One or two cheers for the Budget

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Budget statement from the voluntary and community sector.

A boost for education and modest steps to fight global warming are positive features of a Budget that was otherwise dull and technical and did little to excite the voluntary and community sector. It was long on irrelevant facts but short on vision. In particular it offered little to fight poverty or promote the sort of enterprise the Chancellor said he wanted.

"If the economy really is doing as well as Mr Brown says he can afford to do a lot more. It is difficult to identify any initiatives to create a more equal society," said NICVA's director of policy, Frances McCandless.

Members of the NICVA Budget panel, drawn from various parts of the voluntary and community sector, support the promise of more spending on schools and further education and the pledge to improve training for women with low skills. This is one of the few changes in the budget to promote the high skill economy we need in Northern Ireland.

We are pleased at the big expansion in spending on children's service through Sure Start but there is no guarantee that money will carry over to Northern Ireland. We call on the Secretary of State to ensure extra money is invested here.


We are severely disappointed that the Chancellor has not announced any substantial steps to end poverty. The government has missed its target to reduce child poverty by one quarter by 2005. That made it essential for the Chancellor today to announce new initiatives to get us back on track. He missed the chance to raise child benefit beyond the 45 pence per week already announced or to substantially lift families out of poverty.

There are no rises in spending on social security, a key to ending poverty for people who cannot work. In addition the Chancellor talked about work as a way out of poverty but the rise in the minimum wage of only 30 pence per hour will stand. If the Chancellor wants to reward hard-working families this was an excellent opportunity missed. The minimum wage directly helps those on the lowest wages.

Last year we welcomed the Chancellor's decision to put money in dormant bank accounts into a fund for good causes. We do not believe it should be up to the Chancellor to decide how this money is spent and call on him to consult with the voluntary and community sector on what these good causes should be.

VIEWS FROM THE SECTOR
"The meagre rise in tobacco tax will do nothing to persuade people to give up the weed. However we welcome the £1 billion for medical research," commented Andrew Dougal, chief executive of the Chest, Heart and Stroke Association.

"We are pleased that he is implementing the National Youth Volunteering Strategy but that means nothing in Northern Ireland where no action has been taken on it. We want to see ring-fenced spending on this in Northern Ireland," said Denise Hayward from the Volunteer Development Agency.

Pam Tilson from Age Concern argued that little was being done to ease poverty among older people who are facing increasing costs for their everyday basics such as food and heat. "The winter fuel allowance has not been increased since 2000. When it was introduced it was enough to buy two tanks of oil but now it buys only half a fill. The home insulation measures will do little to help those who can't afford to turn their central heating on," she added.

"Gingerbread welcomes the fact that the government has implicitly acknowledged that it has missed its target to cut child poverty and that an extra 300,000 children will be taken out of poverty through increases in tax credits and children's allowances.

"We are also pleased at the incentives to provide additional childcare through new capital grants for workplace nurseries," said Marie Cavanagh, director of Gingerbread.

"Friends of the Earth believes Mr Brown has started to turn green. Today's budget set out some helpful steps to meet the huge challenge posed by climate change. We welcome the reductions in car tax for the most fuel efficient vehicles but the increase of just £40 per year on gas guzzlers will do little to encourage drivers to switch to greener cars," said Lisa Fagan from Friends of the Earth.

Bob Stronge, director of Advice NI, said he was very disappointed that the Budget did not have above-inflation increases in social security benefits.

"The Chancellor had a lot to say about cutting carbon emissions but nothing about the huge rise in fuel prices which hit the poorest the most, particularly those who are sick or disabled on benefits," he commented.

"We are pleased at the extra investment in the Child Trust Fund but we cannot wait for seven years. We need money for children in Northern Ireland now as one in three lives in poverty," said Fiona MacMillan from Barnardo's.

"We agree that work is an important route out of poverty but not for everyone. Parents of children with disabilities cannot easily leave them with child minders so that option is not open to them. Minimum income guarantees would help to resolve this problem," she added.

MORE INFORMATION
Icon of an envelope Paul McGill
Icon of a telephone 028 9087 7777 or 0772 1746 805 (m)


NICVA | Paul McGill | 23 Mar 2006
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