Last week’s budget outlined the government’s plan to secure the recovery, provide for growth and continue to help people through challenging economic times.
Crucially, the Chancellor set out how the budget deficit will be halved within four years, through growth, asset sales and savings outlined by government departments. The government is also taking action to stamp out tax avoidance and generate further revenue by taxing bank risk.
The Chancellor announced that government borrowing is £11bn lower than had previously been forecast, while the City bonus tax announced in December’s Pre-Budget Report raised more than £2 billion. The help the government has provided to support jobs has meant that unemployment – and the amount paid out in unemployment benefit – has been kept down compared to the last recession in the early 1990s. In Lambeth, unemployment is 56% lower now than in 1992.
The key measures outlined in the Budget were:
• The guarantee of a job or training for all 18 to 24 year olds who are unemployed for six months will be extended beyond March 2011.
• First-time buyers will be helped by a two year stamp duty holiday for all properties worth up to £250,000. This will help nine in ten first –time home buyers, and will be paid for by a 5% increase on stamp duty on houses worth more than £1 million.
• Combating financial exclusion through bank accounts for all, allowing everyone to save and manage their finances. Savers will be helped by an increase in the ISA limit from £7,200 to £10,200.
• From April 2010, additional payments of £100 will be made into the Child Trust Fund accounts of disabled children while severely disabled children will receive £200 per year and Child Tax Credits for parents of one and two year olds will increase.

• A £100 million emergency fund to deal with potholes after the most severe winter in decades.
• This year will see a 2.5% increase in the basic State Pension, benefiting over 12 million pensioners
• The government will set up a new green investment bank to channel funding for major infrastructure projects such as wind farms and high-speed rail, which will raise more than £2bn for environmentally-friendly improvements.
• Help for small and start-up businesses with a doubling of the Annual Investment Allowance to £100,000 and the creation of a new national investment corporation, Finance For Growth, to channel financial support for small and medium-sized enterprises.
• Britain will push hard for a uniform bank tax, working internationally with other countries to create a levy on risk.
Commenting on the Budget, Chuka Umunna said:
“To keep banks and building societies like those on Streatham High Road open, the government had to borrow vast amounts of money to prop up the banking system.”
“The Chancellor today set out how the government plans to reduce the deficit while protecting frontline services and continue into the recovery the action it has taken to help people through the downturn.
“Measures outlined today including raising pensions, prolonging the guarantee to young unemployed people and providing assistance to first-time buyers will make a real difference to people here in Streatham”