Budget Resolutions

Helen Whately Excerpts

Monday 1st November 2021 Commons Chamber

[The Exchequer Secretary to the Treasury (Helen Whately)]

It is a pleasure to close this debate. I thank the many right hon. and hon. Members who have spoken today for their speeches. The number who have spoken and the passion of their speeches demonstrates just how much we want levelling up, in this Chamber and in the constituencies that we represent.

Levelling up is the defining mission of this Government and it is a golden thread running through this Budget and this spending review. We believe that the place where a person grows up should never dictate their prospects, yet, as the Chancellor said last week, for too long, the location of people’s birth has determined too much of their future. Right now, communities throughout the country are held back by disparities in health, education and jobs.

Levelling up is about no longer accepting the consequences of a skewed economy, no longer accepting lower expectations, no longer accepting limited life chances, and no longer accepting that each new generation must choose between their family and their future, forced to travel to far-flung cities like modern-day Dick Whittingtons in search of opportunity. Levelling up is a new and optimistic future for the whole country—a future where a person’s hard work determines their success no matter whether they live in Burnley or Bromley. It is a future where there is a chance to succeed in your education, to follow your dreams and to achieve your ambitions wherever you live.

What does that mean in practice and how are we going to do it? First, we are investing in people across this country so that they have the skills they need to seize opportunities. We will start at birth and in childhood, with an extra £500 million investment, recognising the importance of the first 1,001 days of a child’s life, continuing through school and into adulthood with £3.8 billion extra spending on adult skills, welcomed I know by my hon. Friend the Member for Waveney (Peter Aldous) among others.

We are investing in places and in the infrastructure that connects them. We are investing £130 billion in infrastructure, including £21 billion in roads and £46 billion in railways. I was delighted this afternoon to hear colleagues welcoming our investment in roads, rail, buses and broadband across the country. May I congratulate many of those who have secured investment in the first round of the £4.8 billion levelling-up fund, including my hon. Friends the Members for Stoke-on-Trent South (Jack Brereton), for Stoke-on-Trent Central (Jo Gideon), for St Ives (Derek Thomas), and for Tiverton and Honiton (Neil Parish). I should also mention my hon. Friend the Member for Stoke-on-Trent North (Jonathan Gullis) who not only argued for more of the pie, but who probably got the highest word count per minute achieved in this Chamber this afternoon—a position that was hotly contested.

[Stephanie Peacock]

A quarter of kids are growing up in poverty in Barnsley yet both of our applications for the levelling-up fund were rejected, Can the Minister tell us why that is? If this Government are so committed to levelling up, why is the Secretary of State for levelling up not in his place?

[Helen Whately]

I am sure that the hon. Lady well knows, having followed this debate and recent conversations about the Budget, that constituencies and Members on the Conservative Benches and on the Opposition Benches have received funding from the levelling-up fund, including Members of the Opposition Front Bench. I encourage the hon. Lady’s constituency to bid in future rounds of the levelling-up fund. So far—[Interruption.] If she would please listen to what I am saying rather than continuing to shout at me. She asked me a question and I am responding. It is important to her constituency that she listens. Her constituency is clearly seeking levelling-up funds. I would be delighted if it received them. It will have the opportunity to bid for further funding in future rounds, along with other Members and constituencies that have expressed an interest in doing so.

Across the UK, we are creating the conditions for businesses to invest and flourish, because businesses create jobs and drive the growth that will see people’s living standards going up. This was an argument that was made skilfully by my hon. Friend the Member for Bosworth (Dr Evans) among others. Hence, we have a £1.4 billion global Britain investment fund and £1.6 billion additional funding for the British Business Bank’s regional funds.

As we pursue levelling up, we are empowering local leaders to shape and drive the transformation in their communities—local leaders who know best what their communities need. That was a point made by my hon. Friend the Member for Henley (John Howell) among others and exemplified by the £5.7 billion five-year consolidated transport settlements for the eight city regions.



During today’s debate, I heard several colleagues make comments such as “Don’t forget about the south”, from my hon. Friend the Member for Southampton, Itchen (Royston Smith); “Don’t forget about London”, from my hon. Friend the Member for Wimbledon (Stephen Hammond); and “Don’t forget Suffolk and Norfolk”, from my hon. Friend the Member for Waveney (Peter Aldous). I also heard, “There’s not enough money for the north.” I assure hon. Members across the House that levelling up will happen across the UK, in all regions and nations of the United Kingdom.

[David Linden]

One wonders why the Government need to level up after 11 years in power, but that is perhaps a damning indictment of their record in office. The Minister talks so much about levelling up and a level playing field, so why is it that English sparkling wine gets a tax cut in the Budget, but Scotch whisky only gets a duty freeze?

[Helen Whately]

I am delighted to pick up on the hon. Member’s comments. I am surprised that he did not welcome the level of funding—the highest ever block grant—that Scotland is receiving as part of the Budget and spending review. We are making much-needed reforms to the alcohol duty system, which has been recognised by many commentators over the years as dysfunctional and in the interests of neither public health, nor our economy. We are now moving to a fairer system that taxes more alcoholic drinks at a higher level. This is also fair to whisky. The hon. Member for Glenrothes (Peter Grant) called for whisky and wine to have the same duty rate by unit of alcohol. That is exactly what we are proposing in the reforms that will be introduced in 2023, because we recognise the importance of many parts of the sector—whether it is beer, cider, English and Welsh sparkling wine, or whisky—to the UK economy.

We are ensuring that regions that have historically received less investment are no longer overlooked. For example, some £500 million of the £1.7 billion of the first round of the levelling up fund will indeed go to the north of England, but there are examples of levelling up fund investment all around the country.

[Mr Betts]

Will the Minister give way?

[Helen Whately]

I will make a bit more progress.

I heard some Opposition Members say that rich people are not paying in enough. Well, I ask them to look at the Government’s distribution analysis and the analysis of the Resolution Foundation. These analyses say that the Government’s policies boost incomes for those on the lowest incomes, while those with the broadest shoulders—the better off—are the ones who will be paying the most. I also ask Opposition Members to acknowledge, as so many Government Members did, how both the increase to the national living wage by 6.6% and the changes to the universal credit taper rate will help millions of households on the lowest incomes. For example, a single parent of two children who works full-time will be £1,200 better off next year thanks to these changes.

[Liam Byrne]

I only intervene because I am sure that the Minister does not want to lead the House astray. The Resolution Foundation is very clear in its analysis that three quarters of the 4.4 million people on universal credit will be negatively affected and the bottom fifth of people will be £280 a year worse off as a result of the £20 uplift being stripped away. I am sure that she would want the record to reflect that.

[Helen Whately]

I stand by what I said: the Government’s distribution analysis and the Resolution Foundation analysis say that this Budget and spending review boost the incomes of those on the lowest incomes, and that those who are better off are paying in the most. The crucial point about the changes to the taper rate for universal credit is that it is about ensuring that people keep more of what they earn, and get the benefits and rewards of their hard work. The effect that it has is a tax cut for those on the lowest incomes.

There were times when I wondered whether Opposition Members were scrutinising the same Budget as Government Members. At many points, it felt as though they had missed the point. It was clear that the Opposition have no alternative plan. It was not clear whether they felt that we were spending too much or too little; what they would cut; what they would change; or where they would raise funds from. We on the Conservative Benches know that we are making the hard, responsible decisions, and setting ourselves up for the future.

I come to a serious point I want to make. Colleagues rightly pointed out that public spending is relatively high, and I share colleagues’ concerns about the size of the state at the moment. In fact, the Chancellor himself spoke about this last week. We on the Conservative Benches know that government should have limits. We want people to keep more of the rewards of their efforts, and we have said that, by the end of this Parliament, we want taxes to be going up, rather than down.

[Mr Betts]

The Minister referred to a plan. Will she explain where I can find a copy of the Government’s plan for levelling up?

[Helen Whately]

I would like to quickly correct the record. My apologies: I wanted to say that, by the end of this Parliament, we on the Conservative Benches want taxes to be going down. [Hon. Members: “Hear, hear!”] I thank my hon. Friends for their support.

[Several hon. Members rose—]

[Helen Whately]

I would like to sum up. In this Budget and spending review, we are seizing the moment to end historical disparities in education, health and employment opportunities, so that in the years ahead, more people throughout this United Kingdom will have the opportunity to live healthier, happier lives, and to fulfil their hopes, dreams and ambitions, wherever they live in the country.

[Mr Deputy Speaker (Mr Nigel Evans)]

Before the Whip moves the motion to adjourn the debate, may I say that there were 65 contributions from Back Benchers today? That has to be some sort of record for a Budget resolutions debate. I congratulate each and every one of you on your contribution.

Ordered, That the debate be now adjourned.—(Mrs Wheeler.)

Debate to be resumed tomorrow.