In this budget, tough decisions had to be made to address the mistakes of the past. I am encouraged by the coalition government’s tough but fair measures to bring the budget back under control.
The budget adopts key Lib Dem proposals for which we fought. I am pleased to see the tax threshold increased by £1,000, with the intention of increasing it to £10,000 in the long-term.This will take thousands of people out of the tax system altogether.
Restoring the link between the state pension and earnings growth is a very welcome move. The triple lock system ensures that the state pension will rise in line with earnings, inflation, or 2.5 per cent, whichever is the highest. This guarantees a better annual increase for the 12.4m people who receive state pensions and means that there will never again be a 75 pence increase.
Raising a levy on banks is the right thing to do. The financial crisis began in the banking industry, and it is only fair that the banks contribute to the recovery of our economy.
I believe that these measures in the budget will be able to help low and middle income earners, secure a fair deal for pensioners, and rebalance our economy.
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