James Cunningham

|

Budget boost for families, says city MP

Jim Cunningham MP today welcomed Chancellor Gordon Brown’s budget as ‘good news’ for Coventry families.
Among the proposals put forward, the Coventry South MP praised proposals to cut the basic rate of income tax next year and also extend the pension protection fund.
Mr Cunningham said: “The British economy is entering its eleventh year of growth under a Labour Government.
“Rather than the old way of 15 per cent interest rates and boom followed by bust, the state of our economy is strong and strengthening.
“We can be confident about our future but we must never be complacent. We will never take risks with stability, because I remember the misery that spiralling interest rates and home repossessions caused millions of families.
“Because the economy is strong, Gordon Brown was able in the Budget to deliver new money to boost education – increasing spending to its highest ever level, along with more support for families in Coventry South.”
To help hard working families Gordon Brown announced an increase in Child Benefit and more money for the child tax credit to help meet the costs of bringing up children.
Child Benefit will be increased over the next three years to £20 a week. From worth £575 a year in 1997, Child Benefit will be worth by 2010 over £1,000 a year.
To further support hard working families Gordon Brown also announced that for every tax payer he will cut the basic rate of income tax from 22p to 20p, the lowest basic rate of tax for 50 years.
“That is good news,” said Mr Cunningham, “as is extending the pension protection fund which is vitally important and will protect 125,000 people who lost their pensions”
The Budget also saw positive measures to help pensioners - new plans to raise the pensioner tax allowances so that 600,000 pensioners are taken out of tax altogether.
The tax allowances have also been raised by more for older pensioners. By April 2011 no pensioner over 75 will pay any tax on incomes under £10,000.
This is in addition to the£200 Winter Fuel Payment for over 60s and free prescriptions, eye tests and TV licenses for over 75s.
Mr Cunningham said: “From next year every pensioner in every part of the country will enjoy free national bus travel as well.
“We have introduced free central heating for Pension Credit recipients & discounts of £300 on central heating systems for all other pensioners who do not currently have it.
“But none of this would be possible if we took risks with our economy, or cut investment in our public services like the Conservative Party now want us to do.”