Oldham’s mixed response to yesterday’s Budget

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.”