Budget Resolutions and Economic Situation

David Mundell Excerpts

Wednesday 3rd March 2021 Commons Chamber

[David Mundell (Dumfriesshire, Clydesdale and Tweeddale) (Con) [V]]

I believe that today’s Budget is good news for my constituency. We still need to focus on defeating the pandemic, and the continuing support for local people and businesses is most welcome.

Thousands of people in my constituency have benefited from the furlough scheme and the self-employment scheme, but I have lobbied particularly hard to persuade the Chancellor to retain the £20 uplift on universal credit so that the most vulnerable people in my constituency and elsewhere receive the support they need. I also lobbied for a VAT cut for the hospitality industry, which so many local businesses were in touch with me about, and that will make a real difference to them as gradually they are allowed to reopen.

The Chancellor announced a range of other measures to help businesses in England. We need to see the equivalent delivered here in Scotland, unlike previously, when the Scottish Government have sat on money that they have received from the UK Government and failed to distribute it quickly to businesses.

I have always argued that a car is a necessity, not a luxury, in our rural communities, and haulage fuel costs contribute so significantly to the cost of living locally. That is why I have always opposed rises in fuel duty, so I am delighted that the Chancellor agrees and has frozen fuel duty yet again.

In the very short time that I have, I shall focus on the issue of access to cash. It was announced this morning that contactless payments would be increased to £100, which I am sure will be welcomed by many, but the Chancellor did not reference this year, as he did in his last Budget, the operation of the UK cash system and his plans to legislate on access to cash.

Our system of cash faces three big issues: the ongoing issue of access; the inverse issue of depositing cash, and the increasingly pressing problem of acceptance of cash. The issue of acceptance of cash has been made more acute by the pandemic. The Bank of England noted in its quarterly bulletin that 42% of people had recently visited a store that would not accept cash, and Which? conducted a survey that found that four in 10 of those who had experienced difficulties paying with cash had left empty-handed when trying to buy groceries.

It is therefore essential that the Government come forward with legislation and plans on this issue. Without that, we risk crashing into a cashless society, where some 17% of adults in the UK—about 8 million—would struggle. Those struggling most would be the elderly, the vulnerable and economically excluded, and those in rural communities such as my Dumfriesshire, Clydesdale and Tweeddale constituency.