21st March 2007

BUDGET SHOWS WHY LABOUR IS BEST FOR CLWYD SOUTH

MARTYN JONES MP today welcomed the Budget unveiled by Chancellor of the Exchequer Gordon Brown, as "a Budget for Britain's families, showing Labour is best for Clwyd South."

Commenting on the 2007 Budget, Martyn Jones MP said:

"Chancellor Gordon Brown today delivered a Budget for British families.

"Gordon Brown set out the policies that will help Britain and Clwyd South face the challenges and take the opportunities of the global economy and showed why Labour is best for Clwyd South."

"The extra £1,001 million for the Welsh Assembly Government is welcome and shows that Labour is making the right decisions for the future: to build on our platfor of economic stability while still being able to give more help to families with children and making more resources available for investment in our public services.

"And there was good news for hardworking families as well with more help with the costs of bringing up children.

"Child Benefit will rise over the next three years to £20 a week. In 1997 Child Benefit was just £575 a year. Now, under plans announced today by Gordon Brown, Child Benefit will be over £1,000 a year by 2010.

"Labour passionately believes that every child deserves the best possible start. Already 3,500 families and 6,900 children in Clwyd South benefit from Labour's tax credits. Today, Gordon Brown announced an increase in the child element of the Child Tax Credit by £150 per year.

"On top of this Gordon Brown was able to announce he was cutting of the basic rate of income tax from 22 pence to 20 pence from April 2008.

"The contribution of those who have built our country and raised families in the past was also recognised in today's Budget. Increases in pensioners' tax allowance will take 30,000 pensioners in Wales out of paying income tax altogether, as we move forward to restore the earnings link for the basic state pension.

"The adult rate of the National Minimum Wage will be raised to £5.52 per hour and an increase in the Working Tax Credit, along with a new initiative with the major retailers will help more people find jobs and employment in the future.

"By simplifying the tax system, increasing support to families and pensioners and making work pay, the Budget shows why Labour in Clwyd South is best for long term prosperity and fairness to families.

"How different from the past when Britain was tipped into recession with families and businesses in Clwyd South left to pay the price. Under the Tories inflation was nearly 10 per cent, mortgage rates soared to 15 per cent, 1.5 million people suffered negative equity and unemployment hit three million.

"And today, neither the Plaid, the Tories or the Liberal Democrats can offer the policies for the future.

"They would fail to equip Britain for the global economy. They are committed to scrapping the New Deal which would return Britain to unemployment, cutting the child tax credit that gives more support to families, and their billions of pounds of spending cuts would slash investment in our schools and other vital public services.

"As for the Liberal Democrats, until they can explain where the money is coming from to pay for their endless list of tax and spending commitments no one can take any pledge they make seriously."

"Only Labour is making the right decisions to ensure Britain and Clwyd South are equipped to face the challenges and take the opportunities of the future."