9:26am Tuesday 25th November 2008
PUBLIC sector bosses are holding an Essex summit to come up with ways of helping residents through the economic downturn.
A recession rescue plan will be plotted at tomorrow’s special session in a “unique move” by the Essex Management Board, which represents all public bodies in the county including councils, health trusts and the police.
No details have been announced ahead of its planned special meeting tomorrow.
County council leader Lord Hanningfield has previously suggested council tax rebates could be offered in a bid to put spending cash back in families’ pockets.
Another avenue might be pushing swiftly ahead with planned construction projects to provide employment for out-of-work builders.
Lord Hanningfield is set to make an announcement at the conclusion of the meeting at county hall, at which it is hoped a series of draft proposals will be drawn up.
The Government yesterday announced its own plan to help the economy through troubled times by increasing borrowing to fund a cut in VAT.
Chancellor Alistair Dariling’s pre-budget report also revealed plans for a £1 billion scheme allowing firms to apply for Government-backed bank loans.
“If we did nothing we would have a deeper and longer recession that would cost the country more in the long term,” Mr Darling told MPs.
MP ATTACKS GOVERNMENT'S PRE-BUDGET REPORT
NORTH Essex Tory MP Bernard Jenkin attacked the Government’s pre budget report.
He said of the Prime Minister’s measures: “Gordon is like the grasshopper in Aesop’s Fable – he has been basking in the sun of an economic boom while other economies have been storing up acorns for bad times.
“Under the measures announced in today’s pre-budget report, the national debt will double. This is a tax time bomb which will detonate under family budgets after the next election in the form of higher taxes. Someone will have to pay for this reckless borrowing eventually and it will be the taxpayer that bears the brunt.”
He added: “What our businesses and families need are long-term tax cuts, funded responsibly that will stimulate the economy without the use of the country’s credit card.”
MEANWHILE, DOUBT OVER DARLING'S BOOST TO ECONOMY
THE value of a pre-Christmas boost to shoppers has been questioned.
Chancellor Alistair Darling yesterday cut VAT from 17.5 per cent to 15 per cent in an attempt to get tills ringing again and restore some life to the sluggish economy.
Michelle Reynolds, chair of the Colchester Retail Business Association, said the impact of the reduction of the sales tax will be “hard to assess”.
“In real terms the Government are not giving away a lot, and I’m not so certain that it will boost the economy,” she said.
“Prices will come down, but unless people are buying big ticket items like cars they’re not really going to notice the difference.
“I do not think this will have as big an impact as the Government are hoping for, but if it does get even one more person in to town because they feel items are cheaper then that can only be good.”
The reduction comes in to effect on Monday, and Mrs Reynolds who runs Head Street print shop Inprint, said it would be easier for small businesses to change their price tags than for larger retailers with computerised stock and till systems.
But she said that many retailers had already bought stock for Christmas at 17.5 per cent and the “very complicated tax rules” may mean that still has to be sold at the same rate.
Trading conditions in Colchester were described as “quite steady, but some people are struggling”.
“It’s not going to be the bouyant Christmas people always hope for,” Mrs Reynolds said.
“People are waiting for deals and many of the big names have done promotional offers that small independent stores cannot match as they will really notice the cut in their takings, and I do think that has been a bit unfair.”
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