“And there was good news for families as well with more help with the costs of bringing up children.

“Child Benefit will rise over the next three years to £20 a week.  In 1997 Child Benefit was just £575 a year.  Now, under the plans announced by Gordon Brown, Child Benefit will be over £1,000 a year by 2010.

“Labour passionately believes that every child deserves the best possible start.  Already 2,100 families and 3,500 children in Edinburgh North & Leith benefit from Labour’s tax credits.  And as a result of the budget, there will be an increase in the child element of the Child Tax Credit by £150 per year. 

“On top of this, the Chancellor announced a cut in the basic rate of income tax from 22 pence to 20 pence from April 2008.

“The contribution of those who have built our country and raised families in the past was also recognised in the Budget. Reforms to pensioners’ tax allowance will take 50,000 pensioners out of paying income tax altogether, as we move forward to restore the earnings link for the basic state pension.

“The adult rate of the National Minimum Wage will be raised to £5.52 per hour and an increase in the Working Tax Credit, along with a new initiative with the major retailers will help more people find jobs and employment in the future.

“The budget also brings forward important proposals to support our efforts to tackle climate change, including the following:

• increases in car Vehicle Excise Duty rates including raising rates for the most polluting cars and reducing rates for the cleanest cars;
• purchasers of new zero-carbon homes costing up to £500,000 will pay no stamp duty, from 1 October 2007;
• measures to help householders take cost effective action to improve the energy efficiency performance of their homes;
• increases in the landfill tax to discourage waste, and in the Climate Change Levy to encourage energy efficiency in the business sector; and
• £800 million allocated to the environmental transformation fund to finance overseas development projects.

Mark said: “By simplifying the tax system, increasing support to families and pensioners and making work pay, the Budget shows why Labour in Edinburgh North & Leith is best for long term prosperity and fairness to families.

“Of course, we still have work to do. We have to continue with efforts to tackle child poverty. Taking economic and tax measures to help our efforts to tackle climate change must be a continuing central theme of our policies. And we need to continue to help those with low income, particularly those who do not qualify for tax credits but are still on relatively low pay.

“We will be able to continue to do this because we have had sound management of the economy since Labour was elected in 1997. How different from the past when Britain was tipped into recession with families and businesses left to pay the price. Under the Tories inflation was nearly 10 per cent, mortgage rates soared to 15 per cent, 1.5 million people suffered negative equity and unemployment hit three million. And we should not risk that success by plunging Scotland into four years of political and economic uncertainty with the programme of the SNP, full of promises to spend more without answering the questions of how they could be paid for.”

For a fuller summary of the 2007 budget, visit:
http://budget2007.treasury.gov.uk/
and for full details of the budget visit
http://www.hm-treasury.gov.uk/budget/budget_07/bud_bud07_index.cfm