The Government also announces a package of housing measures to support the objectives of promoting the long-term stability of the housing market and supporting homeowners facing difficulties. Bringing forward of investment in new social housing stock will help the 3,600 households deemed in priority need of housing in the North East.
As part of a fiscal stimulus package, there will be a temporary reduction in the standard rate of VAT to 15 per cent from 1 December 2008 until 31 December 2009 to provide further support for growth and incomes during the economic downturn. This is the equivalent, for the average household, of £275 a year for extra spending.
The Government is also bringing forward £3 billion of capital spending from 2010-11 to 2008-09 and 2009-10. Bringing forward valuable public investment will impact directly on economic activity in the UK, in particular supporting the construction sector, which is expected to be disproportionately affected by the economic downturn.
The Chancellor has also announced a substantial package of measures to ensure that those facing redundancy and those seeking employment are helped back into work as quickly and efficiently as possible. This will help with the 19,238 job vacancies that were notified to Jobcentre Plus in the North East in October 2008.
Nick Brown, Regional Minister for the North East said "The Government is determined that in these difficult times there will be no return to the mass unemployment that the North East has seen before. Today the PBR sets out a series of actions that will support families, businesses and households who may be feeling vulnerable and provide a stable programme for the medium term."
The Exchequer Secretary Angela Eagle MP said "It is vital at this time of economic uncertainty that Government recognises the pressures affecting individuals, families and businesses in every region of the UK. This PBR provides a fiscal stimulus to help alleviate these short term difficulties, while setting out a responsible strategy for the long term. A 2.5 per cent reduction in VAT will help families and businesses in time for Christmas and a £600 increase in the personal allowance will benefit 22 million basic rate tax payers."
More information is available from the Pre-Budget Report 2008 website.
