CHANCELLOR George Osborne yesterday used a cut in fuel duty to declare his Budget a boost for growth and jobs.
Motorists saw a penny cut from record prices at the pumps last night and were promised a “fair fuel stabiliser” to keep future costs down paid for by a £2bn tax on oil and gas production.
Claiming he had put “fuel into the tank” of the economy, Mr Osborne also confirmed new low-tax enterprise zones on Tyneside and the Tees Valley.
The Chancellor slashed corporation tax by 2% and promised a shake-up of planning and business regulations.
Employees were also rewarded with plans to raise the personal tax allowance by £630, to £8,105, worth £126 in cash terms.
He claimed that together with this year’s rise, it would mean a total of £326 extra each year for “those working hard to pay for their family’s needs”.
Some 10,000 families could benefit from loans being made interest free for the first five years, it was announced, to allow more first time buyers to get on the housing ladder.
Mr Osborne said the move would be paid for by a £250m levy on banks.
The announcements came against the backdrop of a downgrading in growth forecast by The independent Office for Budget Responsibility, from 2.1% to 1.7% this year and from 2.6% to 2.5% in 2012.
Mr Osborne said the economic recovery would be more sluggish than expected with the national deficit taking longer to pay off, but insisted the measures opened the country for business.
The reaction to the Budget from MPs in the region was mixed, while opposition leader Ed Miliband branded the announcements as “the same old Tories”, insisting “it is hurting but it isn’t working”.
Berwick Liberal Democrat MP Sir Alan Beith said: “Help with fuel costs for motorists in rural areas like ours is welcome, and further cuts in tax on low pay implement a key Liberal Democrat policy.”
