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Paul Burstow: My Thoughts on the Coalition Budget
September 7, 2010 11:58 AM
We now have to take the unavoidable, tough decisions that the Governor of the Bank of England and the G20 called for. This means cutting the deficit. But I believe that the Coalition's Budget is not simply tough. It is fair, and it is necessary.
In the Autumn Spending Review, the Treasury will set out exactly how much money the Government plans to save. Everyone will have to contribute to the recovery, and it will be tough. But it's definitely necessary. Without the Budget, we could face higher interest rates, rising unemployment and possibly even the end of the recovery altogether.
We're currently borrowing one pound for every four we spend, which means that our national debt is increasing by a massive £3 billion a week. So if we want to keep interest rates low, protect jobs, and get the economy growing in Sutton, we need to act now.
The budget deficit isn't a new problem. It was just ignored by the last government. Labour left behind the biggest deficit in the G20, having doubled the national debt and avoided opportunities to act sooner. That means that these cuts are Labour's legacy.
In the run-up to the election, Labour were planning 20 per cent cuts, but would not tell us where - or how - they planned to make these savings. So if they oppose the Coalition Budget, they need to come up with ideas about how to address the economic problems this country faces.
The reason I support the Budget is because it is fair. In our manifesto and the coalition agreement, the Liberal Democrats promised to protect the most vulnerable in society, and that is what this Budget does. We're committed to supporting low income households, pensioners and families; as well as those in genuine need, those with disabilities, and those who can't work.
We will carry out this unavoidable deficit reduction in a way that strengthens and unites the country. Valuable services, especially the NHS, will be protected. In addition, we've imposed a bank levy and raised Capital Gains tax, which means that the richest will contribute the most to the recovery - as they rightly should.
Finally, I believe this Budget is good for Sutton. The independent Office for Budget Responsibility forecasts that under these plans, unemployment will fall in every year, and employment will rise. This means more jobs will be available for local people, many of whom have been hard hit by the recession. More people will be able to find a home in Sutton, thanks to our plans to improve the social housing system, and thousands of local people will be better off as a result of the Government's plans to raise the threshold of income tax.
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