National Insurance Contributions (Increase of Thresholds) Bill

Richard Drax Excerpts

2nd reading
Thursday 24th March 2022 Commons Chamber

[Richard Drax (South Dorset) (Con)]

Madam Deputy Speaker, I am not used to being called first—this must be the first time. I am grateful to you, and it is a pleasure to take part in the debate. First, I refer hon. Members to my entry in the Register of Members’ Financial Interests.

I now have a chance to expand on the question that I raised with those on the Treasury Benches yesterday. When some years ago my right hon. Friend the Member for Wokingham (John Redwood) was asked at a meeting what conservatism stood for, he paused for about one second and said, “Freedom”. That is freedom for the individual, freedom from the state, freedom to spend one’s own money—or more of it—and freedom from high taxes.

As I said yesterday, I applaud the Chancellor for going as far as he did. But many of my constituents in South Dorset are impoverished already; we have deep pockets of deprivation and poverty. I fear that the generous moves by the Chancellor and the tinkering that he has done have not gone far enough.

I sympathise with the Chancellor and the Government: we have had a pandemic and now there is a war in Europe. Both have been out of the Government’s control and have clearly had devastating consequences on how we run our economy.

[Jacob Young]

Obviously, my hon. Friend will recognise that the inflation statistics paint a stark economic picture for this country, but does he also recognise that in the US inflation is double what it looks to be here? The eurozone’s inflation statistics are similar to ours. That demonstrates that this is a global problem, not one that only we are facing in the UK.

[Richard Drax]

I entirely concur. Yes, inflation is now spiralling to 7%, I think, and more across the rest of the world. Inflation has a very negative effect on the economy, on what we can afford to buy and on the value of our money. It has to be countered.

Given that the cost of living is spiralling and that taxes are the highest for 70 years, I urge the Government to go further. As they know full well, lower taxes generate more cash. That point is proven, and we Conservatives have fervently followed it for as long as I recall. Why? Again, as Treasury Benchers know, low taxes are a force for good—both for the individual, who is far better placed to decide where to spend their money, and for the private sector, which can better invest in their businesses, employ more staff and sustain a profit—an ugly word for Labour Members. Let us not forget that it is the tax from those profits that pays for the public sector.

[Sally-Ann Hart]

Will my hon. Friend confirm that every single Labour Government have raised taxes rather than lowered them and have left this country in such a situation that every single Conservative Government have had to get the economy back on track?

[Richard Drax]

I totally concur with that comment. Regrettably, Labour will do it again and again and again —that is what socialism is all about.

[Matt Western]

That is not entirely true. As far as I can recall, back in 2010, VAT was 15%. It was increased by 33% by the Conservative Government to 20%. That is the most regressive tax of all, hitting everyone, particularly those on very low incomes.

[Richard Drax]

I agree to the extent that I do not like any tax. However, if there is a note saying that “there is no money” left, that puts a Government in a slightly difficult position, because they need some money to run the country and the public sector, which we all hold so dear.

[Wera Hobhouse (Bath) (LD)]

If the hon. Member does not like any tax, and given that we have heard that VAT has been raised to high levels, does he support the Liberal Democrats’ call to cut VAT by 2.5% to 17.5%? That would make a big difference to people’s disposable income. They would spend it in the high streets and it would do exactly what he proposes.

[Richard Drax]

In an ideal world, I would like to scrap VAT—[Interruption.] I would love to scrap it altogether. It is extraordinary that we ask someone to do something, creating all this work and getting the economy going, and people are taxed to do it. But there again, as I have explained, the Government are in a predicament because of the pandemic and a war—situations that are way out of their control—and I know that they are trying to do their best with the very difficult cards in their hand.

In the Chancellor’s statement yesterday, I did not hear the good Conservative word “savings”—that is what I call it, but the Opposition call it “cuts”. We appear to acquiesce to every demand for more money. This is taxpayers’ money and it is surely time to review the big spenders, such as the NHS and welfare. They are, of course, both needed, but it is time to review both to make sure that we are getting value for money.

The national insurance rise, which I disagree with, will see billions of pounds disappearing into a black hole, followed soon afterwards by demands for more. For the sake of the public finances, I do not believe that this can go on. I welcome the Chancellor’s talk of more tax cuts to come, but in my humble opinion, and certainly for my constituents, for the reasons that I have stated, those cuts will come too late.

The Opposition are already drooling with pleasure as they watch us behave like the big spender that they would so love to be. That puts our raison d’être at risk. Capitalism is always challenged by socialism, which, as far as I know, has never succeeded wherever it has been adopted, but that does not stop them from trying it on. Today, in tough times, we need to fight for and explain far better our economic philosophy, for if we do not, there is a real risk of a high-spending, high-taxing Conservative Government handing over the country to those who would bring it to its knees, ruthlessly raiding the accounts of those who aspire, work hard and already pay their fair share.

I would be neglectful if I did not mention money for our armed forces. I know that that is not directly linked to national insurance, but it was raised in the statement yesterday. As a former soldier, I urge those on the Front Bench to spend more of our money on our armed forces. If the awful behaviour by Russia has not alerted us to that, I do not know what will. This is all about priorities; that is what we as a Government have to decide. As I hinted, I think there should be far more study and review to ensure that the money is better spent in various areas. Let us face it: the defence of our country and all those who depend on her is the Government’s top priority.

Let me end where I started, with freedom. High taxes are not the accepted norm for the Conservative party. For us, it is all about freedom—freedom from the state, freedom from high taxes and freedom for the people to choose how their money is best spent.

[Madam Deputy Speaker (Dame Rosie Winterton)]

I call the Scottish National party spokesperson, Richard Thomson.

Financial Statement

Richard Drax Excerpts

Wednesday 23rd March 2022 Commons Chamber

[Rishi Sunak]

I think the hon. Gentleman is describing how the taper works. It withdraws benefits as people’s incomes rise. That is how the system is designed. However, I can tell him that, because we took action to cut the universal credit taper rate last autumn, we delivered a tax cut of £2 billion for almost 2 million people. I gave the example earlier of a single mother with two children who is renting and working full time on the national living wage. As a result of all our tax, welfare and wage changes, that person will be £1,600 better off.

[Richard Drax (South Dorset) (Con)]

I commend my right hon. Friend for his statement, as far as it went. He is right to say that he cannot print more money, borrow more money or spend more money. Can I ask him to bring forward the tax cuts, particularly for the lower earners, because as he rightly says, they spend their money far more wisely than the Government do? That will put more cash in their pockets to meet the increasing bills.

[Rishi Sunak]

That is exactly what we are doing. The increase in the personal tax threshold in July was brought in far quicker than these things normally are, but we wanted to do it as quickly as possible. This will put £330 in the pockets of 30 million people up and down the country.

Prime Minister’s Chief of Staff Appointment

Richard Drax Excerpts

Monday 7th February 2022 Commons Chamber

[Michael Ellis]

I do not think the Downing Street flat has the smallest thing to do with this matter. It is and has always been the case that the 10 Downing Street operation is an integral part of the Cabinet Office. They are already interconnected physically, metaphorically, literally and in every other way. This change recognises that and creates a new avenue of increased democratic accountability by having a chief of staff at No. 10 who, for the first time, can come to this House and speak from this Dispatch Box.

[Richard Drax (South Dorset) (Con)]

I am sure that moving bums on seats works, and I am confident that it will in this case. I am sure my right hon. and learned Friend will agree with me that a stream of blue narrative Conservative policies will now burst out of No. 10.

[Michael Ellis]

We have had those, and we will continue to have more.

Health and Social Care Levy Bill

Richard Drax Excerpts

2nd reading
Tuesday 14th September 2021 Commons Chamber

[Steve Barclay]

Given that we need to progress on to Committee, I shall just point out that this is a permanent new role for the Government and a structural increase in the size of the British state. We therefore need a permanent new way to pay for it. The only alternative would be to borrow indefinitely, but that would clearly be the wrong course of action when our national debt is already at the highest it has been in peacetime. Borrowing even more today would just mean higher taxes in the future.

[Richard Drax (South Dorset) (Con)]

With money tight, did the Treasury support the appointment of, I think, 43 new executives on £270,000 a year to check where all this money is going?

[Steve Barclay]

I think one needs to see whether these are roles that are driving efficiency and creating savings elsewhere, or whether they are viewed in isolation. That is why one needs to understand the workforce as a whole, where there are overlaps within the NHS but, above all, how we deliver reform, which is something I know that the Secretary of State for Health and Social Care is passionately committed to doing. That relates to the point that was rightly raised by my hon. Friend the Member for Winchester (Steve Brine) on the delivery of reform in order to maximise the value for money of the spend that the levy will unlock.

Finally, we need to fund our vision for the future of health and social care in this country over the longer term. As the Prime Minister said, with proper funding, we can not only tackle the NHS backlog and expand the social care safety net but afford the nurses’ pay rise, invest in the best equipment and prepare for the next pandemic. We can provide the largest investment ever to upskill social care workers and build the modern, more efficient health service the British public deserve.

--- Later in debate ---

[Richard Drax (South Dorset) (Con)]

I am a great believer in the Conservative philosophy being probably the simplest of those of all the political parties. We believe in freedom—freedom of the individual and freedom from the state. We believe in low taxes. We believe in hard work and a safety net for those who fall into it. Aping Labour by spending billions of pounds we cannot afford will not fool the electorate for long. The NHS has become a religion—no one dares take its name—but a radical review of health provision is crucial if we are not to pour money into a black hole; we have heard this expression used repeatedly today, but it is a bottomless pit. Without reform, this money, well intended by the Government, will disappear.

Interestingly, and soberingly, the Resolution Foundation estimates that shortly 40% of all government expenditure will be on the Department of Health and Social Care. We repeatedly talk about reform but nothing happens. I was shocked when last week, having finished the debate, I learned that 43 new executives—I think I am right in saying this—are going to be employed by the NHS, on £270,000 each. I just do not know what to say. There are already enough executives in the NHS to run it, so why do we need 43 more, on these huge salaries?

As has been said, we are aiming our fire at business with this NI rise, and we are doing so at a time when the Office for National Statistics shows good news: employment is back to pre-pandemic levels, with more than 1 million job vacancies. That is fantastic news and so this is not the time to raise taxes. Every instinct in me screams for us to lower them, because if we do that, we get more money—that is a fact. There is no doubt that social care and the NHS need more money, but with it must come reform, as I have said. As a colleague said so wisely in the Chamber last week, we will never win the “arms race” with Labour when it comes to pouring money into the NHS. Like any household budget, if we cannot borrow, we have to prioritise what we spend. We have to cut in other areas.

As I said last week, where is the Singapore-style, low-tax economy we were promised once free of the European Union? Where is the narrative on a way forward as this pandemic becomes endemic and life returns to normal? Where is the vision? I sympathise with the Government and the Front Benchers, as these are unprecedented times, but I urge them: don’t go Labour-lite on us now. With our finances in a perilous state, we need to work our way out of this mess, not tax our way out. We need to galvanise our economy. Courage is needed, not hesitancy. Throwing out a sea anchor—I am a sailor and I know what I am talking about—will only create a drag on our recovery. It will not help it.

Let me remind the House, in the few seconds I have left, that we are talking about taxpayers’ money, something that, as Conservatives, we should not squander. I made this point last time, but this is taxpayers’ hard-earned money. Those on this side of the House are responsible for people’s money or we are not Conservatives at all.

Health and Social Care Levy

Richard Drax Excerpts

1st reading
Wednesday 8th September 2021 Commons Chamber

[Richard Drax (South Dorset) (Con)]

I totally sympathise with those on the Front Bench and I have huge respect for the Treasury Minister who is in his place, but I am concerned, as a Conservative, at the direction of travel. As we have heard, taxes are at their highest for 60 or 70 years—and this under a Conservative Government. For me, and I think for many of us and people around the country too, the alarm bells are ringing. I do not like being bounced into this decision. I think someone mentioned sleepless nights. Well, we will not have any because the decision is being made tonight, having been told about it only 48 hours earlier, and we still need to hear a lot more from the Government about how this is all going to work.

My hon. Friend the Member for Wycombe (Mr Baker) talked about the lack of money as our population gets older and the continual demands on the public sector increase. He is absolutely right. We cannot go on just spending the taxpayer’s money willy-nilly. This is not our money. It is money earned by people working their socks off to provide for their family, their friends, their employees and for the health and prosperity of this country, and we cannot abuse that.

I entirely support what my right hon. Friend the Member for Rossendale and Darwen (Jake Berry) said, in a superb speech, when he referred to a Trojan horse. If I can paraphrase, we, as Conservatives, are introducing a new tax that will never, ever be withdrawn because, come election time, we would have to say, “Okay, remember everybody—that was a one-off tax, so it is now going and billions of pounds are being withdrawn from the national health service.” I think I can see where the Opposition will go with that and what will appear on their literature in 2024.

With regard to promises made in manifestos, can we not think just a little more carefully about what we say? No one could have predicted the pandemic—I am deeply sympathetic to the Government on that point, because of course we could not. But perhaps we should say that we aim to do something rather than that we promise to do something, because circumstances change, and when one Government take over from another they change the whole thing anyway, and then, if we win again, we have to change it once more.

Throwing money into the national health service black hole is not the solution. The sad fact is that parties of all colours over many years have failed to tackle the NHS issue. We need radical reform both of the NHS and, of course, social care. I am not saying that we should change the care free at the point of delivery—not at all; I am saying that there is plenty of room for reform. Most of those I have spoken to who work in it absolutely agree. It is a matter of political courage to actually get on and do it.

We are Conservatives. A pandemic, appalling though it is, creates opportunities. Where is the vision of the Singapore-style, low-tax economy attracting the world’s best to this country to generate the wealth and prosperity that we need? To generate the revenue we need, we lower taxes—that is proven. We do not raise them, because if we do, all we do is damage our economy and have less money to spend on the things we need, like social care and the NHS.

Government Response to Covid-19

Richard Drax Excerpts

Tuesday 3rd November 2020 Westminster Hall

[Richard Drax (South Dorset) (Con)]

I beg to move,

That this House has considered the effectiveness of the Government response to the covid-19 outbreak.

It is a pleasure to serve under your chairmanship, Sir Charles, for the first time. First, I want to make it crystal clear that I do not underestimate this nasty virus. I have friends who have had it, friends who have got it, and a friend who nearly died from it. I also want to state that I have a lot of sympathy for our Prime Minister, who faces an unprecedented challenge, contradictory advice, and a tough call to make, but that must not extinguish debate. As we hurtle towards another lockdown, I would be doing my constituents a disservice if I did not question the wisdom of repeating what has already been implemented and failed.

Lockdowns, in most people’s view, do not work. They simply delay the inevitable—the re-emergence of the virus when lockdown ends, as has been shown. To paraphrase Franklin D. Roosevelt in 1933, we have nothing to fear but fear itself. I do not know about you, Sir Charles, but after three long years of project fear during the Brexit debate, I am tired of fear. I long for optimism, hope, aspiration, courage, and our long-departed friend, common sense. Instead, we have been force-fed a diet of death and destruction on an almost hourly basis for month after month, and we face more, although who would not have capitulated after Saturday’s presentation when we heard that deaths could peak at 4,000 a day by Christmas?

[Bob Seely (Isle of Wight) (Con)]

Is my hon. Friend aware that already the case for the 4,000 deaths, the sombrero of doom, is falling apart, and even the researcher who put the research together now says we should not be using it?

[Richard Drax]

I have heard that. I thank my hon. Friend for his intervention. I will come on to more statistics later, although they are not always helpful.

I was interested in a recent article written by The Telegraph’s Ross Clark in which he asked whether anyone had been able to read the small print at the bottom of the graph, which states:

“These are scenarios—not predictions or forecasts.”

He added that it was odd that there was no source listing for the graphs. I would think that the best guide to future deaths is numbers of infections, but even those are a difficult yardstick as they are falling in some parts of the country and rising in others. It is also important to acknowledge that the more we test, the higher the infection rate. It is encouraging that the death rate has halved as effective treatments have come into play. Let us not forget Professor Neil Ferguson’s dire warning in March of 250,000 deaths. The truth is that—my hon. Friend has hinted at it—predictions, modelling, forecasts and scenarios change, and with them the Government’s policy. What is that exactly? The modus operandi appears to be a roller coaster ride of lockdowns and release until a vaccine is found. But why, when we have a virus with a 99% survival rate? Last month the virus was the 19th most common cause of death. Have we overreacted? Yes, I think we have. A draconian, onerous and invasive set of rules and regulations now govern our very existence. Lord Sumption calls it a form of house arrest, and I concur. Interestingly, he also points out a section in the minutes of SAGE, the body advising the Government, where behavioural scientists advise the Government that

“Citizens should be treated as rational actors, capable of taking decisions for themselves and managing personal risk.”

Instead, unfortunately for all of us, coercion was selected.

This interference in our personal freedoms has not been seen since the war. Imagine then if we had predicted the human cost; we would have surrendered immediately. I am 62 and I cannot recall a moment in our proud island history when our nation has been so cowed, to the extent that it is now. Today, a police officer can issue a fixed penalty notice of £10,000 to those “involved” in a gathering exceeding 30 people. Initially aimed at raves, that power has now been used for other purposes. That and other draconian rules, such as the 10pm curfew and the rule of six, further enhance the sense of oppression.

[Chris Green (Bolton West) (Con)]

Does my hon. Friend share my concern that the rationale and reasoning for the rule of six and the 10 pm curfew have not been backed up with evidence?

[Richard Drax]

The good reason why a few of us voted against those measures was that there was no evidence to support them.

The 10 pm curfew only further destroyed the hospitality sector, while the rule of six broke up families. I cannot think of a modern crisis in which family and families are more essential and more important. Surely, their support is common sense, despite the risks. It is for them to make decisions about who they see and when, not the Government.

Depressingly, we have been warned that this lockdown might go on after 2 December, putting family gatherings at Christmas at risk. Nowhere in the debate, as far as I can recall, have we heard the word “risk”. The reason, I fear, is that we have become risk averse. Personally, I think that has made the sleepwalk into an invasion of our civil liberties even easier.

All appears to hang on the introduction of a vaccine, but the history of vaccines does not bring much comfort. An all-out effort is being made to create a vaccine, but how effective will it be? Who will it help? When will we actually have it? All these questions are still unanswered, although I welcome every effort to get one. I have spoken to quite a few medical experts and they tell me that pandemics end naturally, mitigated by better treatment of those who suffer, a vaccine and immunity in the population. Like flu, we must learn to live with this virus and not let it destroy us.

In the meantime, we are leaving a devastated landscape, economically, financially, physically and mentally. My own constituency of South Dorset, the prettiest in the country, relies heavily on the hospitality sector. Those in that sector responded to calls to make their facilities safer, only to now see them shutting again.

[Daniel Kawczynski (Shrewsbury and Atcham) (Con)]

My hon. Friend mentions the financial aspects of the crisis and the financial devastation we are going through. Does he recall that, in the last 10 years, the Labour party has repeatedly lambasted us for what they call austerity, which was us trying to balance the books, reducing the deficit from £152 billion a year to £20 billion a year? Does he agree that if we had not pursued that fiscal discipline the situation now would be catastrophic?

[Richard Drax]

I am always delighted to hear from my hon. Friend. He sounds like the former Chancellor of the Exchequer on Radio 4 just the other day. I concur; when there is no money in the coffers, savings have to be made or taxes raised. I pay tribute to the coalition Government, who did their best to get our economy back into a place to face circumstances such as we face today.

[Rachael Maskell (York Central) (Lab/Co-op)]

I am grateful to the hon. Gentleman for initiating today’s debate. Will he also note that had the Government not stripped our NHS so bare that it did not even have enough PPE to protect its workers, we would not be in this catastrophic mess and we would not have seen our incredible NHS workers die?

[Richard Drax]

I do not entirely concur with the hon. Lady. The NHS has record amounts of money. Let’s face it, many care homes are privately run and responsible for PPE themselves, as is the NHS. Not that long ago an exercise was run and warnings given that were a pandemic of this sort to come, the NHS should prepare. I am not criticising the NHS, for which I have huge respect, but it is up to the organisations themselves and not, perhaps, individual Ministers, to ensure that they have the right equipment. I am not going to go further down that road, if the hon. Lady will forgive me.

I go back to people opening and shutting their businesses. Business owners are furious at this chop and change, which places their livelihoods at risk, some after years of hard graft and sacrifice. Many of my constituents who are on low wages and struggling to survive depend on these jobs to get by. There is no doubt that another lockdown will see many jobs disappear; many already have. The huge take-up of universal credit will get even larger. Not one of my constituents has asked for this. They are proud people who do their level best to contribute. Signing on must be utterly soul destroying.

Let us not forget the welfare bill. Along with the furlough scheme, which is now to be extended—I welcome that in the circumstances—it has soaked up hundreds of billions of pounds we do not have. How and when will it be repaid? It will be repaid by my children—our children—that is who.

We will have to treat this spending spree in the same way we treated our wartime debt. Raising taxes would cripple those who survived these shutdowns, and who, let us remember, pay for our public services through tax. I mean no disrespect to those who work in the public sector, but on the whole their jobs are secure. It is the companies, entrepreneurs, small businesses and self-employed in the private sector who are bearing the brunt of this blunt tool and who must not—I urge the Minister for whom I have huge respect—be hit by taxes when we emerge from this pandemic. More of tax on another day.

What is an alternative path? I am a signatory to the Great Barrington declaration, to which I would like to add eight thoughts. First, the virus is not an indiscriminate killer, as portrayed. We know it mainly targets the elderly, especially those with serious underlying conditions. All our resources should be aimed at protecting them and those in care homes and hospitals. I hope that the Government respond positively to those who rightly say we should be allowed to visit family and friends there during this next lockdown. No one should suffer or die alone. Human touch is not only essential but it saves lives. Test and trace is vital and must be expanded nationwide as soon as possible.

Secondly, we must and should have expanded services in the NHS. Because that has not happened over recent months, many seriously ill patients have forgone hospital treatment either for fear of catching the virus or because beds have been put aside for the predicted surge of those suffering from covid. I have huge admiration for all those working in the NHS and thank them from the bottom of my heart for what they do. But the Government’s slogan “Stay Home, Protect the NHS, Save Lives” has the wrong emphasis. The NHS is here to protect us, not the other way round.

Thirdly, sadly, we must accept a certain number of deaths although, as I have just said, everything must be done to keep the figure as low as possible. Every death is regrettable.

Fourthly, it is time to publish everything we know to counter the current lack of transparency, especially the number of deaths caused by lockdown. Too many inquiries are met with silence or referred to freedom of information requests.

Fifthly, we must abandon lockdowns. They are destructive, divisive and do not work. Sixthly, while protecting the most vulnerable we must let the majority of the nation get on with their lives. Seventhly, that majority should adopt common-sense precautions where appropriate.

Finally, we must get the nation back to work, continue to keep our students at university receiving the education for which they have paid and not virtual education, and our schools must remain open.

I conclude as I started. I sympathise with the Government, but I and others must be allowed to question the direction of travel, especially one that clearly is not working. With signs of unrest growing here and in Europe, I urge the Government to look seriously at another way forward. I am genuinely shocked at how easily people’s hard-earned liberties have been taken away from them without so much as a by your leave. We are in this House to serve, not to dictate. I have learned in life that there is never one solution to a problem. An appreciation of our current situation would throw up several courses of action. May I urge the Government to study the alternative courses before theirs is beyond recall?

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[Daniel Kawczynski (Shrewsbury and Atcham) (Con)]

I pay tribute to my hon. Friend the Member for South Dorset (Richard Drax) for securing this important debate. I want to spend my five minutes touching upon how devolution stands up at a time of national crisis. Many of us had severe reservations about the devolution process when Mr Blair started to change our national makeup and constitution. I speak as someone who represents an English seat that borders Wales.

In Shrewsbury we are very proud of being the gateway to Wales. We have so many Welsh people living in our constituency that when England and Wales play against each other in rugby, we have both flags flying side by side throughout the town. Many people in our community have homes, businesses and land on both sides of the border; most importantly, many have families on both sides of the border. It has been devastating to see increasing divergence between the jurisdictions of London—of Westminster—and Wales, throwing up a great deal of uncertainty, misery and paralysis for border communities such as mine. It was really brought home to me by Councillor Hignett from Pontesbury, who has grandchildren just across the border. He can see some of his grandchildren who are on one side of the border, but not others, although Powys and Shropshire have an almost identical R rate.

I am also very disappointed with the Mayors, and the one I am most disappointed with is Andy Burnham. I believe that his grandstanding, pontificating conduct on the television has destabilised to a certain degree the tiered system that was starting to show results. Has his conduct contributed to the fact that the United Kingdom is now moving from a tiered system to a full-blown national lockdown? I would argue that the sheer refusal from him and his like to understand the common need to come together in a national crisis has contributed to making sure that areas such as mine with low R rates are now being forced into a national lockdown.

[Richard Drax]

Will my hon. Friend give way?

[Sir Charles Walker (in the Chair)]

Order. It will have to be quick, otherwise we will run out of time.

[Richard Drax]

This is devolve and divide. Would it not be wise for the Government not to go down the mayoral route in the future for other areas of the country?

[Daniel Kawczynski]

I absolutely agree. This is something that historians will be looking over for many years to come. We have to learn from these mistakes during the national crisis.

We have a very low infection rate in Shropshire in comparison with other parts of the United Kingdom. We are a large rural county that is very spread out. Salopians—people from Shropshire—have been following the rules, but as a result of what has been going on in other parts of the United Kingdom, we now have a lockdown, which will have devastating consequence for many of our businesses. I will be voting for the legislation on Wednesday, but I am sure, Sir Charles, that you have listened to your constituents and many small businesses, which have put so much energy and effort into creating livelihoods. So much is at risk now, and it really pains me to see that suffering.

As I said earlier, I am proud of the fact that when we came to office we reduced the annual structural deficit that we inherited from Labour from £152 billion to £20 billion a year. My hon. Friend the Member for South Dorset will remember the vilification to which we have been subjected for the past 10 years, with talk of savage Tory cuts and austerity. My goodness me, at a time when we are borrowing more than £200 billion, when we have a debt ratio of more than 103% of GDP, when we are already spending £53 billion of taxpayers’ money on debt interest and when the crisis has not even finished, I dread to think of the economic situation that we would now be in if we had followed the policies of the now suspended former Labour leader and gone for massive borrowing when we did not have a crisis.

I want to ask the Minister about something that a Conservative candidate in the forthcoming local elections has asked. Mrs Susan Coleman wants confirmation that everything is being done for ladies who are pregnant so that when they go through the process in hospital, their partners are given covid tests as quickly as possible and can be present throughout the whole process of giving birth to the child.

Finally, the leader of the Conservative group in Shrewsbury Town Council wants me to ask what happens if the R rate falls below 1 during this lockdown. Will it be possible for it to be lifted sooner than 2 December?

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[Richard Drax]

That was a typically courteous and thoughtful reply from my right hon. Friend, for which I am most grateful. As I said, she and the Government are not in an easy position, and I offer them huge sympathy. I am not rebelling in this instance—I am just seeing another way forward. My right hon. Friend mentioned living with the virus. We are going to have to live with the virus. It is here, perhaps, for the rest of our lives, like flu and other diseases. It will slowly reduce over the years and we can mitigate in the ways I suggested in my speech, but we cannot afford to shut down the economy and cause the devastation that we are currently doing. It will take many years to repay; that is what really concerns me.

My right hon. Friend talked about deaths. We regret every single death. I disagree with the hon. Member for Dulwich and West Norwood (Helen Hayes), who said that this was a trade-off between the economy and covid. It is not. There is no such thing as a trade-off. As my right hon. Friend said, none of us wants people to die. We want to protect those who are under threat from this disease while allowing others, within reason and using common sense and all the precautions that we know about, to get on with their lives and to keep this country running.

I offer my deep condolences to my hon. Friend the Member for Strangford (Jim Shannon) for his loss. Many others have lost people through this ghastly disease, and I offer all my sympathy to them, too. No one wants anyone to die, but at the same time we do not want our country to be destroyed economically, with all the consequences, including for health, that would be involved.

In closing, I urge my right hon. Friend to consider at least another option along the lines that many others, including eminent people, are suggesting.

Motion lapsed (Standing Order No. 10(6)).

Productivity: Rural Areas

Richard Drax Excerpts

Wednesday 14th October 2020 Westminster Hall

[Richard Drax (South Dorset) (Con)]

It is a pleasure to be called by you, Ms Ghani. I thank my hon. Friend the Member for North Cornwall (Scott Mann) for introducing this great debate on our countryside. I have two minutes, so it has to be a list, for which I apologise to the Minister. I suspect that the Government have heard a lot of it before.

I have two seaside resorts in my constituency: Swanage and Weymouth—and the Isle of Portland; I must never forget that. We are heavily resort-based, and we need some love and investment. We have large pockets of deprivation in my seat of South Dorset. Although we are extremely grateful for the huge sums of money we have received for the Weymouth Pavilion, Swanage railway and the Tank Museum, adding up to about £1.25 million from various sources, I am afraid that we need more.

I initiated a business panel, because I think business people are better at promoting what we need than politicians, because a lot of my constituents do not agree with what I say, understandably. This panel is now looking at what we will need for the next 30 to 50 years, in which I would include—I will push the Government hard on this—a road north. We cannot get out of Dorset and Hampshire; we have to go to the A34. This is utter madness. We need a relief road in Weymouth, so that the port can expand, which it is already doing, creating huge numbers of jobs.

As colleagues have said, we need better connectivity with broadband and mobile, which is currently appalling. Weymouth College is the only place where young people in my seat can aspire to move on to better careers, university and all the things that are so important for the young. We need more money to bring this college, which is doing a fantastic job, up to the standard that is required to deliver that opportunity to the young.

Finally, a forgotten element is the outdoor education centres. I know that is not the Minister’s responsibility. Schools are not sending children there. They should be allowed to because they are safe and bubbled, and children should be able to enjoy a day out in the countryside.

[Ms Nusrat Ghani (in the Chair)]

We now come to the Scottish National party spokesperson. Mr Doogan, you have a joyous five minutes. You do not have to use it all.

The Economy

Richard Drax Excerpts

Wednesday 8th July 2020 Commons Chamber

[Richard Drax (South Dorset) (Con)]

It is a pleasure to take part in the debate. I pay tribute to my hon. Friend the Member for North East Bedfordshire (Richard Fuller), who spoke with such common sense. In the short time I have, I will concentrate on the self-employed, the financial world and all the businessmen and women who risk everything to create the wealth and prosperity that we need.

I repeat from Dorset business to the Front Benchers and the Treasury: thank you very much indeed for all the furlough scheme and the announcements made today. The thanks I receive is unanimous—despite what we may hear in other quarters, not least the media. People are extremely grateful for the thousands of jobs in South Dorset that are being saved and for the millions of jobs that are being saved around the country.

Today’s announcement is especially good news for the young, who face threats from this covid in getting into work—my own children included, of course, who are facing the same problem. I welcome that announcement, and the announcement for the hospitality sector, which in South Dorset in particular has been hit hard, because we rely so much on tourism and hospitality to make the economy go around. I will also touch briefly on taxation and the private sector, our armed forces if I have time, and Dorset Council and police if I have a little more time.

Never, in my view, has there been a better opportunity radically to overhaul the taxation system in this country. It is outdated, punitive and bureaucratic. I welcome the announcements made today on VAT and stamp duty. That is a start, but let us get rid of them altogether. Let us go much further—capital gains tax, inheritance tax. Look where our poll rating went when, if I recall correctly, George Osborne raised the threshold to £1 million. It is people’s money, and we have no right to take money off people unfairly.

The economy will only work if we allow the entrepreneurs, the businessmen and women, the financial sector, the self-employed and everyone else that my hon. Friend the Member for North East Bedfordshire mentioned to generate the wealth that we need. From the Opposition Benches, it is the classic old, “Let’s tax them and tax them.” They simply do not understand, and never ever will, that all those risking their homes, their livelihoods and their families generate the wealth that this country needs to generate the wealth, prosperity and jobs that pay for public services.

[Chris Loder (West Dorset) (Con)]

Does my hon. Friend agree that in constituencies such as mine, where 97% of businesses are micro and small-sized, such businesses should absolutely be at the forefront of what we do?

[Richard Drax]

I entirely concur with my hon. Friend and neighbour in West Dorset—I welcome him to his place.

I have time quickly to mention the armed services. The covid crisis has shown how professional, dedicated and truly treasured the armed services are—in addition, of course, to all those who work in the NHS, to whom I pay equal tribute. We must never forget that the armed services need to be funded properly, and in my view 2% of GDP is not enough; we need 3% or 4%. I urge the Treasury to keep fighting on behalf of those whose serve us with such distinction.

On Dorset Council and police, both face huge extra costs because of covid and the hundreds of thousands who descended on our beaches and coves over recent weekends. Dorset Council estimates that it is spending about £50 million a month on covid provision. It has done an outstanding job, and I pay tribute to Dorset Council and to Dorset police for the selfless way in which people have worked over many hours and many weekends for no extra pay. I thank them all.

I will end by saying, we locked the country down once; I recommend to the Treasury that we never, ever do it again.

Economic Update

Richard Drax Excerpts

Wednesday 8th July 2020 Commons Chamber

[Rishi Sunak]

Based on the medical advice, it has been determined that the shielding population can return to work safely after the end of the month. That is already clear and has been announced. We have published extensive guidance and guidelines for workplaces to make them safe, so people can take comfort from that. If there are more things that we need to do, I am sure the hon. Lady will send them to the Business Secretary for the workplaces, or indeed to me, and we will happily take a look at them.

[Richard Drax (South Dorset) (Con)]

On behalf of the many businesses in South Dorset, may I thank my right hon. Friend for the furlough scheme and welcome his statement today? Surely our aim is to help many in a struggling private sector because, as I am sure he agrees and as the Opposition need continually to be reminded, it is they who generate the jobs and prosperity that we need, as well as the tax that pays for our public services.

[Rishi Sunak]

My hon. Friend is absolutely right. It is, in the long term, the market economy that will provide the growth and prosperity we need. It will provide the jobs that we need, but it is important that we provide support to those businesses in the short term, given the disruption they have faced, and I know his local businesses and many others will welcome the jobs retention bonus to help reward and incentivise them to do the right thing, stand by their workers at this time and bring them back, and look forward to a brighter future.

Self-employed Persons: Financial Support

Richard Drax Excerpts

Tuesday 24th March 2020 Commons Chamber

[Steve Barclay]

The hon. Gentleman is right in terms of the role of the banks, and a clear message has been sent by the Bank of England Governor about the importance of banks showing forbearance at this time. That applies to things such as credit card debts, but also he will be aware that, for example, for many of his constituents in a London constituency, their rent is a significant issue, as well as the measures we have taken on mortgages. We have looked at what we can do to assist on some of those fixed costs, but the banks have had a clear message from the Governor about the need to show forbearance.

[Richard Drax (South Dorset) (Con)]

I commend those on the Treasury Bench for the calm way they are dealing with this unprecedented situation, but clearly something needs to be done for the self-employed. One of my constituents has made three points. First, they will be disadvantaged because they will not get the topping up that an employer might give an employee. Secondly, there will not necessarily be an immediate return to work, and finally seasonality may affect their income, which of course it would not for an employee. Will those three very good points be taken into account by those on the Treasury Bench?

[Steve Barclay]

They are good points, and again they draw attention to the conflict between simplicity and addressing the various specific issues that Members have raised. One of those is seasonality, which obviously has an impact. That is why the design of the scheme is more complex than perhaps meets the eye, but we are looking at the issues and we intend to bring forward proposals in the coming days.