Vote-catching budget

FAMILIES, pensioners and motorists are all set to benefit from yesterday's vote-catching budget.

There was good news too for drinkers, with duty frozen on beer, wine and spirts.

Smokers will pay an extra 6p a packet.

Average households could be £240 a year better off.

FAMILIES

Help for families includes :

Parents of new-born children to get a tax credit of £1,000 a year.

New children's tax credit will start in April at £10 a week

Childcare tax credit to rise to £135 a week for one child and £200 a week for two or more.

Child benefit up to £15.50 from April.

Working families tax credit up by £5 per week from June.

Two weeks' paid paternity leave to be introduced.

Maternity pay extended from 18 weeks to 26 from 2003

Maternity pay up from £60 to £100 a week in 2003

Councillor Joan Harpin, chairman of the Warrington Agenda 21 Women's Forum welcomed the budget as one that is of real help to families.

She said she was impressed also by help for women in general, particularly by the baby tax credit, by lower tax for cars under 1.5 litres, which are often driven by women, an increase in the minimum wage and measures to help people to become self employed.

Colin Humphrey, partner in Baker Tilly Chartered Accountants, Warrington, pointed out that the chancellor abolished the married couples' allowance and mortgage interest relief in his first budget in l997 and yesterday's budget sought to redress the balance, he said.

MOTORISTS

Budget points which target the motorist include :

Unleaded petrol cut by 2p a litre until June 14.

Duty on ultra-low sulphur petrol down by 2p a litre.

Vehicle duty rates frozen.

Lower tax for cars under 1.5 litres

Mike Lyne of Warrington, a division council member of the Institute of Advanced Motorists said : "The duty reduction for ultra low sulphur petrol to match the price of unleaded fuel is very good news and will, when ULSP is fully available on all forecourts, lead to a reduction in toxic emissions.

"This duty reduction has at least put ULSP on the map as a simple, direct-swap, cost effective and cleaner alternative to unleaded petrol."

He said the extension of excise duty for cars up to 1.5 litres "must be welcomed as a move in the right direction, both for the environment and for traffic congestion."

PENSIONS

Pensions will be increased by £5 for single pensioners and £8 for couples from April.

Joe Russell, life president of Warrington Pensioners' Association was not impressed. He said that the increase for a single pension was the equivalent of £5 75p over two years, because they only got 75p last year.

"We need a single pension of £100 and £160 for a couple and we want pensions linked to average pay," said Joe.

TAX AND BUSINESS

On the income tax front, the 10 tax rate is raised from £1,520 to £1,880 of taxable income. More savings income will be taxed at the 10 rate.

Budget points on the business scene include:

VAT threshold going up to £54,000 for small firms.

£2,000 grant to start-ups.

Colin Daniels, chief executive of Warrington Chamber of Commerce and Industry said : "While business will welcome a number of proposals, in particular changes in VAT and Corporation tax for small and medium sized companies, the overall impact is to increase the burden of tax administration for business."

He said calls for simplification of tax and a reduction in red tape had fallen on deaf ears with new burdens, particularly the proposal for paid paternity leave and increases in the minimum wage.

He welcomed the changes in vehicle excise duty and fuel tax, but felt the government should be moving away from the use of fuel duties to tackle congestion and pollution and towards more effective policies that are fairer to essential transport users.

Paul Henley, north west policy development officer of the Federation of Small Businesses, which has 800 members in Warrington, said the Federation wanted personal tax allowances almost doubled to £8,500 to reduce temptation to trade in the black economy. He welcomed the £1b for modern apprenticeships and a training tax credit for employers.