Budget Resolutions

Edward Leigh Excerpts

Wednesday 6th March 2024 Commons Chamber

[Sir Edward Leigh (Gainsborough) (Con)]

The Chancellor, in his excellent speech, mentioned that he would unleash £100 million-worth of levelling up. Hon. Members may guess the subject to which I will briefly allude, which I constantly mention in this House. There is a bit of levelling up in Lincolnshire, worth £300 million, which is the levelling up that we were hoping to achieve at RAF Scampton, the most iconic RAF base in the country. That levelling up would involve using a 10,000-foot runway and superb heritage buildings that were the home of the Dambusters and the Red Arrows, so I appeal once again to the Government to listen to me. I have been begging them for the last year to agree to a compromise on this. I see one of my Lincolnshire colleagues on the Front Bench, the Exchequer Secretary to the Treasury, my hon. Friend the Member for Grantham and Stamford (Gareth Davies), and I am sure that he has a certain amount of influence on his fellow members of the Government. I hope that the Government will listen to what I have been saying for the last six months, which is that we should compromise by taking some migrants on a small part of the base and unleashing the rest of the base for levelling up. That is what Lincolnshire needs more than ever: it needs more jobs and more growth, and I hope that this is a Budget for that.

This is a debate about the Budget, not about illegal migration, but this whole saga of putting up more and more people in hotels or in military bases must end. We have to get the Rwanda Bill through Parliament, we have to have a proper deterrent and we have to stop these people who are making a joke of our border control, but the far more serious problem than illegal migration is legal migration. When I entered the House 40 years ago, net legal migration was running at about 17,000 a year. Twenty years later, it was 185,000 a year, and now it is over 600,000. That puts a massive strain on the economy.

The fixation on importing cheap labour is immoral and unpatriotic. We cannot undermine our own workers by letting in people and paying them lower than average wages. There is a single thing that the Chancellor could do, and that would be to end all the shortage schemes and simply insist that if someone wants to come and work in the UK, they would have to earn the UK national average wage of roughly £33,000 as a minimum. Not only does such an influx of people drain our economy, displacing investment in domestic skilled work; it also puts an immense strain on public services, with more British citizens than ever, including the least advantaged, struggling to get GP appointments and secure school places for their children.

We must deal with net legal migration. It is the single biggest problem facing our Government and we have to act on it. We know that we are importing all these people because we are not paying enough to our NHS or care staff. We therefore have to import people from all over the world, but there are 9.3 million people of working age in the UK who are claiming benefits, and that statistic is set to rise remorselessly. Productivity rates are decreasing and they are projected to fall further in the coming years. We have to address this fundamental weakness of the British economy: we are not paying proper wages to our people; we have too many people of working age on benefits; and we are importing too many people from the rest of the world.

On the broader case, I have been listening to what my colleagues have said and I would have preferred a cut in income tax to a cut in national insurance. That would have been much more dynamic, and people understand it. Also, many people do not pay national insurance, including savers and people of pension age. There is no point in keeping the triple lock if we are dragging more and more pensioners—not rich pensioners—into paying tax and sometimes into a higher rate of tax. I would have preferred a cut in income tax rather than national insurance but I understand where the Chancellor is coming from on that.

I want to say a word about the Office for Budget Responsibility. I cannot understand why we seem to have outsourced so much of our economic management from the Chancellor of the Exchequer to the OBR and the Bank of England. People say, “Look what happened when we did not listen to the OBR in the ‘disastrous’ mini-Budget”, but the reason that that Budget went wrong was not that we did not listen enough to the OBR’s forecasts—which are often wrong—but that there were too many unfunded tax cuts. As a nation, we have to become a dynamic, low-tax, low-regulation economy. That is the only way forward for a Conservative Government. I am very dubious about these OBR forecasts.

Generally, we should not put too much faith in opinion polls, which are simply a test of opinion. What will matter in the coming general election is that people have a choice. We accept that we are paying too much tax, we accept that we have been hit unbelievably badly by lockdowns, the pandemic and the war in Ukraine, and we accept that people are regulated too much, but when my constituents go to vote—in May, November or whenever—I will ask them, “Do you want to pay even more tax? Do you want even more regulation, and even more migration to this country?” The answer is a resounding no, so speaking for myself, I shall be voting Conservative.