In the Pre Budget Report Alistair Darling has set out his balanced package to protect the frontline services – schools, police and the NHS - to invest in growth and to halve the deficit fairly in 4 years
The plan sets out how Labour will protect frontline public services, tax fairly, invest in growth and fulfil our commitment to halve the deficit within 4 years.
Investment in the NHS, Sure Start, frontline schools and the police will all be protected over the next three years, ensuring that, during tough times, the frontline services that people rely on are secure.
Alistair Darling underlined Labour’s commitment to fair taxation. A one off payroll tax on bank bonuses to deter bumper bonuses, a freeze on inheritance tax at £325,000 and a half percent employer and employee rise in national insurance contributions, with higher earners paying more too.
The PBR also set out Labour's plan to invest in securing the economic recovery and growth -outlining continued support to keep people in work and to support business. This includes bring forward the young person's guarantee, so that 18-24s claiming Jobseeker’s Allowance for six months will now be guaranteed a job, work placement or work-related skills training; continuing the Business Payment Support Service that has already enabled over 160,000 businesses to spread over £4 billion of tax; and ensuring that business has access to the capital it needs
To halve the deficit over four years, Alistair Darling also announced further action including £11 billion of savings by 2012-13 through smarter government, £5 billion of savings by 2012-13 from targeting and prioritising spending, a one per cent cap on public sector pay settlements in 2011-12 and 2012-13 and reforms to public service pensions to save £1 billion a year from 2012-13 onwards.
Read Alistair Darling's speech here
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