Keith Sharp explains why the budget may not be all it is promised to be (Islington Liberal Democrats)

Islington Liberal Democrats <Islington_ld@cix.co.uk>

Keith Sharp explains why the budget may not be all it is promised to be

March 5, 2001 12:00 AM

Although Gordon Brown my try and tantalise us with income tax cuts, the truth is people would rather see investment in health, education and pensions before tax cuts. The Chancellor is on course for a huge surplus of around 16 bn this year, well above his 10 bn forecast. Yet a BBC survey has shown that people overwhelmingly (70% - 28%) back the Lib Dem position that this money should be spent on public services like health and education in the Budget - ratherthan on tax cuts. This is a huge blow for William Hague's Conservatives, who have put their fading election hopes in a strategy of tax cuts at the expense of public services. The Tories have failed to explain how they could find the money for the tax cuts they promise without cutting funds for schools, hospitals and pensions. Tory plans don't add up. Because the Lib Dems not only promise investment in schools, hospitals and pensions but explain how it will be funded (see below), only we can guarantee the investment that people want. Key Liberal Democrat Budget proposals (from the Alternative Budget) HEALTH: Cut waiting times by providing training places for an extra 3300 doctors and 11400 nurses; 11000 more beds; increased pay for nurses; pay for all long-term personal care - using money from a new 50% tax rate on income over 100,000, and capital gains tax changes. EDUCATION: Cut average class sizes to 25 for all 5 to 11 year olds; extra funding for books and equipment; 5000 more secondary teacher places; abolish university tuition fees - funded by 1p on the basic rate of income tax. PENSIONS: Give every pensioner 5 extra per week, with 8 for every pensioner couple; tackle poverty among the oldest pensioners, by giving 10 extra to over 75s and 15 to over 80s ( 18 and 28 for couples) - also paid for through the 50% tax band. CRIME: 6000 extra police officers- paid for by closing loopholes in capital gains tax. TAX: No new stealth taxes - guaranteed. A Liberal Democrat government will send every taxpayer an annual Citizen's Tax Contract - a simple explanation of what people are paying in tax, any tax changes introduced, why, and whatthey are spent on.