Budget Resolutions and Economic Situation

Edward Leigh Excerpts

Monday 20th March 2023 Commons Chamber

[Brendan Clarke-Smith (Bassetlaw) (Con)]

I expected to spend longer talking about corporation tax following this Budget, but I will not talk much about that today. When we look at the rates elsewhere, we would all like to see it lower as a long-term ambition, but there is a lot of really good stuff in this Budget to offset that. In particular, there are the tax reliefs for R&D we have heard about. I would say that small and medium-sized enterprises getting £27 from HMRC for every £100 of R&D investment is a really excellent policy.

Locally, we very much feel that we have a great chance to become the superpower we have heard about recently, because Bassetlaw will be the home of the STEP—spherical tokamak for energy production—fusion project. It is something we are incredibly proud of, and for our future energy generation, it is something we can take out to the world. We will have the world’s first commercial STEP fusion energy plant, which will be built at the home of one of the last coal-fired power stations, so this is very much about changing from old technology to new. It is about the billions this will generate, as well as the growth, the jobs and the apprentices we are going to get as we go from fossil to fusion.

[Sir Edward Leigh (Gainsborough) (Con)]

And it is 5 miles from the town of Gainsborough.

[Brendan Clarke-Smith]

Yes, of course, and Gainsborough is a very important town to us locally. It fits within our local economy, and I am sure this project will benefit my right hon. Friend’s town as well. I know he is very passionate about this subject, and at the moment he is campaigning for further involvement in and recognition of this project for his constituency.

We know we are going to get an investment zone in the east midlands, and I think this would be an excellent site for one. My hon. Friend the Member for Don Valley (Nick Fletcher), who is in his place, has been campaigning every single day for at least the last six months an investment zone at Doncaster Sheffield airport, which would be another really great site. Neighbouring zones will of course all work together for growth in our regions. We do not just draw a line around our region; we work together and interact, and Yorkshire is incredibly important to us.

Just last week, for Open Doors week, I visited Europe’s largest concrete facility, Laing O’Rourke in Worksop, which is a centre of excellence for modern construction. It makes pre-cast components, and it is actually manufacturing a lot of the parts for Everton football club’s new stadium. I was going to make a few jokes about it being probably the best ground in the championship next season, but there is a lot of competition in the premier league right now, and I think I will stick to Notts County jokes before I upset anybody. There is also a £28 million privately funded carbon capture and power generation plant in Rhodesia in my constituency. Such companies want to invest in this country because of this Conservative Government, who are pro-growth and pro-business.

To top it off, the icing on the cake for Bassetlaw was to find out about the levelling-up partnership that we are going to be part of. This is worth £400 million for 20 different places in this country, and we are very proud to be one of them. We have had £20 million announced for Worksop town centre, which is going to be transformative as we move more from retail to leisure, get people going back into our town centre and get a bit of pride back into our town centre. This partnership also helps other towns that have missed out or have perhaps been neglected by a Labour council, such as Retford. There is lots to be done there, too, and we have great links on the east coast main line. It is a wonderful town with a lot of great facilities and great people, and the drive is there to go forward and grow.

How does this Budget affect the average, everyday person? We talk about these figures—millions and billions—all the time, but for me the Budget comes down to individuals and families, and what we are going to do for them. With our blue-collar offering, there is quite a lot we can be very pleased with. As a former children’s Minister, I think the childcare proposals for those from nine months on that have been outlined can be absolutely transformative and really help parents. I have had parents say to me that they would like it to happen straight away, but I think we all realise that there are capacity issues, and the sector is of course going to need some time to adapt. I know there are arguments both ways on ratios—some people like them, some do not—but it is as much about flexibility for nurseries as it is about money. To give an example, one time when I took my young child along to the nursery, I and many other parents had to wait because a member of staff was stuck in traffic. I think the nursery was one child over the ratio level, and we had to wait until the member of staff got there. We are giving nurseries flexibility in that kind of situation, and of course it is optional, which is great.

The freeze on fuel duty is really great for working people. What is not so great are ultra low emission zones. Many people are having to drive through them and pay exorbitant amounts of money just to drop their children off at school. It is very much a tax on the white van man—if someone wants to go into Sheffield, they are going to be charged. People think this is just about London, but it is not. It penalises working people. [Interruption.] My hon. Friend the Member for Heywood and Middleton (Chris Clarkson) is mentioning Manchester, and I know people are very concerned about it there. This is something we need to stop: we should not be taxing people to go to work.

Finally, people will be really pleased with the action on energy prepayment meters. We have given a huge amount of support for people’s energy bills, but we all know that those on meters are sometimes the most vulnerable in our society, and those who struggle the most are paying a penalty. It is absolutely right that we have done something to change that. With all Budgets, a lot of people like to use the word “but”; I prefer to use the word “and” for the things we would like to see in the future. I think this is a good Budget, and there is lots of good stuff in it. It is a great Budget for Bassetlaw, and I commend it.

--- Later in debate ---

[Sir Edward Leigh (Gainsborough) (Con)]

I am delighted to follow my hon. Friend the Member for Bassetlaw (Brendan Clarke-Smith) in praising the Government for bringing a nuclear fusion site to West Burton. As I have already said, it is not 5 miles from Gainsborough—indeed, Gainsborough is the closest town. I very much hope that the Minister will support my campaign to rename the site the “Gainsborough West Burton” site.

Gainsborough was at the heart of the industrial revolution in the 19th century, bringing in new products. This site is a chance for us to go with the flow through a brand new technology. We want to create apprenticeships and to involve the whole region. I really want to make that clear. Gainsborough is an industrial town with traditionally high levels of employment. I am delighted that the Government have given us £10 million in levelling-up funds. We are grateful to the Secretary of State for Levelling Up, Housing and Communities for giving that to Gainsborough South West ward—the 27th most deprived ward in the entire country.

However, there is no point one hand of the Government giving us £10 million in levelling up if the other hand is potentially taking £300 million of investment away from my constituency. As I mentioned in Home Office questions today, we have developed a wonderful deal for RAF Scampton—home of the Dambusters and the Red Arrows—creating heritage, a spaceport, a hotel and industry. The whole thing is at risk because the Home Office is now marching in and threatening to put 1,500 migrants there. This has nothing to do with the fact that they are migrants or not migrants; it is about the fact that we cannot develop the site, which is relatively developed now, if it is held by the Home Office for two years. Levelling up is at the heart of this Budget. We must have co-ordinated government—co-ordination between the Home Office, the Ministry of Defence and the Department for Levelling Up, Housing and Communities.

I want to make a more general point. Thatcherites such as myself are always banging on about the need for tax cuts. There is no point in our doing that if we are not controlling public spending. Of course I regret that corporation tax is going up, but I recognise that the public finances are in a state of crisis. I really encourage Ministers on the Front Bench to redouble their efforts to ensure that there is efficiency and economy in our public services; I speak as a former Chairman of the Public Accounts Committee.

There is still grotesque waste throughout the public sector. I am now on the sponsor board of the restoration and renewal programme: hundreds of millions of pounds have been wasted on doing nothing to renovate the building where we are now—years wasted! It is a small point, but I read in the newspapers that we are already spending about £100 million on the covid inquiry, hiring hundreds of lawyers. Right through the public sector, we rely on the Chief Secretary of the Treasury to ensure that we get good value for money.

One of the ways in which we will eventually make the public sector work better is through more of a sense of self-reliance. I do not want to make further points about the triple lock, because I will get into trouble if I criticise it in any shape or form—it is very politically difficult—but the Government must have a strategy to deal with it. The ideas developed by Peter Lilley when he was Secretary of State are exciting and interesting.

We cannot just go on having a national health service that consumes an ever larger proportion of national income but is riddled with waste and incompetence and delivers worse and worse outcomes. We have to be prepared and have the political courage to learn from countries such as Australia, France and New Zealand, which have a mix of public and private provision that ensures that they have what are frankly much better health services because they are unleashing people’s enthusiasm to invest in their health. The previous Conservative Government gave tax relief for private health insurance, and we should not dismiss that.

I want to make one more point. Of course we all welcome the extra provision for childcare, but it is a massive extension of the state. It is desirable in itself—I am entirely in favour of mothers who want to work being allowed and encouraged to do so even when their babies are as young as nine months—but we must also support mothers who want to stay at home. The marriage tax allowance was introduced by Nigel Lawson. It was allowed to wither on the vine, and was then reintroduced by George Osborne in 2015, but it is not well-advertised or taken up. It is fairly derisory, and amounts to only about £1,700. If a couple earns £70,000, they are £7,000 worse off as far as the taxman is concerned if the mother stays at home looking after a child and the husband goes to work.

The marriage tax allowance is not just for married couples but for couples in a civil partnership. The Government should be neutral about the fact that, often, it is in the interests of the child and the mother, where the mother wants to do so, for her to be allowed by the tax regime to stay at home and not to be forced by the tax regime or by her personal circumstances to go out and work. A Conservative Government believe in choice, and that is what I want to impress on the Government.