How the budget could affect Sevenoaks

Well, the results are in and after preparing the country for the worst, the budget feels a little less scary than it could have been. But it’s still a belt-tightener.

So how does it affect Sevenoaks?

We’re an affluent town, with a reasonably high level of employment, but VAT rises affect everyone, and couple with the child benefit freezes and reduction on tax credits for families earning over £40,000, there is a significant number of families that will feel the sting.

While one £40,000 wage is solidly above the national average, this £40,000 cap is for total household income. Two working parents bringing in £40,000 between them (which would be less than the average salary each), with childcare costs and one of the priciest housing markets in Kent are going to suffer.

Council tax ‘could’ be frozen for one year from April 2011, but extra funds will only be offered to council’s which keep their own costs down – do we feel Sevenoaks Council will manage this? If it does, the freeze will be worth around £35 per household, per year.

New limit of £400 a week housing benefit for properties with more than three bedrooms, £250 a week for a one-bedroom flat, £290 for a two-bedroom property and £340 for a three-bed property.

This would cover a rent of up to £1360 per four-weeks for a three-bedroom property, which would adequately cover a family home in this area.

Those on benefits will be most affected, with a 10% of housing benefit for those on unemployment benefits for over 12 months and lone parents will be expected to find work when their youngest child starts school.

So, Sevenoaks People, is this better or worse than you were expecting? Will the VAT rise put shoppers off using the town’s shops, pushing us out to cheaper supermarkets in neighbouring areas (like Asda in Swanley or Kings Hill)? Tell us how you think the “emergency budget” will affect you.