Beith :"Emergency Budget will tackle appalling debt crisis"

12.00.00am BST (GMT +0100) Tue 22nd Jun 2010

Those on lowest incomes protected and pension link to earnings restored - Liberal Democrat policies put in place through Emergency Budget.

Berwick's Liberal Democrat MP Sir Alan Beith says that those on the lowest levels of public sector pay will be protected, after it was announced that anyone employed by the public sector earning less than £21,000 per year will receive a flat rate rise of £250. The Emergency Budget has been put forward to tackle unprecedented levels of public debt.

Speaking after the Budget, Sir Alan said

"This was an Emergency Budget which will tackle the appalling debt crisis left by Labour, but it is fair to pensioners and those on low incomes and it makes special provisions for regions like the north.

"In a low wage area like ours we have many people on low incomes who will pay no income tax or less income tax as a result of this budget, and pensioners will see the link to earnings restored. It is right that Child Tax Credit should be concentrated on those who need it and it is increased under this budget.

"New businesses in the north will be able to create new jobs because of the cut in national Insurance and there are extra funds for capital projects in the region. tourist businesses will no longer face the tax rise for holiday lettings which Labour introduced, and the commitment to extend broadband in rural areas is something I have campaigned strongly for.

"Because it is an Emergency Budget there are some tough measures in it including the VAT increase and the public sector pay freeze but those on the lowest levels of public sector pay have been protected. The Government had to act and we could not go on borrowing £1 in every £4 that the Government spends."