What the Pre-Budget Report means for Streatham
Thursday, December 10th, 2009This week’s Pre-Budget Report reflects Labour’s determination to maintain frontline public services, protect the environment and ensure bankers do not continue to profit while taxpayers pay for their mistakes.
Employment
Unemployment continues to be at the forefront of issues the government is tackling. Several new measures were included in the Pre-Budget Report:
- Guarantees of a place for every 16 and 17 year-old in education or training to be available to school leavers again in September 2010.
- From next month, no one under 24 will be unemployed for longer than six months before being guaranteed work or training – down from 12 months.
- The minimum number of hours those over 65 need to work to receive working tax credit will be reduced.
- The government is offering financial support for 10,000 undergraduates from poor backgrounds to take up internships in industry and the professions.
Pensions and Benefits
- Basic state pension will rise by 2.5 per cent in April.
- Additional support for mortgage interest scheme for the unemployed extended for six months.
- Child and disability benefit will rise by 1.5 per cent in April.
- Free school meals to be extended among primary pupils in low-income families from September 2010.
Taxation
- A one-off levy of 50 per cent is being applied to bank bonuses above £25,000, to be paid by the bank, not the employee. This is expected to create £550 million which will be invested in jobs for young people. Chuka has campaigned for the government to impose a one-off tax on banks.
- New tax avoidance laws ensuring that an extra £5bn per year will be protected from evasion and avoidance.
- No increase in income tax.
Environment and Energy
Streatham’s recent Q&A on Climate Change with Chuka and Ed Miliband reflects Labour’s commitment to protecting our environment:
- A new scrappage scheme, similar to the highly successful car scrappage scheme, to help replace 125,000 inefficient boilers.
- From April 2010, people who have a home wind turbine or solar panels and send power back to the national grid will receive, on average, a tax-free payment of £900 a year.
- Electric cars will be exempted from company car tax for five years, with a 100% first year capital allowance for electric vans.
- Doubling government finance for carbon capture and storage demonstration projects.
- An additional £200m of funding for energy efficiency schemes.
- £120m for new low-carbon industries in the UK.
- Helping more vulnerable households with energy bills; doubling support provided by energy companies to £300m by 2013/14
Small Businesses
The government is committed to helping local businesses through the recovery:
- An increase in corporation tax for small firms will be deferred.
- The Time To Pay scheme, allowing firms to spread tax payments will be extended for as long as is needed.
- Allowing the scheme for bank loans to small businesses to be extended for a further 12 months, guaranteeing a further £500m of loans.
- Encouraging growth and innovation through reductions in corporation tax relating to new patents.
- The new Growth Capital Fund will be set up to invest in small and medium enterprises.
Businesses in Streatham are looking forward to an upturn in trade next year.
The Department for Work and Pensions has launched a new investment programme to tackle unemployment for young people aged 18-24.
Lambeth First has already been awarded more than £1.2 million to help 18-24 year olds into local work under the Future Jobs Fund. The new central government funding will help create 198 new jobs in the borough over the next six months for young people who would normally be at risk of becoming long-term unemployed.
Ed Miliband will be one of the UK’s principal representatives, along with the Prime Minister Gordon Brown, at the Copenhagen Conference this month.
Ed Miliband came to our area on the eve of the crucial talks to hear the views of an area which is fast becoming the Green capital of London and Britain’s first inner-city experiment in low-carbon living. As well as being designated an official Low Carbon Neighbourhood, the 