Income Tax (Charge)

Bob Blackman Excerpts

Thursday 4th March 2021 Commons Chamber

[Bob Blackman (Harrow East) (Con) [V]]

It is a pleasure to follow the hon. Member for Nottingham East (Nadia Whittome). The Budget obviously has to be set against the situation in which we found ourselves in recovering from the pandemic, and the Chancellor and his team are to be congratulated on ensuring that we have balanced the position between encouraging industry and commerce to reopen but, at the same time, supporting people who are going through the pandemic in a difficult fashion. I strongly support all the measures that the Chancellor announced in the Budget.

There are four areas, however, that need to be explored yet further. On the position on remediating cladding, when the Secretary of State for Housing, Communities and Local Government announced the new scheme for dealing with high-rise blocks, it was said at the same time that the loan scheme would be announced by the Chancellor during the Budget process. At the moment, we have not heard that, and clearly, a large number of leaseholders will want to know the details. Personally, I take the strong view that leaseholders should not have to contribute a penny and I reserve my position on where we stand until we hear the details of the loan scheme. So, clearly, that is a matter of concern.

The estimate of the number of private tenants in rent arrears has soared during the pandemic and, clearly, a day of reckoning is coming. It is not clear what the Government’s strategy will be to ensure that those rent arrears are cleared to the benefit of either tenants or, indeed, landlords who depend on that income for their ability to finance themselves. That needs further explanation, and I hope that my right hon. Friend the Financial Secretary to the Treasury will be able to answer that during the wind-up to the debate.

Another vital issue is pensions. The Chancellor has chosen to freeze the lifetime allowance. There are concerns in a number of professions, including our medical professions. Doctors are saying that they have saved all the money that they can under the lifetime arrangements, so there is no incentive for them to continue working. That is a potential loss of skills that we can ill afford, particularly at a time when we are approaching a need for more doctors, nurses and medical professionals in our national health service.

Equally, of course, I am disappointed that the Chancellor has not announced any more funding to compensate the victims of the Equitable Life scandal. The reality is that those individuals saved for their retirement and intended to ensure that they had a decent income. They have been short-changed, I am afraid, as a result of the compensation scheme by the Government thus far. I look forward to the Chancellor coming forward with further funding. At the moment, £2.6 billion is owed. It is quite clear that the Chancellor has been able to find funding when it is necessary. These people are among the most vulnerable in our society and deserve our backing and support.

Equally challenging, I think, is the fact that our economy and savings regime have been shown to be extremely fragile. The pandemic has revealed that many people do not have money saved up to support themselves through difficult times. In future Budgets, I hope the Chancellor will bring forward incentives for people to save, not only for a rainy day but for their retirement and when they will need it next. In summary I strongly applaud what he and his team have been able to do to get us out of the pandemic, get employment back and get the economy working once again.