Response to Gordon Brown’s ninth budget was predictably negative from the leaders of the opposition parties, while business groups were supportive of today’s measures. Reactions from major trade unions have been mixed, with several questioning the government’s record in following through with its policy promises.

 

Michael Howard said that tax on UK citizens was set to be the highest for 25 years and that the country had fallen from 4th to 11th in the world competitiveness rankings.

 

He said that the higher taxes that would be paid under a third Labour term would be wasted. Mr Howard said that the country’s £58bn surplus had turned into a £45bn deficit under Gordon Brown’s stewardship.

 

The opposition leader derided the £200 pensioner council tax discount, saying it was substantially less than the £500 discount offered by the Conservatives.

 

For the Liberal Democrats, Charles Kennedy made the point that the poorest 20% in Britain were paying a greater burden of tax in proportion to their incomes than the top 20%.

 

He accused Labour of stealing Liberal Democrats policy over making the Bank of England independent.

 

On the issue of Council Tax, he said that voters had the choice to keep the status quo and vote Labour or Conservative at the next General Election, or vote for the Liberal Democrats who would scrap it altogether.

 

“After nine Labour Budgets, where is the social justice?” Mr Kennedy asked.

 

The Lib Dem leader said that Labour’s pension system discriminated against women as the gaps in National Insurance payments penalized them in later life. He went on to say that the oldest pensioners were often the poorest and that more resources should be directed at them.

 

Mr Kennedy called on Gordon Brown to open his books to the National Audit Office, the financial watchdog.

 

The Green Party was disappointed in the lack of action on environmental issues. They said the Budget was a "wasted opportunity" for environmental protection. "Brown obviously has an eye on the coming election, and has taken his eye off the needs of the planet."

 

There was a mixed reaction today from the 1.5m member national Pensioners Convention. President, Rodney Bickerstaffe, said: “whilst the Chancellor recognised he had to offer something to Britain's 11m older voters in the run-up to the general election, many will still feel disappointed that he missed the opportunity to substantially raise the basic state pension, restore the link with earnings, end means-testing and do something to widen women's entitlement to pensions."

 

"The Chancellor's pledge to remove the charges for those who are in hospital for more than a year will certainly be welcomed by the 10,000 people that it affects."

 

"Free off-peak local bus travel will benefit 80% of pensioners in England who currently only qualify for half-price fare and is a step towards a nationwide scheme that would allow pensioners to travel free from one end of the country to the other."

 

"The £200 council tax refund will be popular with many older people, but will only last for a year and the government will have to do more to end the unfairness of a tax that has no relationship to an individual's income."

 

 

The CBI, representing UK employers, welcomed what they termed a balanced Budget, which looks beyond short-term political concerns to the genuine long-term needs of UK plc.

 

The CBI lauded the Chancellor’s plans to reduce the regulatory burden on businesses and cut the number of inspection bodies from 35 to nine.

 

The Director General of the CBI, Sir Digby Jones, said today, "this is a measured Budget which has been crafted to ensure that economic stability is maintained. The Chancellor has avoided the temptation of pre-election risk taking, targeting help only where it is needed most”.

 

"The extension of R and D tax credits to mid-sized companies will be welcome. We will cooperate fully with the consultation exercise."

 

The National President of the FSA, Carol Undy, responded to today’s Budget as follows:

“The Hampton report is encouraging. There are currently over 300 different kinds of inspections carrying a right of entry into business premises and the whole army of inspectors desperately needs to be rationalised.”

 

“Every single inspection interrupts day-to-day business. Hardworking business owners must be able to concentrate on what they are good at - job creation and wealth generation. We urged Philip Hampton to work towards a single general-purpose inspector. His recommendation to merge 35 inspectorates into 9 is an important start.”

 

“But whether or not the report will result in ‘fundamental change’ and ‘a red tape revolution’ awaits to be seen. Businesses are cynical because of past broken promises - 30 reports, seven white papers and two acts of parliament during the last 20 years alone.”

 

There was a mixed reaction from UNISON, the public service union (the UK’s largest union with 1.3m members). Dave Prentis, General Secretary said:

 

“Gordon Brown’s budget shows no sign of election fever, he has kept his cool and targeted benefits at those people who really need it – pensioners, working families and children.”

 

“We welcome continued investment in public services but swingeing job cuts threaten to undermine delivery of front line public services. These are real people doing real jobs that are vital.”

 

“We are not against the concept of joined up inspection but the Chancellor’s proposals for merging inspection bodies look rushed and ill-thought through. We will be seeking urgent discussions at a senior level to ensure that this is not simply a cost cutting exercise.”

 

 

Steve Sinnott, General Secretary of the National Union of Teachers, made the following statement.

 

“I welcome Gordon Brown’s commitment to funding the renewal of primary school buildings and funding for ICT but I hope this optimism is not undermined by double counting and spin.

 

“The controversies and insecurities of the Private Finance Initiative and Academy sponsorship have taken the shine off Government achievements in funding the secondary school rebuilding programme.

 

“I hope that this time, what you see is what you get.”