Siôn Simon, Labour MP for Erdington, today welcomed the pre budget report as real help for people and businesses through tough time.
“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 now and putting money into economy we will come out of this sooner and stronger,” Said Siôn.
The measures announced in this crucial mini budget include; a one year cut in VAT from 17.5% to 15% effective immediately in order to ease the pressure of Christmas spending; instructions to banks to give struggling homeowners three months grace before repossesion proceedings start and an extension of government-backed mortgage rescue schemes, which aim to keep low income borrows in their homes.
The Chancellor also announced that the top rate of income tax would be raised from 40p to 45p in the pound after the next general election, whilst there will be a targeted tax cut for people on low incomes benefiting an estimated 22 million basic rate tax payers through changes to the personal allowance.
In Erdington it is estimated that over 6500 pensions will benefit from the announced rise in Pension Credit and 12 400 families from the rise in the child tax credit. Carers too will benefit from a £60 Christmas Bonus, along with pensioners and those on incapacity and disability allowance.
Mr Simon added: “This is a comprehensive package of measures which will ensure those on low income and vulnerable groups are given the support they need whilst stimulating our economy to help us out of this economic down turn. This pre budget report shows the Government is behaving responsibly and taking the right action”
