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Mark Lazarowicz MP for Edinburgh North and Leith

News and information from Mark Lazarowicz MP for Edinburgh North and Leith

Visit Mark's Edinburgh North & Leith blog to join in the debate on local and national issues.

 

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   Neither fair nor good for business - Mark on the Budget

Mark spoke out strongly against the benefit cuts in today’s Budget and warned of likely lost opportunities for Edinburgh.

Mark said:

"Cuts to tax credits, pregnancy grants taken from new mums, child benefit frozen for years, support for disabled people being cut, housing support slashed, attacks on the public sector - just the same old policies from the Tories.
 
“There is no doubt that this budget is going to have an impact on the most vulnerable in our society. The cuts in benefits, which were glossed over in the Chancellor’s statement, will mean real cuts for some of the most vulnerable in our society. And the increase in VAT will hit many other low and middle income families.

“The VAT increase, together with cuts like those in child benefit, will more than wipe out the slight increase in personal tax increases for most people and the increases in pensions were in Labour’s own budget plans before the election anyway.

“One measure which is likely to be badly felt in Edinburgh is the reduction of the ‘cap’ for housing benefit. In a city like Edinburgh, where rents are relatively high, this is likely to have a much heavier impact. I predict this will mean an increase in overcrowding and people sleeping rough, as many people on low income will find their current housing beyond their means.

“However, this is a budget whose full effects will only become apparent over the months and years. The Chancellor has said that government departments will on average have a cut of 25%, leaving aside defence and international development. But this will almost certainly mean some departments will have a cut of much more than the average, maybe 30% or more.

“The new government has said it will only spell these out over the next few months, but I suspect that departments like Business, Innovation and Skills, and Transport, will be particularly badly hit. If that happens, support for universities and innovation, like Edinburgh’s growing renewables industry, are bound to suffer. Plans for improving services on the East Coast Main Line could also be at risk.

The Budget was a missed opportunity to raise funds by tackling tax evasion and avoidance. It showed a singular lack of imagination by not using the potential of ‘green taxation’ which could have raised funds to support infrastructure projects and the green economy.”

Click here for a recent intervention by Mark in Parliament on the need to raise funds by tackling tax avoidance rather than cutting benefits for those on low income.

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