Budget Resolutions and Economic Situation

Damien Moore Excerpts

Tuesday 9th March 2021 Commons Chamber

[Damien Moore (Southport) (Con)]

The Chancellor’s Budget last week comes against the backdrop of the country facing the biggest peacetime crisis in modern times—not just a health crisis, but a financial one as well. Throughout the pandemic, the Chancellor, under this Conservative Government, has ensured that most people have been provided for in a variety of different ways, balancing support for individuals and the businesses to which they hope to return with the overall health of our public finances. We would not be able to supercharge our economy after this Budget without the support we have received through the pandemic.

My constituency of Southport has already seen much support from this Government; 13,000 local jobs have been protected through furlough and other support schemes, and around 1,600 businesses have been supported with grants and business loans totalling £7.8 million. There has been a huge impact on our retailers. In addition, a third of businesses in my constituency are in the hospitality and tourism sector, so the support has been vital, and the Budget for after lockdown will provide for more.

In the Budget, the Chancellor extended the business rates holiday, which has been widely welcomed. Tapering the support will mean that businesses face no cliff edge, and, as we unlock, footfall and revenue will rise, allowing for a more gradual move back to normality. The 100% rates relief until June, which moves to two thirds for the rest of the year, provides not only support, but certainty. I hope that this will continue into the future, until we reform business rates in line with the challenges faced by online competition.

I also welcome the extension of the VAT cut, which will help to protect almost 7,000 jobs in hospitality and tourism in my constituency—an industry that has been the hardest hit. Extending the 5% reduced rate of VAT for a further six months until the end of September and then tapering from October, will not only mean that there is also no cliff edge here; it will allow the sector rapidly to recover. Of course, the most important point about the reduced rate of VAT is that if people pay for their hotel room in Southport before October, they will get the 5% rate, not the rate when it goes back up; that is something to remember.

The most important announcement by far for my constituency was the town deal worth £37.5 million. It is the biggest direct investment in a generation, and will be transformational. We have already had £1 million of accelerated funding, which has seen the main street in my town, Lord Street—as you know, Mr Deputy Speaker—become a boulevard of light. We have also seen some revitalisation of our market. Our existing tourism and hospitality sectors will be enhanced with a range of projects, including a theatre and convention centre; this will be truly spectacular, bringing an extra £25 million to the local economy. We believe that further business and innovation projects will bring another £400 million of private sector investment.

In short, after hearing his Budget, I think that my constituents are protected, our town is supported and our future is more secure.