LIBERAL DEMOCRATS CALL FOR TAX CUTS TO HELP HARDWORKING PEOPLE OF GLOUCESTERSHIRE (Cheltenham Liberal Democrats)

Cheltenham Liberal Democrats <info@cheltlibdems.org.uk>

LIBERAL DEMOCRATS CALL FOR TAX CUTS TO HELP HARDWORKING PEOPLE OF GLOUCESTERSHIRE

March 21, 2007 9:22 PM

As Gordon Brown presents his final Budget, Liberal Democrat research reveals that house prices in Gloucestershire have nearly trebled since 1997.

In 1997 an average house price in the South West was 3 times the average income of borrowers, but it has now risen to nearly five times average income.

At the same time repossession orders issued in Gloucestershire have increased by 10% since 2005, to 1162, and individual insolvencies in Gloucestershire have rocketed up by 30%, to almost 1905.

Commenting, Gloucestershire County Council Liberal Democrat group leader Jeremy Hilton said: "It's inevitable that with the bubble in house prices, rising interest rates, and irresponsible lending, more and more families in Gloucestershire are getting into difficulties with their mortgage."

"One of the fundamental problems at present is there are no safety nets. In the face of redundancy, mortgage borrowers do not have access to benefits for at least nine months."

"Liberal Democrats have warned the Chancellor for years about the seriousness of the personal debt problem and the need for a concerted plan of action involving better financial advice and education, debt data pooling and action on irresponsible lending."

"The big issue Brown has failed to address as Chancellor has been the gap between the rich and poor in Britain."

"At a time when those on low and middle incomes are struggling to pay council tax bills and high energy bills, the chancellor needs to cut their taxes."

"Our top priority for the budget is income tax cuts for low and middle families. The Liberal Democrats would cut 2p off national income tax and raise the thresholds for income tax so that the average family would be £1,500 a year better off. We would pay for it by removing capital gains tax reliefs and increasing environmental taxation."