Budget Resolutions and Economic Situation

Duncan Baker Excerpts

Monday 8th March 2021 Commons Chamber

[Duncan Baker (North Norfolk) (Con) [V]]

This was a Budget that had a clear direction. Whether we like it or not, if we do not continue to protect the jobs and livelihoods of the country, particularly in the private sector, we will not have an economy to return to that does any of the things that we take for granted, such as providing stability, growth or the tax receipts to fund the public sector. The Chancellor focused on that No. 1 priority. That is of the moment, and I commend him for it.

I have listened to the speeches by Opposition Members over the last few days bemoaning what was not in the Budget rather than acknowledging the sheer depth of support that this Conservative Government continue to offer. It is astonishing. Wake up! The answer to the biggest economic shock in history is not like a vaccine. We cannot fix where we are overnight; this situation will take years and years to recover from. It is a question of priorities—and where do we even begin to start? We do what this Government have done since the start of the pandemic—we protect people. We protect people’s jobs and livelihoods with support that is still needed now.

We heard it when the Chancellor said that the OBR now expects the UK economy to recover to its pre-crisis level six months earlier than originally thought. Unemployment is now expected to peak at 6.5%, instead of nearly 12% as feared last summer; 1.8 million fewer people are expected to be out of work than first forecast. That is not a bit of luck; that is a Government that have produced one of the best financial responses in the entire world to support their citizens.

We cannot fix the public finances in a single Budget when we are in the midst of spending £407 billion in total fiscal support, with our national debt reaching its highest level since the ’60s. The recovery from this economic shock will be long and prolonged, but like our exit from lockdown, the Chancellor’s plan is the right step. My right hon. Friend was honest: the steps will be steady, moving in the right direction and priority-driven. That is responsibility.

For my constituents in North Norfolk, the message has been heard. Tourism, leisure and hospitality, the dominant sectors for many rural areas, are on their knees, but we welcome the extension of the VAT rate cut and of business rates relief, and the restart grants to get our businesses back on their feet. No one, but no one, can question the commitment that the Government have given to this sector, and I am confident that we will see another year of safe domestic tourism into North Norfolk.