Lamont has 'failed to narrow the gap between rich and poor'

Budget disappoints Church workers
by Murray White
CHANCELLOR Norman Lamont's efforts to tackle unemployment and give a much needed boost to the economy in his Budget this week were dismissed as "complacent" and "disappointing" by Church groups.
The verdict of Church organisations working with the poor and unemployed was that Mr Lamont had "given on one hand and taken back twofold on the other". In the final Spring budget. the Chancellor announced a package for an additional 90,000 long term unemployed to be given training, the chance to study or join a new community work scheme. And charities welcomed an extension to the Gift Aid scheme.
But there was a fear that putting VAT on domestic fuel and increasing National Insurance payments from 1994, allied with Mr Lamont's emphasis on reducing public spending, has resulted in a budget that does little for the poor in society.
Paul Goggins, Co-ordinator of Church Action on Poverty (CAP), said: "The budget does nothing to narrow the gap between rich and poor. overall, it will place further pressure on those with low incomes."
Catholic Liberal Democrat MP. David Alton, criticised the
Chancellor's delay in introducing incentives for the needy. He said that the "devastating" new tax on fuel "would have the same effect as the Poll Tax.
"There are an awful lot of post-date cheques here a lot of dynamite, charged and ready to go off six months from now," said Mr Alton, adding that Mr Lamont had moved away from taxes based on ability to pay.
CAP had hoped that Mr Lamont's declaration would "signal a radical change of priorities", so that those who have gained most from budgets in the 1980s should now "shoulder the major responsibility for bringing hope, opportunity and a new sense of direction to the people of Britain".
Jim Richards, of the Catholic Children's Society in Westminster, said there were "one or two glimmers but this budget hits poorer people. And it doesn't seem to help the substantial number of unemployed that need incentives to get jobs".
Mr Richards, whose Society is increasingly working with poor and homeless families. was particularly concerned at Mr Lamont's imposition of VAT on domestic electricity and gas from next year.
"People on the margins, especially, the old, those families with young children. and those who cannot afford proper insulation, will suffer," he said.
Kevin Flannigan, at St Anthony's Centre for Church and Industry at Manchester's .Trafford Park, a project offering job retraining, said that Mr Lamont's incentives would help to a degree. But he was "concerned" about the potential of some companies to exploit people by training them at very low rates of pay.
"We lost good community schemes in the early '80s and it has taken ten years for the Government to realise their error. Giving responsibility back the Church and voluntary agencies is a move in the right direction," said Mr Flannigan. The Salford diocesan scheme, staffed mainly by enthusiastic Catholic volunteers, offers 100 hours of retraining in mainly computerbased technology.
Robina Rafferty, Director of the Catholic Housing Aid Society, also lamented the decision to tax heating. "Fuel is an essential item. At least with cigarettes you have a choice, but a mother of three can't decide not to put on the fire," she said.
Mark Topping of CAFOD welcomed the enhancing of the Gift Aid scheme. "This means someone who gives £250 is effectively giving £333, and it could generate an extra £100,000 this year for CAFOD," he said.