The Liberal Democrats have ensured that this is a Budget for many not the few.
That’s why the biggest move in this Budget is a tax cut for 23 million ordinary workers, going further and faster towards the Liberal Democrat goal of making the first ten thousand pounds you earn tax-free.
Some 847,000 Greater Manchester residents will get a tax cut. An extra £45 a month. Some 74,000 of the lowest paid Greater Manchester residents have been removed from the tax system all together.
Some 63,000 families in the North West will benefit from the rise in the child benefit earnings threshold. Only those earning £60,000 will lose the benefit entirely.
It wasn’t our priority to get rid of the 50p tax rate, but we are in a coalition. It raises just £100m, according to the independent Office of Budget Responsibility. The Liberal Democrats have ensured that new taxes on the richest will raise five times as much.
We have made sure this budget does what the Labour Party never did – getting the richest people in the country to pay their fair share.
Greater Manchester’s infrastructure has done well, too
– a further £130m invested in the Northern Hub rail scheme ;
– Manchester becoming a “super-connected city” and also receiving up to £35m funding for the ‘Earn Back’ Model, as part of the ‘City Deals’ process; and
– from April, the current range of Right To Buy regional discount cash caps will be replaced by a single, higher discount cap of £75,000, worth almost three times the current North West cap of £26,000.
-12.1m extra for the Greater Manchester LEP
The budget doesn’t just help ordinary families, it will also help ordinary businesses. We are going to cut corporation tax and increase the bank levy (so the banks do not benefit). Giving ordinary businesses a break while making sure the banks that contributed to the crisis also keep paying their fair share.
We are ensuring that Bank Levy raises £2.5bn a year – more each year than Labour’s one off bonus tax.
As a result of this Budget, from April this year our corporation tax rate will be 24% and will fall to 22% in April 2014. This means we will have the lowest rate of corporation tax in the G7 and the 4th lowest in the G20.
This budget shows the Liberal Democrats delivering in government. Tax cuts for people who need them most and a Tycoon Tax to make sure the richest pay their fair share. All, while we continue to rescue the country from the economic mess that Labour left behind.