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| Darling defends 'bad news' Budget | |
| (about 3 hours later) | |
| Alistair Darling has defended what the shadow chancellor George Osborne has called a "bad news Budget". | |
| The chancellor told the BBC there was help for people "facing difficulties at the moment" such as pensioners and poorer families with children. | |
| In his first Budget Mr Darling raised taxes on high-polluting cars, alcohol and cigarettes and announced new tests for incapacity benefit claimants. | |
| But Mr Osborne said he had "kicked Britain's families while they're down". | |
| And disability campaigners expressed alarm at plans to extend from 2010 a new eligibility test to all long-term recipients of incapacity benefit. | |
| There has been a mixed response to some of the "green measures" and his decision to postpone a fuel duty rise. | |
| The chancellor said it was a Budget for stability, but reduced forecasts for economic growth for this year. | The chancellor said it was a Budget for stability, but reduced forecasts for economic growth for this year. |
| Later MPs will continue to debate Mr Darling's first Budget as chancellor, which saw him cut his forecasts for economic growth for this year by 0.25% - to between 1.75% and 2.25%. | Later MPs will continue to debate Mr Darling's first Budget as chancellor, which saw him cut his forecasts for economic growth for this year by 0.25% - to between 1.75% and 2.25%. |
| Road pricing | Road pricing |
| Among measures he announced were rises in child benefit, more help for families using pre-paid electricity meters, increases in the winter fuel allowance, and a new "first year" extra tax of up to £950 for the most polluting cars. | Among measures he announced were rises in child benefit, more help for families using pre-paid electricity meters, increases in the winter fuel allowance, and a new "first year" extra tax of up to £950 for the most polluting cars. |
| The small steps forward that the chancellor took on green issues were absolutely overshadowed by the big step he took backwards. Caroline LucasGreen Party | The small steps forward that the chancellor took on green issues were absolutely overshadowed by the big step he took backwards. Caroline LucasGreen Party |
| He also said there would be an extra 10% on plane duty in the second year of a new per-flight tax regime to replace Air Passenger Duty (APD) from November 2009. | He also said there would be an extra 10% on plane duty in the second year of a new per-flight tax regime to replace Air Passenger Duty (APD) from November 2009. |
| Mr Darling announced that he would fund the development of technology for a national road-pricing scheme, introduce annual "carbon budgets" alongside the Budget from 2009, and review the government's target of reducing emissions by 60% by 2050, with a view to raising it to 80%. | Mr Darling announced that he would fund the development of technology for a national road-pricing scheme, introduce annual "carbon budgets" alongside the Budget from 2009, and review the government's target of reducing emissions by 60% by 2050, with a view to raising it to 80%. |
| And he announced plans to introduce a charge on plastic bags early next year, if supermarkets do not take "sufficient" steps to reduce their use. | And he announced plans to introduce a charge on plastic bags early next year, if supermarkets do not take "sufficient" steps to reduce their use. |
| Flight taxes | Flight taxes |
| But he delayed a planned 2p a litre increase in fuel duty for six months, owing to soaring crude oil prices. | But he delayed a planned 2p a litre increase in fuel duty for six months, owing to soaring crude oil prices. |
| Green Party MEP Caroline Lucas, told the BBC: "The small steps forward that the chancellor took on green issues were absolutely overshadowed by the big step he took backwards. | Green Party MEP Caroline Lucas, told the BBC: "The small steps forward that the chancellor took on green issues were absolutely overshadowed by the big step he took backwards. |
| This is a responsible Budget to secure Britain's stability in the face of global uncertainty Alistair Darling | This is a responsible Budget to secure Britain's stability in the face of global uncertainty Alistair Darling |
| "And that of course was basically giving the green light to the expansion of Heathrow and Stansted airports." | "And that of course was basically giving the green light to the expansion of Heathrow and Stansted airports." |
| Greenpeace campaigner Anita Goldsmith agreed, saying increasing flight taxes was "hypocritical posturing" and Labour was "committed to more runways, more emissions and more climate change". | Greenpeace campaigner Anita Goldsmith agreed, saying increasing flight taxes was "hypocritical posturing" and Labour was "committed to more runways, more emissions and more climate change". |
| Friends of the Earth's Tony Bosworth said Mr Darling's "showroom tax" on the worst polluting cars was a "step in the right direction", but was not high enough to drive the "big changes in purchasing decisions" needed. | Friends of the Earth's Tony Bosworth said Mr Darling's "showroom tax" on the worst polluting cars was a "step in the right direction", but was not high enough to drive the "big changes in purchasing decisions" needed. |
| Binge drinking | Binge drinking |
| In other announcements, alcohol tax will go up by 6% above inflation - and then by 2% above inflation for the next four years, potentially boosting Treasury coffers by £635m annually by 2010. | In other announcements, alcohol tax will go up by 6% above inflation - and then by 2% above inflation for the next four years, potentially boosting Treasury coffers by £635m annually by 2010. |
| The first increases come into effect on Sunday - putting 4p on a pint of beer, 14p on a bottle of wine and 55p on a bottle of spirits. Duty on a packet of cigarettes will also go up by 11p | The first increases come into effect on Sunday - putting 4p on a pint of beer, 14p on a bottle of wine and 55p on a bottle of spirits. Duty on a packet of cigarettes will also go up by 11p |
| Announcing his plans Mr Darling said: "This is a responsible Budget to secure Britain's stability in the face of global uncertainty. | Announcing his plans Mr Darling said: "This is a responsible Budget to secure Britain's stability in the face of global uncertainty. |
| READ THE BUDGET IN FULL Budget statement [112KB] Complete report [4.06MB] Most computers will open this document automatically, but you may need Adobe Reader Download the reader here href="/1/hi/uk/7293406.stm">Britain's pubs 'at risk'More Budget documents | |
| "I have made my choice. Responsible decisions not irresponsible, unfunded promises. Fairness and opportunity for everyone in Britain to secure a strong, sustainable future." | "I have made my choice. Responsible decisions not irresponsible, unfunded promises. Fairness and opportunity for everyone in Britain to secure a strong, sustainable future." |
| But the Conservatives said Mr Darling's predecessor - Gordon Brown - had left him "little room for manoeuvre" and said Britain was badly prepared for economic uncertainty. | But the Conservatives said Mr Darling's predecessor - Gordon Brown - had left him "little room for manoeuvre" and said Britain was badly prepared for economic uncertainty. |
| Shadow chancellor George Osborne told BBC Radio 4's PM programme higher taxes alcohol was not the best way to reduce binge drinking. | Shadow chancellor George Osborne told BBC Radio 4's PM programme higher taxes alcohol was not the best way to reduce binge drinking. |
| He said: "You can actually target binge drinks without hitting someone who just goes to the pub on Friday night and has a pint or has a bottle of wine at home." | He said: "You can actually target binge drinks without hitting someone who just goes to the pub on Friday night and has a pint or has a bottle of wine at home." |
| And he said green taxes should be "offset with tax reductions elsewhere, otherwise any confidence the public has in environmental taxation is undermined because they just simply see them - quite correctly - as stealth taxes". | And he said green taxes should be "offset with tax reductions elsewhere, otherwise any confidence the public has in environmental taxation is undermined because they just simply see them - quite correctly - as stealth taxes". |
| And the Liberal Democrats said Mr Darling had "over egged" any good news, pointing out that winter fuel allowance rises were one-offs. | And the Liberal Democrats said Mr Darling had "over egged" any good news, pointing out that winter fuel allowance rises were one-offs. |
| Their Treasury spokesman Vincent Cable, told the BBC a £30,000 a year charge on "non-domiciled" foreign residents in Britain would not hit the richest hard enough: | Their Treasury spokesman Vincent Cable, told the BBC a £30,000 a year charge on "non-domiciled" foreign residents in Britain would not hit the richest hard enough: |
| "What we've advocated is that if people want to come here and work as expatriates or businessmen for a few years, of course they're very welcome and they should be given the 'non dom' status. | "What we've advocated is that if people want to come here and work as expatriates or businessmen for a few years, of course they're very welcome and they should be given the 'non dom' status. |
| "But once they've been here 7 years, once they've become part of British society, they should pay full British tax like the rest of us." | "But once they've been here 7 years, once they've become part of British society, they should pay full British tax like the rest of us." |