Budget Resolutions and Economic Situation

Greg Smith Excerpts

Monday 8th March 2021 Commons Chamber

[Greg Smith (Buckingham) (Con)]

I rise to speak in support of the Budget, which is a trifold balancing act in respect of continuing covid support, stimulus for recovery and fixing the public finances.

Faced with £335 billion in borrowing from the covid support schemes, the Chancellor has a difficult task, but I can help him immediately with in excess of £100 billion of that: I would not be true to myself or my constituents if I did not urge him once more to cancel HS2, a project that had a flimsy business case to start with that has now been blown apart by projections that rail demand is down for the long term.

Critically, we need stimulus for growth. The capital gains tax increases are uncomfortable, but I very much trust that the Treasury modelling will show the new rates to be on the right side of the Laffer curve. Fundamentally, the Budget has many measures that will stimulate growth. I particularly welcome the super deduction measures to unlock investments; fuel duty freezes for families and businesses alike; the restart grants, along with the extension of the 5% VAT rate, to give retail, hospitality and others a fighting chance; frozen alcohol duties; freeports and Help to Grow; and the extension of furlough and the self-employment grants, to give businesses, particularly those with long lead times for new contracts, certainty as they plan ahead.

It remains a mystery to me why some of those who are self-employed and earn more than £50,000 and owner-directors of limited companies who pay themselves through dividends have not enjoyed the same support as those on furlough or the SEISS. Such micro and small businesses, many in the creative, cultural, tourism, events and hospitality sectors—entrepreneurs to the core—are essential to our recovery. We must find a fiscal way to get them to the other side of this crisis. I am proud that my local council, Buckinghamshire Council, has been able to support many such businesses through the additional restrictions grants, but I have heard, with enormous sadness, of far too many businesses in my constituency simply giving up.

I particularly urge the Treasury to look once more at a sector I have spoken about before: the coach industry. One firm in my constituency is shouldering over £30,000 a month in losses, serving debts that have been caused because the state has asked it to meet PSVAR and Euro 6 standards. More debt simply cannot be the answer for such firms.

To conclude, this is a very strong Budget, a Budget that is honest about the level of national borrowing, but which understands that the path to recovery must come from growth. If we can close the gaps and open up as soon as possible, this Budget will stand us in good stead for growth and prosperity.