What does the Budget mean for Brighton & Hove?

After 13 years of a Labour government, their out of control spending has finally come home to roost. Former Chief Secretary to the Treasury – Liam Byrne – was quite right to say in that infamous note to his successor that “there’s no money left.” It would be nice if he could also offer an apology to the nation for their profligacy, which we are now all having to pay for.

It is now up to the coalition government to sort out the mess and, in my view, they are quite right to get on and tackle it straight away. Leaving the debt interest to rise for another year would be a complete waste of public money and would only make the situation worse.

I have always said that there are going to be some tough decisions to be taken whoever won the general election in May and, to his credit, George Osborne had the courage to take some of those yesterday. The public sector pay freeze will be difficult for staff at the Council but I’m pleased that he has decided to protect those on incomes below £21,000. And I think that the review of public sector pensions has become unavoidable given the taxpayer liabilities that have been building up over the last few years.

But the tough choices were also mixed in with some really positive proposals. For example, thanks to our sound financial management over the last 3 years, we are going to be able to deliver on our pledge to Brighton & Hove’s residents to freeze council tax for next year. This Conservative Administration has delivered the lowest council tax rise in the history of the council for 3 years in a row now and has saved £30 million of taxpayers’ money in the process. A freeze next year will be a real boost for residents who are struggling to pay their bills, as will George Osborne’s decision to take almost a million people out of paying income tax altogether by raising the threshold.

There was also some really good news for businesses. The cut in Corporation Tax will be hugely welcome, as will the partial reversal of Labour’s proposed ‘jobs tax’ – the employer National Insurance contributions. It is crucial that we allow the private sector to prosper, both locally and nationally, as this is where the future economic growth – and taxation to support vital public services – will come from.

We will now be looking at George Osborne’s statement in more detail to see how it affects the Council’s finances. However, as always, I will do my utmost to ensure that frontline services are protected.

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