E-newsletter about the Budget 2012

Now that the dust has settled from last week's Budget, I thought I'd drop you an email setting out what the budget, and other recent changes, mean for people inCardiff.

This budget shows the influence that Liberal Democrats have had in Government. There is an awful lot to be proud of, in particular the fact that even in difficult economic times, we have delivered the biggest increase in the income tax personal allowance in 30 years, putting money into the pockets of over 20 million working families across theUK.

The personal allowance increase has come straight from the Lib Dem Manifesto into the Chancellor's Red Book. After decades of Lib Dems working hard locally but without a strong national voice, our policies are now being implemented and are helping people across the country.

So what does this mean for people inCardiff?

• 138,000 people in Cardiff will see a £130 tax cut this April and 5,700 people will be lifted out of paying income tax altogether
• 134,000 people in our city will get another £220 tax cut next April and a further 4,930 low income households will no longer pay income tax

This is a huge boost to hard working low and middle income families, but it is not the only thing the Coalition Government is delivering thanks to the Lib Dems:

• In April the Basic State Pension will rise by £5.31, the largest cash increase ever, thanks to the Lib Dem's 'Triple Lock' on Pensions.
• The Government will soon introduce a new £140-a-week flat rate pension, which will stop millions of older people, particularly women, having to apply for means-tested top-up benefits.
• The welfare grant and council tax relief for families of the armed forces will be doubled.
• Households where one member earns over £60,000 will no longer receive Child Benefit.

This Budget is also good for the businesses thatCardiffrelies on:

• Cardiff will get up to £12 million to fund new ultra-fast broadband for 142,000 residents and 10,000 businesses as well as high-speed wireless connectivity for 196,000 more residents.
• Next month businesses will see Corporation Tax cut to 24%.
• By 2014 Corporation Tax will be cut to just 22% helping boost businesses in Cardiff.
• The Government is simplifying the tax system for small businesses with a turnover under £77,000 making life easier.
• The Government will also pilot new ways to help young entrepreneurs by supporting young people with the start up costs of setting up a new business.
• April will also see the start of the Youth Contract, which will invest £1 billion across the UK to get young people into work.

In difficult economic times it's vital we make sure we can pay for all these changes.

That's why the Government is asking the rich to pay more by:

• Increasing the level of stamp duty on new homes worth over £2 million to 7%.
• Cracking down on stamp duty avoidance by the super rich.
• Increasing the Bank Levy to raise £2.5 billion a year from banks.

All of this will raise an estimated five times more than the 50p top rate of income tax, which was all too easy to avoid.

However, this isn't all: the Government has committed to working with the Welsh Government to examine the case for electrification of the Valleys train line, and is to launch a £100 million fund to develop new research at universities, which I'm sure will benefit institutions in Cardiff.

I won't pretend that the Budget is perfect. In coalition compromises will always be made. Different parties have different priorities: for the Conservatives it was cutting the 50p tax rate for millionaires, for the Lib Dems it was cutting tax rates for those on low and middle incomes and making sure that the rich pay their fair share.

I believe that we can be proud of what Liberal Democrats have delivered for people in Cardiff and across theUK.