Mixed reaction to pre-budget report

Money

Alistair Darling's pre-budget report has received a mixed reaction from Rochdale's politicians. While the Labour group support the announcements, saying that there will be widespread benefits for the people of Rochdale, MP Paul Rowen says that it is a missed opportunity and added that thousands of people who earn more than £19,000 in the area will be hit with higher tax bills by the announcement that National Insurance will increase.

Mr Rowen's opponent, Labour candidate Simon Danczuk, has welcomed the pre-budget report, saying that is a bold and necessary move to protect jobs and businesses, and support people through difficult times.

“Today’s announcement by Alistair Darling is the right thing to do and it has been supported by Governments all over the world,” he said. “This is about helping people, and putting money into the economy now so we come out of the downturn sooner and stronger, and once the economy is growing again, tackling the public finance problems caused by the credit crunch, in a way that is fair to all.”

Those sentiments were echoed by Heywood and Middleton MP Jim Dobbin. "Given the worldwide forces hitting the UK economy nationally and locally, I welcome the Chancellor’s budget proposals today – which means real help homeowners, to protect jobs and businesses.

“I especially welcome the special payment to all pensioners in Heywood Middleton Castleton Norden Bamford and Oakenrod constituency of £60 on top of the Christmas bonus of £10. Families of disabled children will also receive this extra cash boost.

“All families locally will benefit from the increase in Child Benefit which will start straight after Christmas."

But Paul Rowen claimed that Alastair Darling has ‘missed a golden opportunity’. “This seems to be a pre-budget report of missed opportunities," he said. "If Mr Darling was serious about cutting taxes he should have put more money into the pockets of the poorest instead of offering incentives to spend more money that many people simply cannot afford.

"It’s a little bit like offering two for the price of one when people cannot afford even one item. What his budget is basically offering is a 50p cut in a £25 pair of shoes and this won’t help the many people coming to me struggling to pay for their weekly shop. The temporary cut in VAT is expensive and fails to deliver. What’s the good of offering spending perks when people haven’t got the money in the first place?

“If Alastair Darling was that concerned about helping the poorest off he would actually put money in Rochdale resident’s pockets. The Lib Dem policy to lower the basic rate of income tax from 20p to 16p in the pound, partly paid for by closing tax loopholes would have done this and ensured that consumer confidence at all levels was met by ambition to spend, triggered by more money in the pockets of Rochdale residents.”

Simon Danczuk countered that more money would be put into the pockets of the poorest and hit out at the Lib Dem's economic performance in Rochdale: "Here in Rochdale the Lib Dems are currently considering reducing the wages of the lowest paid Council workers under their pay and grading review,” he said.

“Add to this the fact that Rochdale Lib Dems have introduced an above inflation increase in Council tax this year, have a poor adult care system and are trying to evict Council tenants for being behind on their water rates. While the Labour Party cares for the people of Rochdale the Lib Dems are happy to watch people suffer in these difficult times when they need help the most.”

The Labour men argue that more than 30,000 pensioners across both constituencies will benefit from a rise in the Pension Credit, up to £130, over and above the rise they would normally see and rising to £198.45 for couples.

But Mr Rowen says that pensioners will feel let down by 'a repeat of previous promises'. He said: "The Chancellor’s pledges to pensioners have already been announced and now Labour is delaying it by 5 months, this means a net reduction for pensioners. It was originally promised that pension credit would rise to £130 as long ago as 2007.

"Pensioners have known about this rise for two years and are now being told to wait another five months. The announcement on the increase of the basic state pensions was deceptive to say the least. The Government promised to increase it by inflation four years ago. Alistair Darling’s ‘grand gesture’ is insulting to Rochdale pensioners. It offers nothing extra today, just what they were already expecting."