Amendment of the Law

Charlie Elphicke Excerpts

Friday 23rd March 2012 Commons Chamber

[John Woodcock]

I am glad the Secretary of State asks me that. I would expect a little more humility from the Government given that on their own plans they are set to borrow £150 billion more. We strongly believe that the cuts we do not accept represent a false economy that will act as a drag on the nation’s growth and stop us returning to the prosperity that this country desperately needs.

The Government’s priorities are not with the family who are struggling to make ends meet, with the small business that wants to create more jobs or with the employee who wants to be able to afford to turn up to work in the morning.

[Charlie Elphicke (Dover) (Con)]

Will the hon. Gentleman give way?

[John Woodcock]

I am not going to give way at the moment because the Secretary of State has taken up the hon. Gentleman’s time.

On all those counts, Wednesday’s Budget was a great disappointment. I will give the Secretary of State one thing: at least she is consistent. When we dig beneath her unrealistic claims that everything will be peachy, we see that she is not gearing up to deliver jam tomorrow after the pain today. Instead, with the Budget the Government set out this week, motorists, train passengers and bus users will be squeezed today, tomorrow and for years into the future. The effect will be a decade-long drag on jobs and growth, with the prospect of drivers and commuters being priced out of getting to work, or left stranded at a bus stop wondering why the service has been axed.

The Chancellor offered nothing to hard-pressed motorists this week. In fact, he has made things worse. He has raised the prospect of finding new ways to make things harder in future. Even from the comfort of No. 11 Downing street, the Chancellor cannot have failed to hear the growing calls for some relief on fuel taxation. If he refused to listen, it was the Secretary of State’s job to prise open his ears and tell him just how hard it is for Britain’s motorists. In the Budget negotiations, however, she secured diddly squat—[Interruption.] Instead, faced with rising and record petrol prices, she set her face against calls for relief in fuel tax, including the call for a temporary—[Interruption.]

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[John Woodcock]

Thank you, Mr Speaker. I shall take that as a lesson.

Faced with record and rising fuel prices, the Secretary of State set her face against all calls for relief, including the Opposition call for a temporary VAT cut.

[Charlie Elphicke]

I remind the hon. Gentleman that this April petrol duty will be a full 10p lower than it would have been under the previous Government’s plans. That will save the average family £144 and be a massive benefit—a far greater benefit than if Labour had remained in office.

[John Woodcock]

That shows just how out of touch the hon. Gentleman and Government Members are. I would like to see him go to the forecourt in his constituency, or any forecourt around the country, and say, “Let’s welcome the further rise in fuel taxation that you’re getting this week. What a great job the Government are doing in keeping fuel prices down!”

Families in Britain, worried by energy bills, clobbered by spiralling rail fares and made poorer by cuts to tax credits, are, thanks to this Secretary of State’s inaction, once again being squeezed even harder at the fuel pump. There is pain today and pain tomorrow. The ultimate victims are jobs and growth, and the nation’s return to prosperity. What is the Chancellor offering motorists in return for their growing fuel bills? He is offering only vague promises, which might well turn out to be yet another ratchet with precious little reward.

The National Audit Office has warned the Government that they are creating a vicious cycle of deteriorating roads and higher long-term costs. A plague of potholes is making our road network less safe for all users, less green and more congested. The road network is a brake on, and not an agent of, jobs and growth. There is no movement on the cuts already set for local roads—that is good news on potholes but bad news for everyone else—but what about our trunk roads, which the Secretary of State mentioned? We need long-term strategic investment in the road network, and we also need to look at how we lever in that investment, but Britain’s drivers and cyclists will have little confidence after seeing Ministers tying themselves in knots in recent days.

Before the Prime Minister’s speech on infrastructure on Monday, those pesky anonymous briefers, who seem to be everywhere in this Government—good luck in trying to catch them, Mr Speaker—said that tolling would be considered only for brand new roads. However, in the speech, “new roads” became “new capacity”. We now know for certain that charging is being considered when improvements take place on existing roads because the Budget document confirms it. We are told that the shortlist of options include “widening some sections” of the A14,

“rationalising access to the route, and improving the route of the southern bypass for Huntingdon.”

In other words, the A14 will be not a new road, but the existing one with added tolling.

Britain’s motorists, already squeezed to breaking point, demand plain speaking from the Government, so I will give the Secretary of State another opportunity. Will she tell us what will constitute a capacity improvement on an existing road that could lead to tolling? Will that include an extra lane, a contra flow, a new slip road, a roundabout or a bollard? Motorists deserve to know what the Government have in mind.

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[John Woodcock]

Well, you know. [Laughter.] I am here all week.

The Chancellor told us on Wednesday that the country must confront the lack of airport capacity in the south-east. He is right, but his words would carry more weight had the Government not spent the past two years dithering and delaying on producing any sort of aviation strategy. What did we actually get this week? We got not one but two further delays. First, the Chancellor announced that the strategy that the Department for Transport’s business plan told us to expect in March will now appear late this summer; and now the Secretary of State seems to have put back the date even further to this winter or next spring—more dithering, more delay, while competitor hubs in continental Europe get on with providing new capacity that could transform their economies.

[Charlie Elphicke]

Will the hon. Gentleman give way?

[John Woodcock]

I will not give way any more because I am running on and I want to give other Members time to speak.

The Government came to power with just one policy on aviation capacity—to abandon the Heathrow third runway. Since the election, the Government have come up with no practical thinking on alternatives. Instead, they seem to have outsourced their aviation strategy down the river to a Mayor who is more interested in trying to grab attention than in finding a plan that will work. That is no way to treat a vital economic driver that is critical to the country’s future growth.

As the Secretary of State is well aware, the plans for an airport in the Thames estuary are being met with a barrage of opposition from the area, including from her own party’s MPs and councillors. She would be even clearer on that if, like my hon. Friend the shadow Secretary of State, she had been to north Kent and talked to local people in the areas affected. The idea of building a new airport from scratch in the Thames estuary is a huge distraction from the real need for airport capacity here and now. It is obvious why so many people, but apparently not the Secretary of State, see an estuary airport as a complete non-starter—there is the impact on local communities, the destruction of internationally important habitats, the safety threat from explosive-laden wrecks, a liquefied petroleum gas terminal and a huge offshore wind farm.

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[Mr Jackson]

My hon. Friend makes a very good point, which explains why this Budget has had consensus support and been viewed from a positive perspective by business organisations across the country.

We should be talking a paradigm that involves tax and spending, not just tax. There has been too much focus in the last few months on cutting or increasing taxes, when we should be talking about expenditure. Are we really asking the public to believe that a net 6.8% reduction in public expenditure over the comprehensive spending review period is enough to rebalance the economy when we saw a 53% real-terms growth in public expenditure between 2000 and 2010? We were spending £450 billion just 10 years ago on public services, and we are now spending £702 billion. Are we getting value for money for our constituents and our taxpayers?

Of course, Conservative Members will not let the electorate forget the disastrous and poisonous economic legacy left to us by the Labour party—to the extent that we have to pay £120 million a day in debt interest and are £47.6 billion a year in debt this year. As I said earlier to my right hon. Friend the Transport Secretary, had Labour remained in office, they would have had to borrow another £200 billion. They left us a structural debt in a period of economic growth. They left us a situation in which individual net borrowing doubled in just six years, while we have massive sectoral imbalances and a systemic dependency on debt. That was Labour’s legacy.

Labour Members still have no economic credibility; if they were a party with a cogent and coherent narrative on the economy, they would pledge to reinstate the 50p tax rate and reverse the policy on freezing age-related allowances. They do neither because they are opportunistic and they know that if they were elected to government, they would need the money.

[Charlie Elphicke]

My hon. Friend is being far too generous in saying the Opposition are being opportunistic. They are going back to the 1970s class warfare old Labour that they used to be, and they have forgotten all the modernisation they achieved in 1997.

[Mr Jackson]

My hon. Friend is absolutely right. The Labour party will not make progress with the electorate until it does two things: apologise for the debt millstone they left to our children and grandchildren, and develop a policy that is not written on the back of a fag packet.

I welcome the cut in corporation tax, which gives us the fourth lowest such tax rate in the G20. I welcome the reduction in the top rate of income tax from 50p to 45p, too, as the 50p rate was damaging competitiveness and not collecting the sums it should have collected, and was an impediment to entrepreneurial activity and business growth in our country.

Let us nail the myth about taking poorer working people out of tax. It is a Conservative policy, enunciated by Lord Forsyth in the tax commission in 2005, and restated by Lords Saatchi and Tebbit. It is a Conservative policy to boost people’s incomes because we trust them to spend their money wisely.

I also support the policy on age-related allowances. There is consensus on the issue of generational fairness—even the hon. Member for Pontypridd (Owen Smith) will agree with me about that—and this Government have a very good record on provision for pensioners, including the largest ever cash rise in the basic state pension from April this year, the uprating of the pension credit guarantee, and the help with fuel bills for poorer pensioners. We have a much better story to tell on that than the last Labour Government had, with their ridiculous and insulting 75p pension rise in 2000.