| David Cameron: "High debt. High interest rates. High taxes. And now lower growth. Those are the facts that this Budget cannot hide. They tell the story of just how badly prepared we are for the downturn. And we all know why. In the years of plenty Labour put nothing aside. They didn't fix the roof when the sun was shining." George Osborne: "This is a bad news Budget which kicks Britain's families when they are down. The cost of living is already rising fast and the government has added to it with stealth taxes on cars and alcohol, when we believe that these kinds of taxes should be offset with tax reductions elsewhere." | |
| Tax rises • New taxes announced in the Budget include (over the next three years): o £1.6bn extra on drivers, even with the delayed fuel tax rise. o £1.5bn extra on all alcoholic drinks, hitting 43 million people. o £1.7bn extra on businesses • Council tax is due to go up by more than 5.1% - more than double inflation • The tax take will be £2.8bn a year higher by 2010, that's £110 more for every family. If benefits are excluded, the tax take will be £4bn higher. The biggest alcohol tax rise for a generation • Darling announced an across the board 6% alcohol tax increase – significantly above the rate of inflation – which will come into effect next week. • This means 42 million drinkers paying more tax – 37 million more than under our plans for revenue neutral targeted tax increase on problem drinks announced last week. • According to the Beer and Pub Association, the new alcohol tax escalator will mean that a pint of lager in London will cost £6.50 by the time of the 2012 Olympics. • Just two weeks ago, Alistair Darling claimed that he was opposed to across the board alcohol tax increases: 'I don't take the view that the best way to deal with this is to punish everybody for the sins of a minority.' Find out more about the biggest alcohol tax rise in a generation 70% of motorists will pay more Vehicle Excise Duty (VED) • Darling's changes to VED will hit millions of motorists driving ordinary family cars. • A family driving a Ford Mondeo or Volvo V70 Estate car will see their total VED payments rise more than 30 per cent over the next three years. • When Darling's new first year VED rates are introduced then ordinary families will pay even more: a family buying a Citroen Picasso in 2010 would pay car taxes that are almost double todays levels. Find out more about Darling's stealth taxes on motorists Borrowing levels soaring • For the first time in years, borrowing is predicted to go up - £7bn higher next year than this. • The borrowing forecast has been increased to £140bn over next four years, up £20bn on the PBR just five months ago, and up £34bn on the Budget. Growth down • Darling has downgraded his growth forecast, increased his inflation forecast, downgraded business investment, and savings. The current account is at a record level, and export growth shrinking. Ignoring public opinion on road pricing • The Budget reaffirms the Government commitment to a national road pricing scheme, despite 1.8 million people signing a Downing Street petition against the change. No new money for key areas • No new money for defence – and, despite promises of £200m extra, there is no new money for education. • Darling said: "The Secretary of State for Children, Schools and Families will be investing £200m to bring forward by a year to 2011 the Government's aim for no schools to have fewer than 30 per cent of its pupils achieving 5 A*-C GCSEs, including English and Maths." • However, these measures are not listed in the table of Budget policy decisions in Darling's budgetary Red Book – and the education spending allocations remain unchanged. Find out more about Darling's refusal to give more money to schools Headline Grabbing • Darling's winter fuel allowance is only in place for one year, costing £575m. It is offset by a permanent cut in the S2P buried in the small-print, which will raise £450m a year. • Darling extended the low duty on zero carbon homes to flat and maisonettes. But there are only six zero carbon homes. • Despite the hype, reductions to Stamp Duty for shared ownership do not cost a penny. Find out about Darling's meagre welfare measures Find out more about Darling's failure to help people onto the housing ladder | |
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