The Budget
Posted by Ashok Kumar, MP for Middlesbrough South and East Cleveland, at 15:13, Thu 22 March 2007:
The big issue in Parliament and the news this week is what looks set to be Gordon Brown’s last budget. Attention has consequently been focused on the economy - a real success story over the last decade. The past 10 years have been the longest period of uninterrupted economic growth and this is coupled with employment, inflation and investment rates which are amongst the very best of the EU members and G7 nations. Our record stands in stark contrast to the boom and bust years of the Conservatives in the 1980s and early 90s.
The budget announcement which caught the headlines is the two pence reduction in the basic level of income tax. This will benefit many people in the constituency on middles incomes who aren’t eligible for tax credits or other government assistance.
There are several other areas of the budget I want to highlight as good news for Teeside in particular. Firstly the chancellor announced that public investment in science is to rise from £5bn this year to £6.3bn by 2010. This translates into extra support for the high tech and R&D industry, which are crucial to prosperity on Teeside. There were also notable benefits for the new biofuel sector in my constituency. Duties on biofuels have been reduced and a positive message for the future has been sent to the biofuel industry with tax reductions and increases reflecting the differing fuel efficiency of cars.
There is to be a £6bn increase for the Financial Assistance Scheme for people who have lost their occupational pension through the insolvency of their employer. Having long campaigned for a better deal for pensioners who worked at the BUSM Texon plant in Skelton I was delighted support for them has been strengthened. Further news for pensioners was the announcement that 600,000 people receiving a pension are to be taken out of income tax altogether. Grants of between £300 and £4,000 will also be available to provide pensioners with home insulation, meaning an end to cold winters for many in my constituency.
In terms of investment the chancellor announced the largest ever increase in NHS funding of £8bn. Education will also see a great increase of £14bn by 2010. This will not only mean new and refurbished schools, but greater funds for children’s centres, one to one tuition for pupils falling behind in English and Maths and increases in nursery provision. After school activities will be boosted and financial support will be provided for school leavers to learn new skills under apprenticeships. These investments make clear our priorities for the future.
If you wish to get in touch with me about any of these issues, or on any other matters, please do not hesitate to do so by calling 01287 610878, e-mailing ashokkumarmp@parliament.uk, or writing to Ashok Kumar MP, House of Commons, London, SW1A 0AA. Alternatively feel free to leave comments on the website www.hearfromyourmp.com to join in the debate.
Best wishes
Ashok
Commenting on this message is now disabled.