The Liberal Democrats have ensured this is a budget for the millions not for the millionaires, a Budget for many not the few.
That’s why the biggest move in this Budget is a tax cut for ordinary workers, going further and faster towards the Liberal Democrat goal of making the first ten thousand pounds you earn tax-free.
We have cut the 50p rate to 45p, but Liberal Democrats have ensured that the richest will be hit with tax rises five times as large in exchange. Liberal Democrats in government have made sure this budget does what the Labour Party never did – getting the richest people in the country to pay their fair share.
This budget shows the Liberal Democrats delivering in government. Tax cuts for people who need them most and a Tycoon Tax to make sure the richest pay their fair share. All, while we continue to rescue the country from the economic mess that Labour left behind.
The North West will benefit by:
- taking 95,000 people in the North West out of income tax by increasing the personal allowance by a further £1,100 in April 2013;
- a reduction in the main rate of corporation tax by an additional one per cent; and
- the top up of the Growing Places Fund, which will give Local Enterprise Partnerships in the North West a further £31.1 million.
The North West will also benefit from other specific measures announced in the Budget, including:
- a further £130m invested in the Northern Hub rail scheme ;
- Manchester becoming a “super-connected city” and also receiving funding for the ‘Earn Back’ Model, as part of the ‘City Deals’ process; and
- from April, the current range of Right To Buy regional discount cash caps will be replaced by a single, higher discount cap of £75,000, worth almost three times the current North West cap of £26,000.
Local Enterprise Partnerships in the North West will receive a further £31.1 million:
- £2.2. million for Cumbria LEP
- £6.3 million for Lancashire LEP
- £12.1 million for Greater Manchester LEP
- £6.3 million for Liverpool City Region LEP
- £4.3 million for Cheshire and Warrington LEP
This takes the total Growing Places Fund allocation for the North West up to £95 million.
The Budget announced that, in 2012-13, principal LAs will be able to access PWLB borrowing at a reduced interest rate, in return for providing transparent and robust spending plans. This means LAs in the North West will be able to use public money to finance capital projects more cheaply.