First Coalition Budget

9.00.00am BST (GMT +0100) Wed 23rd Jun 2010

Simon Hughes - Lib Dem Deputy Leader

The Coalition Government published its first Budget yesterday and it contained few surprises but did hold out hope for Exeter..

Lib Dem Deputy Leader Simon Hughes commented:

"Liberal Democrats made the correct judgement last month to be influential partners in a majority coalition, rather than be marginalised opponents of a minority Government entirely implementing Conservative policies,:

"The budget clearly reflects many of the tax priorities which won the Liberal Democrats almost seven millions votes at the election.

"As a result of this budget millions of pensioners and those on low incomes will be helped and people with greater wealth will contribute most.

"Of course the budget required compromise, but the country can clearly see the Liberal Democrats have a major influence on UK economic policy. From now on, Britain will be a fairer place.

"We will make sure that the spending reductions reflect Liberal Democrat priorities and always protect the needy and the vulnerable."

Graham Oakes

Graham Oakes, the Liberal Democrat Parliamentary Spokesperson for Exeter said:

"Everyone knows that the country is massively in debt and that Labour's 'put it on the credit card' approach to economic policy was unsustainable. Whoever had won the election faced a massive challenge and would have to increase taxes and cut spending.

"I am particularly pleased to the first phase of the rising of the Income Tax threshold helping workers who pay basic levels of tax and the guaranteed protection for state pensioners"

"The public sector pay freeze for workers earning £21,000 or more, announced by Labour before the General Election, is unavoidable. I am surprised how many Labour politicians, including Ben Bradshaw, have conveniently forgotten it was their idea."

The pay freeze does not apply to 1.7 million public sector workers who earn less than £21,000 but their pay rises will be limited to a maximum of £250.

Graham added:

"Exeter, unlike the vast majority of the South West, is particularly at risk from cuts in public spending as the Hospital, Met Office, University and two councils are major employers, so I was pleased to learn of the decision to a regional growth fund specifically for places like Exeter that could be badly hit by public sector cuts."

Tackling Child Poverty remains at the heart of the government's approach. So while the Budget included cuts to child tax credits for those who can most afford it, it also increased tax credits for the poorest families and put up to £ 2 billion into child tax credits to help ensure children of all backgrounds get a fair start in life.

The Budget puts in place the Lib Dem promise of a new tax on banks, ensuring that they help to pay to clear up the mess left by the financial crisis.