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Brown’s Budget draws red and green dividing lines

22 March 2006

Responding to Gordon Brown’s tenth Budget, director of the Institute for Public Policy Research (ippr), Nick Pearce, said:

“Stability and steady growth have taken the political heat out of economics in Britain. So this Budget was all about drawing red and green dividing lines. 

“Brown has drawn them with more money to tackle child poverty and to close the equality gap between private and state schools. We knew next year’s Comprehensive Spending Review was going to be eye wateringly tight but today’s settlement for education is a clear statement of Labour’s priorities.

“By up-rating the Climate Change Levy and introducing a new ‘gas guzzler’ Vehicle Excise Duty band Brown has strengthened his green credentials but could have done more had he not frozen fuel duty. 

“He is right to ignore the siren voices of the old right: cutting public services and shrinking the state would make us less prosperous, not more competitive. India and China are opportunities, not threats.

“For ippr it is particularly pleasing to see the Chancellor accept several recommendations from our research: extending free tuition up to Level 3 (equivalent of A-levels) up to the age of 25, increasing the Child Trust Fund, reviewing the alignment of National Insurance and Income Tax, and funding a Schools' Olympics."

Notes to Editors

The ippr reports with recommendations accepted today by Gordon Brown include:

After the Gold Rush: a sustainable Olympics for London, Choosing to Learn: improving participation after compulsory education, Social Justice: building a fairer Britain, Top tips for top ups which are all available from www.ippr.org/publicationsandreports

Contact:

Richard Darlington, ippr media manager, 020 7470 6177 / 07738 320 645 / r.darlington@ippr.org

Matt Jackson, ippr senior media officer, 020 7339 0007 / 07753 719289 / m.jackson@ippr.org