Brown accused of Budget 'tax con'

Gordon Brown announced his budget at lunchtime

Opposition parties have described Budget plans to cut the basic income tax rate by 2p as a "con".

SNP leader Alex Salmond said Chancellor Gordon Brown's scrapping of the 10p rate and changes to National Insurance meant it was actually a tax rise.

Shadow Scottish Secretary David Mundell said there would be a disproportionate burden on those worse off.

Scottish Secretary Douglas Alexander said the Budget would bring benefits to businesses, pensioners and families.

Mr Salmond said: "This is a tax cut con. He's abolishing the 10p rate but National Insurance is changing and indirect taxes are increasing.

"If you add all that together it is a tax rise.

Gordon Brown has missed yet another opportunity to secure a plan for the long-term future of Scotland. David Mundell Shadow Scottish Secretary In quotes: Scottish reaction

"This budget is another desperate move from a desperate chancellor determined to try anything to hold onto power in Scotland."

Mr Mundell said: "Brown's Budget will not bail out Labour in Scotland in the upcoming election campaign - balancing the books by giving with one hand and taking with the other will not fool anyone.

"Gordon Brown has missed yet another opportunity to secure a plan for the long-term future of Scotland."

Scottish Liberal Democrat leader Nicol Stephen said the Budget would not help Labour.

"The Budget was full of spin and gimmicks," he said.

Your reaction to the Budget In pictures

"I am very disappointed that the chancellor has done nothing to stop the cuts to Scottish sport and Scottish young people proposed to pay for the Olympics.

"The Budget doesn't come close to matching the support we are putting in place in Scotland for green energy and fails to boost the market for this new technology by UK action."

However, Mr Alexander said: "Today's Budget provides more support to pensioners with the decrease in basic tax and the abolition of the 10p rate of tax, taking more than 50,000 Scottish pensioners out of the tax system.

"Our economy is strong and there are more people in employment than ever before; prosperity and opportunity has increased for all. Today's Budget is investing to safeguard Scotland's future."

Business groups said the Budget would benefit some firms but would leave others worse off.

Niall Stewart, from the Federation of Small Businesses Scotland, described it as a "typical Gordon Brown Budget".

"Most of our members will be scratching their heads and asking what effect this has had on them," he said.

With the threat of climate chaos growing daily now is the time for bold leadership, not half measures. Duncan McLaren Friends of the Earth Scotland

He pointed out that in Scotland two thirds of all businesses were run by self-employed individuals who would benefit from the 2p cut in income tax but would not be affected by the cut in corporation tax.

Mr Stewart added that the Budget would also be a disappointment for small limited companies and would mean less income for them to invest in their firms.

The UK Offshore Operators Association, the representative body for North Sea production companies, accused the chancellor of turning a blind eye to the needs of the oil industry.

Its chief executive, Malcolm Webb, said: "The Treasury clearly recognises that lower taxes are good for business, but unfortunately fails to apply that principle to our industry.

"UK offshore oil and gas producers have not been given any reduction in corporation tax and still continue to suffer under a punitive 50% rate for corporation tax and a total tax rate of 75% on the production from its older assets."

'Half measures'

Friends of the Earth Scotland welcomed green measures such as increased tax on higher polluting vehicles but said they were still insufficient to deal with today's environmental challenges.

Its chief executive, Duncan McLaren, said: "The chancellor should have done more to make it easier and cheaper for Scots to live climate-friendly lives.

"Today's Budget contains some welcome steps toward a greener economy, but falls short of the measures required to really tackle climate change.

"With the threat of climate chaos growing daily, now is the time for bold leadership, not half measures."

The Scottish Greens said the Budget would not tackle carbon emissions.

'Massive disappointment'

Mark Ballard, the party's finance spokesman, said: "This Budget is a massive disappointment.

"For instance, a £200 tax increase on 4x4s is the price of a few tanks of petrol - it's a token gesture that won't change behaviour.

"Trying to use so-called 'eco-taxes' to discourage driving or flying, at the same time expanding airports, refusing to tax aviation fuel and building new roads, simply does not add up."

Tommy Sheridan, leader of the Solidarity Party, said: "Yet again New Labour has failed miserably to address the obscene chasm in income inequality that has grown unchecked under the party over the last 10 years.

"Brown should have announced a higher rate taxation for the millionaire and billionaire elite."