Julian Huppert MP: Response to Yesterdays Budget

Cambridge Liberal Democrat MP Julian Huppert has posted his response to yesterdays Coalition budget announcement via the Cambridge City Liberal Democrat Activists mailing list (in response to a request from Cllr Sarah Whitebread);


"Hi all,


I'm still, like you, trying to digest all the details of the budget.


But I thought I'd write to you with some of the key issues, and my thoughts on it. I've seen Sarah W's email, and I know I'll miss out many details - ask me and I'll do my best to answer them.


I think it's fairly clear which bits of the budget were Lib Dem, and which were Tory.


Our key priority was to increase the threshold at which people start to pay income tax. This was our key policy at the General Election, and we agreed in the coalition agreement to prioritise it as well. Our aim was to lift the threshold to £10,000 by 2015.


The announcement was that it has been lifted to £9,205 - very close to the £10,000 objective, after less than 2 years. This will result in 2 million poorly paid people being lifted out of tax compared to 2010, and cuts for 28 million people, amounting to £546/year for most basic-rate payers, and less for higher-rate earners.


We should be very proud of that achievement, and remember to tell people about it!


For someone who works full-time on the National Minimum Wage, we will have halved their tax bill. I hope we can go further in the next years - I think that no-one earning the minimum wage should pay any income tax at all!


The Tory priority - obsession even - was the 50p tax rate, which is to be cut to 45%. This is not where we would have chosen to focus, but we insisted on countervailing measures to tax high earners - stamp duty on houses over 2 million, reducing tax relief amounts for high earners, and a few other points. These are estimated to raise 5 times as much as the lost income from the tax rate change - so high earners will be paying more (1.3k/year on average, according to the best estimates).


It's also worth remembering that the top rate was 40% for all but 35 days of the Labour Government, and this is still higher than that.


There was also good news for pensions - they are going up by 5.2%, and Steve Webb's Citizen's Pension idea is going ahead, with the State Pension moving from a base £97.50/week, plus extra for some, to a minimum of £140/week for all. There is no change to the income tax threshold for pensioners, who will continue to not pay anything on the first £10,500 (£10,600 for those born before 1938).


There are lots of other details as well - some that should be very good for Cambridge, such as tax credits for video games, assistance for university spin-outs and entrepreneurs, extra money for research infrastructure and 50M for super-broadband in smaller Cities, some of which we will get. And much, much more.


It's not the budget we'd have written ourselves. But it is good for low-earners, and it takes more money from the richest.


Best,


Julian
---
Dr Julian Huppert MP
Member of Parliament for Cambridge
Liberal Democrat
http://www.julianhuppert.org.uk"

Budget Response From Cambridge MP Julian Huppert

“I am delighted that through this Budget we have been able to deliver on our key promise to give ordinary workers in Cambridge another £220 cut in their income tax bills and take hundreds more low-paid workers out of paying income tax altogether.

“This means that basic rate taxpayers have seen a total tax cut of £546 putting more money back into their pockets and moving us faster towards our goal of making the first £10,000 tax free.

“Through this budget we have also made sure that the richest pay their fair share – something Labour never did - by putting a cap on the amount of tax breaks the wealthy can use to cut their income tax bills. People earning over £150,000 a year will pay significantly more as a result of this budget.

“Businesses have also been given a break with the reduction in corporation tax. Specific measures to support research and development and technology investment while further simplifying tax rules for small businesses, are also good news for the city. And by raising the Bank Levy, we are making sure that the banks that contributed to this economic crisis keep paying their fair share.

“I was pleased to hear that there is extra money available for high-speed broadband in cities like Cambridge. I've already contacted the Department of Culture, Media and Sport to ask for some of this.

“The top up of the Growing Places Fund, giving Local Enterprise Partnerships in the East of England an extra £16.4 million, promises to bring benefits to the region helping it to manage growth and create new jobs.

“And this Budget shows real progress on our commitments to infrastructure – on roads, railways, and renewable energy. Tougher green taxes on company cars will help cut emissions as well as raising money.”

Cambridge MP Huppert Calls For Fair Budget And Investment In Growth

Julian Huppert, Member of Parliament for Cambridge, has called for tomorrow’s budget to raise taxes on the rich in order to ease the burden on low and middle incomes.

Julian said: “Tomorrow the Chancellor must announce a package of reforms which make our tax system fairer.

“I want to see the Government go further on the Liberal Democrat plan to give low and middle income workers more of their take home pay. He should extend the rise in the personal allowance to £10,000 now. It is already due to rise to £8,105 this year, from £6,475 when we came to office. Going further and faster will give every worker in Britain, except for the richest, an extra £60 a month.

“The rise in the personal allowance was on the front page of our manifesto and the Government has committed to fulfilling this promise by 2015. I want to see it happen faster. People earning as little as £10,000 a year deserve to keep their money, not have it taken as income tax.

“It is absolutely crucial that we fund this tax cut through tax rises on the richest. If the Chancellor insists on abolishing the 50p tax rate, he must replace it with taxes which are targeted on the rich and raise more money from them than the 50p rate did.

“Whether it’s a tycoon tax, a mansion tax or a clampdown on stamp duty, tax avoidance and loop holes – the rich must pay more, while poor and middle income households must earn more.

“As well as making tax fairer, the budget must protect those out of work, while investing in growth. The Government has already agreed that benefits should go up by 5.2% this year. They should stick to that plan.

“There should also be capital investment in growth areas. In particular, I’d like to see additional investment in science, research and innovation. Such funding would be crucial to a balanced recovery; the Chancellor should commit this Government to growth tomorrow.”

Lib Dems Renew Call For Freeze In Councillor Allowances

Cambridgeshire Liberal Democrats have renewed their call for a freeze in Councillor allowances as a vote on the issue is imminent.

They maintain that as Cambridgeshire County Council makes cutbacks Councillors should not be voting to increase their pay.   

Lib Dem group leader Kilian Bourke said: “We believe that at a time of redundancies, wage freezes and cuts to frontline services it would be wrong for Councillors to use the proceeds of an increase in council tax to give themselves a pay rise.

“A freeze would be the right outcome, and would go some way toward repairing the loss of public trust that took place last year when the Conservatives gave themselves a 25 per cent pay rise.

“It is a shame that they have made provision in this year’s budget for a £100,000 increase, but they still have the opportunity to reject that increase and reallocate it to core services.  We would support this and urge them to do so.”

As well as calling for a freeze in allowances, the Liberal Democrats have made three specific proposals regarding allowances in their alternative budget:

• To delete the £100,000 set aside in the Conservative budget for an increase in Councillor allowances, and use this to reduce council tax by a small amount;
• To encourage people from a wider range of backgrounds to stand for election as Councillors by holding meetings later in the day and evening.  Lib Dems believe this would have a greater effect in terms of attracting a wider range of people than even a substantial increase in Councillor pay.
• To reduce the size of the Cabinet, investing some of the money saved in council services, redistributing the rest between the remainder of the Cabinet.  This better than cost neutral proposal addresses concerns that the Cabinet role is more full time, making holding down a professional job difficult.
  

County Councillors are expected to vote on Councillor allowances on March 27 if the Independent Review Panel has lodged its report.

Young People Would Get Free Transport Under £80,000 Scheme

Young people looking for education, training or employment would be entitled to free transport under an £80,000 scheme proposed by Cambridgeshire Liberal Democrats.

The scheme would be run by Cambridgeshire County Council Locality Teams and would cover all forms of public transport.

Cllr van de Ven

Liberal Democrat Shadow Cabinet Member for Transport, Susan van de Ven said, “Young people face unprecedented pressures, and the prohibitive cost of transport can be a blockade to opportunity.

“It is unfortunate that the county council not only fails to provide supported transport for young people in this situation, but is actually planning to cut 100 per cent of subsidised bus services.

“Our modest proposal would ensure that every young person seeking education, training and employment would be given a helping hand with making that first step.

"We believe that the principle of wider access to public transport for young people should be developed much further.”

The proposal has been inspired by the train operating company First Capital Connect, which is currently working with the Department for Work and Pensions on a scheme to allow people on Job Seeker’s Allowance free travel to job interviews and forthe first month of employment, when arranged through Job Centre Plus.

Councillor van de Ven added: “In rural areas, some parish councils and community transport providers are already supporting very localised transport schemes for young people. The county council should be playing a leading role in facilitating access and mobility for young people who need it most.”

Lib Dems Pledge To Maintain School Buildings And Improve Energy Efficiency

In their alternative Cambridgeshire County Council budget, the Lib Dems have set aside £10 million over the next five years to maintain and improve the buildings of the 200 schools for which the council is still responsible.

“The council has a school maintenance backlog of over £20 million”, said Lib Dem Education Spokesman, Peter Downes. “We would increase the investment in making schools fit for purpose and we would give priority to maintenance work that would improve energy efficiency.

“This is a win-win situation. The school would reduce its expenditure on energy, thus releasing more funds for teaching, and the county would have to pay less in carbon tax.'

Central government has cut back drastically on the funding it makes available directly to school for capital improvements in order to fund its other schemes, such as the creation of 'free schools'.

“The government has got its priorities wrong and we must do what we can at a local level to redress the balance,” said Kilian Bourke, Lib Dem Group Leader.

Lib Dems Bid To Solve Poor Exam Record For Disadvantaged Pupils

Cambridgeshire has one of the lowest records in the country for helping pupils from disadvantaged backgrounds achieve their full potential.

The county comes 12th from the bottom in league tables for achieving five A* to C grades in GCSEs including English and Maths; only 25 per cent of the pupils on free school meals achieve these targets.

In a bid to close the national performance gap, Liberal Democrat Children's Minister has allocated an extra £600 per Free School Meals child, the Pupil Premium.

With this money schools will be able to support children from disadvantaged backgrounds by providing extra one-to-one tuition, more teaching assistants or after-school activities.

This year, the amount available nationally for the Pupil Premium will be doubled to £1.25bn and this will increase to £2.5bn by 2014-15.

Peter Downes, Liberal Democrat Education Spokesperson and former secondary school headteacher, said: “The gap between those who do really well and those who don’t is too great. Unfortunately, how wealthy your parents are has been a deciding factor in a child’s chances for too long.”

Cllr Downes, who represents Brampton and Kimbolton on Cambridgeshire County Council added: “As a Liberal Democrat, I believe we cannot let this continue and that is why we must help children reach their full potential. In the Cambridgeshire Liberal Democrats’ budget amendment we propose to enhance the Pupil Premium by £250 per pupil in the eight most deprived schools in the county.”

Liberal Democrat Children’s Minister, Sarah Teather said: “These figures reveal that children from deprived backgrounds have been let down by previous governments. All too often, children from disadvantaged backgrounds do not get the same opportunities as their more well-off peers, leaving their talents wasted.

“As a Liberal Democrat, I believe we have a duty to ensure we turn this shocking legacy of the last Labour Government around. That is why the Coalition Government is doing the right thing by giving schools extra money to focus on supporting these pupils.”

Vince Cable: Putting More Money Back In *Your* Pocket

As families face more of a squeeze, today Liberal Democrats are arguing for greater tax cuts for hard working people.

Between now and the Budget, Nick and Danny and I will be arguing for faster tax cuts, giving you a reward for hard work. And Nick will be setting out our case in a speech today.

Given the budget constraint we have to raise money for the tax cut elsewhere and have plans to raise an equivalent amount from the wealthiest taxpayers.

At the last election the Liberal Democrats promised to raise the personal allowance for ordinary taxpayers to £10,000. I am proud that the Coalition has committed to doing so over the course of this Parliament.

For millions of ordinary hard working people, that means paying £700 less in income tax each year. Low earners, mostly women will benefit from being lifted out of tax altogether.

But times are tough and quite simply, Liberal Democrats in Government want to help families who are currently being squeezed by moving more quickly.

Whether it’s targeting an extra £7bn from tax evaders and avoiders, taking an extra £2.5bn every year from the banks in a balance sheet tax, or the announcement I made on Monday to curb the excesses of executive pay, this Coalition is taking important steps to deliver a fairer economy.

And we have already made a big difference, click here to see how.

We are building a new economy, one that benefits the whole country, not just bankers in the City of London. Making the tax system fairer is crucial to that. This is a huge task that will make Britain a fairer and more liberal country for generations to come.

Yours,

Vince Cable MP

Member of Parliament for Twickenham and Secretary of State for Business, Innovation and Skills

Corn Exchange To Get £200,000 Modern Sound System

A new modern sound system costing £200,000 is to be installed in Cambridge’s Corn Exchange to attract a wider range of performers and improve the venue’s profitability.

The Liberal Democrat-led Cambridge City Council has included the investment in its budget for the coming year.

The new system, which will improve the quality of the venue’s acoustics for audiences, will replace the present system which is over 20 years old.

Cllr Rod Cantrill Executive Councillor for Arts, Sports and Public Places said: “The Corn Exchange misses out on hosting a number of performers because our current sound system is out of date.

“This investment will not only improve the quality of the sound for audiences, but will enable the Corn Exchange to attract a broader range of performers, reduce the number of dark days at the venue and therefore contribute towards thecouncil’s goal of improving the financial performance of the Corn Exchange.”

The investment will be considered as part of the Budget proposals at the Community Services Scrutiny in January.

City Council budget setting

It has been a busy time on the City Council with lots of meetings involved in setting our budget for next year.

The leader of the City Council, Sian Reid, has written a short piece about the priorities and process for the Liberal Democrats on the Council on the Newnham LibDem website.

Here it is:

The council has been working very hard to save money and drive our costs down. We have cut our cost base by about £2m and we will continue this over the next three years to find over £3m more of savings.

We are all dedicated to preserving important services and doing what we do more efficiently. Over 40 jobs will go next year, as in the past years, though five are being created too.

Our grant settlement from the government was unfair, and we are fighting it. However our good savings track record and our cautious forecasting mean we believe we can accommodate this bad news.

These are difficult times but our priorities remain unchanged, to protect services for the vulnerable and make sure our residents really benefit from growth. We are also making sure that we continue to care for our streets and open spaces.

In light of this, we have put together a modest spending programme. It allows us to invest now so that we can save money in future years, and protect the environment.

One of the jobs being created is an extra City Ranger post. I'd like to praise King's Hedges' Ranger Joe (who we share with bits of other wards) for the superb work he does. I am pleased the City Council will be able to expand this programme.

City Council Leader Fighting Government For Fairer Deal

Cambridge City Council Leader Sian Reid is battling with the government for a fairer deal after a 20 per cent cut in the city council’s grant from government next year.

Cllr Reid has talked to Local Government Minister, Andrew Stunnell after the city council was told it would receive 12 per cent less in grant funding than it was expecting for 2011/12.

Prudent management by the Lib Dem controlled city council has meant that some of this can be absorbed but the reduction in government grant gives the council less to spend in future years.

The figure includes a £900,000 bill to support the government’s concessionary bus fares scheme for the elderly and disabled which has already cost the city council £4.8 million in the last four years.

Cllr Reid said: “The council will come in under budget this year and that helps us to deal with the news that we will be receiving considerably less than was anticipated. We can cope without increasing our long term savings targets that were set out in November.

“But the government promised that no council would face more than an 8.9 per cent reduction this year. And we have been penalised through the concessionary fares scheme because the government is under the impression that we received £900,000 more than we actually did.

“I am pushing the government to look again at the funding for Cambridge city so that we can get a fairer settlement.”

Budget response from Vince Cable

The BBC iPlayer has Vince Cable's response to the budget.

This is well worth a watch as Vince Cable, the LibDem deputy leader and shadow chancellor, has proved to be an accurate critic of the Government.