COMMENT ON THE BUDGET

4.07.46pm UTC (GMT +0000) Wed 17th Mar 2004

Commenting on today's budget, David Rendel MP said -

"There are two big disappointments in this budget. The first is the failure to scrap student tuition fees - despite the fact that a lot more money has been found for the education budget.

"The result is that students will graduate with debts of £20,000 - the Government's own estimate. No wonder that many graduates are unable to get a mortgage. The Government is presiding over a growing culture of debt, with a staggering, trillion pounds worth of household debts, and an increasing likelihood of a collapse in the housing market.

"The second disappointment is the failure to make the tax system fairer. It is scandalous that the poorest 20% pay more of their income in tax than the richest 20%. We should axe the Council Tax and replace it with a system based on ability to pay.

"The budget for international development remains too small. £3 billion has been spent on the Iraq war - money that could have been used in the fight against global poverty and injustice, and to reduce the likelihood of international conflict in future.

"It is good news that 20,000 civil service jobs are to be relocated out of London. But this is merely a start. Liberal Democrat proposals will save the taxpayer £5 billion by, for example, closing the DTI and relocating the Treasury to Liverpool. The result would be more money for schools, childcare, hospitals, pensioners and the police."

ENDS