Budget: breathing space for today, fresh hope for the future
As we go into winter, I know that the cost of living is a real concern for many Fifers.
The international situation, with wars in Europe and the Middle East are pushing up prices with a very real impact on household finances.
And it’s not just the most vulnerable facing this: families across the country are feeling the pinch.
That’s why the Chancellor’s Budget last week was welcome, providing breathing space for families in the short term, and hope for tomorrow, with investment in our infrastructure, jobs and resilience.
At the centre of the Budget was a £100 energy payment to provide support with energy bills. This will be a credit on council tax bills and, if the Scottish Government passes it on in the same way, then 130,000 households in Fife will benefit - 75% of all homes in the Kingdom.
This measure is backed up by extending the VAT cut on electricity bills; scrapping standing charges on gas bills; maintaining the freeze on fuel duty; and a tariff cut on kerosene, which will benefit many of the 4,000 households in Fife who heat their homes with it. 346,000 households in Scotland will also receive a £150 Warm Homes Discount.
The State Pension is also increasing by 3.9% in April, an increase of almost £490.
This takes the State Pension above the threshold for income tax for the first time, but to protect the most vulnerable pensioners, the Chancellor announced that those who rely only on the State Pension will not pay any income tax. State Pensions will always rise each and every year under Labour.
There is good news for workers too, with a 3.9% increase in the minimum wage, meaning Fifers working on the minimum wage have had a more than 15% pay rise since Labour came to power.
Times are tough but Prime Minister Andy Burnham is trying to bring some relief to family budgets. At the same time, record investment in areas like defence will keep our country safe and bring new opportunities to Fife.
The UK government’s investment in defence directly supports over 4,000 jobs in Fife, as well as thousands more indirectly through supply chains.
I know that the support in this Budget will be valuable for thousands of households across Fife, even though it won’t solve everything.
Combined with long-term investment in our defence and local economy, this Budget is doing what it says on the tin: breathing space for today, fresh hope for the future.