Wednesday 12 March 2008

Nick Clegg on the Budget

Dear Councillor Macpherson

This is not a green budget. This is not a people's budget. This is a con trick budget that protects the rich and abandons the poor. The Government has bottled it on green taxes and failed to implement the necessary measures to cut child poverty.


This was an opportunity to give whatever help possible to millions of stretched British families who are feeling the pinch and whose money just doesn't go as far as it used to.
Instead, we have a budget which gives only limited help to the poor, but maintains special treatment for the rich.


The piecemeal reforms that the Chancellor is introducing to the chaotic Tax Credit system won't get the Government anywhere near meeting its 2010 child poverty target.
The reality is that the Government's approach has failed. If we are to abolish child poverty for good we must not only increase income, we must increase opportunity too.


These are the people most in need in our society - yet after ten years and yet another budget, they are still no nearer being given the true support they need.


It's a budget designed to fill a black hole masquerading as good for the environment. Green taxes should be revenue-neutral. They should not be treated as a wheeze to squeeze ever more money out of the British people, but should instead be designed to encourage green behaviour, and to cut the taxes of the most needy.


But instead of a budget for the environment, we have a budget driven by fiscal incompetence and political desperation.


Why has Alistair Darling not had the guts to claw back the huge profits made by energy companies, thanks to the emissions permits that the Government has given them for free?


4.5 million people still live in fuel poverty and the Government's 2010 fuel poverty target has been conveniently forgotten by ministers.


Trying to grab headlines by increasing the Winter Fuel Payment for just one year will do nothing to help poor pensioners in the long run.


Surely this is the time to compel all energy companies to introduce real, fair, social tariffs for all vulnerable people, not just those on pre-paid meters?


This budget gives no real help to families struggling with higher food bills, higher energy bills and higher debt repayments. What is this budget doing to help junior nurses, teaching assistants and soldiers serving in Afghanistan? The answer is nothing.


After 11 years in Government, Labour has completed its fiscal fusion with the Tory Party.


Yours sincerely,


Nick Clegg

Leader, Liberal Democrats