Oral Answers to Questions

Huw Merriman Excerpts

Tuesday 1st October 2019 Commons Chamber

[Sajid Javid]

My hon. Friend will know that in the spending round I announced a £4.6 billion increase in school spending. I know that he has campaigned on funding for his local schools and can tell him that 80% of the secondary schools in his area will see their funding level go up to at least the new minimum level of £5,000 per pupil.

[Huw Merriman (Bexhill and Battle) (Con)]

12. What fiscal steps he is taking to encourage small businesses to expand.

[The Exchequer Secretary to the Treasury (Mr Simon Clarke)]

A new business starts in the UK every 75 seconds. Following the patient capital review, we announced a £20 billion action plan to finance growth in innovative firms. To support that, we have established a new business finance council to ensure that Government, banks and other lenders work together to help small and medium-sized enterprises to access the finance that they need.

[Huw Merriman]

I welcome all of the Treasury team to their places and thank the former Chancellor, my right hon. Friend the Member for Runnymede and Weybridge (Mr Hammond), for letting me work so closely with him. It was an amazing privilege.

I spent an amazing day with my constituency businesses in the village of Beckley. They are concerned about business rates, on which I support their call for reform, as well as about the VAT threshold and lack of taper. They will also now be writing to me about the welcome increase to the national living wage. Can we do more to support small businesses? They are the backbone of rural economies and without them we will not have employment.

[Mr Clarke]

I thank my hon. Friend for his question and take this chance to thank him, on behalf of the Government, for the work he did with the former Chancellor. He is quite right to talk about tax reform. Of course, since 2016 we have announced business rates reforms and reductions worth more than £13 billion by 2023-2024. On VAT, in the run-up to the 2018 Budget we consulted on the threshold, which is the highest in the EU and the OECD. We have committed to keep that in place until 2022, but I am genuinely always interested in suggestions that I can discuss with colleagues.

No-deal Brexit: Short Positions against the Pound

Huw Merriman Excerpts

Monday 30th September 2019 Commons Chamber

[Mr Clarke]

I yield to nobody in my appreciation of how hard people work in the Tees valley and, indeed, how passionate they are about our area, but there is absolutely no doubt in my mind that democracy needs to be honoured. We need to deliver on the referendum result and to get this done. There will no actions for the City to take if we get a good deal across the line and the hon. Lady votes for it.

[Huw Merriman (Bexhill and Battle) (Con)]

In June, the Bank of England reported that, thanks to the mitigation and preparation put in place by the Government, any hit to GDP in the event of a no-deal Brexit would be reduced by two and a half percentage points. Will the Minister, whom I welcome to his position, confirm that we have had more preparation since then? That means we should be further protected, meaning these individuals will not make their money.

[Mr Clarke]

My hon. Friend is, of course, absolutely right that we are stepping up our preparations to cover all eventualities. That is why we made provision in the spending review, which was designed to ensure that we go into this autumn with the options open to us kept as wide as possible. Of course, it is also why the provisions of the surrender Act, which the Opposition brought forward against the will of this Government, are so unwise.

Spending Round 2019

Huw Merriman Excerpts

Wednesday 4th September 2019 Commons Chamber

[Sajid Javid]

I will happily discuss with officials the issue that the hon. Lady has raised, and I am sure that they will be happy to meet her.

[Huw Merriman (Bexhill and Battle) (Con)]

I thank the Chancellor for the extra money for local government and social care, which will prove hugely impactful for East Sussex. I should like to make particular reference to the schools spending increases. The increase to £5,000 for secondary schools and £4,000 for primary schools next year will help East Sussex schools to almost catch up with some of the wealthier parts of the country. I should also like to thank the teachers, headteachers and governors who have fought their campaign, with me, with respect, reason and absolute passion to deliver the best for their schoolchildren.

[Sajid Javid]

I want to take this opportunity to thank my hon. Friend for his campaigning and for the way in which he has worked with the Treasury and the Department for Education on this. I think he is referring to the f40 campaign, with which I am very familiar as a constituency MP. I am pleased that we have been able to make this huge step change in school funding, which I know has been welcomed across the country.

Public Sector Pay

Huw Merriman Excerpts

Tuesday 24th July 2018 Commons Chamber

[Elizabeth Truss]

The vast majority of the numbers that I announced are above inflation, but the hon. Gentleman clearly did not hear that. I would point out that these pay awards are for the period 2018-19. We are seeing inflation fall, and many of the awards represent increases significantly above that.

[Huw Merriman (Bexhill and Battle) (Con)]

I asked the Chief Secretary and the Secretary of State for Education to ensure that the well-deserved pay rises for teachers did not come from the existing budget increases, so may I thank them both for ensuring that? My teachers deserve a pay rise, but they do not want school classrooms to suffer. May I also ask whether headteachers will be in receipt of the 2% increase mentioned for higher-rate teachers?

[Elizabeth Truss]

As we have said, pay rises above the 1% that was previously budgeted for will be funded from central DFE budgets. [Interruption.] To the hon. Member for Wythenshawe and Sale East (Mike Kane), who is shouting from a sedentary position, I say that the funding will be not from schools budgets, but from central DFE budgets. We are moving this money to the frontline to make sure that teachers are properly supported. The rate for headteachers is 1.5% but, as I have already said in answer to the hon. Member for Bath (Wera Hobhouse), there is flexibility where there are recruitment issues.

Oral Answers to Questions

Huw Merriman Excerpts

Tuesday 22nd May 2018 Commons Chamber

[Sir David Amess (Southend West) (Con)]

1. What fiscal steps he is taking to support businesses and entrepreneurs.

[Huw Merriman (Bexhill and Battle) (Con)]

11. What steps he is taking to support businesses and entrepreneurs.

[The Chancellor of the Exchequer (Mr Philip Hammond)]

One year on from the appalling Manchester Arena attack, I am sure that I speak for everyone in the House in saying that on this day our thoughts are with those who lost their lives and their families, and those who suffered life-changing injuries. We will remember them with a minute’s silence later today.

The UK’s 5.7 million small businesses make a vital contribution to our economy, employing 60% of the private sector workforce, and the Government are determined to facilitate their success. We are keeping taxes low and ensuring that firms can access the support that they need to thrive. Following the patient capital review, we are expanding the tax reliefs available to entrepreneurs that will support them in growing their businesses, and we have launched a patient capital action plan to unlock £20 billion of funding to help high-growth firms to reach their potential.

--- Later in debate ---

[Huw Merriman]

In the rural and coastal parts of east Sussex that I represent, infrastructure delivery is key to bringing more businesses and entrepreneurs to the area. What plans does the Chancellor have to continue investment in road, high-speed rail and broadband connections so that we can attract more businesses to rural parts of this country?

[Mr Hammond]

The national productivity investment fund is investing in all those areas. We have the biggest rail investment programme since Victorian times and the biggest road building programme since the 1970s, and we are investing in superfast broadband, which is critical to this country’s future. As my hon. Friend will know, in his area we are investing in the A21, and we are working with Network Rail on exploring options for connecting HS1 services to Hastings via Ashford International.

Economic and Fiscal Outlook

Huw Merriman Excerpts

Monday 30th April 2018 Commons Chamber

[Peter Dowd]

I would rather not respond to a rather crude comment, which is quite frankly almost as crude as the Government’s economic policy.

Number 3 is profligacy. The right hon. Lady talked about it, but here is a bit of profligacy: since coming to power, the Conservative Government have added more than £700 billion to the national debt. There was no mention of that. The UK’s debt-to-GDP ratio this year stands at a staggering 86.4%, as referred to by my hon. Friend the Member for High Peak (Ruth George). The UK has a higher debt-to-GDP ratio than 20 out of the 27 other EU member states after eight years of this so-called economic miracle.

Sin No. 4 is misplaced pride. The Government have long prided themselves on being the so-called party of business, yet in eight short years they have managed to alienate the business community. Business investment has been revised down for the next two years, and businesses are holding off key investment decisions due to the uncertainty caused by this Government’s shambolic approach to the Brexit negotiations. Ministers claim that the Government have raised an extra £175 billion from clamping down on tax avoidance—another visit to fantasy island—but they have refused to offer a breakdown of this figure, a list of the anti-avoidance measures involved and the amount each has raised.

[Huw Merriman (Bexhill and Battle) (Con)]

What does the hon. Gentleman think would be the view of the extra 1.2 million businesses that have been created since 2010 on his proposed increases in taxation?

[Peter Dowd]

I suggest that the hon. Gentleman read the Labour party’s “Funding Britain’s Future”—our Grey Book. I will send him a signed copy for him to look at, and it will show that what he has said is arrant nonsense.

Under the Conservatives, Her Majesty’s Revenue and Customs has become a pale imitation of its former self, with staff and resource levels cut by 17% since 2010. HMRC’s failure to investigate Lycamobile, one of the Conservative party’s largest donors, for money laundering raises further questions about its independence and effectiveness. The Chancellor has been privately lobbied into supporting the former Prime Minister’s UK-China investment fund, but we now learn that it will be domiciled in the Republic of Ireland. That, presumably, is for tax purposes—it is certainly not for charitable purposes. So much for this being the most transparent Government in history.

Sin No. 5 is bullying. I have often heard Ministers speak about the resilience of the economy, but they say little about the resilience of the workers who work in it. The reality is that this Government have spent the past eight years laying siege to the poorest in our society and the public services they depend on. They bully the powerless and, in oleaginous fashion, suck up to the powerful. The Government’s austerity agenda has left our local services on their knees. Since they came to power, local authority spending on early intervention has had a 40% cut in real terms—and so it goes on. I could give a catalogue or litany of these issues, but we know what they are. Rather than throwing our indebted and overstretched local authorities a lifeline, this Government are instead pushing ahead with further cuts.

With sin No. 6, we turn to education, which the Chief Secretary mentioned. The Conservatives are responsible for the first real terms per capita cut in schools funding in 20 years, and they have deprived 1 million children of a decent free school meal. [Interruption.] They just do not like the truth. The trebling of tuition fees, the abolition of maintenance grants and the sale of the student loan book have ensured that students leaving university today will be the most indebted in our country’s history. Meanwhile, the NHS moves from a winter crisis to a spring crisis—and it will go on to a summer crisis —and the staff who run it continue to struggle. Under the Conservatives, they find themselves understaffed, underpaid and under-appreciated. While Rome burns and our public services crumble, the Chief Secretary can be found instagramming and tweeting selfies of herself at the Dispatch Box with other Treasury Ministers.

The last of the sins is pomposity, which the Government do very well: they are very good at pomposity. Listening to the Chief Secretary speak about the need for robust public finances and the merits of the free market, people would wonder which country she has been living in for the past eight years. After all, the Government have missed every deficit target they have ever set themselves. The former Chancellor’s target for a 2020 surplus is but a distant memory—an inconvenient truth, quickly forgotten. Public debt stands a £1.8 trillion, and the Government have put more debt on to the shoulders of the people of this country that any other Government. When they came to power, they proclaimed that we were all in it together—we are all in it together right up to our necks —but eight miserable, oppressive years later, communities have been left to fend for themselves.

What will be the Tories’ parting legacy as we leave the EU? It will be a divided, poorer, less confident, low-growth, low-wage, low-skilled and less productive country, all thanks to a clapped-out, self-obsessed and failing Government who rely on oligarchs to give them £160,000 bungs to help them to hang on to power—I hear the Foreign Secretary say, “Anyone for a game of tennis?”

[Huw Merriman (Bexhill and Battle) (Con)]

It is a great pleasure to speak in this debate. Section 5 of the European Communities (Amendment) Act 1993 requires Parliament to debate the content of this report on the UK’s economic and budgetary position. It is pleasing that although the UK has voted to leave the European Union, we are still complying with our obligation to submit the report.

Via the European Union (Withdrawal) Bill, we are enshrining in law the rights and obligations that emanate from our EU membership. We are building with the European Union a new relationship, which I very much hope will allow our constituents to trade with, work in, study in and visit the EU. Rather than turning our backs on the EU, we are building a new chapter of our working partnership and friendship, albeit on different terms—on our own terms—which will, I am positive, enable us to maintain our positive relationships in mainland Europe.

We are debating the Government’s assessment of the UK’s economic and budgetary position—a position that we have developed since taking office in 2010. Interestingly, while I was researching our economic position, I came across a page on the BBC website from 2010. Boxes on the right hand side of the page contained our key economic indicators, which in 2010 were as follows: UK economic growth would slow to 0.2%, UK borrowing would hit £163.4 billion, UK unemployment would increase to 2.5 million and UK inflation would rise to 3.4%. Those were the key statistics, as reported by the BBC, as the Labour Government left office.

Fast forward to 2018 and—of course, we still have more to do—growth is projected to rise by 1.5% this year, UK borrowing fell to £42.6 billion during the last financial year, UK unemployment has fallen to 1.4 million and UK inflation fell to 2.5% last month. So if Labour Front Benchers want to talk about how things look now compared with how they looked in 2010, those are the key figures that they need to consider. [Interruption.] From a sedentary position, the hon. Member for High Peak (Ruth George) mentions debt. The UK’s total debt is still too high, but we have reduced the amount being borrowed each year from 9.9% of GDP when Labour left office to 2.6% now. We still pay £50 billion a year on our overdraft, and that is far too high. It is larger than the schools budget, and it needs to come down.

[Peter Grant (Glenrothes) (SNP)]

It is vital that we do not confuse reducing the deficit with reducing the debt. Will the hon. Gentleman confirm that according to the OBR’s current forecast, the debt will not start to reduce until 2027 at the earliest? Does he think that that is good enough?

[Huw Merriman]

If we do not reduce the deficit, we will ultimately never reduce the debt. In January, we had a surplus for the first time, so we are getting there. As I say, however, the debt is far too large and needs to be reduced. I applaud the steps that the Government are taking to adopt a balanced approach, whereby we invest in our public services but get the debt down.

The debt causes me a huge amount of concern, because the interest bill will be paid not by my generation or those above me, but by the young. If Labour is serious about adding an extra £100 billion to the debt, the younger generation will be forced to pay back an extra £8 billion a year in interest.

It should not be forgotten that we have focused resources on key public spending commitments, such as health and increasing the amount we spend on the disabled. Opposition Members criticise us for the size of the debt, but when push comes to shove the austerity years, as they are often portrayed, have actually seen spending decreases at about the same rate as those advocated by Alistair Darling in the 2010 Labour party manifesto, so it is either one thing or the other.

My main point on how our economy is working is the fact that an extra 1 million people are now out of unemployment, compared with the last year of the Labour Government. That is crucial. Not only are those people paying into the economy, but they have opportunity, aspiration and hope. That was lost to many people when, yet again, the Labour Government left office with more people unemployed than when they had entered it. We have taken millions out of income tax by lifting the personal allowance from £6,500 to £11,850, reducing bills for 31 million people who still pay income tax. We have introduced the living wage, which will increase pay for 2 million people. One third of my working-age constituents are on the living wage, so it has a huge impact—they are £2,000 better off each year. All those measures make work pay, as seen by the increase in employment to 32 million people—the highest number since records began.

Finally, I would like to make a comparison with our European Union neighbours. Let us consider France. By 2015, we had created more jobs in five years in Yorkshire than have been created by France as a whole. The French are now looking to adopt our welfare reforms. They know that unless they modernise their welfare state, their unemployment rate will never be reduced from a shocking 9.7% to our rate of 4.2%. Some 1.3 million youngsters in France cannot find a job. It is our Government’s policies, in this report, that our EU counterparts are now seeking to replicate. I therefore absolutely recommend the report. I am very proud to stand on the Government Benches on behalf of the party that has delivered it.

Oral Answers to Questions

Huw Merriman Excerpts

Tuesday 17th April 2018 Commons Chamber

[Elizabeth Truss]

First, we have actually increased the spending for the most vulnerable by £1 billion since 2010. That is funding for the most vulnerable through local authorities. I would point out to the hon. Lady that the important thing is the outcomes we are achieving. The fact that child development outcomes have improved since 2013 and that more children are getting that good level of development shows that we are investing our money in the right areas.

[Huw Merriman (Bexhill and Battle) (Con)]

There can be no greater service to children than that provided by our teachers. The Chancellor has been very generous in funding a pay rise for NHS staff outside the NHS budgets. What discussions have been had with the Department for Education to see if the same offer can be afforded to teachers?

[Elizabeth Truss]

It is very important to point out that the agreement with NHS workers and NHS unions has been in exchange for productivity improvements. We are altering the contracts to make them more effective, helping the people in these jobs to achieve more at the same time as giving them a pay rise. The situation in schools is different. Headteachers have much more power over what they pay individual teachers. In fact, last year teachers got an average pay rise of 4.6%, including promotions, so headteachers do have that flexibility to make decisions about what is best for their school.

Spring Statement

Huw Merriman Excerpts

Tuesday 13th March 2018 Commons Chamber

[Mr Hammond]

Our target—our commitment—is to deliver 3 million apprenticeships by 2020. The introduction of the apprenticeship levy changed the game, and we were always anticipating that it would have an impact on the profile of starts. The additional £80 million announced today is targeted specifically at small, non-levy-paying businesses to help them to take on apprentices. In a couple of weeks, at the beginning of April, large businesses that pay the levy will be allowed to transfer 10% of their levy funds to small businesses in their supply chain to support their engagement and training of apprentices. We will, however, keep the programme under close review. This is a commitment that we must deliver, and if we need to intervene in a different way to deliver it, we will.

[Huw Merriman (Bexhill and Battle) (Con)]

According to page 193 of the OBR report,

“The future is uncertain and the likelihood of unexpected…political developments means…there are significant…downside risks to…forecasts for the public finances.”

Does the Chancellor see any of those political downside risks sitting directly in front of him?

Financial Guidance and Claims Bill [ Lords ] (Third sitting)

Huw Merriman Excerpts

Tuesday 6th February 2018 Public Bill Committees

[Jack Dromey]

We in this House impose obligations in the public interest that must be delivered. We need sensitivity for those going through the trauma of cancer, and having a duty of care sends an unmistakable message to the board of an organisation that that duty of care must be delivered, and it must be enacted with appropriate training by members of staff.

[Huw Merriman (Bexhill and Battle) (Con)]

The hon. Gentleman is being very patient in giving way, but to continue the thread started by my hon. Friend the Member for Mid Derbyshire (Mrs Latham), I spent many years working as a cashier on the frontline in banks and building societies, in between going to university—it was about five years in total. The staff were absolutely equipped to deal with such matters—indeed, they had to be, not least when probate matters were being dealt with. Those staff had to be incredibly sensitive, and I think the hon. Gentleman is rather getting the industry wrong, as far as the sensitivity of those staff is concerned.

[Jack Dromey]

In that case, the hon. Gentleman is saying that Macmillan is getting it wrong. The Minister has engaged with Macmillan with an open mind—I warmly welcome that—and has heard the concerns direct, based on firm evidence, that at the moment too many people suffering from cancer are not treated with the respect and sensitivity they deserve.

[Huw Merriman]

I have another example from a cancer perspective, which I will not go into; I work very closely with Macmillan on a personal basis, but that is probably better left to one side. What I will say is that when this House is prescriptive in legislation, rather than letting organisations deal with issues in the manner that they may be best equipped to do, it does not always work out as intended.

[Jack Dromey]

With the greatest respect, the Government are prescriptive the whole time, and I think this is an area ripe for prescription. I stress again that we need to send an unmistakable message that regulated providers have certain obligations that fall upon them. There are already obligations imposed under law, for example on financial probity. We should add to those a duty of care to customers, particularly when they are suffering from or dying from cancer. I should have thought that was entirely unobjectionable. Macmillan is absolutely right and the Minister has been right to respond to its representations. I will come in a moment to what I hope will happen at the next stages.

To return to my point, staff did not have knowledge about the products and the help available to people affected by cancer. If we are to tackle such problems, the provision of appropriate support, flexibility in policies and procedures, and ensuring that staff are appropriately trained to support vulnerable customers need to be at the heart of banking culture.

One of the things that struck me most in the findings was that only one in 10 people with cancer had told their bank about their diagnosis in the first place. Many people with cancer still do not think their bank will be able to help them, while others worry that telling the bank will have negative consequences, so they are reluctant to disclose their diagnosis. Regardless of whether that negative perception is justified on all occasions, it represents a serious barrier to people seeking help early and tells us that the existing rules are not adequate. Despite some provisions in the area, the banking sector is still a long way off the point where meeting the needs of vulnerable customers is at the heart of corporate culture, hence the clear evidence from Macmillan.

The financial services consumer panel has noted that the regulatory principle of treating customers fairly does not adequately ensure that firms exercise appropriate levels of care towards their customers. It is interesting that the FCA’s own panel concluded that. If banks and building societies had a legal duty of care towards their customers, it would give people with cancer confidence to disclose their diagnosis, knowing that they could trust their bank to act in their best interests.

Consumers are also demanding action in this area. More than 20,000 people have signed an open letter from Macmillan Nurse Miranda, calling for a duty of care to be introduced. I urge the Government to look at the recommendation made by the House of Lords Financial Exclusion Committee on a duty of care, which has been strongly evidenced by Macmillan Cancer Support. The Committee concluded that, as first recommended by the financial services consumer panel, the Government should amend the Financial Services and Markets Act 2000

“to introduce a requirement for the FCA to make rules setting out a reasonable duty of care for financial services providers to exercise towards their customers.”

I appreciate that any change as significant as this must be subject to proper consideration and consultation, as the Minister said. It is therefore welcome that the FCA has recognised that and is committed to publishing a discussion paper on the issue. It is welcome that the Minister has pressed the FCA to bring that forward, and I will come on to timescale in a moment. However, the Government and the FCA have said that this must wait until after the withdrawal from the EU becomes clear. I think that now, as the Minister said earlier, that may no longer be the case, not least because who knows when we will withdraw from the European Union—

Budget Resolutions

Huw Merriman Excerpts

Thursday 23rd November 2017 Commons Chamber

[John McDonnell]

There are now waiting lists of 4 million in the NHS, predicted to rise to 5 million because of the lack of investment. We welcome the increase in those in employment, but 800,000 are zero-hour contracts, and we now have more than 2 million people in insecure work. It is no wonder that people are anxious about their futures.

As I have said, the Chancellor has borrowed £145 billion —more than £5,000 per household—which is more in his first year in the job than any other Chancellor in history. The OBR now expects the deficit in 2021 to be almost three times higher than it forecast in March. It blames this deterioration on the collapse in productivity growth, but productivity growth has collapsed because investment has fallen. Government investment is £20 billion less in real terms today than it was in the last year of the previous Labour Government.

[Huw Merriman (Bexhill and Battle) (Con)]

May I ask the shadow Chancellor, or indeed his iPad, how much it would cost to service the Government debt in the event that his own spending plans came to fruition?

--- Later in debate ---

[Sajid Javid]

My hon. Friend is right to highlight that. Many councils are, like hers, willing to take what may be tough decisions, provide the land for new homes and give the planning permissions, only to find that developers do not build those homes out at all, or that they do so far too slowly. The measures in the housing White Paper are hugely welcome and will make a difference, but I am not sure whether they are enough. That is why we wanted to have an independent inquiry, and I am sure that it will make a big difference.

The whole planning and building process will be overseen by our new national housing agency, Homes England. That agency will be based on the Homes and Communities Agency, but its remit will be far larger and will bring together money, expertise, planning and compulsory purchase orders. That will allow it to offer specific solutions to the barriers faced by different areas, maximising its impact and getting more of the right homes built in the right places.

It is no good building homes if people cannot afford them. Growing the economy and raising wages are key to that but, as I said last week, young people face a housing market that is very different from the one that their parents’ generation enjoyed. We are going to get more homes built, but that will not happen overnight. What has happened overnight is a change that means that no stamp duty will apply for the vast majority of first-time buyers. On average, a first-time buyer will save £1,600. In addition, we have provided £200 million for a pilot to extend the right to buy to housing association tenants in the midlands, allowing people to own the homes in which they have lived for many years and giving them the same opportunity as that enjoyed by council tenants.

[Huw Merriman]

Will my right hon. Friend take into account the fact that the stamp duty change—much as it may have been scoffed at—has given a couple in my constituency, both of whom work in the public sector, £2,500 towards buying their own home? I thank him, on behalf of my constituents, for that policy, which will have a massive impact for a younger generation that is already struggling.

[Sajid Javid]

I am very pleased to hear that from my hon. Friend. I, too, have received emails overnight from members of the public who have welcomed the change. I am sure the Leader of the Opposition has received similar emails, and I am sure he is all excited about sharing them with us at Prime Minister’s Question Time next week.

Not everyone is lucky enough to have a home. One person living on the street is too many, but the latest figures are simply unacceptable. It is clear to anyone who walks around any of our major cities that the current approach to tackling homelessness is not enough. It is time for a bold new way of doing things, and this Budget provides some of the resources required to do just that.

I have been a fan of the Housing First approach for some time. It does exactly what it says on the tin: it involves getting people off the street and into a safe and secure home first, and then dealing with the problems that may have forced them on to the streets in the first place. That sounds obvious, but it is a complete reversal of the traditional way of doing things under successive Governments. Earlier this year, I saw for myself how that approach has eliminated rough sleeping in Helsinki, and I want to see whether we can make it just as effective in our own country. That is why the Chancellor announced yesterday £28 million for Housing First pilots in the west midlands, Greater Manchester and the Liverpool city region.

--- Later in debate ---

[Huw Merriman (Bexhill and Battle) (Con)]

It is a pleasure to follow the hon. Member for Reading East (Matt Rodda). On behalf of my constituents in Bexhill and Battle, I warmly welcome the Budget. I particularly welcome the additional investment in the NHS. In my part of East Sussex, being able to rely on the NHS is hugely important to my constituents, so a further £2.8 billion is very welcome indeed.

I also welcome the injection of £1.5 billion into the universal credit system. The jobs factory that has been created in the economy since 2010 has been without doubt the Government’s greatest achievement. We now have fewer people looking for jobs, and although some 1.4 million are looking for jobs, we have 780,000 vacancies. Universal credit is a brilliant way for us to tailor the package to meet the needs of those who are still unemployed and get them into the jobs system, so I warmly welcome that money, too.

I certainly recognise the challenges the Government have faced since 2010. It is welcome news that the deficit is now down to pre-crisis levels. In 2010, the deficit was at its highest level since the second world war. Nevertheless, I am concerned that the size of the debt has increased as we have had to turn this ship around. Although we are fortunate that, because of low interest rates, debt repayments have not increased despite the debt going up, I am conscious that the debt will have to roll, perhaps at higher rates in future, and, indeed, that £500 billion of it is index-linked. I am grateful that the Chancellor continues to keep an eye on ensuring that the structural deficit is fixed, because ultimately it will come down to whether or not we leave the next generation with a very large interest bill. If that bill is already greater than the education budget, it needs to be tackled before it gets ever greater.

What I really want to focus on is housing. The opportunity to own a home of their own is one of the greatest gifts that this Government can give to our young people. It is also a great investment for our public services. The reality is that when young people have the opportunity to own their own home, they will tend to earn more so that they can pay off their mortgages. As they earn more, they pay more taxes, which goes into public services and improves those as well. I am particularly encouraged by the Government’s commitment to deliver an extra 300,000 homes. I certainly support some of those being built in my constituency. I am very aware that, back in the ’80s and ’90s, one in three 16 to 24-year-olds were able to afford their own home. That figure is now one in 10. The figure for those aged between 24 to 35 was 59%; it is now down to 13%. Clearly, there is an absolute need to do more.

I also want to see my own local district council able to do more. Wealden District Council, which serves my constituency, is unable to build more homes because the habitats directive says that that would add nitrogen to Ashdown forest, a very special part of our world. If that directive stops us building more homes, which I do not believe is what the EU directive intended, local people will not be able to get a foot on the ladder. I would like us to work across parties to fix that problem.

It is all well and good for someone with the amount of grey hair that I have to talk about what this Budget can do. After all, I am in my mid-40s, but perhaps I can provide better context if I read an email from a constituent. My constituent says:

“The stamp duty break will give us £2,500. The Help to Buy ISA, which gives a 25% bonus on closure, has given us an extra £3,000. So, in total, your Government has given us over £5,000, which we would not have had, to allow us to buy our first home. Personal tax allowance movement from April 2018 gives us an extra £200 a year in our pockets as well. We have also both undertaken an apprenticeship under the Conservative Government. It is not right for the Opposition to say that there is nothing to aspire towards for young people. There is everything and more in this country to help young people to achieve. Talking everything down as the Opposition do is not going to help or inspire.”

That is the sort of constituent on whom I am particularly focused. I want to ensure that they have a home of their own and that they have the opportunity to earn more, which means that they will put more into the public services that my ageing population need. The Opposition need to take that into account and to be more optimistic. I am optimistic, and I absolutely support what this Government are doing for the economy. I look forward to supporting this Budget in the Division Lobby next week.