BROWN'S BUCK-PASSING BUDGET

12.00.00am BST (GMT +0100) Mon 7th Apr 2003

Chancellor should stop blaming the world and face up to his own failings. Responding to the Budget statement, Charles Kennedy MP, Leader of the Liberal Democrats, said:

On the economic outlook

"This is a buck-passing budget. The Chancellor has been casting around for scapegoats to blame for his own failings. He has offered no excuses for his failure to deliver greater productivity, for his failure to save 500,000 manufacturing jobs, or for plummeting investment."

"Britain's economic growth is being borrowed. Britain must start earning the money it is spending, or the Chancellor's spending plans will falter. Unless productivity and investment are kick-started, the country faces the kind of Tory slump that Gordon Brown promised to banish.

"The Chancellor cannot blame the problems of the British economy on the Eurozone or the global downturn. Otherwise why has investment in the UK been falling faster than in every OECD country except Iceland? Business needs to be free to invest, not bound up in red tape and tax complications."

On Tax

"The Chancellor's legacy is that the richest 20% paying are still paying less of their income in tax than the poorest 20%. This year's Council Tax rises will confirm to many that Labour is not taxing them more fairly and is not spending their money more wisely. The Chancellor is letting the less well-off pay for his own failings."

"Labour have had six years to reform the Council Tax, despite the unfair burdens it means for pensioners and families. But they have done nothing. Now we see the biggest Council Tax rises ever. And the Chancellor sits on his hands."

"Labour over-taxes the poor, under-taxes the rich and stifles business in red tape and tax complications.

On the Euro

"The Chancellor's statement today, following weeks of briefing and counter-briefing, will do little to dispel suspicions that he believes that membership of the Euro is a political issue as well as an economic one."

"The will-he, won't-he approach to the Euro is damaging Britain's economy and influence. The economy is being pulled in two directions because of the imbalances built up over six years of an over-valued pound. British business needs stability and predictability.

"Membership of the Euro would bring such benefits, if only the Government had the courage to hold a referendum."

ENDS