Pre-Budget Report

On Monday of this week, the Chancellor took decisive action, and outlined a clear choice for British people; a choice between real action now – or no help at all. Labour is giving real help to support people through the current global economic downturn, and the Pre-Budget Report announces real help for people during difficult times:

Action now to help businesses and families, with a one year cut in VAT of 2.5% – putting a £12.4bn boost into the economy increasing household income next year by;

  • Giving every basic rate taxpayer £145 extra (up from £120 this year).
  • Giving every pensioner £60 in January.
  • Increasing child benefit to £20/week in January instead of April.
  • Increasing child tax credit by £75 a year in April above indexation.
  • providing more loans for small businesses and allowing them to spread their tax bills on a timetable they can afford.
  • £1.3bn extra help for job centres to get people back to work, and a 3 month moratorium from the major lenders on repossessions for homeowners who get into arrears.
  • Binging forward £3bn of capital projects including on housing repairs and insulation, school extensions, GP refurbishments and transport improvements to provide jobs right now when the economy is under pressure.

These are exceptional times and they require exceptional measures. What families and businesses need is real help now. The Labour Government is taking action to help families and businesses through the tough times caused by the global credit crunch, by helping people, and putting money into the economy now so we come out of this sooner and stronger, and once the economy is growing again, tackling the public finance problems caused by the credit crunch, in a way that is fair to all.

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