Income Tax (Charge)

Baroness Laing of Elderslie Excerpts

Thursday 4th March 2021 Commons Chamber

[Chris Clarkson (Heywood and Middleton) (Con)]

It is always interesting to get a lecture on economic probity from a member of the Liverpool Labour party.

I will start by saying that I am chuffed to bits. I am very pleased indeed. I might not have got my bid for HS4 between Heywood and Middleton, but there is still time for that, and this is a very good Budget indeed. The past year and a bit has been exceptionally challenging for the country as a whole, but now we are on the path back to normality. We are looking forward to a future, and we have a Budget that supports our ambition to get the country back on its feet.

Yesterday, the Chancellor laid out a fiscal plan not just to help larger companies and the structures of our economy but to support SMEs, the self-employed and those in low-wage employment. We want to get our high streets and local businesses back on track soon and nowhere can that be more true than in Heywood and Middleton.

I am pleased to see that the uplift in universal credit remains until October. I thank the DWP and its team for the inestimable amount of support they have given my constituents and many others who face very real hardship as a result of the difficult but necessary decisions the Government had to take to combat the pandemic. Universal credit has been one of the quiet success stories of the pandemic response. Without its flexibility and agility, many would have found themselves in a precarious position as a result of a legacy benefit system that was still far too complex and clunky to cope.

Because of the importance of safeguarding livelihoods, I also welcome the extension of the furlough scheme and the self-employed income support scheme as part of a package of measures to get people back to work safely. The vast majority of people sat at home on these schemes want to get back to their jobs and their normal lives, and allowing the scheme to run until the end of September will give businesses the headroom they need to get their workforce back safely.

There are a large number of announcements for businesses and job creation in the Budget, one of the most unprecedented being the super deduction, which does exactly what it says on the tin—it is actually super. For companies in Heywood and Middleton, it will be one of the biggest tax cuts in their history and it will get them investing, creating jobs and driving our economic recovery.

Reopening the economy will also need to take account of the fact that some jobs and businesses simply have not been able to survive the economic uncertainties of the pandemic. So, with the launch the restart scheme, hundreds of thousands of long-term unemployed people will be supported back into work. The doubling of the number of work coaches, the introduction of the lifetime skills guarantee to fund level 3 qualifications for all adults and the launch of kickstart to help 250,000 young people into jobs will provide a comprehensive framework for our future prosperity. I welcome the doubling of the incentive payment to SMEs to take on apprentices of any age to £3,000 and the £126 million to triple the number of traineeships next year. With excellent further education providers such as Hopwood Hall College and Rochdale Sixth Form College supporting my constituents, I am confident that they will be well placed to take up these opportunities.

It takes vision and courage to respond to a world crisis with optimism and ambition. The right hon. and learned Member for Holborn and St Pancras (Keir Starmer), the Leader of the Opposition, responded with nothing but doom, gloom and a comedy routine that was, ironically, the least funny bit of a pretty poor performance. Rubbishing freeports, deriding world-leading employment support and talking down the north—maybe it is just the way he tells them, Madam Deputy Speaker.

[Madam Deputy Speaker (Dame Eleanor Laing)]

Before we go to Sarah Jones, I should say that, after Sarah Jones, the time limit will be reduced to three minutes. But with four minutes, I call Sarah Jones.

[Sarah Jones (Croydon Central) (Lab) [V]]

Thank you, Madam Deputy Speaker. I would like to focus my brief remarks on how the Chancellor could deliver growth in south London.

Over many years, as house prices have risen in inner London, people have moved to outer London where house prices are marginally more affordable. Croydon exemplifies that shift. We love having new people, but we are now an outer-London borough with inner-London costs. As our demographics have shifted, so has the need to fund more social care, health services and education.

We have now reached the worrying situation where Croydon receives £200 less per person compared with some inner boroughs, even though it faces the same and in many cases higher levels of deprivation. Other boroughs often place looked-after children in Croydon. We have a high number of unaccompanied asylum seekers, whom we support. We have a lot of old people’s homes. We welcome them all, but we do not receive the funding to support them.

The first item on my list for the Chancellor is that we need a level playing field, so that we can tackle the challenges we face and give every area the same chance. Funding for local authorities must be rebalanced and we must be supported to deal with the additional costs other areas do not have. Of course, the chronic overall underfunding of local government must stop and we must have proper funding for our services.

Secondly, a quick look at major transport and capital investment shows that south London has actually missed out for decades. We know London is a wonderful area. West London has a well-established economy. North London has seen several recent infrastructure developments, such as the hugely successful King’s Cross development and the start of High Speed 2. The Olympics signalled a shift east for some of our economy on the back of the growth of the stadium, housing and businesses there.

What is south London’s equivalent investment? Many parts do not have the Tube, we do not have bike infrastructure and I cannot remember the last time the Government invested significantly in our transport system. I therefore ask the Chancellor to look at investing in our transport system. East Croydon station and the Windmill bridge outside it require major transformation to keep moving the hundreds of thousands of people who every day travel through East Croydon from the south coast to London. Of course, the number of people using the train has slowed during covid, but it will go back up again and that funding will have to be found, so I ask the Chancellor to do that. Perhaps he can also support our call to move Croydon to zone 4. That could be funded by the rail companies in the new bidding rounds. We need all kinds of infrastructure. Either we should have a Transport for London supported by the Chancellor, or he should give more powers to the Mayor of London so that we can do these things ourselves.

Thirdly, we have high streets that are really struggling. Westfield was due to come to Croydon and build the largest shopping centre in Europe, but because of the insecurities of the high street now, and the unfairness between the business rates paid by our physical businesses and those paid by our online businesses, that has not happened. The insecurity of Brexit did not help. So we need the Chancellor to speed up, review and reform the business rates system, so we can have a level playing field. We want to grow our high streets in Croydon and we will, but we need him to create the climate in which that can happen.

Fourthly, we have the very best, talented people in south London, particularly in Croydon, but Croydon College, a wonderful resource, has had its funding cut by a third. We have to invest in skills and education. Finally, small businesses are the backbone of Croydon and south London, and we need to do more and go further to support them as we build back after covid. It is time for south London to be invested in. I hope the Chancellor will support us.

[Madam Deputy Speaker (Dame Eleanor Laing)]

We will now try to go back to the hon. Member for Broadland (Jerome Mayhew). Sadly, he has to be audio only.

--- Later in debate ---

[Dean Russell (Watford) (Con)]

Just to be on the safe side, I will refer to my entry in the Register of Members’ Financial Interests. Nobody starts a business with anything other than a dream of what they want to achieve. Many leave a secure job to start a job in something that they adore, to start their own business and to grow it into something that may change their lives and those of many others over the years.

This past year, the pandemic has hit us in a way that has not so much dashed many of those dreams but paused them. The Budget has shown a deep understanding of how small businesses run, and the need to support them through furlough schemes and different initiatives that will enable them to restart and kickstart in the coming weeks and months and for the next few years so that those dreams become a reality.

One of the truths of the past few months has been the brilliant initiative of the kickstart scheme itself. I was very fortunate recently to have a Zoom meeting with Chris Luff and Saffron from our local Watford and West Herts chamber of commerce. They put me in front of a bunch of inspirational young people who are all part of a new kickstart scheme that they are running. They told me not just about the economics and the finances, and all the stuff that we like to talk about in this place, but their dreams, how it was changing their lives, and how it was giving them hope for their futures.

The Budget gives us the opportunity to look not just inward, but outward. I have seen the hope around education. During the past year, we have seen through such things as the Oak Academy the ability to use education to teach people not just the facts but how to inspire themselves to be better and to be different. One of the bits in the Budget that was not picked up on massively was the investment in infrastructure and skills—business skills and business leadership.

I am sure you will be too young, Madam Deputy Speaker, to remember the adverts that used to talk about teaching the world to sing, but I think that global Britain will be able simply to teach the world. Our ability to invest in business leadership, to invest in our young people and, as we have proven in the Budget, to deliver on that means that we can export those skills around the world. We can export leadership around the world, and I am really proud that we can look on yesterday as a way to look forward. The Prime Minister gave an excellent speech on the road map to recovery, but this Budget is not just for the next six months or the next year; this is a Budget for decades to come, and I back it wholeheartedly.

[Madam Deputy Speaker (Dame Eleanor Laing)]

I am afraid I do remember the adverts about teaching the world to sing.

--- Later in debate ---

[Douglas Ross (Moray) (Con)]

On a point of order, Madam Deputy Speaker. Earlier today, the International Trade Secretary announced that the UK Government and the US Administration have reached an agreement to suspend tariffs on UK products, including Scotch whisky and cashmere. Moray is home to more Scotch whisky distilleries than any other constituencies, and Johnstons of Elgin, which produces outstanding cashmere products. I wonder if there is a way I can put on record how well that decision and announcement have been received in Moray, in Scotland and across the UK, and ask whether the Government have made any representations to Mr Speaker to come to this House to explain what will be done over the next few weeks to get rid of those tariffs not just for four months, but completely.

[Madam Deputy Speaker (Dame Eleanor Laing)]

I can understand why the hon. Gentleman wishes to draw attention to his delight at that announcement and indeed to the great attributes of his constituency. I could tell that many Members showed enthusiasm and their fondness for the products of the distilleries he mentioned. Personally, I am much more of a fan—indeed, an enormous fan—of Johnstons of Elgin.

The hon. Gentleman asks how he might take the matter further here in the House. First of all, obviously, he has succeeded in drawing attention to it through his point of order, which, although not a point of order for the Chair, contained a question to which I can give him a very simple answer. The debate on the Budget continues, as the Whip has just announced, on Monday, and then on Tuesday. On Tuesday 9 March, the title of the debate is “Investment-led recovery and levelling up”. I expect that that debate will be led by the Secretary of State for Business, Energy and Industrial Strategy. That would be an appropriate time, if not for the hon. Gentleman then for some of his colleagues, to raise the matters he wishes to draw to the attention of a wider public.