Budget Resolutions and Economic Situation

David Evennett Excerpts

Wednesday 3rd March 2021 Commons Chamber

[Sir David Evennett (Bexleyheath and Crayford) (Con) [V]]

I welcome my right hon. Friend the Chancellor’s Budget and the measured, sensible and constructive approach that he has taken. The extension of universal credit uplift; the extension of the furlough scheme to September with employees continuing to receive 80% of wages for hours not worked; businesses making small contributions as they reopen; continuing the extended support for the self-employed; and doubling the cash incentives to firms that take on an apprentice—all good news indeed. The Chancellor’s financial assistance has certainly been a great help to businesses over the past year, and although so many challenges for businesses still remain, this is undoubtedly a Budget for business and getting the economy back on track.

Small and medium-sized enterprises are the backbone of our economy, providing jobs, paying taxes and being entrepreneurial. Coronavirus and the lockdown measures have hit them hard in my constituency and across the whole country. I particularly welcome the extension of the business rates holiday until June and the discounted business rates for the remainder of the next financial year, which will save businesses £6 billion. News of the business rates holiday will be most welcome across the country, as it is a sizeable operational expense for many business, and this measure will help to mitigate the impact of the coronavirus pandemic.

Regrettably, the hospitality sector was one of the first industries to close and will be one of the last to reopen. I have had many discussions with the Chancellor and local businesses from the sector. I know that they will be grateful for the support announced today, including the reduction of VAT rates for hospitality and tourism to 5% until September and 12.5% for the following six months, amounting to £5 billion of VAT cuts for businesses in hospitality and tourism. The £5 billion new restart grant scheme, on top of the £20 billion that the Government have already provided, will also help shut-down businesses to reopen after the lockdown. This will be a great help as we begin to recover from the pandemic, as will the new recovery loans.

The Budget provides us all with hope for the future and allows us to begin to get the economy moving again. Hopefully, this will mean that we can enjoy hospitality, tourism and social opportunities, of which there are so many across my borough of Bexley. There are many places to visit, including sport and leisure facilities; our excellent parks—Hall Place being a particular favourite of mine; a wide variety of restaurants, such as Assos in Crayford and Stuzzichini in Bexleyheath; pubs, including micropub the Penny Farthing in Crayford; entertainment venues; and historic sites. We need people to be able to get back to normality and socialise safely, to visit places and shops, and to spend money to get our local economy in Bexley borough thriving again, as well as the rest of the economy across our whole nation.

I strongly believe that my right hon. Friend the Chancellor and his team have struck the right balance, and I congratulate them on this excellent Budget. I am very pleased to be able to support him in the excellent work that he is doing.