On the day VAT reduces from 17.5% to 15%, we take a look at how the Chancellor’s Pre-Budget Report (PBR) will provide real help for people and businesses in Streatham.

The 2008 PBR set out action to help families and businesses through the global credit crunch by:
• Helping people and putting money into the economy so that we come out of the economic downturn sooner and stronger
• Tackling public finance problems once the economy is growing again in a way that is fair to all.

As a result of the PBR locally:
• 4,270 pensioners in the Streatham constituency will benefit from a rise in Pension Credit – up to £130 over and above the rise we’d normally see (rising to £198.45 for couples);
• 10,500 families in Streatham will benefit from a rise in the Child Tax Credit – The £25 increase in the Child Element is being brought forward from 2010 to April 2009 (meaning it will increase by £75 above indexation to £2,235 in April 2009);
• 23,900 children in 13,740 families in Streatham will gain from the rise in Child Benefit (now rising to £20 a week for the 1st child, and to £13.20 a week for other children) – an increase the Government is bringing forward from April to January 2009;
• The Annual Christmas Bonus of £10 will be increased to £60 – a one-off seasonal payment going to 15 million people nationally including 12.5m pensioners and recipients of Incapacity Benefit, Disability Living Allowance, Carer’s Allowance and Bereavement Benefit; and,
• 12,230 local people in the Streatham constituency will be receiving their Winter Fuel Payments at the moment – as announced at Budget 2008, an extra £100 on top of the regular £300 payment for over-80s households, and an extra £50 on top of the regular £200 payment for over-60s households.

Chuka said:
“Leaving people in Streatham to struggle on alone in these tough economic times, as some would do, is not the way to go – government has a duty to intervene and we are doing so.
“The Chancellor’s pre-budget report means real help for homeowners, to protect jobs and businesses.
“We are implementing a range of measures to help people, such as the special payment to all pensioners in the constituency of £60 on top of the Christmas bonus. Families of disabled children will receive this extra cash boost too, and there is the cut in VAT this week which will provide a welcome boost to the economy locally.”

It is also hoped the measures announced in the PBR will help to kick start businesses along Streatham High Road, where a number of shop fronts remain vacant.

The effects of the PBR for small businesses locally:
• From 2009/10 empty commercial properties with a rateable value below £15,000 will be exempt from business rates, covering 70% of all empty properties;
• Consumer spending will be encouraged through the temporary reduction in VAT to 15%, from 1st Dec to 31st Dec 09;
• The Government has deferred planned increases in small companies corporation tax
• A £1bn Small Business Guarantee Facility to enable new Government supported lending by banks for sums between £1,000 and £1m, at cheaper rates and for longer periods has been introduced
• More generous temporary tax relief for businesses suffering losses – with up to £50,000 of new losses set against taxable profits from the last three years.

Commenting on the measures to help small businesses, Chuka said:
“Sure, we need to do more, but here is a package to provide help in the form of working capital, lending facilities and trade finance to small business and all who depend on them in Streatham as well.”

Learn more about how the PBR will affect you here, or visit the Treasury’s minisite to read more about the full report.

Carys Afoko