Advertisement
Oldham’s mixed response to yesterday’s Budget
Reporter: Janice Barker & Karen Doherty
Date online: 23 June 2010
The budget was tough but fair, good for small and medium-sized businesses, but worrying for those on the lowest incomes.
That was the view across Oldham after Chancellor George Osborne delivered an austerity budget said to be the most severe since the 1920s.
Oldham Council was well prepared for the Budget, after making £21million worth of savings last year, cutting staff and finding £11m worth of savings this year, plus £25million in cost savings and efficiencies planned for 2011/12, according to Councillor Lynne Thompson.
The Cabinet member for performance and value for public money added: “Our priority will be to protect the services in which vulnerable people depend, while still ensuring the borough doesn’t stand still.”
Lib-Dem council leader Howard Sykes said the Budget was tough but fair. The council’s Tory leader, Jack Hulme, who has formed a coalition with the Lib-Dems, said: “I am very interested in the freeze on council tax.
“I’m looking forward to having discussions with Howard Sykes on this to see if it’s appropriate and how we can move forward.
“It could be hard work but that’s what we came into coalition for. As far as I am concerned, one of my priorities is to ensure the academies and Building Schools for the Future programme, which is so far advanced, goes ahead.
“I particularly welcome the fact that to some extent pensioners are protected and in the public sector the poorest are protected.”
But Oldham’s Labour leader, Councillor Jim McMahon, said George Osborne’s claim that that the richest will pay and the poorest will be protected was “an out- and-out lie.”
He added: “Just look at VAT up to 20 per cent — the poorest people will pay most on essentials but haven’t got disposable income to fall back on.
“It’s very much a Conservative budget and I’m quite surprised the Liberal Democrats have allowed it to go through.”
Labour’s Oldham East and Saddleworth MP Phil Woolas said: “Oldham’s housing market will be hammered by the housing benefit cuts. It is not a responsible way to cut the deficit.
“I fear the support for manufacturing is window-dressing. We should be fearful of what is to follow.”
Roger Hinchliffe, of Pearson Hinchliffe solicitors, is a past president of the Greater Manchester Chamber of Commerce local council.
He said: “One of the most encouraging elements of the Budget is the immediate increase in entrepreneur’s relief.
“This will be welcomed by the owners of the hundreds of small to medium-sized businesses in Oldham which will now get an increase in capital gains tax relief. This will be a real incentive to build a business.”
Wendy Bradbury, chairman of Oldham’s Unison local government union, said: “A public sector pay freeze, together with a hike in VAT will adversely affect our members. The £250 pay increase for those earning under £21,000 isn’t going to be of much use to someone trying to raise a family on the minimum wage — and we have lots of people earning much less than £21,000.
“We are facing massive cuts in employment and services.”
Comments
I agree that it is not the best budget I have ever seen but for Jim McMahon and Phil Woolas it’s a case of kettle calling the pot. Phil it’s down to Labours time in control that has caused this problem same with Jim in Oldham Thank God we have two groups who will bite the bullet and deal with this bankrupt country and yes I will be one that is hit by this budget but it has to be done or we have no future as a country
All parties accepted that there would have to be a tough budget after the election. What we come down to is the ideology driving the cuts that might be made. The dogma driving this budget is not designed to sustain employment and protect the weakest and Oldham, a borough with a low wage economy, will be disproportionately affected.
It's a shame that everything gets laid at the door of the Last Three Years, and memories before that are shaky.
Before the carpet (credit crunch) came along to sweep things under, AD and GB before him had done a thorough job of trashing things and spending money they didn't have.
They were able to use the circumstances as a cover up.
We weren't all deluded by them though.
The whole budget is idiotic and unneccessary. Greedy Bankers on wall street and here caused the total collapse of the economy and it was only Gordon Browns speedy action that prevented a total collapse of world trade as in the 30's.
The spending deficit was not ethe probelm at all. All these morons will achieve is high employement, inflation and possibly stagflation and gutting the Middle class, young, poor and sick. A total disgrace locally and nationally.
Alastair Darling warns that his Government's cuts would be as bad as Thatcher's. Liam Byrne says there is no money left. Cllr McMahon - why the surprise at the Budget?
With regard to raising VAT, It is going to happen in six months time so buy now.
How many people complained that the reduction in VAT from 17.5% to 15% recently made no difference, and then said nothing about it going back up by 2.5% back to 17.5%, is this further 2.5% going to be that noticeable.
It is worth remembering that when Oldham's Labour Group proposed a budget that resulted in a 0% increase in council tax, the Tories, the Liberals and the Chronicle's editor denounced it as being 'irresponsible'.
Would Wendy Bradbury prefer huge job losses instead? Lowest paid get guaranteed rises and get to keep their jobs.
How will the housing market be hit Mr Woolas? how would you have cut the deficit your party was so happy to rack up by buying Middle england and pushing money up the chain to save the mega rich?
It's a good budget that gives at both ends and lifts hundreds of thousands out of paying tax. No VAT rise for six months, what's the problem?
Videoscapes.....funny thing about socialism.......at some point you run out of other peoples money. I think we're there!
Frances, I don't think jim McMahon is expressing surprise at the budget, he is commenting that the value judgements behind this budget are not ones that will be helpful to the people of Oldham who voted significantly for the value judgements of Labour or the pre-coalition Lib Dems
well i would just ignore any oppositions views of the budget. its labours fault theres no money left.
you cannot spend what you havent got! thats all labours time in power has been all about! borrow borrow borrow!
i am wondering how ombc will enjoy the council tax freeze proposed? this has been created for councils that cut the spending and save money!
@JMTS. What ideology and dogma are driving this budget? I doubt anyone is going to benefit, not just Oldham, but you need to point the finger at your Labour buddies for creating this Socialist ideology driven mess.
It's a good budget that will help start reparing the damage. The public sector is going to get hit and so it should.900,000 jobs created under Labour as a way of making the country more reliable on the state. 700,000 manufacturing jobs lost under Labour. Strange ideology.
Please could someone explain why the poorer members of society will pay more on VAT? I would find it useful if the supermarkets had to indicate on food which items were subject to VAT and which were not. According to BBC breakfast an orange is free of VAT, yet orange juice incurs VAT. The second example was the difference between a digestive biscuit and a chocolate digestive. I think we should be able to see from the shelf label what the VAT rate is.
Intersting budget. Taking from the poor to give to the rich: oops Government!
What I did not hear is what about all the money that is given to other countries from the UK workers? No cut in that, we have to tighten our belts and they still get what is ours........ That does not sound fair at all.
Have Your Say
Liberals both nationally and locally should hang their heads in shame. Public schoolboy Clegg was against immediate cuts until he smelled power and has sided with Tories who said they had no intention of raising VAT. Lies,lies,lies.
By soulman @ 23/06/2010 13:02:59