Kirsty Williams AM

Kirsty slams Budget's failure to help the people of B&R

Kirsty Williams, AM for Brecon and Radnorshire, has criticised the budget which she says will do little to help the ordinary people of Brecon and Radnorshire in this time of recession.

Kirsty said: "Today's budget is a pick and mix of recycled and random announcements which will have no immediate impact on those who are currently struggling through these hard times. There has been no attempt to address our unfair tax system and put money back into the pockets of low and middle income earners.

"The current tax system penalises the poor while leaving unfair tax loopholes for the rich to exploit. The Liberal Democrats would get practical help to people who are struggling and cut the vast majority of people's Income Tax bills by £700, paid for by taking aggressive action to clamp down on all the loopholes and exemptions that benefit the richest people and biggest businesses.

"As the cost of food, heating, water and transport continue to rise, families in Brecon and Radnorshire haven't been given any practical help by the Government. The continuation of the VAT reduction is money wasted which has little impact on individual's purses but could have a big impact on frontline services.

"I am pleased to see that additional money has been announced to provide universal broadband across the UK. However the actual impact this will have on Wales and rural areas such as Brecon and Radnorshire remains to be seen. It will be essential for the Welsh Government to fight Wales' corner for a share of the announced funding, based on need rather than population, if it is to ensure that the roll out of universal access by 2012 reaches all areas of Brecon and Radnorshire and other parts of rural Wales.

"It is hugely disappointing that the Government has not used this budget to effectively and efficiently help struggling families and businesses through these hard times."

Notes:

Key points of 2009 Budget

TAX

• Income tax for those earning more than £150,000 to rise to 50% from April 2010

• Tax relief on pensions to be reduced for people on more than £150,000 a year from April 2011

UK ECONOMY

• Economy forecast to shrink 3.5% in 2009

• Growth expected to pick up in 2010, expanding by 1.25%.

• Economy to grow by 3.5% annually from 2011

• Public borrowing to increase to £175bn this year

• Borrowing levels to rise by £173bn, £140bn, £118bn and £97bn in years after

• Consumer price inflation to fall to 1% by end of year.

• Capital investment to continue at historically high levels until 2012

JOBS AND TRAINING

• Government support for economy to protect 500,000 jobs

• All long-term unemployed under 25s to be offered job or training

• £1.7bn additional resources for Job Centre network

• £250m funding to help people get work experience in growth industries

• Funding to create 54,000 new places in sixth form education

HOUSING

• Scheme to guarantee mortgage backed securities to boost lending

• Stamp duty holiday for homes up to £175,000 to be extended to end of year

• Extra £80m for shared equity mortgage scheme

• £500m to kickstart stalled housing projects - including £100m for local authorities to build energy efficient homes

• £50m to upgrade housing for the armed forces

ENVIRONMENT

• Britain commits to cut carbon emissions by 34% by 2020

• An extra £1bn to help combat climate change by supporting low-carbon industries

• £525m for offshore wind projects over the next two years

• £435m support for energy efficiency schemes for homes, firms and public buildings

• £405m to encourage low-carbon energy and advanced green manufacturing

CAR SCRAPPAGE SCHEME

• From next month until March 2010 motorists to get £2,000 discount on new cars if they trade in cars older than 10 years

GOVERNMENT SAVINGS

• Tax loopholes and schemes identified which could provide £1bn of extra revenue over the next three years if closed

• An extra £9bn in efficiency savings is planned

• Public spending to be cut from 1.1% next year to 0.7% in 2011-2012

BENEFITS

• Child tax credit to rise by £20 by 2010

• Child trust funds for disabled children to rise by £100 a year, £200 a year for severely disabled children

SAVINGS

• Annual limit for tax-free ISAs to rise to more than £10,000 for over-50s this year and for everyone else next year

PENSIONERS

• Grandparents of working age who care for their grandchildren will see that work count towards their entitlement for the basic state pension

• Winter fuel allowance to be maintained at higher level - £250 for over 60s and £400 for over-80s - for another year

• The basic state pension will be increased by at least 2.5%, regardless of inflation

CIGARETTES, ALCOHOL AND FUEL

• Alcohol taxes to go up 2% from midnight - one estimate is that it would put 5p on the average pint of beer

• Tax on tobacco to go up by 2% from 6pm

• Fuel duty to rise by 2p per litre from September, then by 1p a litre above indexation each April for the next four years

HELP FOR BUSINESS

• Help for loss-making companies extended - they will be able to reclaim more taxes paid in the last three years until November 2010

• Businesses' main capital allowance rate doubled to 40%

• New £750m strategic investment fund to help emerging technologies and regionally important sectors

(source: http://news.bbc.co.uk/1/hi/uk_politics/8011882.stm)