Critics say Budget will squeeze personal finances

There has been a mixed reaction to George Osborne's Budget within West Berkshire

THE PERSONAL finances of thousands of people across West Berkshire will still be squeezed despite the promise of relief for motorists, first-time buyers, small businesses and anyone who enjoys a pint, say the critics of the Chancellor of the Exchequer George Osborne's second budget, announced yesterday (Wednesday).

The former MP for Newbury David Rendel (Lib Dem, Thatcham North) also warned that alterations to planning regulations, a “streamline” of the system and new fast-track planning procedure for major infrastructures, could have dire consequences for those in favour of protected green spaces across West Berkshire.

Among the highlights of Mr Osborne's “growth” budget was no new tax levies on alcohol or tobacco, however a two per cent above inflation rise on tobacco will go ahead, as will the pre-planned duty raise on alcohol, which could see beer prices go up seven per cent in April.

The landlord of the Swan in East Ilsley, Richard Vellender, said he stood by his prediction of pubgoers paying £4 a pint by the end of the year, as VAT and inflation rises chipped away at disposable incomes.

“I still think we'll see big raises on the price of drinks because the brewers will put their prices up again and we'll end up passing it on to the punters.”

Mr Rendel said that while Mr Osborne had promised much, he had delivered little, and that he feared among the “vague promises” the Government had given too much power to developers to push through unwanted projects.

“This is a real threat to West Berkshire. If the planning regulations are relaxed we could see many more developments on greenfield sites and there will be nothing the council could do.”

On a more positive note, the personal tax allowance has been raised by £630 to £8,105 in April 2012, which means workers will see an increase of around £48 per year or £126 in cash terms, a move welcomed by MP for Newbury Richard Benyon.

“It takes a million people out of the tax system which is hugely important for those in difficult financial circumstances,” he said, adding that as money was tight for so many, the reduction in fuel duty would also do much to help those in more rural areas who rely on their cars to get to work.

Mr Benyon also dismissed the idea that planners could railroad over regulations and use a laxer system to push through developments.

“The planning system is hugely complicated and the idea is to make it easier for small business to develop,” he said.

“It was a hugely important budget which would have a real impact on the lives of people in West Berkshire and provide a timely boost for small business in the region,” he added.

The much-vaunted cut in fuel duty, which saw petrol prices drop 1p across the district yesterday, was dismissed as “smoke and mirrors” by Mr Rendel, however, and his view was backed by the West Berkshire Hackney and Private Hire Association chairman Andrew Lutter, who said that the long-term increase was would cause misery for drivers and put taxi firms out of business.

"You would have to be pretty silly thinking you were getting a good deal if petrol goes from £1.41 to £1.40” he said and added that a 30p reduction would be fairer.

Mr Osborne promised financial help for 10,000 first-time buyers to get on the property ladder in the shape of a Firstbuy loan scheme, which would see the government and house builders offer loan help for first-time buyers purchasing a newly-built home.

West Berkshire Council implemented a similar equity loan deposit scheme in 2009, but came in for heavy criticism by opposition councillors for the low take-up numbers.

David Jones, a director at Jones Robinson, based in Newbury, said any scheme that would encourage first-time buyers had to be welcomed, but with some caution.

“Due to the lack of new homes in West Berkshire it would not be as significant as making it available to any home, and there needs to be a scheme to address that.”

Newbury Labour Party said it didn't believe the Chancellor had gone far enough in helping out those in need.

“Once again we have seen big business and the bankers get off relatively cleanly, but those from poorer backgrounds and smaller businesses will continue to struggle,” said the party's community organiser Richard Garvie.

Dubbing it a “budget for bankers”, Newbury Green Party spokesman Adrian Hollister said he believed the majority of people in West Berkshire would be worse off.

“Investing in energy efficiency and renewables now would stabilise the economy, help people reduce their bills, help end fuel poverty and make us less dependent on oil and gas from overseas,” he said.

The budget was labelled one of progress by the Conservatives, although Chris Lee, a partner in the business tax team at Newbury-based business advisors James Cowper said it did little to hide a worrying downward forecast on growth and a concerning inflationary picture.