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Low paid workers in South Lakeland will be hit by budget -says Farron

December 9, 2009 12:00 AM

South Lakes MP Tim Farron has criticised the announcement by the Chancellor in today's Pre Budget Statement that all public sector workers will get a 1% pay rise.

Under the Chancellor's proposals, nursery teachers, nurses and refuse collectors will get a tiny additional amount of money- less than it costs for them to keep up with the cost of living. At the same time, highly paid public sector workers like chief executives and vice chancellors will get big cash rises, because while 1% of a low wage is a small amount of money, 1% of a large wage is worth a considerably greater sum.

The announcement that national insurance will rise for all taxpayers will also hit lower paid workers in South Lakeland. Meanwhile the Chancellors proposal to tax bonuses will just mean that bankers will pay themselves bigger salaries instead.

Conservative proposals would mean an even bigger pay cut for low paid workers coupled with a big tax cut for the 3000 richest people in the country.

Liberal Democrats would have ensured that low and medium earners got a pay rise equivalent to inflation with high earners taking the cut instead. There would also have been an increase in taxes for the wealthy, an end to bankers' bonuses, and no tax rises for the less well off and medium earners.

Tim said, "The budget report provides no answers to the financial crisis, and it is also incredibly unfair.

"In South Lakeland, low paid workers like nursery teachers, nurses and careworkers will see their real incomes drop, whereas top executives and bankers will be able to earn more.

"This is an unfair budget that hits those in South Lakes who can least afford to lose out - while boosting the incomes of the very wealthy. It's a budget report that is inadequate and immoral. South Lakeland deserves better."