Budget (3): Opposition reaction

Opposition leaders immediately responded to the Budget in the House of Commons. Party politics and campaigning in advance of an expected General Election dominated the Budget and the responses.

Conservatives

Conservative leader Michael Howard saw the Budget as a 'vote now, pay later' measure in advance of the General Election. He described it as a 'dodgy Budget' with 'dodgy numbers'.

The key points in Michael Howard's reply to the Budget speech were:

"Welcome Mr Brown back to the election campaign."

"Mr Brown gave with one hand and took away with another."

"In the 2001 pre-election budget taxes were cut, then the next year after Labour had won he implemented his biggest tax increases."

"Mr Brown's figures were like mirages in the desert you get closer and closer and then you don't see it at all."

"Mr Brown's £58bn surplus had turned into a £45bn deficit."

"Question is not when and whether but which taxes will go up under Labour."

"Tax burden under Labour is highest for 25 years"

"More tax under a third term Labour government would just be wasted."

"Britain had fallen from 4th to 11th in the world competitiveness league."

"Britain needed a government that would get a grip on spending rather than a Labour government that had let spending get out of control."

"The government was "dysfunctional" with Mr Blair and Mr Brown not talking to each other."

"Asking Mr Brown to cut red tape was like asking Alan Milburn to run a decent election campaign."

Lib Dems

Lib Dem leader, Charles Kennedy, responded to the speech opening by saying that Britain was doing generally "rather well" and the UK economy was one of the most successful in the world.

His main points were:

"The poorest 20 per cent in Britain were paying a greater burden of tax in proportion to their incomes than the top 20 per cent"

"There was real choice at the election over council tax - vote Lib Dem and they'd scrap it or vote Tory or Labour to keep the status quo."

"Neither of the main two parties had addressed the ticking bomb of council tax revaluation that could mean more tax for 7m households in England."

"Called for local tax based on people's ability to pay - a local income tax."

"Women were discriminated against by the pension system because they had gaps in National Insurance payments."

"Mr Brown had said at the last election he would not increase income tax instead raising national insurance which added up to the same thing."

"Mr Brown should be prepared to open his books to financial watchdog the National Audit Office."