Lyn Brown MP welcomed the 2008 Pre-Budget Report given last Wednesday in which the Chancellor set out action to help families and businesses through the tough economic times caused by the global credit crunch.

The Chancellor’s measures aim to help provide extra financial help for people and put money into the economy to lead the country out of these tough economic times. The Pre- Budget Report also focused on how to tackle the public finance problems caused by the credit crunch once the economy starts growing again, in a way that is fair to all.

Lyn Brown was delighted with the PBR as the new measures would benefit many people living in her constituency of West Ham. The Pre Budget Report included rises in Pensions Credit, Child Tax credit, Child Benefit, Winter Fuel Allowance, and raised the Christmas Bonus. Local shoppers will also benefit from a cut in VAT and businesses are being supported through measures such as deferring the planned increase in the small companies rates of corporation tax and the new ‘Small Business Guarantee Facility’ which will allow businesses to borrow any sum, from £1,000 to £1m, at cheaper rates and for a longer period.

Lyn Brown MP said:

“The global credit crunch that originated in America is now having a real impact on the economy in the UK and is affecting many people and businesses in my constituency. This is why I’m delighted that the Labour Government has made a huge commitment in the Pre Budget Report to ensure that people are not simply left alone to struggle during these tough times.

“This budget sets out far reaching measures that help not only pensioners, hard working families and those on low incomes, but will also provide real help for homeowners, to protect jobs and businesses”.

"In the 80’s and 90’s the Tory answer to a downturn was to turn their backs on families and businesses. It is the Labour government that is taking action and offering real help through the tough times.”

Locally this means:

• 4,920 pensioners in West Ham constituency benefit from a rise in the Pension Credit – up to £130, over and above the rise you would normally see (and rising to £198.45 for couples).
• 11,900 families will benefit from a rise in the Child Tax Credit – the £25 increase in the Child Element is being brought forward from (total of £75 above indexation April to April)
• 26,630 children in 13,580 families will gain from the rise in Child Benefit (now rising to £20 a week for the 1^st child, and to £13.20 a week for other children) – an increase the Government is bringing forward from April to January 2009.
• The annual Christmas Bonus of £10 will be increased to £60 – a one-off seasonal payment going to 15 million people including 12.5m pensioners and recipients of Incapacity Benefit, Disability Living Allowance, Carers’ Allowance and Bereavement Benefit.
• And 10,310 local people in West Ham constituency will be receiving their Winter Fuel Payments at the moment – as announced at Budget 2008, an extra £100 on top of the regular £300 payment for over-80s households, and an extra £50 on top of the regular £200 payment for over-60s households.