Budget Resolutions

Cheryl Gillan Excerpts

Wednesday 22nd November 2017 Commons Chamber

[Joan Ryan (Enfield North) (Lab)]

It is a pleasure to follow the hon. Member for Wimbledon (Stephen Hammond), although I am not sure whether we will find a great deal to agree on. In the run-up to this Budget and during the Chancellor’s speech today, we heard a lot about building a Britain “fit for the future”, but many of my constituents do not share the Chancellor’s confidence that the Government’s proposals will achieve that vision.

I have been in Enfield for more than 20 years, and I have always considered it to be a fantastic place to live and great place to raise a family. However, for too many residents of Enfield North, especially hard-working and hard-pressed families, the past seven years of Tory austerity have led to more insecurity, poorer public services and, in some cases, abject poverty. Child poverty has risen to its highest level since 2010, as I mentioned at Prime Minister’s questions when I pointed out that the IFS and the Joseph Rowntree Foundation predict that an additional 1.2 million children will be pushed into poverty by 2021 on top of the 4 million in 2015-16. That is not a proud record; it is a scandal and a moral issue facing this country and this Government. Enfield is the worst-affected borough in London, with almost one third of children living in poverty. The Chancellor was emphatic that that was being dealt with, but let me tell the House what Alison Garnham, the chief executive of the Child Poverty Action Group, said about today’s Budget that:

“this should have been the Budget that ushered in much needed structural reform of Universal Credit to revive the central promise to strengthen the rewards from work and that didn’t happen. Our new analysis finds while effective tax rates may have improved for some families, big falls in family income caused by cuts and changes to Universal Credit have left many worse off overall, overwhelming any gains from increases in the ‘national living wage’, personal tax allowances and help for childcare. Families on universal credit who want to get better off through earnings gained little from today’s Budget.”

I am more inclined to accept what the chief executive of the Child Poverty Action Group has to say than the Chancellor’s empty words.

[Mrs Cheryl Gillan (Chesham and Amersham) (Con)]

The right hon. Lady makes an interesting point. I do not know whether she has had an opportunity to study “Impact on households: distributional analysis to accompany Autumn Budget 2017”, but its analysis shows that

“since 2010, households across all income deciles have seen growth in their disposable incomes, on average”.

That is good news, and I am sure that she would want to welcome it.

[Joan Ryan]

If the right hon. Lady sat in my advice surgery and listened to what was said by families in Enfield, where over a third of children live in poverty, she would find that the amount of disposable income that people have is a major problem, and that most families feel that rising costs, particularly due to rent, have wiped out any possible gains.

Almost six in 10 Londoners in poverty live in a working family, so the picture of poverty has changed. Those people are not “scroungers,” as they are sometimes referred to; they are working people who are trying to get on in life. A third of all jobs in Enfield are classed as low paid and are below the London living wage, as recent research by the Trust for London has shown. The Government’s failure to address these issues has meant that many families are unable to just about manage today, let alone build for tomorrow.

Enfield now ranks as the London borough with the fourth highest food bank usage. Last year, 5,974 three-day emergency food supplies were provided to people in Enfield, with 2,434 given to children. The roll-out of universal credit in Enfield, which started this month, will make a bad situation even worse. The Trussell Trust has said that demand for emergency food parcels is 30% higher in areas where universal credit is being implemented. Week in, week out, I see many hard-working families at my constituency advice surgery who are living on or below the breadline.

I want to say a few words about housing. A great many constituents come to see me about problems that are related in some way to housing, particularly those living in the insecure private rented sector. The threat of falling into rent arrears, and of families being put at risk of eviction and long-term debt due to the roll-out of universal credit, has only added to their concerns. Stagnant wages, fast-rising rents and a crisis in housing supply have created a perfect storm in Enfield, which now has the highest eviction rate in the capital. Homelessness acceptances have risen by a staggering 82% over the past two years. Enfield has the second highest number of temporary accommodation placements in London, which puts even more pressure on an already strained housing market. Again, that is not a record of which the Chancellor can be proud.

Today the Chancellor said, “House prices are increasingly out of reach for many”—yes, they are. He continued: “It takes too long to save for a deposit”—yes, it does, if someone can save at all—“and rents absorb too high a portion of monthly income”. But the OBR report makes it clear that house prices will rise as a result of the measures announced today. When the hon. Member for Bath (Wera Hobhouse) intervened on the right hon. Member for Wokingham (John Redwood) to ask about houses for social rent, the right hon. Gentleman insisted that the Budget statement referred to that. I listened to the Chancellor’s speech and I have read through the printed copy, but I heard and read nothing about that. He did say that the Government would increase supply “including nearly 350,000 affordable homes”, but the question is: affordable for whom? There is nothing about houses at a social rent. I think that is a disgrace, completely ignoring the desperate need.

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[Charlie Elphicke (Dover) (Ind)]

This is a Budget that seeks to get a better deal for the least well-off and the lowest paid. It is a Budget that seeks to ensure that the very richest pay a fair share of taxes, to stop tax dodging, and to make sure that multinationals honour their obligations and are forced to do the right thing. This is a Budget that ensures that we prepare for Brexit and for the future of this country, and that makes sure that we embrace that future and get the best out of it for our children and grandchildren. I commend the Chancellor for the level of thought and consideration he put into it and, indeed, for his excellent Budget speech and presentation. He has done a brilliant job and introduced a really positive Budget.

I particularly welcome the allocation of up to £3 billion for preparations for Brexit. That matters at the Dover frontline and the channel ports because we must have a smooth transition to ensure that there is no gridlock, and no holdbacks or queues. Some Members quite like the idea of queues at the channel ports and look forward to everything being a disaster on Brexit day, but not Government Members. I am glad that the Chancellor is making sure that the investment and moneys are available to ensure that we avoid that eventuality. We need to remember that gridlock at Dover will mean gridlock for the entire British economy.

If the midlands engine cannot get essential components, it will conk out. If the northern powerhouse does not get the supplies it needs, it will cease to work. That is why it is so important for each and every one of us to do all we can to ensure that Brexit is a success, and that we get the investment and make the preparations we need to make sure that we undock seamlessly from the European Union and go out into the world to make a success of Britain’s future. And a success it really can be, because let us remember what is coming down the tracks. We are so well placed for the next revolution in automation, for autonomous vehicles and for the fourth industrial revolution. The Leader of the Opposition does not share my view; he wants to tax innovation and to put a stop to the idea that we might create a transition in our economy. He is scared of that prospect, but that is commonly the case. Whenever there is change, revolution and innovation in our economy, people are scared. The Luddites were very scared. People were scared of the industrial revolution and of the revolution in our economy during the 1980s, but each time there was a leap forward and a massive jump in productivity. Our economy moved ahead and Britain became a stronger and more successful world leader.

That is why the Chancellor is absolutely right to set out such a positive vision in the Budget and to reject the Luddite views of Labour Front Benchers. I know that most Labour Back Benchers—who, by the way, ought to be on the Opposition Front Bench—reject those views as well, even though they dare not say so, for fear of deselection and of Labour Front Benchers mobilising the membership, gaining momentum against them and sweeping them away, which I have to say would be a tragedy for our country.

I welcome the innovation undertaken to help the least well-off. We have created 3 million jobs since 2010 and massively increased the personal allowance to nearly £12,000. The national living wage also makes a huge difference, and fuel duty—this is a subject close to my heart—has been frozen for years, meaning that since 2010 hard-pressed and hard-working motorists, white van drivers and hauliers have experienced a massive reduction in the effective cost of duty. Each car owner now benefits to the tune of £850 a year. That makes a massive difference to those on an average wage and those who have to drive much further in more remote areas, including in Scotland. I mention Scotland because one SNP Member, the hon. Member for Inverness, Nairn, Badenoch and Strathspey (Drew Hendry), has kindly decided to remain present for our deliberations. I welcome the fact that the measure will make such a difference to hard-working people.

I also welcome the fact that we are taking firmer action against large businesses that are too often involved in industrial tax avoidance, which is unacceptable. I particularly welcome the work on joint and several liability for online platforms such as Amazon, eBay and Alibaba. Those platforms have enabled overseas retailers to game our VAT system and get an unfair competitive advantage over smaller businesses in this country, thereby putting them out of business, by not paying their fair share of taxes. A cross-party campaign, which has included members of the Public Accounts Committee, has fought on the issue for a very long time, and I hugely welcome the measures that were announced today to introduce justice, fairness and a level playing field to our tax system. The Chancellor is to be commended for doing the right thing and making sure that we get revenue so that we have extra cash for our schools and hospitals.

We need to go further with these multinationals. The problem is that too many of them think that they are not subject to this country’s rule of law. They behave as though they are over-mighty medieval barons to whom the laws do not apply. This House should call time on that view. We need to make sure that Amazon, Facebook, Google and so on pay a fair share of taxes in this country. They should be subject to our rule of law. Social media outfits should also be subject to our libel and counter-terrorism laws, as well as laws that protect people and how they are treated. We need to take stronger and firmer measures. They will say, “We are in America. You can’t touch us, ” but to that I say, “We are leaving the European Union. We are taking back control of trade policy, and we can take back control of internet access.” We need to start thinking along those lines.

[Mrs Gillan]

Does my hon. Friend welcome the extension of powers over online VAT fraud to cover overseas businesses, which is a really important part of bringing multinationals in modern trading areas back into line? It is a very good move.

[Charlie Elphicke]

My right hon. Friend makes a powerful point. She is absolutely right. We need to make sure that social media outfits and technology companies in general are subject to the rule of law with regard to libel and identity so that we know who people are, and so that fake accounts cannot troll, bully, mistreat or hound people, which is unacceptable. We should never tolerate that. These companies should pay their fair share of tax and be as tough on terror as we are. They should seek to join and support the Government and this country’s authorities in cracking down on terror, crime and the mistreatment of our fellow people. If they are trading here, they need to respect our laws and our values as a country.

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[Mrs Cheryl Gillan (Chesham and Amersham) (Con)]

It is a pleasure to follow the hon. Member for Newcastle upon Tyne North (Catherine McKinnell), who speaks so passionately about her university town. I hope that despite some of her remarks, some businesses and people in her town will benefit from the measures in the Budget—particularly, for example, the changes on universal credit. I do feel that the Chancellor has listened, and I am sure that he will welcome feedback.

This has been a Budget for change. I particularly welcome some of the changes, such as the additional money that has come in for the Brexit preparations. That is a major change for this country. It is very important to have the £700 million for the immediate preparations, and the £3 billion available as promised for the future, because we have to try to create an environment where we do not have uncertainty about the economic impact. I hope that this money will go towards creating more certainty in that area and the personnel who can provide it.

I welcome the Office for National Statistics report that accompanied the Budget, which said that the public finances have actually performed better than expected. That was probably a welcome relief for the Chancellor. Its forecast for jobs was also welcome. It estimates that employment will increase from 31.7 million in 2016 to 32.7 million in 2022. The announcements of £20 million for further education colleges, the increase in computer science teachers, the maths uplift and the new maths schools, which will build on the apprenticeships and the introduction of the T-level, will equip our young people for those jobs so that they can take advantage of the growth in our businesses.

I welcome the announcement on research and development for business, particularly the investment in driverless cars. That will bring great innovations that will greatly assist not only early adopters of new technology such as driverless cars, but those in our society who are disabled and getting on in age.

In an intervention on the hon. Member for Dover (Charlie Elphicke), I mentioned online VAT fraud. I welcome the VAT number display provisions announced in the Red Book. I commend my constituent, Richard Allen, who has played a major part in providing information to the Treasury and assisting in improving and tightening up the law in this area so that people who owe money to the Exchequer are held to account in the correct fashion.

The national health service is very important in my area, and I was pleased to see that there is more money for the NHS. I particularly welcome the fact that NHS Aylesbury Vale clinical commissioning group’s bid for eight primary community care hubs has been accepted. That will be a very welcome addition to the health sector in my constituency.

However, some of the changes in the Budget worry me. I therefore turn to the Chancellor’s welcome for the National Infrastructure Commission’s interim report on the Cambridge, Milton Keynes and Oxford corridor, which identifies that a lack of housing and connectivity is putting future success at risk. The report emphasises the joined-up strategies required to link infrastructure and homes, and recommends the construction of an east-west rail project—an Oxford-Cambridge expressway. This will be accompanied by a massive house building programme that could see as many as 150,000 houses coming to Buckinghamshire.

I acknowledge the desperate need for affordable housing—we have all had people in our surgeries saying that their children cannot get houses in their area—and I wholeheartedly support connectivity, but the Government need to step back and view what is happening in Buckinghamshire so that we can have a cohesive approach to the area.

Administratively, we are facing a potential reorganisation of local government. I believe that the Secretary of State for Communities and Local Government is minded to announce something before Christmas. That means that if any changes were made to the structure of local government, they would be implemented before the May 2020 elections. That will take up a great deal of the time and effort of our local authorities, which are already overstretched. At the same time, they have added burdens placed on them by HS2, which is not a minor project and which is using up a lot of resources in the county.

The local enterprise partnerships are not exactly streamlined. We have two: the Buckinghamshire Thames Valley LEP overlaps with the South East Midlands LEP. Although the BTV LEP has already done sterling work on our strategic economic plan, it will have to make some changes if the infrastructure commission’s plan is accepted and put into action.

The environment in the Chilterns is very fragile, but the new proposals are for about 150,000 houses—an estimated population that looks to be bigger than that of Milton Keynes today—and the doubling in size of Milton Keynes. Our environment in Buckinghamshire is of great importance to residents. In the larger picture, it also provides an oasis of tranquillity for the many people who come out to our area of outstanding natural beauty. The fact that it has received a national designation means that it should have the highest level of protection.

The report emphasises connectivity, which was supposedly one of the reasons for HS2. Despite that, there is no connection proposed between the east-west rail link and HS2. I think there should be an immediate review of whether it would be desirable to link the two railways, and, if so, what route changes are required for HS2. The route initially proposed through Milton Keynes would have made such a link possible, and it certainly would have reduced the environmental damage in Buckinghamshire.

Change needs to be managed, and there are too many changes and initiatives coming down the track that will impact in a major way on the county of Buckinghamshire. Unless these matters are co-ordinated, we may face unsustainable burdens that could achieve quite the reverse of the intention behind some of today’s welcome announcements. I would be grateful if the Chancellor met me and other local Members of Parliament in Buckinghamshire to look at how we can maximise the opportunities in this Budget for the country and the county, rather than allowing our local resources to be swamped by unmanageable change. This is a Budget for change, but change needs to be managed effectively to achieve the beneficial outcomes that we all want to see.