Member Article

Budget fails to make Darling the darling

Chancellor Alistair Darling yesterday pledged to continue spending to help the econony out of recession, and plans to pay for it by charging those earning more than £150,000 a year a new 50% tax rate.

Mr Darling said the UK economy will shrink by 3.5% in 2009, but predicted 1.25% growth next year, rising to 3.5% in 2011. The new top rate of tax is a change of plan from the pre-Budget report last year in which he had proposed the new tax rate being 45%.

It is also being brought in a year earlier than planned “to pay for additional support for people now”.

He also promised to invest in fast-track businesses involved in low carbon, smart manufacturing and communications.

The Budget also takes a leaf out of France and Germany’s book by bringing in a scrappage scheme. From May 2009 to March 2010 an old car will be guaranteed a £2,000 trade-in value.

In other measures, petrol duty will increase by 2p per litre in September and then by 1p a litre above inflation each April for the next four years.

Liberal Democrat leader Nick Clegg described the Budget as a “mish mash of recycled announcements from a government skilled in raising false hopes and incompetent at delivering real help”.

Business organisations in the North East have already been having their say, as you can see below, but we’ve got more in-depth commentary from the NECC and the CBI on the bdaily.info website. Head to www.bdaily.info/news/business/necc-budget-reaction/ or www.bdaily.info/news/business/cbi-budget-reaction/ to see the responses, and to have your say.

This was posted in Bdaily's Members' News section by Ruth Mitchell .