the General Election

In his final Budget before polling, the Chancellor announced help for first time home buyers and young jobless people.

But he also unveiled a series of measures that will hit wealthier people, saying: “I believe those who have benefited the most from the strong growth in incomes in past years should now pay their fair share of tax.”

Other key points included:

3p fuel rise to be brought in three phases

2% rise on beers, wines and spirits

1% rise on tobacco

£4 rise in child tax credit

Winter fuel allowances extended

Mr Darling confirmed that the threshold for residential property stamp duty would double from £125,000 to £250,000 from midnight.

But, to cheers from Labour MPs, he also announced that the move would be funded by an increase in stamp duty to 5% for residential property over £1m from April next year.

There was further bad news for higher earners – already facing a 50% tax rate on earnings over £150,000 – when Mr Darling announced the end of some personal allowances.

He said that for people with incomes over £100,000 a year – the top 2% – the value of their personal allowances would gradually be removed.

See page two for reaction from Huddersfield people.

Conservative leader David Cameron dismissed the package, saying: “Labour have made a complete mess of the British economy and they have done nothing to clear it up.”

He added: “They have doubled the national debt and on these figures they are going to double it again.”

And taunting Gordon Brown, Mr Cameron said: “The biggest risk to the recovery is five more years of this Prime Minister.”

But the Tories faced an awkward moment when Mr Darling announced a deal to clamp down on tax avoidance in three countries including Belize, where Tory deputy chairman Lord Ashcroft is based.

He said: “We expect these deals to be signed within a few days – which is rather quicker than the 10 years it’s taken the front bench opposite to exchange information with the deputy chairman of their party.”

There was limited good news for motorists, who are already facing soaring fuel costs.

Mr Darling said he would stagger next month’s scheduled increase in fuel duties – with the tax rising by a just a penny in April with another penny in October and the final instalment of 0.76p due next January.

There were no shocks in general for drinkers and smokers. Duty on beer, wine and spirits will increase as planned from midnight on Sunday. Alcohol duties will also increase by 2% above inflation for two further years from 2013. Tobacco duty will increase by 1% above inflation and then increase by 2% in real terms each year until 2014.

But for cider drinkers Mr Darling announced a 10% duty rise above inflation from midnight on Sunday and he said that in September changes will be made to the definition of cider to ensure specific strong ciders are taxed more appropriately.

Mr Darling said that stronger than expected tax receipts meant that Government borrowing would be £167bn this year – £11bn down on the £178bn he predicted in December’s Pre-Budget Report.