Budget 2003

The Chancellor of the Exchequer has today announced a series of measures in his Budget of particular importance to Wales. These build upon Welsh Assembly Government priorities of delivering social justice through high quality public services; and economic opportunity through increased productivity and employment.

Specific measures announced today include help for children, pensioners and families:

• the introduction of a Child Trust Fund at a minimum level of £250 rising to £500 for children of low income families, who also qualify for child tax credit – around a third of all children. This will strengthen the saving habit of future generations and spread the benefits of asset ownership to all. It will benefit some 30,000 children born in Wales every year, backdated to September 2002;
  
• increased Child Benefit will benefit 350,000 families in Wales and provide at least an extra £5 per week for every family above the 1997 levels;
  
• the new Working Tax Credit (replacing the Working Families Tax Credit from April 2003) will provide additional targeted support for low-income households in Wales and the new Child Tax Credit will benefit 320,000 families in Wales. 
  
•  confirmation of the new Pension Credit from October this year, which will benefit 250,000 pensioners in Wales plus the 50% increase in winter fuel payments for the over 80s taking the annual payment to £300;

In relation to the economy and the environment, measures include:

• a simplification of the VAT regime for businesses, proposals to improve access to finance for small businesses and measures to improve the operation of existing R&D tax credits;
  
• enterprise boosted by a range of measures in the 350 Enterprise Areas in Wales, and confirmation was given of the extension of stamp duty relief to all non-residential transactions;
  
• improvements to the environment through further actions to improve waste management, an increase in the landfill tax escalator and support to help business reduce waste volumes. For Wales, this equates to additional resources of nearly £5 million for 2003-04 and £5.4 million for each of the next two financial years; and
  
• a freeze on fuel duties until October 2003.