West Berkshire reacts to today's Budget

Local business figures and politicians have given their initial reactions to the measures announced in the Budget

AS WEST Berkshire begins to digest all of the details of today's Budget, local business figures and politicians have given their initial reactions.

Earlier today (Wednesday), the Chancellor of the Exchequer, George Osborne, outlined the 2011 Budget, which included revisions in the forecasted borrowing of the country, a downgrade in the 2011 growth forecast and the announcement of a Government-backed shared equity scheme to help 10,000 first-time buyers.

Mr Osborne also outlined measures to help small businesses and boost growth, such as a two per cent cut in corporation tax from April and the announcement of £100m funding for science facilities and the launch of 21 ‘enterprise zones' across the country.

He also announced funding for 12 further university technical colleges, 40,000 new apprenticeships for young people out of work and funding for an additional 100,000 work experience placements.

However, local election hopefuls have given a rather subdued reaction on the Budget.

David Rendel (Lib Dem, Thatcham North) said Mr Osborne had used "smoke and mirrors" to fool people into thinking they would be better off.

He said: "It was very empty; there wasn't an awful lot there. He hasn't expanded on many details, and a lot of it is just touching around the edges without saying how he was going to improve the situation. Growth is still down however you look at it.”

During the run up to the local elections in May, Mr Rendel has been out on the doorsteps across the district, and he said there was an acknowledgment that the country was facing difficult times.

He said: "The changes to personal allowances were expected but there is very little in there, I don't think he has done very much at all. A lot of people accept that the situation is grave, but most think the cuts are too hard and too fast. He has over-egged the pudding somewhat.”

Meanwhile, the Newbury Labour Party has said it doesn't believe the Chancellor has gone far enough in helping out first-time buyers and small businesses.

“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.

“The Government have claimed that council tax has been frozen in the current financial year. This isn't strictly true, as in West Berkshire council tax has risen by 2.5%, which is being paid for by a Government grant for this year. It is likely this money will have to be paid by the taxpayer next year, or further cuts in spending will have to be made to the extent of around £2m,” he added.

The UK's largest union, UNISON, has also claimed that Mr Osborne's ‘no budge budget' was a missed opportunity to right economic wrongs.

UNISON General Secretary, Dave Prentis, said: “Under the Tories our economy isn't growing, but the dole queues are. The Government's own Office of Budget Responsibility has downgraded the growth forecast by 0.9% since the Chancellor's last budget. The carnage going on in the public sector was completely written out of the Chancellor's budget.

“Osborne should have used this budget to right his economic wrongs. This no budge budget flies in the face of mounting evidence of the toll Tory cuts are taking on our economy and our society. The Chancellor is pinning his hopes on the private sector driving the recovery – but the evidence shows the private sector is not creating enough jobs to stop total unemployment from rising.”

The union also called for a change of direction and a budget for growth, including a Robin Hood tax on the banks, which it claims would add £20 billion to the public purse to help save local services from shutting down, save adult day centres from closure and keep children's nurseries open.

Some of the measures announced in the Government have been welcomed though, including the announcement that fuel prices will reduce by 1p from 6pm tonight and the announcement of a £100m cash boost for local authorities to help deal with winter repairs on roads.

The portfolio holder for roads and transport in West Berkshire, David Betts (Con, Purley), said he welcomed this move and said the district council already had an application in to obtain a share of the money.

However, he conceded that West Berkshire was unlikely to see much of the money once it had been shared out.

The Institute of Advanced Motorists (IAM) director of policy and research, Neil Greig, also said the extra investment in roads was welcome, although he said it was not enough to cure Britain's pothole pandemic.

He said: “We need to ensure that roads are properly looked after so we don't store up bigger maintenance bills for the future.”

The IAM also welcomed the reduction in fuel duty as a welcome break for hard-pressed motorists and businesses; although chief examiner Peter Rodger said that eco-driving was the only guaranteed way to reduce motoring costs, describing it as no longer an ethical choice, but instead a “money-saving essential.”

For more reaction to the Budget, see tomorrow's Newbury Weekly News.