Pre-budget report 2008

Meg today welcomed the pre-budget report as real help for families and businesses in Hackney.

The Chancellor’s pre-budget report sets out the actions the Government is taking now to help people through the credit crunch and reduce the long-term effects of the downturn.

Households in Hackney will increase their income with £145 extra for every basic rate taxpayer, an extra £60 for every pensioner in January, an increase in child benefit to £20 a week in January and an increase of £75 over the year for child tax credit to come in April.

Both families and businesses will benefit from a one year cut in VAT of 2.5 per cent in which will start from Monday 1st December.

Meg welcomed measures targeted at helping small business including the introduction of deferred tax payments. A new HMRC support service has been established to help businesses with temporary difficulty in paying bills.
To access the service call 0845 302 1435.

Plans to increase the small companies’ rate of corporation tax have been deferred and there will be more generous tax relief for businesses experiencing losses.

Meg said, “With so many small businesses in Hackney I am pleased the Government is listening to their concerns and providing direct support. There are still challenges facing families and businesses but these measures should provide some help in difficult times.”

More information and help for businesses in switching to the new rate of VAT is available at www.hmrc.gov.uk or by calling the advice line 0845 010 9000.