DORSET residents have welcomed some chinks of light amid the economic gloom in the Budget.
Chancellor Alistair Darling announced perks for pensioners, the long-term unemployed and motorists as the country faced its worst recession since the Second World War.
However, the local motoring industry, greeted the new scrap scheme with scepticism.
The Government will be providing an incentive of £2,000 towards the cost of a new car to motorists if they trade in cars that are more than ten years old by March 2010.
Paul Tindall, owner of the Dorchester Collection, said: “This will help the motor manufacturers, but it’s too late.
“The government should have done this earlier, in January or February.”
Two per cent increases above the rate of inflation were announced on alcohol and cigarettes from midnight today.
This means that a pint of beer and cider has gone up 1p, the price of a 75cl bottle of wine has gone up 4p and an extra 13p will be added to a 70cl bottle of spirits. A pack of 20 cigarettes will cost 7p extra.
Motorists will pay 2p extra per litre of petrol from September, then 1p a litre above indexation each April for the next four years.
Taxes were raised to cope with a national debt which will grow to £1.370 trillion by 2013/14.
A new super tax of 50 per cent for workers earning more than £150,000 will be introduced in April 2010.
Pensioners were promised that the basic state pension would increase by at least 2.5 per cent, regardless of inflation, taking pension credit to £130 a week for single pensioners and £198 for couples – a rise of £5.95.
Winter fuel allowance for the elderly will be maintained at the higher level of £250 for the over 60s and £400 for the over 80s for another year, Mr Darling said.
Parents were told that Child Benefit will increase by £20 a year.It was also announced that £250million of funding would be spent helping people get work experience in growth industries and funding will create 54,000 new places in sixth form education. South Dorset MP Jim Knight said the Budget was good news for the thousands of savers and older people in the country.
He added: “We know that if we don’t act now, it will cost us all more in the long run. Building on the support already coming through, the measures in the Budget will help us deal with the economic difficulties and support jobs, families, businesses and the environment.”
Who are the winners and losers from the Budget? We asked different groups of people how their finances will be affected by the new measures.
SINGLE PARENT
BECKY Bird, whose son Harley is two years old, welcomed the announcement that people under 25 who have been out of work for 12 months or more will be offered a job or a place on a training scheme.
Becky, 19, of Tophill, Portland, said: “I’ve been doing a computer qualification and I’d like to be a PA when Harley is older and goes to school.
“I really hope that more money put into training will enable me to do what I want to do.”
PENSIONERS
John and Julie Antell, of Dorchester, think that they are among the few beneficiaries of the Budget.
John, 79, said: “The winter fuel allowance staying the same is a big help.
“Gas and electricity has been horrendously expensive recently.
“It’s nice to see the state pension go up a bit. We have small private pensions. We haven’t really been affected by the recession. We think we’ve been quite lucky.”
YOUNG PEOPLE
SARAH Mandy, 21 said that the two per cent ‘sin tax’ on alcohol and cigarettes won’t put her off going out drinking.
She said: “I’m a social smoker, but for people who smoke 20 cigarettes a day, an extra 7p a pack will make a difference.
“Rising petrol prices will affect me quite a bit. They seem to be getting higher and higher.”
Dorchester resident Sarah said she has been forced to move back in with her parents because of the high cost of renting in the area.
She said: “I’ve moved back home so I can save money. I’d like to own a place of my own one day.”
FAMILY
MUM-OF-FIVE Lisa Penny, of Weymouth, thinks that her family is one of the losers of the Budget 2009.
She said: “The extra £20 child benefit won’t make much of a difference.
“We’re having to watch what we spend and can’t do as many things with the children any more.
“We can’t take them out now like we used to and we really have to watch what we spend.”
PUB
Pete Smith, landlord of the Number 6 pub in King Street, Weymouth, slammed the government for putting further tax increases on alcohol.
He said: “The trade’s suffering immensely already.
“There are 25,000 lease pubs that are finding it difficult to survive.
“They should have done something to help businesses. I’m already dealing with a 30 per cent increase in business rates and they now want to put more tax on the products we sell.
“We’re having to take the brunt of the government’s mistakes. They’re the ones who have got us into this mess.”
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