Posted on July 21, 2011 by Phillip Lee

Last week the Chancellor, George Osborne, presented the Budget in the House of Commons. In last year’s Emergency Budget the Government had to bring the country back from the brink of bankruptcy. Labour had ‘maxed out’ the country’s credit card, and left their bills for our children and grandchildren to pay. In their 13 years in office they had doubled the national debt and, as a result, British taxpayers now spend £120 million a day paying off the interest on Labour’s debts. That is more than we spend on our schools or defence.

This year’s Budget is about two things; first, reforming the economy to ensure jobs and growth for the future, and second, doing what we can to help families with the cost of living. There is no doubt that the Government is right to stick to the plan to tackle the deficit. However, stability alone is not enough – Britain has to earn its way in the modern world. With the public sector now accounting for half of our economy, we have to reform. We need a new economic model, one which is underpinned by investment, manufacturing and exports, so that Britain makes things again. This Budget kick-started that reform with a tax cut for business, rate relief for small firms, a doubling of Entrepreneurs Relief and more support for research and development. We will scrap burdensome regulations that cost businesses millions every year and introduce a moratorium on all new regulation for our smallest companies. In addition, we are creating a £3 billion new Green Investment Bank and investing £100 million in new science facilities. Science is central to maintain Britain’s place at the forefront of innovation. I am pleased that this £100 million investment will benefit the International Space Innovation Centre at Harwell. As Vice-Chair of the Parliamentary Space Committee I know how essential investment in space project is for innovation in British businesses and therefore appreciate the importance of these funds.

The Budget is also about doing what we can to help families with the cost of living – from April next year the personal tax allowance will increase by a further £630, to £8,105. Together with this year’s rise, that means a total of £326 extra each year for those working hard to support their families. And it means, just ten months into office, this coalition Government has taken 1.1 million low paid people out of tax altogether. In addition, by cutting the 1 pence per litre in fuel duty, introducing a scheme to help first time buyers through a new £250 million programme which will assist 10,000 people get on the housing ladder and the freeze in council tax, it means the Government is doing what it can to make a difference to hard working low paid families, even when public money is tight.

The Budget reflects the Government’s aim of not having to choose between creating conditions for future economic growth or helping families with the cost of living. Our plan for growth means doing both and that is why I am prepared to support this budget. At a time when money is tight for families up and down the country, people need to know that the Government is on their side.