Finance (No. 2) Bill

Duncan Baker Excerpts

2nd reading
Tuesday 13th April 2021 Commons Chamber

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

An unprecedented time calls for an unprecedented Budget, and that is exactly what the Chancellor delivered, which is now set out in this Bill. The Budget had at its heart a focus on supporting people and businesses as we begin to emerge from the pandemic, and it laid out how, through fair taxation measures, not austerity, we can begin to rebuild and fix the public finances. Even the latest figures, published this morning, show an economy recovering, with exports, imports and GDP all improving. We already have a vaccination policy that, thanks to this Government, has been world-beating, and we now have an economy repairing itself faster than we all expected.

Not only can North Norfolk celebrate the fact that its economy, which is driven by leisure and tourism, will no doubt boom this summer, but my constituents have even more to celebrate, North Norfolk being in the top 100 places for the UK community renewal fund. Contrary to some beliefs, this is a Government reaching out to every corner of the UK, and I thank the Chancellor for putting North Norfolk on the map.

You might expect that a chartered accountant would want to talk about the taxation measures in this Bill, and I would hate to disappoint you, Madam Deputy Speaker. There are undoubtedly those who have prospered in lockdown from a sense of a captive market, and thus the taxation policy to increase corporation tax not now but in a couple of years’ time is sensible and proportionate. Equally, our rates will still be some of the lowest in the G7. Those making the lowest profits—under £50,000—will be largely unaffected and only those earning over £250,000 will pay the top rate. The vast majority of limited companies in the UK will see little tangible difference. However, I would like the Minister to explain why the super deduction is only applicable to limited companies. I acknowledge that it is a superb incentive for investment, as it is designed to be, but why not broaden the scope? Imagine farmers in my constituency parting with the best part of half a million pounds to buy farm machinery such as combine harvesters, as many of them may do, but because they operate as partnerships they are ineligible for the tax break.

As I repeatedly and relentlessly mention in this place, my fears for the overall UK high street still remain. Yes, our high streets will have the rates reprieve for nearly another year, but in the long term they will suffer as those who have converted to shopping online continue to operate under that trend. The Government must look at modernising the rates system and consider how we level up the disparity in competition between those bricks-and-mortar stores that now face online competition. I certainly look forward to perhaps seeing more of this in the autumn. But I take nothing away from the tax breaks. The confidence that the Government have injected into the economy is working and the green shoots of a post-crisis recovery are already germinating.