MP: Budget will hit area's poorest

Eric Baxter • Published 23 Jun 2010 14:00

THE UK Government's emergency budget could lead to the poorest in Inverclyde being hit the hardest, according to the area's MP.

Labour MP David Cairns has warned that the tough measures outlined by the Tory and Lib Dem coalition government could lead to more people in Inverclyde being out of work.

Chancellor George Osborne announced measures including a rise in VAT from 17.5 to 20 per cent, child benefits frozen for three years and new limits on housing benefits, an increase in income tax allowance, a rise in capital gains tax and a two-year freeze on public sector pay over £21,000.

Mr Cairns said: "We all know the deficit has to be reduced, but the Tory Lib Dem government is cutting the wrong things at the wrong time, and putting the recovery at risk.

"My fear is that many of the measures, such as the scrapping of the Future Jobs Fund, will lead to more people in Inverclyde being out of work.

He said raising VAT and freezing child benefit for three years will 'hit Inverclyde's poorest families hardest'.

He said: "We needed a budget for jobs and growth so this is a missed opportunity. It won't help people in Inverclyde, it won't help the economy and it's an attack on hard-working families throughout the country."

Tory councillor David Wilson defended the cuts and blamed the previous Labour government for the state of the economy.

He said: "The outgoing Labour Treasury Minister Liam Byrne left a note for his successor saying 'there is no money left'. We now know how true that was.

"Labour have left the country with record debts and spending spiralling out of control.

"This tough-but-fair emergency budget will put us back on the road to recovery while protecting the lowest-paid and the most vulnerable in society."

Liberal Democrat Ross Finnie said the budget would make the first big dent in trying to cut the nation's deficit.

He was pleased it helped the low paid by increasing income tax allowance and that it reinstated the link between old-age pensions and inflation as well as putting £2 billion into the child element of tax credit to tackle child poverty.

He said: "The budget has been made much fairer because of the Liberal Democrat influence in the coalition."

SNP MSP Stuart McMillan also blamed the previous government but said the cuts go too far, too quickly and risk damaging the recovery.

He said: "What is needed is a responsible approach and a plan which reduces the deficit gradually and generates long-term growth."

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This article appeared in Greenock Telegraph 23 Jun 10

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