Budget Resolutions and Economic Situation

Jake Berry Excerpts

Wednesday 8th July 2015 Commons Chamber

[Huw Merriman]

I thank my hon. Friend for making that point. It applies to my constituency, too, which is just further south than his.

It has to be right that those who work should not feel disadvantaged and as though there is no incentive to work. The cap of £26,000 has been a great success. Indeed, the Labour party has adopted that policy, too.

I support the withdrawal of housing benefit from 18 to 21-year-olds. It cannot be right that people of that age who are in work are required to save up for a home of their own or to pay rent, whereas those who are not in work are able to move out and reside in housing that is paid for by the state.

In pledging to deliver a balanced economy that will permit the creation of a further 1 million jobs, I believe that we can help the 613 jobseekers in my constituency to find work and give them a fairer future than the downward spiral that benefits and welfare inevitably bring.

The second area is productivity. I welcome the Chancellor’s commitment to improve Britain’s productivity, particularly his recognition that investing in transport infrastructure will help towards that end. Bexhill and Battle has poor transport connections to London and beyond. Trains from Bexhill take almost two hours and spend more time going backwards or on pause than moving forward.

The Chancellor has brought the news that the Government will support a new high-speed rail service that could take my constituents from Bexhill to London in 78 minutes. Indeed, I noticed a typo on page 79 of the Budget report, where it speaks of the line going just to Hastings and Rye. I hope the author will ensure that that says Bexhill as well, which is planned to be on the route. The new rail link will help us attract new employers to the constituency.

Thanks to the Government, a new link road is being built from Bexhill to Hastings, which will deliver thousands of houses, a 42-acre business park and a country park, all of which will attract high-skilled jobs and boost our economic regeneration and productivity.

In addition—this is still linked to productivity—I welcome the commitment to freeze fuel duty for a further year. In a rural constituency such as the one I represent, a saving of £10 a tank will continue to remain a huge boost. I welcome the commitment to road building and the improvements via the new vehicle excise duty that—when it is introduced—will ring-fence motoring taxes for roads. I would be delighted if the Chancellor wished to spend some of that money on dualling the A21. The productivity gains from new roads, rail, housing and jobs will be immense in my constituency, and I welcome Government spending in that sphere.

My third point is about making work pay. Increasing the tax allowance will take more than 800 of my constituents out of the tax system altogether in 2016. A further 50,000 of my 80,000 electors will benefit from having their tax allowances increased. Those changes show that the reward for those who work and move off benefits will be given to the worker, not taken back by the Government and merely recycled or wasted. To that end, I spoke yesterday in this House, and in urging a reform of tax credits and encouraging employers to pay their staff more, I suggested that

“there is a case for the Government sharing the cost of this reduction with employers…with some of the savings being recycled as further corporation tax…reductions.”—[Official Report, 7 July 2015; Vol. 598, c. 274.]

[Jake Berry (Rossendale and Darwen) (Con)]

You got in the Budget!

[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.