Budget Resolutions and Economic Situation Debate
Full Debate: Read Full DebateFiona Bruce
Main Page: Fiona Bruce (Conservative - Congleton)Department Debates - View all Fiona Bruce's debates with the Department for Education
(8 years, 5 months ago)
Commons ChamberI rise to support the Budget statement, particularly for the support it gives to small businesses. Of the 4,000 businesses in my Congleton constituency, all but a handful are small and medium-sized enterprises, started up and sustained by hard-working individuals and their supportive families. It is right to champion the value of and encourage SMEs, which are the lifeblood of my local economy.
It is a truism, but it is well said that every big business started small. When Lord Digby Jones was head of the CBI he said that
“without businesses there are no taxes and without taxes there are no schools or hospitals.”
I am therefore delighted that the Chancellor is taking 600,000 small businesses across the country out of bearing the burden of any business rates at all, while another 250,000 firms receive a reduction in those rates. This will save small businesses £6.7 billion over the next five years, enabling them to take on more staff, invest and grow. I know it will be warmly welcomed in my constituency.
Welcome, too, are the new tax-free allowances of £1,000 a year for micro-entrepreneurs who trade goods or rent property online on a small scale. Positive, too, are reductions in capital gains tax, the reform of stamp duty on commercial premises to help small firms move to bigger premises and, for incorporated businesses, the substantial reduction in corporation tax to 17% in 2020—down from 28% in 2010. This means that we will have the lowest corporation tax in the G20, and it will benefit more than a million businesses.
For 3 million self-employed people, the cancellation of class 2 national insurance contributions is also welcome. Some may say, “Well, that’s only a saving of £2.80 a week”, but that fails to appreciate that many small businesses live on the margins, particularly in the early years, as I know from experience. My husband and I had to sell our home to keep our business going, and live above our offices with our first child, with the staff tea and coffee-making area being our kitchen.
My story is not unusual, and I mention it only because that is so and because I know that, just as Government support for small business matters, so does Government support for the families who stand behind the businesses. Stable families contribute to a stable economy. If we want small business to flourish, we need families to flourish, too. It is important to note that these are related: the one sustains and supports the other. I therefore greatly welcome the Government’s commitment to including family stability measures in their life chances strategy. However, just as family stability supports business, family breakdown has a negative impact on productivity. According to a survey conducted by Resolution, the family justice organisation, one in seven workers said that relationship breakdown had had a negative impact on their businesses’ productivity.
In his Budget statement, the Chancellor said:
“We as Conservatives understand that tax affects behaviour.”
I welcome that, and I therefore also welcome the tax on sugary drinks, which the Chancellor is introducing to incentivise healthy behaviour. He said many times that it was
“to help children’s health and wellbeing”,
and that this was
“a Government not afraid to put the next generation first.”—[Official Report, 16 March 2016; Vol. 607, c. 964.]
May I urge the Chancellor also to do what he can to encourage healthy family relationships for our next generation?
The marriage tax allowance that the Chancellor has introduced is still very low. Moreover, its aim is not, as has been claimed, to encourage people to get married and stay married, but simply to remove the disadvantages in the overall tax and benefit system that are incurred by women who look after their children at home. Will my hon. Friend say a word about the allowance, and about how we should upgrade it?
I will, and I thank my hon. Friend for raising the issue.
The Prime Minister said recently:
“Families are the best anti-poverty measure ever invented. They are a welfare, education and counselling system all wrapped up into one.”
I have heard that the cost to the national health service of treating child obesity has been estimated at £5 billion. By contrast, the cost of breakdown is £48 billion. Increased investment in relationship strengthening to help to prevent that would be money well spent. According to a survey carried out by the Department for Education, every pound invested in strengthening family relationships would save the Treasury £11.50. I believe that spending on creating healthy relationships for the next generation is as valid as promoting that generation’s physical health and wellbeing. Few Members can disagree with the principle that such early intervention is key if a child’s life chances are to be maximised, or with the principle that maximum support should be given to children in the areas of greatest need.
Let me end by making a few practical suggestions. The Chancellor would do well to think again about the transferable tax allowance for married couples. He should consider refocusing it on the families with the youngest children. That would be an exponential investment, as the highest rate of family breakdown occurs in families with children under three. By focusing the scheme on couples with low incomes and children under five, and doubling the amount receivable to about £9 a week, the Treasury could offer more substantial support for some of the country’s lowest earners and neediest families, and could do so at no extra cost, because there is an underspend in the money already allocated for the purpose in a previous Budget. A further nuance would be to target for greater take-up those living in the 100 housing estates that the Prime Minister identified for regeneration, and those living in the 100 local government wards with the highest levels of family breakdown.
Perhaps the Chancellor could also consider using any remaining underspend to strengthen parenting and relationship support. A practical suggestion from the Centre for Social Justice is the provision of an online one-stop shop to give families information about local relationship support.
Strengthening families by supporting healthy relationships should be an aspiration for the Government. Reversing family breakdown and building strong and stable family life as a foundation block of a healthy society must be our ambition. That would really put the next generation first, and it also makes sound economic sense. If we want our productivity to flourish, families must do so as well.