Budget 2011: Political responses
Read all the political responses to George Osborne’s 2011 Budget.
Click here to read Ed Miliband’s full speech on the Budget
Ed Balls, Labour
“The idea that drivers around the country should be grateful for a 1p cut in fuel duty when George Osborne’s VAT rise is adding 3p to the price of petrol is laughable. When people fill up their cars this weekend, they should remember £1.35 of the cost is because of the Tory VAT rise.
“When we were in government we regularly axed planned duty rises when the world oil price was rising and we would have done the same now. That’s why the percentage tax take on petrol actually fell between 1997 and 2010.”
Caroline Lucas, Green party
“George Osborne has made cutting the deficit his one and only goal. This may please City bankers and international investors, but it means more unemployment, greater poverty, and decimated public services.
“It is also a huge missed opportunity to turn our environmental and energy crisis into an engine for a sustainable future. 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.
“Instead, the government is cutting support for UK companies trying to lead this energy revolution, even though it has found £5bn in tax cuts for biggest companies. It has also turned the much-hyped Green Investment Bank into a PR stunt by preventing it from raising funds.”
Jonathan Edwards, Plaid Cymru
“The UK government should have focussed sensibly on growth first, rather than making severe cuts. The truth is that the UK government has no plan B, and worryingly there is a very real threat of a decade of economic stagnation.
“We welcome some initiatives in the Budget such as the introduction of a fuel price stabiliser, something we have been campaigning loudly for over a number of years. We also welcome the simplified state pension, set at £140, again something that was a key part of our General Election manifesto last year.
“We welcome the increase in income tax personal allowances too, a long-standing Plaid Cymru policy, but ordinary families are already being hit by the VAT increase which started back in January.
“Last year, the ConDems confirmed Labour plans for capital investment cuts of more than 40% – stopping the Welsh Government building new schools and new hospitals. Plaid is the only party doing anything to improve our economy in Wales such as through our proposed new Build for Wales investment vehicle which would raise up to £500m and create up to 50,000 jobs in Wales.
“Crucially, the UK government has failed once again to tackle the issue of Barnett reform or the £385m end year flexibility that they mugged from the Welsh government a few months ago. Plus the scandal of the housing revenue account subsidy scheme which pick-pockets £100m per annum from the poorest communities in Wales remains unresolved. These are massive sums of money which deserve to be invested in Wales.
“Ultimately, this was a Budget of small beer compared to the cuts announced last year and the destructive effects that those will have on our communities.”
John Swinney, SNP
“What is abundantly clear is that the chancellor has used Scotland’s North Sea resources to fuel his Budget – oil and gas revenues have hit an all time record level, and are £4 billion up on the previous forecast – and has given far too little in return.
“Given that petrol prices have gone up by 16 pence a litre over the past year alone, this windfall could and should be used to bring duty down not by 1p but by five pence UK-wide – or if they were applied in Scotland petrol prices could come down by 50p.
“No wonder the Con/Dem coalition oppose financial responsibility for the Scotland, and control of our own revenues.
“The chancellor is wrong not to use this record bonanza to deliver significantly lower fuel prices, rather than just applying a new levy for a cut that is far too small.
“The Budget was also a major missed opportunity for the Chancellor to reverse his swinging cuts in capital spending – a 36 per cent cut in Scotland over the spending period – because the Scottish Government’s economic recovery plan demonstrates that our investment in key infrastructure projects is the driver of growth.
“While the chancellor has had to downgrade his growth forecasts, in Scotland we are building growth – we are the only nation in the UK with falling unemployment and rising employment. This Budget – fuelled by Scottish oil – is a powerful illustration of why Scotland needs full economic and financial responsibility, including borrowing powers, which will be a major issue in the election campaign.
“We anticipated the chancellor’s announcement on enterprise zones, and have already discussed the issue in government. If re-elected in May, the SNP will establish four enterprise zones in Scotland – we believe that the geography and distinct circumstances of Scotland require us to have a larger pro-rata number than England – in addition to other innovative measures we are delivering such as tax incremental finance.
“We are already delivering major programmes to help small businesses and first time buyers, and a record number of apprenticeships, and will at least match the UK government’s announcements in these areas.
“We listened extremely carefully to the chancellor’s remarks about the possibility of a lower corporation tax regime in Northern Ireland. We agree with the Scottish Parliament’s Scotland Bill Committee report that if this happens in Northern Ireland, it should happen in Scotland too – and financial responsibility is the guaranteed way to make this happen.
“It is extremely disappointing that the chancellor failed to show any determination to drive forward measures to tackle high strength, low quality alcohol products – confirming that the proper place for these powers is the Scottish parliament, and that we need to reintroduce minimum pricing proposals in the next parliament.
“Also, the chancellor was silent on Scotland’s fossil fuel levy – we need progress on this now, so that we can invest in infrastructure to support the renewables technology of the future. The green investment bank is a separate issue, and if it is to be up and running in 2012 then the logical home for it is Scotland – a global renewables capital, with 10 times the output of England on a pro-rata basis.”
