Rt Hon Alistair Darling MP
West Edinburgh Times 61 March 2008
The reason I put economic stability at the heart of my budget is that I am determined that the government must do whatever it can to reduce the risk of rising inflation and higher unemployment.
We are living in difficult times. Every country in the world, including the UK, has been affected by the economic tremors which began in America but we are better placed than most to deal with it.
We cannot be complacent and I am not prepared to gamble with the economy, and the government’s commitment to social justice and investment in the country’s public services.
As we strive to make sure that everyone, no matter what their circumstances, gets the most from their achievements and achieve their potential, I took the steps necessary to keep the economy growing while keeping inflation and interest rates low. High employment depends on economic stability.
During the last ten years we have doubled spending in the health service, reduced waiting times, driven up school standards and invested hugely in public transport. More people are travelling by train now than ever before.
I remember the early nineties with interest rates at 15%, mortgages soaring, three people million out of work and our schools and hospitals suffering from
lack of investment.
To ensure these horrors do not return I have taken responsible decisions which maintain our commitment to social justice and help the UK prepare for the challenges ahead.
I renewed the government’s intention to eradicate child poverty by 2020, and I believe that the measures I took to help parents get into work, making families better off is the best way to make that happen.
Nearly two million Scottish families will benefit from the increases to child benefit, the child element of the child tax credit and one-off payments to be paid alongside the winter fuel payments. This year the over-60s will get an additional £50 – a total of £250 – and the over-80s £100 – a total of £400 this year. I’ve also introduced new plans to help families with pre-payment meters reduce their bills.
Because I know how much rising costs affect people I also delayed the rise in petrol duty until October. But I also introduced measures to encourage people to choose low polluting cars. From 2010 drivers who buy the cleanest cars will pay no road tax at all in the first year of registration.
The number of people out of work is at all time low but I have taken steps to make sure that those in work will be better off than those who choose not to work.
Increased duty on alcohol dominated many of the headlines but I genuinely believe that it is right to support hard working families, young and old - the money raised will help families with children and older people.
