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Labour's pre-budget report: Bankers pay an extra £500m while ordinary people pay an extra £3 billion

December 9, 2009 1:45 PM

Reacting to today's Pre Budget Report by the Chancellor, Lib Dem parliamentary spokesman for Newcastle East Greg Stone said:

"No matter how the Chancellor tries to dress his shrivelled and dying Christmas tree with tinsel and baubles, the truth is that Labour have spectacularly miscalculated the size of the recession they've got us into, have got us into spectacular levels of government debt, will have to make huge cuts to public spending, and to cap it all, are now increasing taxes on ordinary families who will be paying six times more in extra tax than the bankers who created this mess. Everyone earning over £20,000 will have to pay more in national insurance, and more people will have to pay the top rate of tax in future"

"As ever in budget statements, there are some new spending commitments, but even extra spending on like low-carbon energy schemes and home insulation are wiped out in real terms by pre-existing spending cuts. Investment in major infrastructure projects like rail modernisation is a good thing, but yet again, the North East will miss out. East End bingo players will pay slightly less tax than before, but the only real good news from this statement is that unemployed young people will now get help after 6 months, as the Lib Dems have called for, rather than 12 months. "

"Labour's management of the economy and of public spending has failed disastrously, and now Labour wants hard working ordinary people to pay six times as much as millionaire bankers in order to balance the books. At the election, Newcastle East's voters will have a clear choice between paying more tax under Labour or £700 tax cuts under the Lib Dem plan to raise the income tax starting point to £10,000. If Labour were committed to fair taxes, social justice, and tackling poverty they would have backed our tax plans, but yet again, they have failed.

There is no Christmas cheer from the Chancellor, just tax rises and spending cuts."