How Bury saw the budget

Working families and pensioners, in particular, will benefit while smokers and motorists are worse off after the obligatory rises in tobacco and petrol duty.

But in the main, Tuesday's Budget received favourable reaction although many felt the Chancellor had not gone far enough.

Mrs Wendy Buckland, project manager at Bury Family Centre which caters for many single parents, said the new child tax credit to replace the married couple's allowance would not help those out of work.

The credit is worth £416 a year. But Mrs Buckland said: "This will certainly be a help for those who are working, but not to those without a job."

However, she did welcome the new 10p income tax rate which she described as "good."

There is widespread support locally for Chancellor Brown's decision to raise pensioners' winter allowance from £20 to £100.

Bury Metro Age Concern chief officer Mrs Beryl Pilkington said: "Pensioners can now look forward to a warmer winter thanks to the £80 increase in next year's basic winter fuel payments.

"And the poorest pensioners will welcome the increase in Income Support above inflation and the link to earnings."

She added: "A lot of older people are just too proud to claim benefit. But Age Concern is trying to encourage them to do so." BURY Pensioners' Association have taken issue with the headlines which say single pensioners will receive a minimum of £75 a week this year and £78 the next.

The Association says: "These figures do not refer to the state pension, they are what a single person could get if they qualify and applied for income support.

"The basic state pension has not been increased. The attempt to link the increase in income support to average earnings is another confidence trick to make it appear that the pensioners' campaign for pension increases to be linked to average earnings has been successful. That campaign goes on."

Garages throughout the area are considering whether the decision to reduce road tax by £55 for "smaller" cars will usher in a new trend.

Bosses are unsure as yet whether this "carrot" will persuade many buyers to ditch large vehicles.

Mr Bill Myles, of Prestwich-based Grimshaw's Garage, said: "Whether the £55 is enough to do that remains to be seen. It is an incentive but it's too early to say whether it will sway people to invest in smaller cars.

"I believe it is a gesture towards encouraging people to use more economical transport."

Mr Josh Walsh, secretary of Bury, Radcliffe and District Trades Union Council, described Tuesday's Budget as "undramatic" and one which lacked what he described as a "world view."

He welcomed measures aimed at working families, including the tax credit and also praised the increase in the winter allowance for pensioners.

Commenting on the decision to extend the New Deal for the over 50s, he added "With other New Deal measures, this only affects the supply side. But the real problem is the demand for labour."

Meanwhile, local industry leaders have welcomed the Budget's focus on small business and enterprise.

Mr Richard Bindless, chief executive of Bolton and Bury Chamber, said: "There is much good news for small companies which are so crucial to the two towns' future prosperity.

"The cuts in Corporation Tax and generous tax credits for research and development are key ingredients in helping small businesses to grow."

He also praised the decision to introduce an Enterprise Management Incentive Scheme.

But Mr Bindless was disappointed that the Chancellor failed to implement a 100 per cent capital allowance on small firms' expenditure - up to a limit of £250,000.

Mike Kinsella, manager of Bury's Business Environment Association, said the Budget introduced a range of environmental taxes and tax increases.

"These build upon the Government's pledge to explore the scope for using the tax system to deliver environmental objectives," he said. Pensioners and working families have been guaranteed a better deal from Labour's Budget, say Bury's MPs David Chaytor and Ivan Lewis.

"The further rises in child benefit, to £15 for the eldest child and £10 for subsequent children, will benefit 26,900 families in Bury," said Mr Chaytor.

"The new children's tax credit will be worth up to £416 a year off a family tax bill."

Mr Chaytor said the Budget would also reward work. "Within weeks, lower and middle income families in Bury will be helped by a new 10p rate of income tax on the first £1,500 of taxable income," he said. "From April 2000, the new basic rate of 22p - the lowest basic rate in 70 years - will ensure that working families are better off."

The Bury North MP was "delighted" that every Bury school would get an extra £2,000 for books this year, and that £100 million nationwide would be spent on school computers.

His Bury South colleague Ivan Lewis said pensioners would welcome the increase in the winter allowance from £20 to £100.

"This will benefit nearly 31,000 pensioners across Bury," he said. "The minimum income guarantee will rise to £78 per week for a single pensioner and £121 for married couples, giving another real boost to the incomes of poorer pensioners."

Mr Lewis cheered the extra money for public services: an extra £430 million to modernise hospital accident and emergency departments, and £170 million for crime prevention.

He concluded: "This Budget fulfils Labour's promise to make work pay, to support families and to provide extra money for Britain's public services. This is a better deal for Bury and a better deal for Britain."

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