MP's emergency budget response
11:47, 25 June 2010
updated: 12:47, 25 June 2010
A mixed response to Tuesday's emergency budget has been given by MP Gordon Henderson.
The Tory says they were many positives of the plans announced by Chancellor George Osborne, but recognises that there could be tough times ahead for residents and business people in the constituency because of the VAT hike in January.
He said: "I am concerned about the increase in VAT to 20 per cent because it will hit all our pockets hard and could have a negative impact on local shops and businesses, but I recognise that the Chancellor had to make some pretty hard decisions if we are to reduce the horrific debt mountain run up by the previous government.
"I am pleased the Coalition Government has mitigated the tax increases by trying to make sure that the most vulnerable are protected as much as possible."
Another positive, he said, was that pensioners will be helped by a commitment to increase the basic state pension each year in line with earnings, prices or 2.5 per cent, whichever is the greater.
"Restoring the link to earnings is something for which I have been campaigning for many years," he added.
"I am also delighted that the Chancellor is giving extra help to families in poverty by increasing the child element of the child tax credit by £150 above indexation next year."