Emma Reynolds MP said that the Emergency Budget announced by Chancellor, George Osborne as ‘devastating for Wolverhampton families’. 

In a Budget driven by ideology, not economics, thousands more people are likely to be on the dole as a result of this Budget.  The extra cuts to spending being threatened could also risk economic growth, impacting yet further on jobs.

The Liberal-Conservative Government used the Budget to announce a three year freeze on Child Benefit, disproportionately hitting the poorest families across the country.  On top of this, Child Tax Credits will be cut for middle income families, and other benefits for families such as Sure Start maternity grant will also be cut.  VAT will be increased by 2.5% up to 20%, once again hitting the poorest hardest.

These cuts come on top of moves announced last week to make cuts to free school meals and free swimming for under 16s.

On the day of the Budget Emma said ‘Today we have seen an Emergency Budget which really will cause an emergency for families across Wolverhampton and the rest of the country.  It is devastating for families in Wolverhampton, costing them thousands of pounds each year with a hugely unfair increase in VAT and cuts in Child Tax Credits. The Tories have hit families hard just when their finances were starting to recover from the economic downturn.

‘It is wrong that people on lower incomes are bearing the burden of these spending cuts. My constituents were promised fairness by this Tory-Lib Dem Government.  Instead George Osborne has delivered a painful reminder that when the Tories are in power working people lose out.’

The Emergency Budget was on the 22 June 2010.