Rob Wilson, MP for Reading East, has responded to the Chancellor of the Exchequer’s Budget Statement today by welcoming its commitment to increase the personal allowance, to cut the top rate of tax, to improve the settlement on child benefit and to press ahead in cutting the deficit. Rob has called the Budget “a Budget for working people, dealing with the economic crisis of today, building prosperity for tomorrow.”
Commenting on the Chancellor’s decision to increase the point at which income tax is paid to £9,205, Rob said: “The decision to raise the tax free allowance means that many Reading East constituents will be over £200 a year better off - as belts are tightening in this tough economic climate, this will be welcome relief to many families on lower and middle incomes.”
Responding to the Chancellor’s commitment for £50million to be made available for ‘smaller cities’ to have access to ultrafast broadband, Rob, who is running a campaign for Reading to get an ultrafast connection said: “The Chancellor’s ultrafast funding announcement is very welcome and I firmly believe that ultrafast will have enormous benefits for Reading as one of the most business-friendly environments in the country. I will be leading the charge to get this much-needed connection for Reading.”
Rob also welcomed the Chancellor’s cut in the top-rate of tax by saying: “The Chancellor has always said the 50p rate was temporary and I support his decision to cut it by 5%. We need a competitive tax system that rewards hard work, gets people spending and stimulates growth. We need to encourage companies and talented people to come to the UK and do business, the 50p tax rate is the highest in the G20 of nations, making us uncompetitive. Worse though is the fact it raises a tiny £100million in direct tax and suppresses spending and therefore income from VAT. Tearing down the obstacles to aspiration through hard work is good for individuals, good for Reading and good for the economy. As the Chancellor said, you earn your way out of recession and you do that by making work pay.”
On the Chancellor’s announcement that plans to cut child benefit for higher rate taxpayers are to be revised in favour of a gradual reduction for people earning over £50,000 and a withdrawal for earners on £60,000 plus, Rob commented: “The previous child benefit changes were understandably a concern for many of my constituents who receive it. I’m therefore pleased that the Chancellor has listened to the concerns I have raised with him and adjusted the policy to reduce the impact of the controversial ‘cliff edge’ – this means 750,000 households will keep their child benefit and only the richest 10% will lose it. It’s not perfect, but nor are the nation’s finances.”
On the broader Budget themes of stability and growth, Rob concluded: “The Chancellor was absolutely right to say that this country has borrowed its way into recession and now it needs to earn its way back out. This is a Budget for working people, dealing with the economic crisis of today, building prosperity for tomorrow. The relentless drive to cut borrowing and slash the deficit are essential for stability, as is growth. Cuts to Corporation Tax and plans to make the planning system work to attract global business rather than to block it are very welcome, as are enterprise loans for young entrepreneurs – all three of these policies will help to make Reading even more competitive as an engine room for growth.
“This is a good Budget for Britain and for Reading.”