Budget 2009: Building for the future
Last week’s Budget prioritised supporting employment, families and the housing market and the government’s commitment to tackle climate change. Its emphasis was on helping people through these difficult times and taking steps to build for our future, growing our way out of recession rather than cutting our way out.
One of the most important elements of the Chancellor’s speech was the promise that our young people will not be disregarded given the risks of long-term unemployment. While in the Thatcherite 1980s a generation became trapped out of work, this week’s Budget guaranteed that everyone under the age of 25 who has been out of work for 12 months will be offered a job or a place in training. Families will also be given extra help, with a significant increase in tax credits per child. Across Streatham, this will benefit 13,740 families and 23,900 under-16s. Opportunities for tax-free savings through ISAs will be extended as the annual investment limit rises to £10,200 next year.
Budget 2009 will also reassure homeowners and buyers. To meet demand for housing and make affordable homes available for those taking their first step up on the housing ladder, the chancellor pledged a £600m funding package for the building of new homes. Additionally, this will help create jobs and boost the construction industry. The Stamp Duty holiday for homes worth under £175,000 has been extended until the end of the year to help new buyers.
This was the world’s first Carbon Budget, as required by the Climate Change Act. Accordingly, we saw large invesment in renewable energy, with a programme of £5bn funding for wind and solar energy. Low-carbon industries will benefit from £1.4bn of support, while £375m was allocated to increase energy and resource efficiency in businesses, public buildings and households over the next two years. These measures will lay the foundations of Britain’s low-carbon economy, enabling us to meet our ambitious carbon emissions targets.
The focus of the Budget reflects the need to help people and build for the future right now, rather than cutting back when people need support most.
