Budget Resolutions and Economic Situation

Jackie Doyle-Price Excerpts

Wednesday 18th March 2015 Commons Chamber

[Jackie Doyle-Price (Thurrock) (Con)]

The hon. Member for Taunton Deane (Mr Browne) is no longer in his place, but I cannot speak without referring to his parting comments, which were characteristically wise. We would all do well to remember his observation that it is our job in this place to inspire, to bring out ideas, to bring beliefs and to bring ambition. It is not the job of people in this place just to do what is politically expedient. We should always strive to do what is right and everyone in this House would do well to reflect on that observation.

I want to share with the House the experience of my constituents in Thurrock over the past five years. It is true that the future for Thurrock is looking much brighter than it did five years ago when I was first elected. Unemployment is falling and has fallen by two thirds in that period. We have more people in work than ever before, and new jobs are being created. The port of Tilbury, which is the primary business in the constituency, is expanding with a new distribution park, and at Purfleet, at my ferry port, three ships a day are exporting cars to Europe—an indication of the renaissance in car manufacturing over the past five years. Our young people also have access to many more opportunities through apprenticeships.

The Government can be very proud of the conditions they have created in Thurrock to enable growth against the odds. We need to make it easy for businesses to expand and grow and create jobs and we can do that by getting out of their way and by having a competitive tax system.

Infrastructure is important in facilitating growth, and I thank the Government for the introduction of free-flow tolling at the Dartford crossing and for the improvements to the A13 and to junction 30 of the M25, despite the fiscal challenges that we face. All those improvements are getting the traffic moving and enabling the creation of more jobs and growth—so a big thank you to the coalition Government for everything they have done for Thurrock.

I thank the Chancellor for what he has done in the Budget today to reduce the tax burden on working people. Lower taxes are in my DNA as a Conservative. I believe that we should all strive to ensure that people keep as much of their earnings as possible. By doing so, we reward them for their hard work and efforts and give them every incentive to succeed. For low-paid workers, the impact of benefit reduction combined with taxation kicking in can mean that they are effectively working for nothing. There can be no greater disincentive to join the world of work than that, and we cannot blame people for making a rational economic choice in those circumstances. The morally bankrupt thing for the Government to do would be to leave that be, but by putting an emphasis on increasing the personal allowance we have taken millions of people—the very people who can least afford to pay it—out of income tax altogether. We can be proud of that.

I encourage the Chancellor to continue with that policy and I hope that, when the Conservatives are returned with a majority, he will strive to make the living wage the point at which income tax kicks in. I also commend the Chancellor for increasing the allowance for those on higher rate taxes, because the previous rate has not been hitting the most well off. It is important that people who work hard and do the right thing are reassured that the Government are on their side and want them to keep as much of what they earn as possible.

I welcome the fact that the Chancellor has frozen the duty on wine and reduced the duty on spirits, but I want to make an observation about tobacco taxation. The duty on cigarettes is due to go up by 2% plus RPI later this afternoon. A week after the House voted to introduce standardised packaging for cigarettes, I would like to put the Exchequer on notice that it will take a big hit as a result of that measure. I represent a number of ports in my constituency, and I have seen at first hand the challenge that Border Force, HMRC and the port security authorities face in tackling the growing menace of tobacco smuggling. It is estimated that about a third of the cigarettes sold in the London area are contraband, in one way or another. Anyone who visits a car boot sale or market will be able to buy contraband cigarettes for a couple of pounds a packet.

As we move towards a standardised packaging regime in which much of the price of the product will be accounted for by taxation, I am afraid that we will have created a massive opportunity for organised criminal activity. I ask the Treasury to bear that in mind, and I hope that the proposed legal action in relation to standardised packaging does not cost the Exchequer even more billions of pounds. Whatever the good intentions behind the measure, I fear the consequences for the Exchequer. That lost revenue will of course have to be recovered from elsewhere. Apart from that, I wholeheartedly welcome the Budget. Let us continue the good progress that we have made into the next Parliament.