'By-election budget' is a failure, say Lib Dems

11:05am Wednesday 14th May 2008

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THE so-called 'by-election budget' will still leave thousands of people in Crewe and Nantwich no better off, according to the Liberal Democrat candidate.

The Government this week announced its intension to increase the personal allowance by £600 to compensate those who have lost out in last years budget.

However people earning between £6,500 and £12,800 will still pay more income tax as the personal allowance increase is insufficient to compensate them for their losses.

According to the ONS annual survey of hours and earnings 25% of Crewe's 37,000 strong workforce falls into this bracket - meaning that about 9,250 people will still be worse off.

Lib Dem candidate Elizabeth Shenton said: "I want to ask Tamsin Dunwoody if she agrees with the Chancellor that 9,000 of the poorest people in Crewe should not be compensated for 10p tax losses.

"She should let the voters know where she stands, with them, or with the Government.

"With such a hike in Government borrowing there can be not doubt that Gordon Brown has lost his reputation for economic competence."

Liberal Democrat shadow chancellor Vince Cable added: "This Government's tax policy has descended into a complete farce.

"The abolition of the 10p rate was designed to help Labour win the election that never was.

"Now this by-election budget is designed to help them cling on to Crewe and Nantwich in next week's vote."