Squeezed Hull families gain little from Budget

Hull North MP Diana Johnson has expressed disappointment that today's Tory Budget will leave families in Hull worse off, while bankers get a tax cut this year.

Commenting after the Budget statement delivered by Chancellor George Osborne, Diana Johnson MP said:

"There was little in the Budget to get more Hull youngsters into education, employment or training. Any help in making work pay is more than clawed back elsewhere and undermined by the lack of jobs in Hull.

"Coalition cuts, targeted at the most vulnerable people in the most deprived areas, will also undermine Hull's local economy with large-scale job losses and cuts in investment.

"There was little to assist Hull families squeezed by rising prices, in part caused by Government measures such as the recent VAT increase. In the Budget the Tories have confirmed that bankers will get a tax cut this year while Hull families will see their child benefit frozen and will pay an average extra £450 in VAT this year

"Labour's Commons motion last week calling for immediate help for motorists was voted down by Conservative and Lib Dem MPs. Now, although I welcome the 1p cut in Fuel Duty, the Chancellor has rejected Labour's plan to reverse January's 3p VAT hike on a litre of fuel. It is ironic that he is hiding behind EU law to justify this."

Hull North's MP also commented on the Chancellor's announcement of 21 new Enterprise Zones around the country, based on the model devised in the 1980s for places such as London Docklands.

Diana Johnson MP said: "I noted the Chancellor's plans for reviving 1980s Enterprise Zones, even though they contradict Government claims to favour local democracy.

"It's unclear what an Enterprise Zone would deliver for Hull. However, the regeneration challenges facing Hull are similar to those facing London Docklands 30 years ago.

"I also know that the Hull and Humber Chamber of Commerce has been frustrated in their wish to set up a cross-Humber Local Enterprise Partnership."

The Hull North MP also attacked the Tory Budget in a speech made in the House of Commons.

Ed Balls MP, Labour's Shadow Chancellor, said: "These cuts are too deep and too fast. Labour would be halving the deficit steadily over four years not trying to cut it further and faster than any other major economy in the world.

"There have got to be some tough choices to get the deficit down too. But you can't get the deficit down if the economy isn't growing strongly and you're throwing hundreds of thousands of people out of work.

"What we really need is a plan for jobs and growth to help people in Hull and help get the deficit down."

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