Lib Dem Budget Plans will Boost Eastleigh Economy, says Huhne

2.54.34pm UTC (GMT +0000) Wed 2nd Mar 2005

The Liberal Democrats' alternative budget, unveiled this week, contains plans that will boost local business and living standards, according to Hampshire MEP and Eastleigh parliamentary candidate Chris Huhne.

Mr Huhne, who is a member of the Lib Dems Treasury team, said that the proposals would particularly benefit Eastleigh by ensuring that more than 2,000 poorer pensioners who are not claiming pensioner credit would get the new "Citizens' pension" of an extra £100 a month for the over 75s. "This is good news for pensioners, but also for local businesses who will have customers with more spending power" said Mr Huhne.

The plans to abolish the council tax would be a godsend in Eastleigh, Mr Huhne said, because of the likely impact of the planned revaluation of properties for the first time in more than ten years, which will push many local homes into higher bands. Each jump in a band adds 22 per cent to council tax, and Eastleigh property has risen far more than other areas since the early nineties.

"It is also crucial that elderly people are able to rely on free long term personal care if they need it, without the worry of having to sell their home to afford it. That would be of great importance to many Eastleigh people who have suffered strokes and other illnesses and need serious support" said Mr Huhne.

Other Lib Dem budget proposals include a sharp rise in the threshold for stamp duty, which means that first time buyers will pay nothing on any property up to £150,000. And the Lib Dems plan to abolish student tuition fees, which Mr Huhne said had put off a number of talented local teenagers from applying for university.

Mr Huhne said that the key idea was not to increase taxes and spending overall, but to make the tax system fairer.

Mr Huhne pointed out that just 1 per cent of taxpayers earned more than £100,000 a year, and would therefore pay more income tax with the Lib Dem proposal for a 50 pence top tax rate.

"This is a modest increase which would still leave the top income tax rate 10 pence in the pound lower than it was for most of Margaret Thatcher's Prime Ministership" said Mr Huhne.

The Lib Dems are also proposing sharp cuts in other areas of public spending, notably in industrial subsidies. Mr Huhne said that the Lib Dems would abolish the Department of Trade and Industry altogether as much of its budget was misdirected by ministers who pretended that they could make better judgements than the marketplace.