Wednesday, 23 June 2010

Laura welcomes the tough but fair budget

There have been a lot of really difficult issues to balance in this budget and it was impressive that the Coalition was able to support those in need while addressing the big concern of our significant and growing deficit. The deficit inherited from the last Government is growing by 3bn every week.

In Thanet we have some real problems that will be helped significantly by this budget. Pensions will rise; lower income workers will pay less tax – and some employees will not be taxed at all; small businesses will be taxed less and for poorer families the child element of the family tax credit will be raised by £150.

For Thanet in particular there will be many who will benefit from the Budget announcements not least those who own furnished holiday homes who will not be impacted by the Labour taxation policy, taxes for our businesses at the port will not be backdated, a Green Investment Bank will be established that will invest in businesses that support our already growing green energy sector and there will be significantly more investment in our broadband connectivity.

There are difficult decisions that I know have had to be made and everyone will be impacted by the VAT rise. Public sector workers earning more than £21,000 will have a pay freeze however those paid under £21000 will not be subject to this change and will actually receive £250 more.

There was a lot of concern locally about the possible rise of Capital Gains Tax. We have announced that anyone on the basic tax rate will still only be paying 18% as before and those on the higher tax rate will pay 10% more putting the rate at 28%. This I believe is fair and also helps curb those who have claimed income as if it was capital gains to get a lower rate of tax.

We do still have work to do, and Roger Gale and I are very focused on ensuring that Thanet receives the same incentives for start up businesses as in other parts of the country. This will be brought up by many of us in Parliament in the next few weeks.

1 comment:

  1. Conveniently ignoring the abolition of SEEDA, I note, so where is the inward investment going to come from to get Thanet moving again? Private sector? i doubt it when there will be no incentives for private developers to move here. Even the Chinese seem reluctant to foot the bill for developing China Gateway.


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