Budget 2009: Political reactions
All the political reactions to Budget 2009.
Dave Prentis, Unison general secretary
“This Budget has revealed the extent of the damage done to the economy and public finances by the greed and irresponsibility of the under-regulated financial sector.
“Future spending plans have been revised down again and the government’s best ambitions of reducing child poverty and building world class public services now look in doubt. It would be a big mistake to make our essential public services – schools, hospitals and the care of the vulnerable in our society – the whipping boys for private failures, or to pay the price for the excesses of greedy bankers and speculators. We will look for assurances that public service workers, who have gone through 18 re-organisations in as many years to improve those services, will not be made to pay the price for the failures of others.
“At a time of recession, ordinary people rely on public services more and more to get them through the worst of it. If the Government wants to grow its way out of recession, public services must be the roots. And, as any gardener knows, if you cut the roots, growth withers. We will resist damaging cuts to public spending.
“The chancellor is moving in the right direction with tax rises for the super-rich who have not been paying their fair share. He will need to do more to go after the rich tax avoiders who cost us more than £25 billion every year. That money could be used to grow the economy, create jobs and deliver world class public services. Don’t forget that there are huge staff shortages in some areas, including in child protection and elderly care. Much progress has been made in the NHS and public services over the past few years, it would be self-defeating to throw all that away by cutting spending now.
“It’s a myth that local government or any other service is stuffed with bureaucrats doing nothing. They have made well in excess of 3 per cent efficiency savings called for by the government over each of the past three years. Independent studies have shown that you cannot extract any more without damaging services for the public. If efficiency savings are called for, politicians should be honest with the public and not pretend that savings can be made where clearly they cannot.”
Derek Simpson, Unite joint general secretary
“Alistair Darling had to deliver the toughest budget in decades but he has positioned Labour as the party for jobs and social justice while exposing the Tories for being the party of cuts and inequality.
“The chancellor’s announcements on tax, the scrappage scheme and employment puts Labour back on the side of working families. Borrowing to shorten the recession is the right action to protect our economy and our members’ jobs.
“We welcome the government’s action but manufacturing workers need more support now because once those jobs go they will go for good.”
Matthew Elliott, TaxPayers’ Alliance chief executive
“This Budget commits taxpayers to a terrifying amount of debt that will burden ordinary families for decades to come. The government’s proposals are totally inadequate to deal with the size of the crisis we face.
“£15 billion of efficiency savings are a welcome start, but they are dwarfed by the debt mountain that the chancellor plans to run up. These are serious times that require radical thinking, so it is staggering that the government have chosen to turn a blind eye to the huge amounts of wasteful and unnecessary public sector spending.
“Despite the pretence that he is helping ordinary people and bashing the rich, the Chancellor is in fact increasing the cost of everything from driving to work to a pint of beer. The increase in taxes on high earners is a petty political gesture rather than a serious financial solution. Millions of families around the country are in real crisis, and they need real help, not posturing.”
Wes Streeting, president of the National Union of Students (NUS)
“We welcome the government’s commitment to provide education, employment and training opportunities to unemployed under 25s. The current recession has resulted in the worst youth employment prospects in a generation, and we are therefore pleased that the government recognises the importance of offering educational opportunities in order to help individuals and the economy back on their feet. The creation of new educational opportunities is infinitely preferable to the prospect of long-term unemployment, and the devastating effects it has on individuals, families, communities and the wider economy.
“We are also pleased that funding for additional college places will be increased by £250 million this year, and £400 million next year. This investment is necessary to cope with additional demand among young people who want and to need to gain new skills, and also helps pave the way for the raising of the education and training leaving age.
“Any proposed savings from the higher education budget must be carefully thought through, and must not come at the expense of students. This year will already be challenging for students, staff and institutions which are facing caps on additional student numbers. Higher level skills are vital in enabling economic recovery and must not be jeopardised by cuts in provision or damage to the student experience.”
Jane Milne, British Retail Consortium business director
“The Budget left retailers still facing most of the people and property costs that will prevent new investment and threaten the viability of retailers and their ability to create and sustain jobs.
“Few share the chancellor’s optimism that the economy will be growing again by the end of this year. It’s crucial retailers are spared new burdens and support for the sector isn’t ended prematurely.”
Phil Bloomer, Oxfam campaigns and policy director
“Carbon budgets are a world-first; a much-needed step towards meeting the UK’s targets for cutting greenhouse gas emissions and ensuring that economic recovery is sustainable. They could make a real contribution both to ensuring the UK’s long-term prosperity and limiting the negative impact of climate change on the world’s poorest and most vulnerable people.
“Now we need money to help poor people across the world who are already losing their lives and livelihoods as a result of climate change. Oxfam estimates that by 2015 almost 400 million a year may be affected by climate-related disasters, and this number will continue to grow as already unavoidable climate change sets in.”
“Oxfam is delighted the chancellor has resisted those who called for aid to be cut forcing the world’s poorest people to pay the price of the economic recession and bankers’ bailouts.
“By proving as good as the government’s word, Alistair Darling has ensured thousands more children will have the chance to go to school and millions of poor people will benefit from improved healthcare.
“But the £155 million efficiency savings announced today for the Department for International Development should not become aid cuts under another name.”
