Andrew has condemned the first budget by the new Tory/ Liberal Democrat Government, which has seen a number of budget cuts and regressive tax rises, most notably increasing VAT from 17.5% to 20%, despite the Liberal Democrats campaigning on a no VAT increase platform during the general election. Andrew fears the VAT increases will impact on the very poorest in Denton and Reddish.

Other measures from the budget included Child benefit to be frozen for three years and cuts to family tax credits and housing benefits. Other benefits to be cut include the health in pregnancy grant while the Sure Start maternity grant will be restricted to the first child only and lone parents will be expected to look for work when their youngest child goes to school. They will also introduce a further medical assessment for Disability Living Allowance from 2013 for new and existing claimants.

Government departments would be cut by a quarter over the next four years. Public sector workers paid more than £21,000 a year will have the next two year pay freeze with those paid less getting a flat pay increase of £250 for two years.

Andrew Gwynne MP said:

“It is absolutely disgraceful that the Liberal Democrats can support a budget that raises the rate of VAT to 20% and back so many other cuts for people in Denton and Reddish. This wasn’t in their manifesto at the general election, so how can the Liberal Democrats let down all the people who voted for them at the general election? They are sacrificing all their principles just for a few seats in Government.”

“We know that this is a regressive tax rise which unfairly impacts on the poorest people in Denton and Reddish hardest - pensioners, the unemployed and those who do not pay income tax at all.”

“The chancellor had a great opportunity to encourage economic growth and deal with the deficit, but has decided on a series of reckless cuts on government spending and devising ways to penalising the most vulnerable in Denton and Reddish.”

“The Budget will be bad for jobs and put the recovery at risk. Now is not the time to remove support for the economy and will cost jobs in Denton and Reddish. This is a reckless, short sighted budget that could actually make the deficit worse. It is driven by rightwing Tory ideology and not sound economics.”