The Chancellor of the Exchequer, Alistair Darling, today gave a £20 billion boost to the UK economy to steer it through the global recession which is now hitting employment and businesses everywhere.

The Chancellor’s Statement was welcomed by local MP, Gordon Prentice, who said bold and dramatic steps were needed in the face of a looming deep recession.

The £20 billion package includes a cut of 2.5% in VAT, injecting £12.4 billion into the economy.

Household income will be boosted next year by giving every basic rate taxpayer £145 extra, up from £120 this year. In addition every pensioner will get £60 in January. And Child Benefit will go up to £20 per week for the first child from January instead of April. Child Tax Credit will increase by £75 a year in April above the indexed figure, taking it to £2,235.

Speaking from Westminster, the Pendle MP said: “Everyone knows we are facing a global recession which started last year in America. To do nothing would be absolutely the worst response. We’ve got to keep the economy moving, help businesses to get through and do all we can to keep people in jobs – and in their homes.”

The MP added: “I also strongly support the introduction of a higher tax band for the wealthy.”