Budget a failed opportunity - Sollitt

7.09.31pm GMT Wed 22nd Mar 2006

Steve Sollitt, Liberal Democrat Campaigner for Southampton Test has branded today's Budget as a failed opportunity to improve the lives of many

Steve said "Gordon Brown has failed to deal with the issues that are on people minds. He has failed to deliver a hard hitting budget that will improve peoples lives in a real way.

He has failed on six different issues

Council Tax:

The £200 rebate offered to pensioners last year has now been shown to be a one-off. It is unclear why pensioners need support in an election year, but not in the year after. This means every pensioner household faces a £200 rise in their bills this year, in addition to any increases made by the local council. The Liberal Democrats would scrap council tax and replace it with a system based on ability to pay.

Pensions:

The Chancellor failed to address the crisis in pensions. The government recently refused to accept the Ombudsman's report regarding compensation and the Chancellor appears to be only the substantial obstacle to adopting a blueprint for pension reform - based on a broad consensus around the Turner report, with a decent state pension and an end to means testing.

The Budget has also failed to deal with another of the most glaring issues before us today; the crisis in pensions. Last week we learned that the Government would not follow the Ombudsman's recommendations and compensate those who have lost out by believing government information. The Ombudsman said the government had provided information that was 'inaccurate, incomplete, unclear and inconsistent'.

The environment:

The changes in Vehicle Excise Duty will have no meaningfully beneficial impact on the environment. The duty only applies to new cars and is only equivalent to about half a tank of fuel. The Liberal Democrats would levy a carbon tax to replace the Climate Change Levy and would replace air passenger duty with a duty levied on flights.

Personal debt:

The Chancellor makes no mention of personal debt, which now stands a £1.2 trillion - equivalent to 100% of the UK's GDP. The Liberal Democrats would put in place a truly independent network of advice centres and take steps to prevent mis-selling from banks of mortgage payment protection insurance.

Unfairness in the tax system:

The Chancellor has done nothing to address the unfairness that the top 20% of earners pay less of their income in tax than the bottom 20%. The tax system also remains unfair and vastly overcomplicated. The Liberal Democrats do not see the need for the tax burden to rise, but believe the burden should be distributed more fairly.

Public spending:

The Chancellor failed to face up to tough choices in public spending. The government will have to face up to real terms cuts in public spending next year. The Liberal Democrats are committed to making tough choices - such as abolishing the DTI.

Treasury targets have led to NHS Trusts cutting waiting lists at all costs - and cutting care in other areas. There is a need for tough choices, for spending priorities. We are committed to them - like cutting back on DTI industrial subsidies, such as those given to the nuclear power industry. The baby bond scheme - money much better spent on early years education now than a bond in the future. The millions of pounds already spent on the unnecessary and unworkable identity card scheme.

Steve concluded "This budget could have delivered so much more than it did, this country needs real change and it needs it now"