The news that the UK’s public finances deteriorated further in January coupled with the 30% plus drop in retail sales show how fragile the economy still is. 

This is also worrying news for the state of the public finances. Our weak economy, with increased bankrupcies and insolvencies will undoubtedly be having a dramatic impact on tax receipts. 

If nothing else these figures underline the importance of having a credible plan to tackle the deficit and stimulate growth and jobs to strengthen future tax receipts. 

The current fragile situation combined with the announced support of 60 leading economists today add increased weight to the Lib Dem view that simply slashing spending now regardless of the economic circumstances would not only a be a fruitless labour but a damaging one. 

If we cut too soon, the economy will be pushed back into recession, lowering tax revenues even further and negating the effect of the cuts. 

Only the Liberal Democrats have a clear and concise plan for dealing with the deficit and for promoting the long-term growth and security of our economy.” 

Yesterday George Osborne - the man who would be Chancellor of the Exchequer (despite no actual expertise in finance, not to mention Treasury finances), stood up in the British Museum and when he spoke the Tory manifesto pledges on the economy and budget deficit etc started to unravel before our very eyes. 

You may recall that the Conservatives had pledged massive cuts in their first 50 days of Government. For this they were roundly attacked because of the damage such mid-year cut backs would have on the finances of many public sector and voluntary organisations. 

Now they say they are not going to be nearly so brutal after all. But most worrying of all, they have decided that they are not going to tell us anything about the cuts. Yesterday George Osborne was repeatedly asked about the cuts - where, when, how much. Repeatedly he refused to answer.

It is frankly not credible to stand up and make vague and veiled promises about how they would handle the economy and budget deficit and then refuse to go into any detail. He might as well of stood up and said “Just trust me, I’m a Conservative politician”. It would be as detailed as the spinned double-talk of a speech yesterday and would have saved him and the media a lot of time.

The Tories are now in turmoil over the economy. They wanted to act tough with cuts and appear strong in their handling of the economy, prepared to take the tough decisions etc, But for whatever reason they are now recoiling from that position. There policy seems to vary depending on which Tory is speaking!

Only the Liberal Democrats have a coherent economic policy that is both credible from a treasury/economy point of view and importantly is designed to protect key public services.

The Liberal Democrats want to split up the banks so that taxpayers no longer have to underwrite reckless risk taking.

We will create a fairer tax system with an income tax cut which will make work pay for those on low incomes.

Through targeted cuts in spending we will be honest about how to reduce the deficit. And by setting up an infrastructure bank we will ensure that public infrastructure projects get the private funding they need to revolutionise our economy.  Now that is how you usher in an economy that is fit for the challenges ahead.

If there is one single area where Labour has persistently failed many people in this country it would be in its attempts to reduce poverty and the poverty gap in Britain. And within that their pledge to eradicate Child poverty is the most miserable failure of all. 

A report by the National Equality Panel published today has stated that the gap between rich and poor in Britain is now wider than 40 years ago.

The Panel found that “Deep-seated and systemic differences” remain between men and women and minority groups in pay and employment.

This is despite this Labour Government throwing millions of pounds of taxpayers money at the issue and numerous initiatives.

The trouble is they have done just that - thrown millions of pounds at the problem, almost scatter cushion like, without going to the fundamental issues that drive poverty and curse many born into poverty. And coupled with new labours conservative approach to personal taxation, especially in their first Blair Parliament from ‘97, they have undermined their own ambitions to deal with poverty.

It’s probably their biggest failure and worst legacy to many over the course of a generation, who despite promises now bear the brutal scars of poverty and all that flows from it.

The Conservatives recent announcement of tax breaks for married couples if they win the General Election may sound appealing but it is little more than another Tory tax bribe. 

Even if we put aside the big big question about how they would pay for such an expensive bribe whilst arguing the need for public service cuts everywhere because the country’s “bankrupt” , it just boils down to being blatantly unfair to millions - many of the poorest in society - and just a little patronising. 

Giving tax breaks to married couples where one person can afford to stay at home, but doing nothing for couples who both work is unfair. And penalising a woman whose husband has left her with a tax hike is unfair. 

And even if we look at the social engineering aspect of this - encouraging marriage. Have we forgotten the misery many endured in unhappy marriages in the past when it was the expected social norm. In a 21st century society that now largely respects different types of relationships, Is it not better that people find the kind of relationship that suits them and their family unit rather than encourage marriage irrespective of the consequences. Is not love, mutual respect and support within the unit more important than the type of arrangement? 

This policy ultimately takes money out of the pockets of the poorest families and gives it to rich ones. It would reopen divisions in our society that have taken generations to heal and it would punish single parents. 

The Tories’ first instinct is to help those at the top, Once again they have proven that they can’t be trusted to make this country fairer. 

Lib Dem policy to increase basic tax alowances to £10,000 benefits everyone, but by definition the lowest earners most. But crucially - it’s fair to all.

Bury Council have arranged a Budget consultation event to be held at the Peel Room, Bury Town Hall on February 2nd, starting at 7pm.

The event will outline the budget position facing the Council , to be finalised by a full meeting of Bury Council on February 24th (7pm).

As part of the exercise officers will outline the options facing the council and provide an opportunity for residents to comment on possible council tax rises, spending priorities and savings options.

As I drove to work today, passing a billboard with David Cameron staring down at me trying to look all ernest and serious, the election campaign ahead became even clearer to me.

You listen to Cameron and Brown and all you seem to get is a bidding war as to how much they would cut public services in order to deal with the budget deficit. They both pledge to “protect” the NHS. Although it would seem the Tories now don’t mean all the NHS, just certain bits.

It’s as if they are trying to prove they are tougher than each other and in the mad scramble to chop services they are forgetting that we need radical change to improve many of our public services and crucially the great British Public need to know where those cuts will fall. What services will they be left with after the great cull!

That’s why we need the real change only the Lib Dems can offer not the fake change Tories or No change Labour. There has been much damage to many of our services with countless tinkering, interfering and gimmicks over the past 13 years and blatantly we can’t afford a Conservative Government when Labour have left Britain with wider poverty gaps than ever. The Economy is in a delicate position and we need sustainable economic policies not soundbites for the city.

Real change for Britain has never been more needed, Only the Lib Dems can offer the changes we need at a cost that we can afford. It’s about creating a fairer Britain for all.

David Cameron’s Christmas message has called on Lib Dems to back the Conservatives as there is between Lib Dems and Tories  ”now a lot less difference than there used to be on how to create a fairer Britain”.

He then goes on to give the game away by saying that a hung parliament would be bad for Britain - despite his apparent belief that there is not much between us and the Tories.

Mr Cameron, not for the first time, is talking double-speak and rather in bad spirit for the season og goodwill trying to put a rather distortive spin on the Lib Dems and the Tories and for that matter the next election. So let me translate this double-speak into plain english.

When Dave says there is “now a lot less difference than there used to be on how to create a fairer Britain”, what he actually means is the Conservative party can’t win the next election outright unless Lib Dem voters drop their principles and vote Tory.

When Dave says a hung parliament would be “bad for Britain”, what he means is that it would be bad for the Conservative Party.

There are many and varied policy differences between the Tories and the Lib Dems and for that matter Labour. The Tory interpretation of the word “fair” would seem pivotal in this argument.

When we talk of fair taxes, we mean for all not just millionaires, when we talk about fair green policies for a sustainable economy we mean polices that will commit to real changes to maximise our contribution to halting climate change - and it doesn’t involve pr visits to the north pole to pose with polar bears. And the Lib Dems want to see a fairer society that recognises the value that we can all contribute to society not just the privilaged few.

If David Cameron really does want a clean fight at the next elect he would do well to start applying a bit more honesty and a lot less spin.

As is usual with this Government the devil is in the detail. With the pleadges to protect services and the fairly minimal increases in taxation combined to a pledge to half the country’s borrowing, if anything was clear it was that the sums didn’t quite add up.

Now thanks to the Institute of Fiscal Studies we have expert examination that confirms what many feared , that “unprotected” services will face cuts of £36 Billion over the next 3 years. To put this into context the Armed Forces budget is £38 Bn.

Whilst that is a worry to put it mildly, what is also worrying is that we now learn that Gordon Brown overruled Alastair Darling and the Treasury on the proposed strategy. The Treasury wanted to make deeper cuts sooner - which the opposition generally believe is necessary. But Gordon Brown with an eye on the coming election clearly felt the medicine would be too severe and stepped in - but at what cost to the economy and peoples livelihoods?

Interestingly Brown is on record as a great admirer of Margaret Thatcher. Older readers will recall that Thatcher regularly usurped her Chancellors - remember Lamont, Howe and Lawson? Has Brown modelled himself on Thatcher? If so with £36 Billion of cuts coming our way the suffering will be long and hard.

Last night I sat down to watch a couple of my favourite TV programmes. Spooks, A fictional MI5 drama was all about the fact that if the Government couldn’t sieze assets of around £2 bn from an unscrupulous bank, then the country would be bankrupt and unable to pay public sector workers.

This scenario then seemed to morph into the news where I was confronted with Alastair Darling the Chancellor informing the country that we were in a worse mess than he had thought but he had a plan that involved bingo and boilers!

I have to tell you “Spooks” was more believable. Alastair Darling looked like a rejected pilot episode of “Yes Minister”.

I doubt there is anyone left in this country who does not know the nations finances are in a mess, that tough action is needed. Yet we saw a Chancellor trying desperately to offer nuggets of comfort, little tasty morsels to see us through a miserable winter.

He promised to protect Health and Education from cuts and offered increases in some benefits for next year - but what about the following years, after the General Election?

Read the rest of this entry.

I want to inform you of a major change to the Housing and Council Tax Benefit rules.

From today child benefit payments will not be included as income for Housing and Council Tax Benefit purposes.  As well as increasing the entitlement of those who already receive HB and CTB, there will be a substantial increase in the number of people who may become eligible as a result of the change.

Families who have claimed Housing and Council Tax Benefit and were not entitled in the past may now be able to receive financial help towards their rent and Council Tax bill. 

Are you or someone you know one of these families? 

Bury Councils Mobile Advice Centre will be at the following locations on the following days between 10am and 3pm to help promote this change:

Monday, November 2: Mosses Community Centre, Edward Street, Bury.

Tuesday,November 3:Chesham Fold Road off Bell Lane, Bury.

Wednesday, November 4: Daisyfield Estate,Powell Street, Bury.

Thursday, November 5: Tesco, Prestwich.

Friday, November 6:Kay Gardens, Bury

Contact the The Benefits Service, Bury Council,Whittaker St, Radcliffe, for more information on 0161 253 5008 or email housingbenefits@bury.gov.uk

So the Conservative Party is gradually coming clean. And it is clear already that as part of their “pain for all” plans phase one is taking a scorched earth policy to public spending.

With a freeze on public sector pay, delayed pensions, restricted pay limits and a 10% cut to public services this is a scorched earth policy designed for more than control of public spending in mind.

The more I here from Cameron, Osborne and co. the more I believe this weeks announcements are part of a concerted attempt to scare the British public into accepting the most demanding and fierce medicine they can throw at us. The big question is this. If the Tories are planning this scale of attack on our public services and spending, what do they intend to do with the savings? Something tells me when the public purse has recovered, we won’t be seeing re-investment in those same public services, and then they may just delay restoring the pension/earnings link or even put back retirement age further. And we shouldn’t forget that they have already pledged cuts to inheritance tax to make life easier for the rich as well.

Phase two should be very interesting - there is no doubt we need to cut public spending and we do need people to face up to some stark choices. However what we should be doing is not taking a chain saw to our public services but discussing which services should be protected and which need improving and which need support. What should our priorities be. I suspect the Conservatives know what they’re priorities are - so how about telling us. Now. Or is it all a case of slash and burn?

Lib Dem General Election candidate for Bury South, Vic D’Albert has welcomed todays announcement by Vince Cable of an additional property levy on properties worth over £1m.

“This measure would inject a bit more fairness into a distorted Council Tax system which would enable the Government to redistribute tax revenues to the low paid and remove many from tax altogether.” 

The new charge of 0.5% would apply to the value of a property above £1m. So if a home was worth £1.5m the 0.5% tax would apply to £500,000 of it, meaning the owner will have to pay £2,500 a year. The extra tax on a £4m property would be £15,000 a year. The Lib Dems say about 250,000 property-owners would pay about £4,000 a year each on average mostly in the South-East of England.  

Vic D’Albert commented, “It’s important that we balance this additional tax levy with what we are trying to achieve and that is all about lifting four million people - workers and pensioners - out of taxation and cutting taxes for people at the bottom end in a fair way.”  

Lib Dem leader Nick Clegg said: “I think people, even at the top end, now accept we need to try and rebalance things a bit so that everyone moves together - the whole of society moves together, it’s about fairness and rebalancing one of the most unfair tax systems around.This is a small correction which I think will make a big difference for people who are really struggling to make ends meet,” he said.

The new tax would be a “temporary” measure until it was able to implement its plans for a local income tax. People on low incomes, who are currently receiving council tax benefit, would be exempt, although the party has stressed it does not believe there are many low income people living in million pound homes.

It really does not achieve anything for Labour and the Tories to constantly try and twist each others words and statements on public spending in order that they then bleat “I told you so” to the media. With the Tories pledging to increase the costs of a ploughmans lunch in the House of commons and Labour trying to match the rhetoric with strong words but without saying much at all, we desperately need a grown up debate.

They talk of Public services as if they were something that is a luxury that can’t really be afforded in tough times - like eating out less or not replacing your ageing TV.

In all the talk of spending cuts and committments we need to remember that many public services are by definition quite vital and essential - relied on by many of the most vulnerable in our communities and by necessity not always affordable or providable through the private sector.

So in these difficult times whilst it is right to address Government spending, let’s also address Government income and Government waste, and lets have a sensible grown up discussion about services - the services that we can do without - ID cards etc and the services that need protecting - because of the impact of cuts.

The TUC were right to wade into the debate yesterday on the eve of their conference because we must not forget the implications of cuts invariably mean redundancies directly and indirectly.

Cuts will need to be made, but we need to ensure vital services are protected. It’s about services that matter, it’s about people lives as well as livelihoods.

Lib Dems ask all teachers, nurses and street cleaners in Bury South ‘where is the waste?’

Everyone employed in the public sector – including Bury South’s army of hard-working teachers, care assistants, librarians and social workers – is being asked to say where they think taxpayers’ money can be saved. 

The Liberal Democrats are launching a website where people who work with taxpayers’ money can submit suggestions on how to cut waste in the public sector. It will be launched by leader Nick Clegg as part of the ‘Ask the People in the Know’ project and can be accessed at www.nickclegg.com/intheknow .

Vic D’Albert, Liberal Democrat candidate for Bury South, said: “Every day I meet public servants out and about in Bury South whose hard work and dedication is an inspiration to us all. 

“They are the people who know what works and what doesn’t in their chosen field, and frankly they’re the ones I’d trust to say where cuts can be made safely without putting lives in danger. 

“Unlike the Tories, who just want to take an axe to public sector jobs, and Labour, who only care about bailing out bankers, the Liberal Democrats will reduce public debt in a responsible way. “That’s why we’re asking the experts – the people on-the-ground who know how money can be saved without threatening essential services – where is the waste?”

Her Majesty’s Revenues and Customs is currently trying to install a new software system. As a result it has led to massive delays in processing tax returns etc.

Now whilst this may be great news for those that are ultimately due to pay tax over as a result, many of those that are due tax refunds are struggling to cope.

One local business I know is currently owed £20,000 by the Revenue. Small businesses in the middle of a recession need that kind of money. Another Bury business I know is also owed thousands - tax paid via the revenues Construction Industry scheme for sub contracted staff - not repaid byclients - refundable from IR.

The Government must ensure that HM Revenue and Customs  get a grip of the situation and sorts this mess out soon, before the inevitable happens and businesses go to the wall as a result. That would be criminal negligence so far as I am concerned with the impact that small business failures have on local communities and the families involved.

If there is no immediate prospect of getting through the backlog and making these vital tax refunds then they should make imterim payments to cover (say) 80% of the expected repayment. That’s assuming they can still write cheques!

Last night the Government gave a fierce defence of the abolition of the 10p tax rate claiming it would bring down the budget and lead to tax chaos.

“The fact of the matter is however that Brown’s bloody mindedness and determination not to reverse this damaging cut will only serve to punish further in this recession many of those who have suffered most already. ”

The Government defeated the amendment to restore the 10p basic rate by 43. Lib Dems and Tories were joined by a number of Labour rebels led by Frank Field.

“A good Government must always be prepared to listen, however increasingly, Brown’s bunker mentality is leading to entrenchment and lip service, the result of which is leading to more and more suffering for those in the front line in this recession.

“Last nights “win” for Browns failing Government was a hollow victory confirming once and for all that Labour are no longer prepared to fight for the poor, the disadvantaged and the vulnerable. ”

In an attempt to attack the Government this morning, the Conservatives confirmed that if elected they would cut public services by 10%.

Although they insist they wouldn’t cut NHS spending (Would they increase it in line with the massive deficit from 2011 announced today??), they did confirm that all other departments would be expected to make 10% cuts.

Whilst some of this may seem appropriate “careful” talk in times like these, but unless they are prepared to be more precise then they are acting wholly irresponsibly.

Where in Education would 10% be found, What cuts to defence, the Police, Local authorities, Transport?

The Conservatives are trying to respond to claims that they haven’t any policies by announcing little tasters that they hope will put the opposition on the back foot. The trouble is their “policies” don’t go anywhere. They have reduced policy announcements to sound bites! 

This was the week that…

·         Allegations into the misuse of MPs’ expenses continued – one MP claimed for his ‘servants’ quarters’ [more]

·         Labour and Tory MPs decided to stand down over their expenses claims [more]

·         Former Labour Deputy Leader Roy Hattersley called for ministers who avoided paying tax to be sacked [more]

·         Nick Clegg, writing for the Guardian, set out his proposals for electoral and constitutional reform [more]

·         A number of Cabinet ministers and former ministers called for electoral reform [more]; [more]

·         The Treasury’s economic forecasts were doubted by a survey that it commissioned [more]

·         The BNP faced the prospect of an inquiry into their funding [more]

·         David Cameron was criticised for failing to wear a seatbelt in his latest party political broadcast [more]

Over the last week we learnt that…

·         The government’s mortgage rescue scheme has only helped two households in four months [more]

·         Despite government attempts, social mobility in the UK is still falling under Labour [more]

·         Mortgage lending has hit a new low [more]

·         The taxpayer has funded a former Tory spin doctor to the tune of £66,000 through Tory MPs’ expenses [more]

·         Conservative proposals could force a British exit from the EU, claims a group of senior lawyers [more]

·         Tory and UKIP MEPs are the worst UK MEPs for voting for EU transparency and reform [more]

Over the last week the Liberal Democrats…

·         Launched the campaign for fundamental political reform [more] and http://www.takebackpower.org/

·         Challenged UKIP MEPs to publish their expenses claims as Lib Dem MEPs have [more]

·         Renewed calls for extra police officers to tackle the credit crunch crime wave [more]

·         Highlighted concerns arising from the nationalising of banks [more]

·         Cast doubt on train punctuality figures [more]

·         Demanded the publication of MI5 agents’ guidelines [more]

·         Called for the FSA to launch an allegation into financial irregularities at HBOS [more]

This was the week that…

·         Parliament was rocked by revelations about the misuse of MPs expenses [more]

·         One of David Cameron’s closest aides was forced to quit over his ‘unacceptable’ expenses claims [more]

·         Labour suspended a former minister from the parliamentary party [more] and accepted the resignation of the Justice Minister over the expenses scandal [more]

·         Two Labour peers faced suspension from the House of Lords after being found guilty of intending to accept money to amend legislation [more]

·         An opinion poll showed that Labour support has fallen to a record low [more]

·         A poll of Euro-election voting intentions showed a three-way tie for second place, with Labour, the Liberal Democrats and UKIP all on 19% [more]

·         European leaders criticised Cameron’s decision to move his party to the fringes of European politics [more]

·         Nick Clegg’s public approval rating continued to rise [more]

·         An expert on crime reduction said Labour had failed in its pledge to be ‘tough on the causes of crime’ [more]

·         On Burnley Council, Labour and Tory councillors teamed up with 4 BNP councillors to try to unseat the Lib Dem council leader [more]

Over the last week we learnt that…

·         The number of unemployed jumped 244,000 in the first three months of the year [more]

·         BT announced that it is to cut 15,000 jobs, mostly in the UK [more]

·         100 primary schools are closing every year as demand for places looks set to grow [more]

·         Alistair Darling’s economic forecasts are over-optimistic, according to the Bank of England [more]

·         Teenage crime has soared 60% under New Labour [more]

·         The government has cut funding by 25% for five key environmental initiatives [more]

·         Only 13% of terrorism arrests lead to convictions [more]

·         Gordon Brown is “brutal” and has “anything but” a moral compass according to a former aide [more]

Over the last week the Liberal Democrats…

·         Launched their European Election campaign under the slogan ‘Stronger Together Poorer Apart’ [more]

·         Wrote to party leaders urging them to fully accept the recommendations of the investigation into MPs’ expenses [more]

·         Called for intercept evidence to be made admissible in court in terrorism cases [more]

·         Welcomed proposals for a mandatory code on alcohol sales [more]

·         Revealed the environmental impact of the government’s major road schemes [more]

·         Uncovered the fact that over 15,000 farmers earn less than the minimum wage [more]

·         Argued for a shift in focus in crime policy - from punishment to crime prevention [more]

·         Pushed for an investigation into allegations against the police at the G20 protests [more]

This was the week that…

·         Cabinet members came under fire as details of their expenses claims were revealed [more]. Outrageous expense claims included claiming for mock Tudor beams [more]; storm windows [more]; hanging baskets [more]; and plumbing to fix water that was ‘too hot’ [more]

·         A Labour peer was accused of abusing the expenses system by claiming expenses for an unoccupied flat [more]

·         A senior Cabinet minister attacked the “lamentable failure” of her own government [more]

·         The pressure was kept up on the government over the poor treatment of Gurkha veterans [more]

·         A Tory MEP received a standing ovation from the European parliament for criticising David Cameron [more], while another Tory MEP described Cameron’s European policy as “dotty” [more]

·         Senior figures in the Foreign Office called into question Tory foreign policy [more]

·         Labour braced themselves to lose their four remaining county councils at the local elections [more]

Over the last week we learnt that…

·         The gap between the rich and the poor has widened significantly under Labour [more]

·         A think tank believes this will be the worst recession since the 1930s [more]

·         House prices are set to fall 28% on average overall [more]

·         Over 20,000 civil servants think the government is run badly [more]

·         Only one in four voters back Brown and Darling to manage the economy properly [more]

·         The gender pay gap is higher in the public sector than in the private sector [more]

·         The government has spent £28,000 on ‘media training’ [more]

·         A Tory MP claimed swine flu is “nothing worse than a cold” [more]

Over the last week the Liberal Democrats…

·         Revealed the significant increases in train and bus fares under Labour [more]

·         Wrote to the FSA to encourage them to release details of bank ‘stress tests’ [more]

·         Continued to press the government for the fair treatment of Gurkhas [more]

·         Called upon the government to go further after the abandonment of Science SATs [more]

·         Pressed the government for further action on the removal of innocent people’s DNA from databases [more]

·         Uncovered the fact that two million social tenants have missed out on a government rent promise [more]

·         Demanded an urgent review of the out-of-hours care system [more]

·         Rubbished the government’s proposals to ‘fix’ the social services system [more]

This was the week that…

·         The World Health Organisation warned of the threat of a pandemic as swine flu spread across the world [more]

·         Gordon Brown was forced to make concessions in his plans to reform MPs expenses [more]

·         Labour MPs, including two former Home Secretaries, queued up to criticise Gordon Brown and his government [more]; [more]; [more]

·         The government made a u-turn on their communications database plans [more]

·         And the government also cancelled plans for Titan prisons following Lib Dem opposition to the scheme [more]

·         The Home Secretary who launched ID cards called for the scheme to be scrapped [more]

·         Gordon Brown was snubbed by the Pakistani President on a visit to the region [more]

·         The van maker LDV went into administration [more]

Over the last week we learnt that…

·         A record number of people were declared bankrupt in the first quarter of the year [more]

·         Government departments are set to miss their own carbon-cutting targets [more]

·         Labour has lost half its voters from the 2005 election [more]

·         A Labour Minister bet against Labour winning the next election [more]

·         The recession can be “constructive” – according to one Labour Minister [more]

·         Tory parliamentary candidates are more socially conservative and less green than the leadership line [more]

·         The Tories tried to recruit a BNP member to stand as a councillor, saying the parties “sing from the same hymn sheet” [more]

·         David Cameron took an all expenses paid trip to apartheid South Africa as a young party worker [more]

Over the last week the Liberal Democrats…

·         Defeated the government over Gurkha rights – the first time since the 1970s that a government has been defeated on an opposition day motion [more]

·         Revealed that the government’s mortgage rescue scheme has only helped one household [more]

·         Nick Clegg wrote to other party leaders to try to find a solution to the issues of MPs pay and expenses [more]

·         Welcomed government climbdowns on databases [more] and Titan prisons [more]

·         Criticised the policy that has led to a huge increase in imprisonment of mentally ill offenders [more]

·         Demanded tougher building regulations to prevent an “environmental catastrophe” [more]

·         Uncorked the statistic that the government has a wine cellar worth nearly £800,000 [more]

This was the week that…

·         The Budget was unveiled to severe criticism, revealing the dire state of the nation’s finances [more]

·         Labour broke their election manifesto promise by raising the top rate of income tax to 50% [more]

·         The Education Minister and the General Secretary of the Labour Party were drawn into the email smears scandal [more]; [more]

·         The Education Minister faced further criticism for allegedly ‘sexing up’ evidence given to an inquiry [more]

·         Francis Maude became the latest Conservative politician to become embroiled in an expenses scandal [more]

·         A former Labour MP resigned from the party, citing the culture of spin as her reason [more]

·         The Lib Dems new tax proposals were well received by influential political figures [more]

·         Unison, a Labour supporting union, attacked the government over their “childish venom” [more]

·         Allegations of ballot-box tampering threw the selection of a Labour parliamentary candidate into further controversy [more]

·         A leading think-tank said that the government’s income tax rises could lose the Treasury money [more] 

Over the last week we learnt that…

·         Unemployment has hit a new high of 2.1m [more]

·         The national debt has crept over 50% of GDP [more]

·         Deflation has arrived in Britain for the first time in 50 years [more]

·         The IMF are far less optimistic about the economy than Alistair Darling [more]

·         1 in 10 households are struggling to pay their council tax this year [more]

·         The care system is “catastrophic” for vulnerable children a report concludes [more]

·         The number of burglaries has risen for the second quarter in a row [more]

·         UK youth are some of the unhappiest in Europe [more]

Over the last week the Liberal Democrats…

·         Launched tax proposals including a pledge to cut income tax £700 for low and middle income earners [more]

·         Attacked the Budget as “a political supermarket sweep of random promises” [more]

·         Reacted to the Budget’s proposals for housing [more], broadband networks [more], car scrappage [more], energy [more] pensions [more], child poverty [more] and college funding [more]

·         Gained council seats from Labour, the Conservatives and an Independent in a spectacular week of council by-election results north and south of the border [more]; [more]

·         Nick Clegg rejected Gordon Brown’s proposals for reforming the system of MPs expenses [more]

·         Warned that the UK was facing a “credit crunch crime wave” [more]

·         Demanded that David Miliband corrects the Parliamentary record over torture allegations [more]

·         Led a debate calling on the government to provide greater support to armed forces veterans [more]

·         Criticised banks for charging exorbitant credit card interest rates [more]

·         Called for greater support for the children of nuclear test veterans [more]

Responding to Alistair Darling’s Budget, Liberal Democrat Leader Nick Clegg said:  
 
“Today we got a pick and mix Budget of recycled announcements from a government skilled in raising people’s hopes but incompetent at actually delivering help. 

“This Budget is a political supermarket sweep of random promises, without even a hint of a plan or any likelihood the promises will be put into practice. 

“Britain’s taxes are too heavy on those who can least afford it. And too easy to avoid for those who know how.  

“The Liberal Democrats would get practical help to people who are struggling and cut the vast majority of people’s Income Tax bills by £700, paid for by taking aggressive action to clamp down on all the loopholes and exemptions that benefit the richest people and biggest businesses. 

“With a shocking deficit this year of £175bn we need a national debate about what the state can and cannot afford in the future. 

“But Labour is out of ideas and out of steam. 

“Today they have condemned us to years of unemployment and a decade of debt. 

“The country deserves something different.” 

Read a summary of the party’s Economic Recovery Plan at www.LibDems.org.uk/RecoveryPlan

You should be able to read Nick Clegg’s Budget response in the House of Commons at http://www.publications.parliament.uk/pa/cm/cmtoday/cmdebate/home.htm from around 5pm today

TAX
• Income tax for those earning more than £150,000 to rise to 50% from April 2010• Tax relief on pensions to be reduced for people on more than £150,000 a year from April 2011

(source: http://news.bbc.co.uk/1/hi/uk_politics/8011882.stm)

So today we finally saw the death of dear old prudence, once held so dear as a treasury principle by Gordon Brown. The chancellor weighed in and with his second budget gambled the future prosperity and economic fortunes on a roll of the dice and a spin of the wheel.

The big big gamble is that he tells us the economy will start to improve (grow) by the end of the year and much of what he is putting in place is designed to reap the rewards of growth from 2010/11 - so precious little support for those struggling in the hear and now.

The second gamble is that he is trying to maintain spending at reasonable levels through massive record level borrowing, both in the hope of a speedy turn round in the economy but also in the hope of turning round Labours fortunes especially at the next General election.

Well I suppose now we own most of the banks we should be able to borrow plenty, but the sums just don’t add up. He has tried to please environmentalists - perhaps successfuly re:wind farms, not so with car scrappage scheme, and no Green tax switch. No easing of the tax burden with personal taxation and precious little else.

He has spun the wheel, but he can’t tell where it will stop. However it will cost us dearly when it does. It became clear today that this Labour Government is as bankrupt on ideas to get out of this mess as they are financially. But they are prepared to gamble everything on getting re-elected . Whoever gets elected next May/June - the first budget in a new parliament would be very interesting indeed.

As we approach budget time a few thoughts.

It is generally accepted that this years budget will be the toughest for a generations, from all angles, the Governments,The economy and for the ordinary person in the street - directly or indirectly or both.

My hopes for this budget will be that he re-invigorates personal spending, frees up disposable income and thus eases the pressure on those struggling to meet bills and mortgages etc. That means personal tax cuts.

Despite what some think now is also the time to introduce greater environmental taxation. remember the Lib Dem green tax switch plans - there has never been a better time for that.

And business is struggling, especially small business, so lets reduce the burden on them and help small businesses keep their heads above the water.

My fears are that the Government will be blinded by the need for a General Election next June and may even be thinking of a snap election before that, so may well seek to offer ludicrous bribe giveaways to enhance their prospects. Enhance their chances, but further damage the economy. Short term political gain against damage to long term recovery prospects.

What will they go for? Well clearly in part the answers will reveal how desperate this Labour Government is and also how bankrupt the Treasury is ? Will they get stuck into the problems the country faces in this crisis or will it be a cop out? All will be revealed soon.  

Thousands of people in Bury will be taken out of income tax altogether by new tax proposals launched by the Liberal Democrats. And thousands more will see their income tax bill slashed by £700 a year. 

The plans were launched by Party Leader Nick Clegg on 20^th April who said that they would boost family budgets battered by rising food, power and transport prices. The plans call for the personal tax allowance to be raised to £10,000.

Vic D’Albert, Lib Dem parliamentary candidate for Bury South said, “Thousands of families on low income in Bury will benefit from this tax cut. They will be lifted out of income tax altogether.  

“People earning over £10,000 will pay £700 less income tax a year, paid for by ending the loopholes and tax avoidance schemes used by the wealthy and big corporations. 

Richard Baum, Lib Dem parliamentary candidate for Bury North added, “Ordinary people are struggling because of the recession. Now is the time to make a far reaching and permanent change to the tax system that benefits those on low and middle incomes. Liberal Democrats want to see more money left in the pockets of ordinary people rather than taken away by the Government. 

“Here in Bury Liberal Democrats will be going into the general election committed to a lasting income tax cut.”

This was the fortnight that…

·         Gordon Brown’s key aide’s plans to smear senior Tories and their families were exposed [more]

·         And Gordon Brown eventually accepted responsibility [more]

·         The Home Secretary came under pressure following the collapse of the case against Damian Green MP [more]

·         A DNA pioneer attacked the government for storing the DNA of innocent people [more]

·         The Chancellor admitted that his previous economic forecasts were wildly optimistic [more]

·         The CBI attacked the government’s environmental policy [more]

·         Two organisations criticised the government’s ‘knee jerk’ crime and prison policies [more]; [more]

·         A teachers’ union called for a boycott of SATs [more] and adopted a Lib Dem policy [more]

·         A high profile Tory MEP branded the NHS a “mistake” [more]

·         A former Tory councillor was jailed for a year for abusing his expenses privileges [more]

·         Vince Cable published a “lucid and eloquent” book on the recession to positive reviews [more]

Over the last fortnight we learnt that…

·         The UK economy will not recover from the recession until 2012 [more]

·         A bailed-out bank will cut a further 4,500 UK jobs [more]

·         Unemployment will reach 3.2m by 2010 [more]

·         UK industrial production is falling at the fastest rate in four decades [more]

·         Car sales have fallen 30.5% in the last year [more]

·         The government have overpaid the Irish health service – possibly by €750m in the last five years [more]

·         Cost-cutting in the NHS is responsible for 4,000 blunders a year and putting up to 1m patients at risk [more]

·         The Treasury will be left with a £39bn public sector spending gap by 2015 [more]

·         Two thirds of small businesses feel they are not getting enough government support [more]

·         Three ministers have claimed their second home allowances while living in grace-and-favour apartments [more]; [more]; [more]

·         The leader of the Green Party thinks flying to Spain is as bad as stabbing someone in the street [more]

Over the last fortnight the Liberal Democrats…

·         Criticised the governments plans for a new generation of nuclear power plants [more]

·         Rejected government proposals to dock alcoholics’ benefits as ‘inhumane’ [more]

·         Dismissed the government’s new electric car policy as a ‘gimmick’ [more]

·         Uncovered the fact that the NHS is paying the government £81m at a rate of up to 5.6% [more]

·         Published research showing that 4 patients a day die in mental health trusts [more]

·         Revealed that the number of anaphylactic shock cases has doubled in ten years [more]

·         Found that the government’s VAT cut is principally benefiting the rich [more] 

·         Discovered that the dole is worth less now than in the previous two recessions [more]

·         Condemned a proposed 30% price hike by water companies [more]

This was the week that…

·         World leaders met in London and agreed to pump $1 trillion into the world economy [more]

·         A report showed that only 0.6% of the Government’s fiscal stimulus will be spent on green measures [more]

·         At least 4,000 jobs were lost in the UK across a range of sectors [more]

·         The UN named and shamed the UK over its response to the Somali refugee crisis [more]

·         The Home Secretary was criticised for charging the taxpayer for her husband’s adult films [more]

·         An inquiry began into a millionaire’s donations to the Tory party [more]

·         21 NHS trusts failed to meet new hygiene standards [more]

·         Lord Myners came under pressure to resign after he was accused of misleading Parliament [more]

·         A Select Committee called for the National Curriculum to be slimmed down – a Lib Dem policy [more]

·         The scandal into MPs expenses showed no sign of disappearing [more]; [more]

Over the last week we learnt that…

·         Unemployment will hit 3 million within two years [more]

·         The national DNA database has grown 40% in two years and now has more than 5 million people on it [more]

·         There are 10% fewer hospital beds today than there were three years ago [more]

·         The Government’s adult literacy drive is failing and wasting billions according to a government adviser [more]

·         According to most measures, house prices continued to fall in March [more]; [more]

·         Boris Johnson proposes to cut his environmental team in half [more]

·         160,000 kids left primary school without basic English and Maths competency [more]

·         Older people do not have fair access to mental health services in most mental health trusts [more]

·         The Europe Minister hasn’t read the Lisbon Treaty [more]

·         Conservative run Bournemouth Council are employing a transport manager who lives in Edinburgh – and paying £200,000 a year for his travel expenses [more]

Over the last week the Liberal Democrats…

·         Challenged Gordon Brown to turn the G20 agreement into real help for British people [more]

·         Led a debate challenging the Government in the House of Lords over tax havens [more]

·         Unveiled research showing that 80% of hospitals do not pass on knife crime information to the police [more]

·         Led a debate calling for a step up in nuclear non-proliferation action in the House of Lords [more]

·         Proposed a bill to end discrimination in the line of succession to the throne [more]

·         Highlighted shocking figures showing that prison assaults took place every half an hour in 2008 [more]

·         Called for the same guarantees of access for mental health care as for other health services [more]

This was the week that…

·         HSBC became the latest company to make cuts – 1,200 jobs are to go [more]

·         Business leaders queued up to warn that Britain cannot afford another fiscal stimulus [more]; [more]

·         The government confirmed there will be an Iraq War inquiry, but suggested it will be held in private [more]

·         A UK bond auction failed to find enough buyers for the first time since 2002 [more]

·         The split between the Prime Minister and the Treasury began to widen [more]

·         The Parliamentary Standards Commissioner launched an inquiry into a minister’s expenses [more]

·         A Sunday newspaper revealed the affair of a Labour MP and close friend of Gordon Brown [more]

·         The Conservative Party Chairman came unstuck justifying his expense claims [more]

·         Ken Clarke admitted he wasn’t sure if controversial Conservative tax reforms could be afforded [more]

·         Vince Cable was the only politician named in a ‘fantasy boardroom’ [more] 

Over the last week we learnt that…

·         GDP suffered its biggest quarterly fall since 1980 in the last quarter of 2008 [more]

·         The government will borrow £351bn in the next two years – more than in the 306 years up to Labour’s election victory in 1997 [more]

·         Retail sales almost stalled in February, coming in well below expectations [more]

·         15% of shops will be vacant by the end of 2009 [more]

·         Poor leadership at the Foreign Office has created a culture where “mediocrity flourishes” [more]

·         £3bn of overpaid tax credits have been written off as unrecoverable [more]

·         As many as one quarter of government databases may be illegal [more]

·         The Department of Transport misled environmental groups over Heathrow expansion [more]

·         Unemployment is good for your health – according to one government minister [more]

Over the last week the Liberal Democrats…

·         Launched their G20 development plan [more]

·         Successfully amended the Coroners and Justice Bill after forcing a government u-turn [more]

·         Tabled an Early Day Motion calling for the second home allowance to be abolished for London MPs [more]

·         Called on the Government to replace the VAT cut with investment into public transport and home insulation to create new jobs [more]

·         Revealed that anti-terror legislation is routinely used by local councils against minor offenders [more]

·         Wrote to the Chancellor over Sir Fred Goodwin’s pension payments [more]

·         Highlighted shocking statistics about Britain’s knife crime culture [more]

This was the week that…

·         Unemployment passed the 2m mark for the first time in 12 years [more]

·         The IMF predicted that the recession in Britain will be the worst in the developed world [more]

·         Evidence grew of the Government’s complicity in torture [more]

·         NHS target culture was blamed for up to 1,200 people dying unnecessarily at a Staffordshire hospital [more]

·         The NHS was criticised for spending millions on unproven schemes [more]

·         The Immigration minister announced plans for a detention centre outside Calais – although no one in France had heard of the plan [more]

·         After Lib Dem pressure, the government backed down on plans to share data between departments [more]

·         Senior Labour figures lined up to criticise the PM and make him accept blame [more] ; [more]

·         The Government Chief Whip accused his own backbenchers of “idleness” [more]

Over the last week we learnt that…

·         Car production fell by almost 60% in January [more]

·         Each adult in Britain is an average of £40,000 worse off because of the recession [more]

·         Gordon Brown was warned over Britain’s weak regulatory regime in 2004 – and did nothing [more]

·         2m people will be on the waiting list for social housing by 2011 [more]

·         The UK will borrow more money than any other major economy next year [more]

·         Britain is giving less help to the country’s poor in the recession than other G8 nations [more]

·         Youth crime has soared over the last 10 years under Labour [more]

·         The Government’s new Department for Energy and Climate Change is in chaos [more]

·         Housing prisoners in police stations has proved more expensive than the Ritz per night [more]

·         The Government has spent £780,000 on flowers in four years [more]

Over the last week the Liberal Democrats…

·         Condemned the Government over their management of the Northern Rock crisis [more]

·         Exposed a £2bn black hole in the government’s unemployment benefits estimates

·         Challenged the Prime Minister over the Government’s “frenzied” target culture [more]

·         Attended the launch of a cross-party campaign for a ‘Post Bank’ (a long-standing Lib Dem policy) [more]

·         Revealed shocking statistics about alcohol related youth hospital admissions [more]

·         Heaped pressure onto the Government to open a public inquiry into the invasion of Iraq [more]

·         Called for a green road out of recession and criticised the Government’s neglect of the environment [more]

So now we learn that Northern Rock provided millions of punds worth of high risk loans AFTER being bailed out by the taxpayer and as if that wasn’t bad enough we are gradually finding out that Barclays was laundering £billions in overseas investments and accounts in a bid to avoid paying tax.

The more we find out about the murky world of banking the more its clear that if one good thing comes out this whole crisis then surely tighter regulation and controls over our financial institutions will be it.

However its a sorry day indeed when we see the High Court upholding a gagging order by Barclays to hide details of its murky dealings overseas. And by the way this is a bank that’s negotiating with the Government to borrow millions of hard earned tax payers  money. 

Yes, that’s right you heard right. They are prepared to take legal action to stop you finding out what they are doing with it , but would like some more please. I know what my answer would be. I may be an accountant but my response wouldn’t include any financial jargon! 

The more we find out the more I feel we need to properly nationalise the collapsed banks and start talking tough to the likes of Barclays. I dread to think what more scandals there are lurking.

Its like lancing a boil with the smallest pin you can find!

So now there are proposals (apparently dismissed by the Government) to deal with the binge drinking culture by charging a minimum price per unit for alcohol.

Whilst the idea has some merit I think its failing to deal with the causes of the problem and fails to address the situation generally, merely adding a further complication to the mix.

Will raising the minimum cost of alcohol pro-rata based on strength solve the problem? I think not. The Government raises taxes on alcohol already, and it might be more appropriate to increase taxation in this instance which might also aid a public purse now considerably strained by bailing out numerous banks.

But there are other issues. One is the flow of dirt cheap and often illegally imported booze into this country. Raising prices for legal purchases may well only increase the flow of illegal imports and grow the black market trade in such goods.

Another issue is alcohol education. For too many years now we have concentrated on telling people its wrong to smoke and to do drugs. As a nation we’ve done our best to ban public smoking and warn of the dire consequences of smoking with considerable affect, but what about alcohol?

Alcohol has been shown to potentially as damaging as Cannabis but its not treated as such. Now I like a drink as much as the next man - so I won’t be advocating a ban by any means. But we need to start having a sensible conversation about how to deal with this issue. And what we don’t need is more gimmicky ideas or schemes to throw public money at.

Perhaps we need to consider raising the minimum age to 21? Stronger enforcement of underage drinking controls, Heavier penalties for drunk and disorderly offences, and I would certainly advocate stiff penalties for illegal imports.

There may well be other tactics and strategies available, I don’t pretend to have all the answers, but lets start talking sensibly and start tackling he problem rather than merely increasing the profits of the retailers or brewers.

THIS WAS THE WEEK THAT…

·         House sales fell to their lowest level in at least 31 years [more]

·         The recession in the UK continued to gather pace [more]

·         A United Nations report declared that the UK had breached human rights [more]

·         Government divisions over the need to apologise for the economic crisis continued to grow [more]

·         A former cabinet minister publicly attacked Gordon Brown on Labour’s lack of ‘narrative’ [more]

·         Labour MPs rounded on the PM at Prime Minister’s Questions [more]

·         A business leader said that the government was focusing on ‘red herrings’ [more]

·         Government ministers failed to comprehensively reveal their financial interests [more]

·         A Tory MEP described climate change as a ‘media driven frenzy’ [more]

·         A Labour mayor resigned after his arrest over corruption charges [more]

OVER THE LAST WEEK WE LEARNT THAT….

·         Continued systematic failings in the social services are leaving vulnerable children at risk [more]

·         Almost one playing field a day was sold in 2008 despite government commitments to reverse this trend [more]

·         Many elderly people are looked after by untrained staff in unclean care homes [more]

·         One in six children did not get into their first choice secondary school [more]

·         New Royal Navy destroyers will be delivered £1.5bn over budget and two years late [more]

·         The private sector pension deficit is at a record £219bn – and is still growing [more]

·         One in four of the world’s CCTV cameras are in Britain [more]

·         Gordon Brown is the country’s most boring public speaker! [more]

OVER THE LAST WEEK THE LIBERAL DEMOCRATS…

·         Revealed that over 1000 serving police officers have criminal convictions [more]

·         Said government economic proposals were “shutting the stable door after the horse has bolted” [more]

·         Visited Google to discuss internet privacy issues [more]

·         Called for dirty care homes to be closed down [more]

·         Demanded a public inquiry following revelations of heavy-handed policing at a protest last year [more]

·         Called for a tougher government response to reduce knife crime [more]

·         Exposed a huge decrease in the amount of domestically produced food consumed in the UK [more]

·         Attacked the government’s insubstantial approach to tackling domestic violence [more]

·         Accused the Home Office of being “illegal, immoral, and ineffective” for keeping the DNA of a baby on record [more]

The Liberal Democrat leader tells his party conference that it will be a long, slow climb out of recession but his party offers hope for the future.

Click here to read the full text of Nick Clegg’s speech

Nick Clegg laid the blame for Britain’s economic crisis and political malaise squarely at the door of both Labour and the Conservatives, in his keynote speech to the party spring conference in Harrogate:

“A never-ending cycle of red-blue, blue-red government has got us into this mess - it is never going to get us out.”He said now was the time to try something new:“Now is the time to think big.If you want better, choose different.Choose the Liberal Democrats.”

Nick made a stinging attack on the Labour Government for having let people down: 

“Labour is like a spent match. There’s nothing left. You remember how hopeful people felt in 1997? Remember the promise of a better future?  Don’t you feel the disappointment?“An economy in tatters. A country more unequal than before. An illegal war, our government implicated in torture and rendition. Our environment poisoned. Our privacy invaded, our freedom curtailed. If you believe, like I do, in progress.If you feel let down by Labour, and see that the Conservatives will never be a party of change. Turn to the Liberal Democrats. We carry the torch of progress now.”

Much of the speech was devoted to the state of the economy and what the Liberal Democrats would do to turn things round:

“At least 3 million unemployed by the end of the year. That’s devastating. Let me be clear. We will do everything possible to help. Everything to protect jobs, keeping viable businesses going. Everything to make sure being made redundant does not mean you lose everything. And everything to create hundreds of thousands of new jobs, to get people back out to work as soon as possible.”

Nick told conference that the government has borrowed twelve and a half billion pounds to finance this year’s VAT giveaway:

“That money alone could have created nearly 100,000 new jobs. And laid the foundations, quite literally, for a new green economy.”

Nick said the party should be proud of their progressive policies and enduring liberal values:

“Let us say it loud and clear. We are the only party who will put money into people’s pockets with fair tax cuts. The only party to offer universal childcare and smaller classes in our primary schools. The only party who would use Gordon Brown’s wasted billions to create thousands of jobs today by investing in homes, hospitals, schools and public transport to build the green economy of tomorrow. The only party that will rebuild the jobs, homes and hopes this recession has destroyed.” 

Bury Conservatives have ignored the recession and forced through an inflation busting 4.79% Council Tax increase amidst cuts to public services at the special Budget setting Council meeting last night.

Much of the debate was focussed on the proposals to cut youth services in the second year of the 3 year budget approved. The Conservatives plan to cut £200,000 from the service by outsourcing aspects of this vital service.  A large number of young people attended to ask questions and lobby against the proposals.

The other controversial issue was the proposal to save money by turning  a number of street lights off at night. Full details of this proposal are yet to emerge, however it has to be made clear that this is a money saving measure from the Conservatives NOT an environmental energy saving measure. It clearly has not been thought through as yet and may well take some persuading before it happens. But that doesn’t bother the Conservatives.

Whilst there was a welcome cash injection for disabled adult services which has struggled with adequate funding, there were cuts across the service spectrum and further use of reserves.

Opposition parties proposed amendments which were both defeated by the Conservatives. The Lib Dems proposed an additional £300,000 for local street repairs and an additional £300,000 in support of a apackage of measures to support local businesses through the recession over the next 12 months. In addition we proposed a review of youth services - but significantly with a view to ploughing back any savings directly into providing better youth services across the borough.

The debate was marred by the constant “bating”, provocation and insulting behaviour by a number of senior members which in my opinion bordered on showing a lack of respect for their office and threatened to reduce the debate to a cross between a playground squabble and a circus.

I raised concerns in the debate that the Conservative group were using the budget to announce major policy initiatives involving significant resources, without any consideration by officers, scrutiny by councillors nor consultation with the public. This could lead to serious problems as the year progresses.

It is now clear to me that the Conservative strategy is to bump up Council Tax this year and cut services as there are no elections. Then prior to next years elections we will see more cuts in an attempt to set a council tax as close to 0% as possible. Politics of manipulation, deceit and cynicism.  

You might feel the urge to sign the petition to stop RBS giving away £1bn of our tax payers money in bonuses.

Feels a little like we must be living in a fantasy world that it’s even necessary to have to sign a petition to stop them doing it. They lose £28bn - get £20bn of tax payers money and then pay £1bn in bonuses!!! You couldn’t make it up.  £3.6bn of the £37bn we paid in cash is going in bonuses in the next 6 weeks. An increase of 1p on income tax raises about £3.7bn. So by not paying it we could arguably have had a 1p cut in income tax. Now let me see what would we all prefer - to make sure the bankers all get their bonuses or to give us 1p in the pound back on income tax.

“No Ifs No Buts-  Give up the Bonus, RBS”

http://www.ipetitions.com/petition/giveupthebonus?e

The Liberal Democrats have consistently been ahead of the game on economic issues. Here is a list of ten things we called for first, and which have now either been implemented or taken on board by at least one of the other two main parties.

• Northern Rock nationalisation - it was clear to us that this was unavoidable in November last year. It took the Government until February to act.

• Independence of the Bank of England - longstanding Lib Dem policy. First Labour implemented it, over Tory opposition. Now even the Tories support it.

• Recapitalisation of the banks - Vince Cable was the first politician to call for this. Three days later the Chancellor announced that this would be going ahead.

• Tackling the bonus culture - in May we were the first party to put forward proposals for tackling the harmful bonus culture in the financial sector. By the autumn, ministers and the Tory leadership had realised the situation was indefensible and changed their tune..

• Regulation of ’sale and rent back’ agreements - this was part of our ‘7 point plan’ for dealing with personal debt, launched in September 2003. The Government announced on 22nd October this year that they were finally looking into this.

• New court guidance to make repossession a ‘last resort’, obliging lenders to exhaust all alternatives first - another measure in the Government’s 22^nd October announcement that the Lib Dems had been calling for for more than six months.

• Changes to capital adequacy laws to require banks to hold more capital in periods of boom and less in recession - we called for this back in January 2003. Now the Conservatives back it too.

• Curbs on irresponsible lending - a commonplace sentiment now, but we called for “the publication by the Government of strict measures for responsible lending, which lenders must be required to observe” back in September 2003.

So Dave Camerons New Tories have finally admitted that they will cut services if elected. They have admitted they will not try and match current Government spending plans, citing the current economic woes as the key reason allied to Government borrowing. 

Underneath that cloak of warm and cozy new blue conservatism they haven’t really changed - always a case of cutting public services to support low taxation at any cost and the current economic climate just gave them their best excuse ever.

Once again the Lib Dems have led the way on this issue, time after time now we have been proved right on the best way forward and time after time the Government has taken on board our proposals. We called for bank interest rates to be cut - they were, and we have called for tax cuts and that is now likely. The key here is that tax cuts for their own sake is short termist and is little more than a bribe - we need tax cuts to support long term sustainability and support for the economy.

LIBERAL Democrats in Bury have called for a cut in income tax for people on low and middle incomes to help them beat the recession. 

“Inflation is at its highest for years,” said Vic D’Albert, Parliamentary spokesperson for Bury South. “Residents of Bury are struggling with rising fuel and housing costs. They need money in their pockets now. 

“Liberal Democrats are calling for a cut in income tax of 4p in the pound. It will be paid for by closing the loopholes used by the most wealthy to avoid paying tax. And we will increase the level of tax on the most polluting activities. 

“Too many people are faced with the appalling prospect of either eating properly or heating their homes. Action is needed now to help residents of Bury who are struggling with rising prices. 

“Many residents on low incomes are paying more in tax following the government’s decision to double the starting rate of income tax to 20p in the pound. Though the government was eventually forced to come forward with a package to compensate people for the tax increase, many are still worse off. 

“Cutting income tax will therefore give residents and our local economy a boost at a time when it is desperately needed.”