Budget Resolutions and Economic Situation
Debate between Huw Merriman and Harry Harpham
Huw Merriman
Indeed. I was therefore delighted that the Chancellor may perhaps have watched my speech on the television, and I certainly welcome his commitment to reduce corporation tax to 19% in 2017, and to 18% in 2020. With that cut in corporation tax and the increase of the employment allowance to £3,000, funding should be in place to ensure that the new living wage of £7.20 in 2016 and £9 by 2020 will not penalise employers—a vital requirement if we are to continue to encourage employers to expand and create more new jobs.
Let me highlight three further measures that I believe will help my constituents in Bexhill and Battle, due to its demographics. First, we have an ageing population and the increase in the inheritance tax threshold to £1 million will be welcomed by those who have worked hard and want to leave a legacy to their children. Secondly, my constituency contains a number of small businesses and a farming industry, and my constituents will welcome the proposal to keep the annual investment allowance at £200,000 per annum. Thirdly, my constituents regularly let me know that they are concerned about the UK potentially not meeting its commitments to NATO’s 2% spending pledge. My postbag will be all the lighter for the Government maintaining that commitment.
As with any Budget, there is a balance to be struck and the measures must be reviewed to assess impact. I am passionate about building new houses for constituents, particularly at an affordable level. Reducing housing rent by 1% at a time when we are rightly promoting the right to buy for housing association tenants must not cause house building to slow down in that sector due to the inability to tap markets for finance. This Government built more council houses in five years than the Opposition did in 13.
Harry Harpham (Sheffield, Brightside and Hillsborough) (Lab)
The hon. Gentleman mentioned affordable housing. Is he aware that the Office for Budget Responsibility forecasts that a 1% reduction in rent will lead to 40,000 fewer affordable homes being built over that period? Does he think that his constituents will welcome that?
Huw Merriman
That brings me to a point raised by the hon. Member for Eltham (Clive Efford). The Government aim to encourage people to buy their social housing. Once they do that, resources will be freed up to build more housing stock. It will also cause house prices to come down, making it easier for all to rent and buy, so, no, I do not agree with that statistic.
I am passionate about giving those from disadvantaged backgrounds the opportunity of a university education. This Government have delivered more students from disadvantaged backgrounds than ever before, and I hope that those from poorer backgrounds are not put off going to university following the announcement that the student maintenance grant will be replaced by a loan. They should not be put off; it is the best investment that a student will ever make, as I know to my benefit.
In conclusion, I wholeheartedly commend this Budget. It rolls back the state and rewards those who make brave decisions and work hard. It maintains our commitment to look after those who cannot look after themselves, and it encourages those who can look after themselves to do so. In bringing them the path to work and prosperity, I believe that this Government will help my constituents and those of all Members.