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The Prosser Perspective.... a weekly column from Dover and Deal MP Gwyn Prosser

27 November 2008

When the world wide credit crunch gave rise to a global financial crisis, Gordon Brown promised he would do anything necessary to stabilize the economy and help people and businesses see through the difficult days.

This week the Pre-Budget Report has spelled out the extent of the problem and listed the bold measures that the Chancellor is taking to keep that promise.

Alistair Darling’s PBR has set out action to help families and businesses through the tough times by helping people, and putting money into the economy now so we come out of this sooner and stronger and once the economy is growing again and tackling the public finance problems caused by the credit crunch, in a way that is fair to all.

It’s not going to be plain sailing of course but given the worldwide forces hitting the UK economy nationally and locally I think the Chancellor’s budget proposals will give real help to homeowners and will help to protect jobs and businesses until we return to growth next year.

I especially welcome the special payment to every pensioner in my constituency of Dover and Deal which gives them a £60 payment on top of their Christmas bonus of £10 and there will also be significant increases in Pensioner Credits. Families of disabled children will receive an extra cash boost and families with children will be helped from the increase in Child Benefit which will now rise to £20 for the first child and which will start straight after Christmas.

The huge cut in VAT, down to 15%, will provide a welcome boost to the economy locally and right across the country by leaving more money in people’s pockets. Anyone who lived through the two deep recessions of the 80’s and 90’s – which hit Dover particularly hard – will remember that the Tory answer to the downturns was to turn their backs on families and businesses and do nothing.

Other rises include the increase in child tax credit by £75 a year in April above indexation, and over 21,000 local people in the Dover constituency who will be receiving their Winter Fuel Payments at the moment will see increases. An extra £50 on top of the regular £200 payment for over 60s households and an extra £100 on top of the regular £300 payment for over-80s households.

But it's not all been give-aways - we think that those who are earnining the most should pay the most tax and that's why we are upping the tax on those earning more than £150,000 a year to 45% - and about time too.

All in all this week’s Pre Budget Statement represents a massive £20 billion fiscal stimulus over the next 18 months to help get the economy working again and return the country to growth.

I’m pleased that it’s Gordon Brown who is taking decisive action to help see us through the tough times and it’s gratifying that just about every other country in the world is following his lead. That includes centre, centre right and centre left regimes and in all those cases their opposition parties are also supporting fiscal stimulation – all, that is except David Cameron’s Conservatives in Westminster .