GORDON Prentice, MP for Pendle, has welcomed the £20billion boost to the UK economy to help steer it through the global recession.

Alistair Darling, Chancellor of the Exchequer announced the package, which includes a cut of 2.5 per cent in VAT, injecting £12.4billion into the economy.

Household incomes 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.

And Child Tax Credit will increase by £75 a year in April above the indexed figure, taking it to £2,235.

Mr Prentice, who previously said “bold and dramatic” steps were needed in the face of a looming deep recession, has praised this action.

He 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.

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