The Liberal Democrats respond to Alistair Darling's first Budget

Budget is a great green cop out - Clegg

12 March 2008

Nick Clegg's budget reactionToday's budget is a green cop out which kicks the difficult decisions on environmental taxes into the long grass and offers no help to the millions of hard pressed families struggling to make ends meet, according to Liberal Democrat Leader, Nick Clegg.

He said: "This is not a green budget. This is not a people's budget. This is a con trick budget that protects the rich and abandons the poor. The Government has bottled it on green taxes and failed to implement the necessary measures to cut child poverty."

Unlike Liberal Democrat proposals for a Green Tax Switch, the money raised from environmental taxes will not be given back to families in the form of other tax cuts, but instead be taken by the Government to fill its black hole.

Commenting, Nick Clegg said:

"This was an opportunity to give whatever help possible to millions of stretched British families who are feeling the pinch; whose money just doesn't go as far as it used to.

"This is a budget which gives only limited help to the poor, but maintains special treatment for the rich.

"A budget designed to fill a black hole masquerading as good for the environment. A budget which will not make Britain fairer, and a budget that is a great green cop out, as most of the new green taxes are being delayed.

"The piecemeal reforms that the chancellor is introducing to the chaotic Tax Credit system won't get the Government anywhere near meeting its 2010 Child Poverty target.

"The reality is that the Government's approach has failed. If we are to abolish child poverty for good we must not only increase income we must increase opportunity too.

"These are the people most in need in our society - yet after ten years and yet another budget, they are still no nearer being given the true support they need.

"Green taxes should be revenue-neutral. They should not be treated as a wheeze to squeeze ever more money out of the British people, but should instead be designed to encourage green behaviour, and to cut the taxes of the most needy.

"This is not a budget for the environment. It's a budget driven by fiscal incompetence and political desperation.

"Why has Alistair Darling not had the guts to claw back the huge profits made by energy companies, thanks to the emissions permits that the Government has given them for free?

"4.5 million people still live in fuel poverty and the Government's 2010 fuel poverty target has been conveniently forgotten by ministers.

"Trying to grab headlines by increasing the Winter Fuel Payment for just one year will do nothing to help poor pensioners in the long run.

"Surely this is the time to compel all energy companies to introduce real, fair, social tariffs for all vulnerable people, not just those on pre-paid meters?

"This budget gives no real help to families struggling with higher food bills, higher energy bills and higher debt repayments. What is this budget doing to help junior nurses, teaching assistants and soldiers serving in Afghanistan? The answer is nothing.

"After 11 years in Government, Labour has completed its fiscal fusion with the Tory Party."

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