The Budget We Need

By Andy Sawford MP

Over the last few days I have been asking people in Corby and East Northamptonshire to comment on what they would like to see in the Chancellor’s budget statement – in 24 hours we’ll know if the Chancellor has listened.   People in my constituency have been on the front line of the economic collapse that the coalition created.  Jobless levels are still rising and it is the toughest place in the country for young people to find work. Many businesses are struggling and some have downsized or moved out in recent years.  There are some good local initiatives such as the Corby Enterprise Centre which is backing small businesses, with the support of the Labour Borough Council, and some of our biggest employers are showing a commitment to the town even in tough times.  What we really need though is a government that is on the side of the businesses and workers of Corby and East Northamptonshire.  The choice for the Chancellor this week is whether to carry on with policies that have led to low growth, falling wages and deficit rising, or listen to the best ideas to boost demand so that we can get the economy growing and really tackle the deficit.

The Budget We Need would focus on stimulating demand and boosting growth.  A temporary cut in VAT would be a start, particularly given how prices are rising.  Small firms would be encouraged to take on extra workers with the offer of a national insurance tax break.  A bankers bonus tax would help fund a new jobs programme for young people, one that works – like the Future Jobs Fund – to replace the government’s abysmal Work Programme which is a contradiction in terms.  We need to get Britain building, with a stimulus for house building using the proceeds of the sale of the 4g licenses, and making it easier for local councils to invest in house building.  We also need to bring forward infrastructure projects, such as school building and transport, which have stalled under this government.

We would create new small enterprise hubs all around the country based on the success of the enterprise hub in Corby, to help firms share the costs of premises, back office services and other business advice.   The Budget We Need would also focus on getting our banks lending.  Net lending fell by £4.5 billion in the last quarter.  That’s why we need a proper British Investment Bank and new challenger banks to increase competition.  New regional banks, based on the German ‘sparkassen’ approach, would help by being local banks that are run to support the local economy.

The Budget We Need would help ordinary people rather than millionaires, because we recognise this is both fairer and better for our economy.  We should stop the Chancellor’s planned tax cut for millionaires and scrap the Bedroom Tax and the cut to Working Families Tax Credit both of which hit household incomes and take spending and demand out of the economy.  Instead we would introduce a new mansion tax on houses worth over £2million to pay for tax cuts for working people, by reintroducing the 10p tax rate to benefit 25 million basic rate taxpayers.

The stark contrast between growth in America, Germany and France and Britain’s double dip recession is obvious to everyone but the Chancellor.   With the deficit rising, our credit rating downgraded and no growth, Labour must make the case more loudly than ever that there is an alternative.  On the doorsteps, in your workplaces and at the school gate ask people their views on the Budget We Need.

Andy Sawford is the MP for Corby and East Northamptonshire