Income Tax (Charge)

Anne Marie Morris Excerpts

Thursday 28th October 2021 Commons Chamber

[Anne Marie Morris (Newton Abbot) (Con)]

We are clearly in very difficult and unprecedented times. It is a therefore a huge challenge for any Government, of any political persuasion, to decide exactly how to deal with the economy. We do not have a crystal ball and we cannot foresee what will be. It has been difficult for the Treasury to take a decision to increase taxes, but that is what it has done. It is not something that I am in favour of—I believe that productivity and boosting business are not helped by increasing taxes—but, as I say, these are challenging and difficult times.

The key for me is that to the extent that we raise taxes, there must be a clear plan of action. I do not believe in money for money’s sake, which is why when the Government brought forward a plan to increase national insurance, I did not support it. It is not that I think that the health service and social care do not need the money; they absolutely do, but I want to see a specific plan, particularly for social care. I do not believe that social care can wait three years for an injection of cash, although I am pleased that this Budget includes a contribution in that direction. Overall, I think the measures are balanced in these difficult times. As a non-economist, I do not think I can advise how we might have done it better.

From my constituents’ perspective, much of what the Chancellor said yesterday is very positive. My constituency in the heart of Devon is very rural and heavily dependent on tourism, and wage levels are very low. Much of what the Chancellor announced will help tourism and help people on some of the lowest wages in the country. On balance, I think people in Newton Abbot, Teignmouth, Dawlish, Kingsteignton and the 30-plus villages and hamlets that I represent will see it as a win.

Business rates have always been the biggest issue that my local businesses bend my ear about. Other hon. Members have said that business rates need proper reform, and the case is well made; it needs to be a priority for the Chancellor and his team. Too many Governments have consulted and too few have actually acted, but I am pleased with the creativity that has been demonstrated, at least for the short term. The 50% business rate cut for leisure and tourism is extremely welcome, but I ask that it come sooner, not later, and that it be for more than a year. The multiplier being frozen is brilliant; it will make a huge difference overall, along with the revaluation changes.

It is no surprise that my wonderful area has lots of village pubs, and indeed some vineyards. Much of what we have, including the small producer relief, will therefore be very welcome. Ashcombe, as it crushes its apples, will be absolutely delighted, and as the tax on English sparkling wine falls, the vineyard in Bishopsteignton will be smiling. As for draught relief, goodness me! It is great for the pubs, but it is also great for the village community, where the pub is at the heart of it all.

It may not surprise the House to learn that my constituency area is also a great centre of culture. I am sure that the tax relief extensions for museums and galleries will be welcomed by Newton Abbot Museum, among others, and the Teignmouth theatre will definitely enjoy the double tax relief for orchestras, theatres and museums.

Of course, at the heart of any community are its families, and I pay tribute to my right hon. Friend the Member for South Northamptonshire (Dame Andrea Leadsom) and her diligent work to persuade the Government to consider more support for the very young at the very start of life, which is an extremely challenging time for parents. The start for life programme is one of the best things to come out of the Budget. The new network of family hubs is welcome, as is increased funding to allow more childcare provision and more training for those who provide childcare. I have always felt passionate about the supported families programme; funding for it has ebbed and flowed over the years, so I am pleased that this year there will be more.

Support for young people does not stop there; it goes on at schools, where the rise in the pupil premium is welcome, and the tripling of special educational needs places is a particular benefit. May I suggest, however, that we not only provide money and create places, but consider how to use them better? I have a wonderful SEN institution in Dawlish, Orchard Manor School, which currently has places unfilled because of all the challenges, debates and arguments about who should take up those places within Devon County Council. That cannot be right.

The catch-up fund is fabulous news, but one of the comments I heard from my local schools was that while the money is very welcome, the fact that there are so many constraints on how it can be used is not so welcome. The support for lifelong learning, with a 26% increase in skills spending, is also fabulous, but could we focus not just on colleges but on sixth forms? A number of headteachers have told me that funding for sixth forms, as opposed to colleges, has been going down rather than up, so I hope that some of the funding will be going in their direction. Of course I welcome the news of more T-levels, more traineeships and more apprenticeships, but can we have more degree-level apprenticeships? At present, there are too many aspiring young people coming out the grammar schools just outside my constituency who leave, because there is no opportunity to do more.

The rise in the national living wage is particularly good news for working people in my constituency who are on very low wages, and the reduction in the universal credit taper rate is very welcome. Of course, in rural areas people have to travel to work, so reducing their burden by freezing fuel duty and providing more money for roads and dealing with potholes, as well as more money for buses, is absolutely what rural constituencies need. In addition, there is to be a proper public sector pay review.

It is good that there is £150 billion more, before 2024, for the public services that have served us so well during the pandemic, but local government has borne much of the brunt. The £1.6 billion is very welcome, but can we ensure that it is given flexibly, so that local authorities can use it in the way that best meets local need rather than simply being told, “This must be spent in this way by centrally produced providers”? As for housing, I was pleased to receive a letter yesterday saying that my constituents would be given a piece of the brownfield land release fund.

I look forward to working with the Government, Devon County Council, Teignbridge District Council and the community, and discussing how we can increase productivity and improve the quality of life across Teignbridge.