Milnrow & Newhey MP welcomes Darling’s difficult first budget

Date published: 13/03/2008

Chancellor Alistair Darling defended his first budget today, insisting it provided help to people facing difficult times.

Rochdale’s drinkers and smokers will feel the pinch as Government pledges the extra cash raised will help tackle child poverty.

The Chancellor said alcohol duty would increase by six per cent above inflation, with beer up by 4p a pint, cider 3p a litre, wine 14p a bottle and spirits 55p a bottle. Cigarettes increased by 11p for a packet of 20.

It was a difficult first budget for the Chancellor with the UK economy facing the biggest slowdown since Labour came to power and a large hole in Treasury coffers. High levels of government debt and the global credit crunch left him with few options.

But Mr Darling said: "We are trying to help people who are facing difficulties at the moment."

Mr Darling has been accused of being over–optimistic in his assessment of the UK’s prospects. But he insisted his latest forecasts were broadly in line with independent predictions.

Mr Darling said the money raised would be used to take up to 250,000 more children out of poverty .

The Winter Fuel Allowance will increase for the over-60s from £200 to £250, and for the over 80s from £300 to £400.

This was welcomed by Milnrow and Newhey MP Phil Woolas, who said: "Pensioners can be reassured not to worry and I will be talking to the Chancellor to make sure he does not reduce it if and when prices go down. It also seem to me to be reasonable to use the extra money from tobacco and alcohol to ensure children get a fair start in life."