Jude Robinson, Chair of Cornwall Labour Party said: “Low paid people and pensioners in Cornwall will be hit hardest by the increase in VAT to 20%. Pensioners are also hit by changes that will give them lower increases in pensions over the next two years and this VAT rise will cost them an average of £500 per year.

“In Cornwall, the three Liberal Democrat MPs would not have won their seats without thousands of Labour voters, who believed their pledges on keeping the Tories out of power and supporting fair taxes.

“It is within the power of the Liberal Democrats to stop this unfair tax that will hit the poorest and pensioners hardest. The Lib Dems opposed the VAT increase and they should keep their election promises now.”

A vote in the House of Commons to approve an increase in VAT from 17.5 per cent to 20 per cent is expected on Tuesday 13th July. The Conservative-Liberal Democrat Government announced in its Budget on 22 June that VAT would be increased by 2.5 per cent, even though during the election campaign the Conservatives said they had no plans to increase VAT and the Liberal-Democrats campaigned against increasing VAT.

In a letter to MPs Andrew George, Dan Rogerson and Stephen Gilbert today, Jude wrote

When asking for votes in May, Liberal Democrats campaigned hard against any increase in VAT because it is a regressive tax, which hits the poorest hardest. Yet next week, you are preparing to vote in favour of a VAT increase.

Pensioners in Cornwall will be hit hard by the tax, paying an average of £500 extra per year in VAT, while the changes made by the Chancellor will mean that they receive lower pension increases in 2012/13 and 2013/14.

We all know that tough decisions have to be made. Labour’s plan for halving the deficit in four years met the timetable set out by the G20 two weeks ago – and did so without an unfair VAT rise, without putting the recovery at risk and without hitting peoples’ jobs. It is the decision of the Lib Dem/Tory coalition to cut harder and faster.

There is no need for reviews or investigations into this. It is absolutely clear, as the Lib Dems agreed during the election campaign, that the VAT increase will hit the poorest hardest.

You all three asked – and won – Labour votes in Cornwall at the General Election by promising to keep the Tories out of power. These votes were absolutely crucial to you in winning your seats as Members of Parliament. Please keep your election promises and stand up for people, especially pensioners in Cornwall.

The budget included plans to:

* freeze pay for Cornwall’s four out of ten workers employed in the public sector;
* cut housing benefits which helped many people in Cornwall keep their homes during the recession;
* cut funding for child benefits, Sure Start, and the disability living allowance;
* review transport and other investment plans which are important for Cornwall’s economy in the Autumn.

Labour spokesperson Charlotte MacKenzie said: “This budget is bad news for people in Cornwall.

“Many people here will be worse off as a result of today’s announcements. Many local workers now face pay freezes alongside bigger bills. It will increase the threat of homelessness for families on lower incomes. It cuts support for families with children and for Sure Start, and plans to cut funding for the Disability Living Allowance. There is a commitment to review spending on transport and other projects in the Autumn, and there was no specific commitment to any of the plans for investment in Cornwall’s transport infrastructure.

“It isn’t surprising that a Tory Chancellor would make these cuts. But many people here have previously supported the Liberal Democrats because they believed they could stop the Tories. Today, top Liberal Democrats Nick Clegg and Danny Alexander sat on side with the Tories while they savaged the household incomes of many Cornish families and those on lower incomes.”

Jude said: “The Conservatives are now reverting to type and sharpening their axes but it is also appalling how easily the Lib Dems have abandoned their principles and election promises.

“All the pledges made the the Tories about ‘green’ jobs and new industry for Cornwall have been abandoned. Cuts to investment could set our economy back as renewable energy projects like the wave hub are threatened by cuts.”

The Lib Dems’ promised to bring extra funding to Cornwall but have entered coalition with the Tories and support the swingeing cuts. Vince Cable, Lib Dem Business Secretary has said he plans to protect other areas of the country from the worst of the cuts, which will mean the South West could face huge funding problems.

Regional Development Agency support for the wave hub, renewable energy projects and match funding for convergence has been a major factor in Cornwall’s economic growth and the county’s ability to weather the recent global recession, with lower unemployment than many other parts of the country.

Jude said: “It cost a lot to avoid economic meltdown after the global financial crisis. Labour policies would have promoted economic growth and repaid the debt in a planned way. These cuts will cause massive problems.”

Julia Goldsworthy is claiming to have won £94 million extra for Cornwall’s NHS. This the amount Labour has allocated to Cornwall’s health service over two years 2009-10 and 2010 -11. The regular and independent review of the Market Forces Formula has provided some uplift to Cornwall’s NHS allocations (and Lib Dems along with politicians of all parties have supported Cornwall’s case) but the bulk of this is Labour investment in the NHS.

Health campaigner Graham Webster said: “the Labour Government reviewed the funding formula as a matter of course and agreed to the extra funding commitment for Cornwall. They (the Lib Dems) have got a bloody nerve for now laying claim to it.”

Other exaggerated claims: The Labour activist Mr Buckley, is claimed to have switched to the Lib Dems, but is unknown to the Labour Party in Cornwall and has not appeared on any membership list in the South West.

Former Chair of Redruth Branch Janet Brook,is claimed to have switched to Lib Dem. Mrs Brook took the Chair for a meeting in February 2001 but resigned later the same evening and has not been active in the Labour Party since.

Jude said: “We are wondering what next. The Daily Mirror is urging Lib Dem to vote Labour in Camborne & Redruth, so they will be getting increasingly desperate.”

Wild claims by the Lib Dems are not new. In 1997 Labour, backed by Mori, took out an injunction on the Lib Dems in Falmouth & Camborne to prevent them distributing a fake Mori poll in the week before polling.

The youth-led British Youth Council has created a General Election Manifesto ‘Our Parliament, Our Vision’ that outlines five actions Parliament must take to improve the lives of young people in the UK:

* Support a National Youth Transport card that offers 16 to 25 year olds a third off public transport fares.

* Reduce the voting age for parliamentary and other public elections to 16 years.

* Create an equal National Minimum Wage for everyone aged 16 and over.

* Keep the promise to end child poverty by 2020.

* Invest in comprehensive mental health services for young people.

Charlotte MacKenzie shares the British Youth Council that it is crucial to engage young people and listen to their opinions during this election.

Charlotte MacKenzie said of the BYC manifesto:

“I am delighted to add my support to the British Youth Council’s General Election Manifesto. In particular I support young people calling for help with transport costs because this is also a priority for Cornwall Youth Forum and would help local students and workers up to the age of 25 too. Over-60s have free travel passes and young people are the other main users of public transport.

“It’s really important for young people to have a voice in this election, speak out and use their votes if they are registered”.

BYC Chair Alex Delaney, who is leading the ‘Our Parliament, Our Vision’ campaign says:

“We believe it’s our Parliament too. Our vision should inform and influence what it does. All of the five calls for action in this Manifesto address real issues that affect them today. Teenagers are struggling to meet travel costs to get to places of education, training or work; young workers are being paid unequal wages just because of their age; four million children are living in poverty; the needs of young people with mental health problems are not being met; young people are not heard in our democracy.”

Housing Minister John Healey MP announced Labour will give Councils new freedoms to fund and run their local housing stock. Cornwall Council already has some Labour Government funding to build new Council homes. The new system will release at least 10 per cent more money to build new council homes.

Tenants – like those in Carrick Housing – whose homes have been upgraded through the decent homes programme will have guaranteed future funding to maintain high standards backed by a new national regulator, the Tenant Services Authority.

Charlotte MacKenzie said: “These proposals are exactly what Cornwall Council needs to make the most of its existing housing stock and to invest in more new homes to meet local housing need. I hope Cornwall Council will respond positively to the opportunity to start working in this way from next year, it will help speed up delivery of new homes for local people in housing need; and keep the revenue from Council housing stock in Cornwall.”

Sarah Webb, Chief Executive of the Chartered Institute of Housing said: “We are delighted at the Government’s clear commitment to new council house building and are also very pleased that our work to help shape a new self-financing future for councils has been taken on board.”

The plans mean dismantling the old ‘Housing Revenue Account’ system which has long been criticised by local government. Established initially in the 1930s, the HRA system was reinforced by Margaret Thatcher in the 1980s as a way of discouraging authorities from building new council housing.

Under the new system, councils will keep all rent collected as well as all receipts from sales of housing or land. Not a single penny will go elsewhere. Councils will have to accept a share of an additional £3.65 billion debt, but none would take on debt that was not sustainable in the long term.

The consultation document, Council Housing: A real future seeks the views of councils on implementing the new system. Responses are required by 6 July 2010. More information and the consultation document can be found at: http://www.communities.gov.uk/housing/decenthomes/councilhousingfinance/

The new system would be implemented voluntarily where Councils agree from 2011-12, and addresses concerns raised by local government about the current HRA system. The need to reform the HRA has cross-party support.

However, other housing plans under consideration by the Tories could make council tenancies less secure.

Charlotte MacKenzie, Labour’s prospective MP for Truro and Falmouth, said: “Cornwall’s pubs can be the heart of their local community, and the steps announced today are designed to help keep them open. A fund of £3.3 Million pounds is being provided to support community ownership of up to 50 pubs through the Plunkett Foundation. And the demolition of pubs is to be controlled to allow for community intervention.”

CAMRA has lent it’s support to the Labour Government’s action, saying: “This is a great day for people who care about the future of our community pubs. This inspired action plan could offer a lifeline to thousands of pubs and help communities stave off pub closures which threaten their quality of life and community well-being. I am delighted that John Healey has listened to CAMRA’s calls to help stop pubs being demolished unnecessarily, to ban the anti-competitive practice of placing restrictive covenants on pubs to stop their future use as pubs, and for the industry to self-reform the beer tie to allow pub tenants a free of tie option and to take a guest ale.”

The Labour Government has announced the “Be the Boss” enterprise scheme which will be delivered by the Royal British Legion throughout the UK.

Charlotte MacKenzie said: “Veterans in Cornwall who have bravely served their country deserve help to get a business going. This scheme will take business ideas off the drawing board and made into reality.

“I would urge veterans who might be thinking of setting up a business to get in touch with the Royal British Legion to see what support they can access.

“I know from visiting Truro Citizen’s Advice Bureau and the Royal British Legion money and benefits advice service that additional support can make all the difference to ex-service personnel in Cornwall.”

Business Minister Lord Drayson said: “In my time at Defence, I’ve been inspired by the talent, capability and can-do attitude of the armed forces. Those are exactly the qualities you need in business too, but ex-service personnel are under-represented when it comes to start ups and self-employment.

“This scheme puts that right, helping former servicemen and women to be their own boss and go on contributing to our society.”

Veterans Minister Kevan Jones said: “So many members of the Armed Forces have the skills and discipline to make a success of their own business. This scheme will provide them with the tools – and confidence – to develop sound business plans, as well as funding start-up costs. It is another example of our commitment to the men and women who have served our country.”

The figures published yesterday for February 2010 show that, in Truro and Falmouth constituency, unemployment continues to be below the UK average.

Charlotte MacKenzie said:

“It is great news that jobs figures nationally are on the upturn. Despite the recent recession, the number of people working in Carrick continues to be encouraging, because unemployment is below the UK average. As local people remember, this is the opposite of the jobs position when Labour was elected in 1997.

“There is always a significant seasonal element to employment in Cornwall. The local figures show that the number of people looking for work has not increased this month. We are not yet seeing a local fall in the number of people seeking work, but normally there is an upturn here after Easter because of seasonal working.

“The jobs success story in Cornwall has been the 90 per cent decrease in youth unemployment from 1997 levels thanks to Labour’s new deal. Labour’s jobs action during the recession focuses on preventing a return to long-term youth unemployment. I support that action because it is working, and I will continue to watch local figures closely to ensure there is no return to high levels of long-term unemployment for young people in Cornwall.”

Secretary of State for Work and Pensions Yvette Cooper, said:

“The fall in unemployment for the third month in a row is very welcome, but we should remain cautious. We’re not out of the woods yet and we are still determined to do more to support jobs and help the unemployed this year.

“The figures show the investment in jobs, education and training places is making a real difference. Half a million fewer people are out of work than anticipated at the time of last year’s budget – saving over £10bn as a result.

“However, now is not the time to cut back on support for jobs as the Tories propose. We know things will be difficult for some time, and unemployment in the eighties and nineties rose for years after the recessions finished. That is why we plan to increase help to get people back into jobs this year, not cut it back, so we can support the jobs of the future.”

Minster for Employment Jim Knight, said:

“While it’s good news that the number of young people claiming unemployment benefit has fallen for the fourth month in a row, there is no let up in our investment to ensure every young jobseeker gets the chance to find work and make a future for themselves.

“I am delighted to announce a further 7,000 Future Jobs Fund jobs for young people as part of Government’s unprecedented guarantee that 18-24 year olds who are unemployed for six months will get a job, a work placement or a training opportunity. We are determined to give them the chance to develop skills and get that all important foot on the career ladder.”

On the same day that Labour announced it has delivered on its pledge to build 3,500 Sure Start centres across England, the campaign in Cornwall against Conservative plans to cut Sure Start for families on middle and modest incomes gathered pace, with people campaigning door to door and online at www.saveoursurestart.com

Jude Robinson Labour’s PPC for Camborne, Redruth & Hayle said:

“On the doorstep, parents tell me that Sure Start helps them to give their children the best possible start in life. I’ve spoken to many mothers – and fathers – who have found Sure Start’s support an absolute life-saver.”

Sure Start has given thousands of children the best possible start in life, delivering real benefits to the education and health of families across Cornwall.

Jude added: “It is hard to believe that before Labour came to office in 1997, Sure Start did not exist at all. It is one of my party’s best achievements and we want to make sure that all families, including those on middle and modest incomes, will always be able to count on Sure Start.”

Sue Winter, one of the leading campaigners against the closure of Trevu Children’s Centre in Camborne said:

“The Conservatives are completely out of touch with the needs of parents and young children on this issue. Sure Starts are a lifeline for so many people – they provide access to information, education, play, advice, training, child care, and emotional and practical support from midwives, health visitors, counsellors and peer groups all under one roof in a friendly, safe and welcoming environment.

“I know of several mums who have received help with post-natal depression and without Sure Start they wouldn’t have known where to go or who to ask for help. Cutting Sure Starts will have a detrimental effect some of the most vulnerable people in our society including our children.”

Schools Secretary Ed Balls said:

“In 1997, there were no Children’s Centres, but today there are 3,500. Labour created Sure Start and will continue investing in it as a universal service for all families with children under five.

“But by cutting Sure Start and rolling back Labour’s Child Trust Fund and Tax Credits, David Cameron’s Conservatives are demonstrating they haven’t changed.

“When families take a long, hard look at the Tories they can see that they have the wrong policies for children and the wrong priorities for our country. But with Labour’s future fair for all, every child is guaranteed a Sure Start in life.”