Budget reaction: Chancellor's measures 'an election giveaway'

CHANCELLOR Gordon Brown's budget prompted an unsurprising reaction from opposition politicians that it was a giveaway affair, designed to bring out a vote for Labour at the General Election.

Labour politicians, on the other hand, gave the Chancellor full marks for solid effort and for his work to help low-paid families.

Chauhdry Shafique, Labour's prospective parliamentary candidate for Wycombe, said the budget showed the financial prudence the country had come to expect from Gordon Brown.

"It is universally recognised now that Labour can look after the economic health of the country," he said.

He was pleased at the Chancellor's help for pensioners and families, especially the measures for low income families.

But Beaconsfield Tory MP Dominic Grieve was not impressed. He said: "The Chancellor has more money to spend because the economy is so much better. We are in a period of a massive economic boom and it is all due to the last government's efforts rather than his."

He added that the government increase in spending was one per cent more than the increase in Gross Domestic Product. "When the scales turn, he will be in awful trouble, he added."

Mr Grieve said since Labour had been in power, Mr Brown had raised taxes by the equivalent of 10p on income tax. He said the budget was only the equivalent of a one penny reduction and there was no attempt to reverse the 45 tax stealth tax rises of the past four years.

Chiltern District councillor Peter Jones, who is the Lib Dem prospective candidate for Aylesbury, said the budget was boring. He had heard much of it before in previous government announcements.

There was not much for the poorest pensioners, he said, who did not qualify to pay the lowest tax rate of 10p, so could not benefit from its extension.

Cllr Jones said there were one or two good things, such as, the proposal to cut VAT on renovating old buildings, and to cut vehicle excise duty on tractors.

Cuts in petrol prices would be popular but there was nothing to encourage public transport. And the money for schools and hospitals was probably not enough when it came down to local level.

Ted Collins, leader of the Labour group on Wycombe District Council, also thought the budget was a bit solid, as did Labour's Ken Hulme, who is the prospective election candidate for Chesham and Amersham.

Mr Hulme said the budget lacked phzazz. But he was personally pleased with plans to cut VAT on repairs to historic churches and with moves to encourage the redevelopment of flats over shops in town centres as family homes.

"This could be one step towards revitalising the centre of Chesham," he added.

Cllr Collins said the budget was 'steady as she goes' as Labour was obviously looking towards not just a second, but a third term in office.

He liked the focus on helping families and especially on getting people into work as this saved paying benefits.

He also backed Mr Brown's determination to pay off the national debt.

But Alex Pratt, chairman of the Bucks, Oxfordshire and Milton Keynes Small Business Society, said he was not so sure that paying back national debt did a lot of good, as the money borrowed by the government was the nation's money anyway.

This was not a giveaway budget and there was not a lot in it for small businesses, he said. There were small things like reduced VAT, reducing red tape, share incentives, tax cuts focused on deprived areas, help for start up businesses and modern apprenticeships. But it was all at the margin, he said, and he was more impressed with William Hague's response.

"It was a 'don't rock the boat' budget with lots of small measures to help people with kids and getting people back to work", said Mr Pratt.

Geoff Sherley, director of Kawasaki in Bourne End and vice-chairman of Bucks Economic Partnership, said the Chancellor had done little for transport. "In Bucks the main issue is transport and there was absolutely nothing at all."

He was surprised at the cut in duty on larger cars and would have liked to see something to encourage working from home and green travel plans.

"As far as business goes it was pretty neutral," he said. "It was very safe and confirming that the economy is in a strong position.

Thames Valley Chamber of Commerce was also disappointed there was nothing about transport but was more positive about some measures like simplifying VAT for small firms and the credits for intellectual property and research and development.

Chamber general manager, Bill McCardle, said: "We are relieved the Chancellor has resisted the temptation to launch a major pre-election giveaway, which could have threatened the stability of the economy. Colin Fletcher, of BKR Haines Watts, High Wycombe, said the budget is "as much about politics and electioneering as it is about economic management."

Families to get extra £1,000 under Gordon's budget

FAMILIES in Buckinghamshire are set to benefit from an extra income of around £1,000 a year under Gordon Brown's budget plans.

The Chancellor has announced a 'family friendly' package aimed at helping not only new parents, but single parents and working mums as well.

Increases in maternity pay, children's tax credit, a new parent baby bonus, child benefit and longer breaks for working mums, as well as more pay to stay at home, are all part of the family bonanza.

Although families seem to have been dealt a good deal under the plans, mother-of-two Vikki Hills, a member of Central Wycombe Gingerbread, has given the budget a cautious welcome.

Single parent Ms Hills said: "I think this is a starting point in recognising families and it is encouraging but there is still a lot more to be done."

She said the extended maternity leave and introduction of paternity leave would be a positive step in the right direction and is welcome by parents.

Yet, she believes that in some cases the Government has taken away benefits with one hand and given back with another.

She explained: "They have introduced a new children's tax credit which will be £10 a week but last year they took away an additional tax allowance for children and now it feels like they have brought it back under a different name.

"I think it is good that single parents in particular can benefit from going back to work but it is also good that they are not forced to and they will be given the opportunity of longer breaks to spend with children."

Mr Brown will also give couples an extra £8 a week.

What the budget means for the people in the street

Information analysed by Seymour Taylor Chartered Accountants, High Wycombe

Student

Name: Leanne Giles, 21

Lives: Marlow

Studies: Swansea Institute of Higher Education

Dependants: None

Income: £4,100 a year, a combination of loan, grants and parental contribution

Smokes: No

Drinks: £60 a week

Car: No

Rent: £1,727 a year

Food and Bills: £20 a week for food. £390 a year bills

Analyst's view: "The budget has not affected Leanne's income at all. There were no specific measures which targeted students and, as she is neither a parent or a taxpayer, with her income covered by personal allowances, the various changes announced are not relevant to her. Excise duty on drink was frozen so no change there. So it's just as you were Leanne."

Unemployed

Name: Trish Barrass, 46

Lives: Lane End

Dependants: Four children and a grandchild

Income: £100 a week

Smokes: I smoke what I can afford

Drinks: £10 a week

Car: No

Food and bills: £20 to £25 a week

Analyst's view: "Trish benefits from the increase in child benefit by £1.85 per week but, otherwise, her income is largely unaffected by the budget. She will pay a little more on cigarettes, depending on how much she does smoke. If she is a lone parent on income support, she will be required to have regular interviews from 2002."

Pensioner

Name: Alan Page, 67

Lives: Hazlemere

Dependants: None

Income: £135.97 (includes basic pension and top up from State Related Earnings Pension)

Smokes: No

Drinks: No

Car: Peugeot Diesel, £10 per week

Mortgage: No

Bills: £50 per week

Analyst's view: "Alan's income has increased by about 38p per week. His tax has gone down slightly due to the increase of the ten per cent band but, otherwise, he is not affected by the measures announced in the budget. There were changes in pension level but these were announced previously.

He drives a diesel car so isn't affected by the petrol tax cut."

Young professional

Name: Paul Brooks, 27

Lives: Marlow

Dependants: None

Income: £40,000 a year

Smokes: £120 a month

Drinks: £300 a month

Car: Renult Laguna (company car)

Mortgage: £560 a month

Food and bills: £200 a month

Analyst's view: "Paul's income has decreased by £1.66 per week, which is due to a slight increase in his National Insurance contributions. This more than offsets the decrease in tax caused by the changing of the rate bands. He will also pay approximately 30p a week more on cigarettes."

Single Parent

Name: Alison Willans, 35

Lives: Totteridge

Occupation: Part-time sales assistant.

Dependants: Emily, seven, and Grace, five

Income: £204 per fortnight working families tax , £75 per week wages. Ex-husband pays £204. per month

Smokes: No

Drinks: No

Car: 1996 Astra, £10 per week

Mortgage: No, lives with parents

Bills: £300 per month for food and lodging

Analyst's view: "Alison's income has increased by £13.42 per week due to the changes in tax rates, national insurance and child benefit.

As a working parent, she is one of those the chancellor said he wished to help most. She also benefits slightly from the drop in petrol pax, until June, assuming her car takes unleaded fuel."