“A budget for Britain’s families, for pensioners and for the future” is the way Gillingham and Rainham MP, Paul Clark has described today’s budget unveiled by Chancellor of the Exchequer, Gordon Brown.

Today’s budget, which is likely to be the Gordon Brown’s last, sets out increases in spending on public services and reforms to the tax system to reward work.

Education spending will rise to its highest ever levels, child benefit increases mean families will be better of and 600,000 pensioners will no longer pay income tax.

Education spending will rise to £90 billion by 2010-11 the highest ever level, increasing UK education spending from 4.7 per cent of GDP in 1997 to 5.6 per cent by 2010-11.

The child element of the Child Tax Credit will rise by £150 a year, over and above the commitment to increase it in line with earnings to the end of this Parliament. This raises the child element to £2,080 benefiting over 10,000 families across Medway.

Child Benefit will also rise in three stages to £20 per week by 2010.

And in Medway, the Government’s commitment to early year’s support means that families in Medway will benefit from around 20 Sure Start centres by 2010.

The Chancellor also announced new plans to raise the pensioner tax allowances so that 600,000 pensioners are taken out of tax altogether. By April 2011 no pensioner over 75 will pay any tax on incomes under £10,000.

This comes on top of the measures we have already taken to support pensioners including a Winter Fuel Payment of £200 for households with someone over 60 and £300 for someone over 80, free prescriptions & free eyesight tests and free TV licenses for over 75s.

Paul Clark MP said: “Thanks to a strong and stable economy, Gordon Brown has been able to deliver new money to boost education – increasing spending to its highest ever level, along with more support for families here in Gillingham and Rainham.

“We can be confident about our future but we must never be complacent. We will never take risks with stability, because I – like many here in Medway – remember the misery that spiralling interest rates and home repossessions caused millions of families.”

“I am immensely proud that the increases announced today to the Child Tax Credit will help over 10,000 families across Medway improve their standard of living and the life chances for their children.”

To further support hard working families Gordon Brown also announced that for every taxpayer he will cut the basic rate of income tax from 22p to 20p, the lowest basic rate of tax for 50 years.

Mr Clark also praised measures that support business, tackle climate change and help his constituents who lost their pensions when private firms went bust.

The headline corporate tax rate will be cut from 30 per cent to 28 per cent from April 2008 together with other significant reforms to the corporate tax system.

Measures to encourage energy efficiency and tackle climate change include an increase in fuel duty rates from 1 October 2007. Vehicle Excise Duty will be increased for the most polluting cars, while the zero-rate remains for green cars and the cost for Band B vehicles will be reduced to £35.

Carbon zero homes up to the value of £500,000 will also be exempt from stamp duty.

Meanwhile, the Financial Assistance scheme will be extended from its present budget of £2 billion to a total of £8 billion so that every one of the 125,000 workers who lost their pensions when firms went bust will now receive help.

The adult rate of the National Minimum Wage will be raised to £5.52 per hour and an increase in the Working Tax Credit, along with a new initiative with major retailers, will help more people find jobs and employment in the future.

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Notes to Editors
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