Jesse Norman debates involving the Department for Business, Energy and Industrial Strategy during the 2019 Parliament

Budget Resolutions

Jesse Norman Excerpts
Thursday 12th March 2020

(4 years ago)

Commons Chamber
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Jesse Norman Portrait The Financial Secretary to the Treasury (Jesse Norman)
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Madam Deputy Speaker, or may I say Chairman of Ways and Means? What a delight it is to see you in the Chair. It is an epochal moment—the beginning of a new decade, a new Government and a new Chairman of Ways and Means. How delightful is that.

I very much support what the hon. Member for Salford and Eccles (Rebecca Long Bailey) said about the quality of the maiden speeches in this debate. We have greatly enjoyed them. I was struck by the crazy golf. I was struck by the Amber seaside express, but what came through all the speeches—not just that from my hon. Friend the Member for Hastings and Rye (Sally-Ann Hart) but also those from my hon. Friends the Members for Warrington South (Andy Carter) and for Leigh (James Grundy)—was the tremendous sense of pride that they exhibited. They had pride in their community, pride in their history and pride in their own achievements in coming to this House. They also, I thought, showed a wonderful fair-mindedness about predecessors of both political parties and I very much associate myself with that spirit. I congratulate them on that.

I salute the men and women of the Treasury and HMRC who made this Budget possible. In fact, they did not just make one Budget possible; they made two Budgets possible, including the one that never got delivered. Their expertise, dedication, good humour and sheer hard work is something that I think everyone in this House should be aware of and thank them for.

I also pay tribute to my fellow Ministers for their contributions to the Budget and pay tribute especially to the Chancellor. A new Budget from nothing in weeks; a vast array of measures, including measures not taken up. A fully integrated cross-Government response to a national crisis of coronavirus, but which also lays the foundations for decades of higher investment in infrastructure. That, to me, speaks of a parliamentarian of enormous ability, mastery of detail, warmth and humanity, for which I salute him. A new Budget, leadership on coronavirus and new energy and direction on infrastructure—I hope my colleagues will agree that he got them done.

This Budget has been well received and well supported by many groups across the business sector. Today’s debate has been on business and innovation, and it is good to see the CBI acclaim it as

“a bold Budget at scale…which will help people and business through tough times.”

The Federation of Small Businesses calls it an

“excellent pro-small business budget”.

And the British Chambers of Commerce says:

“Much to welcome for UK business communities”.

How important is that?

I am particularly pleased that Make UK, or the Engineering Employers Federation as it used to be known, says:

“Today’s measures to boost R&D will be applauded by industry and will help the UK lead in the technologies”—

including, of course, the green technologies—

“of the future.”

The shadow Chancellor began his remarks by saying this is not a time for partisan politics and, of course, I agree. I was therefore slightly surprised when his first move was to descend into partisan politics, and I am sad that the shadow Business Secretary has done the same.

I am struck that one particular measure in the Budget has not received the attention that it perhaps should have done. Paragraph 2.77 on page 76 addresses the support we are giving to assist in opening up and reviewing private finance initiative projects across the public sector. We know that PFI has been a disaster for this country, and it was overwhelmingly initiated and carried out by the Labour party in the hospital sector. The idea that the NHS, in which virtually every PFI project was conceived and executed under a Labour Government, should be a topic of the Labour party’s criticism is astonishing. [Interruption.] I welcome you to the Chair, Mr Deputy Speaker.

PFI costs this country £10 billion a year, and any steps we can take to remove that burden on current expenditure—[Interruption.] I am sorry but, as I understand it, the shadow Business Secretary was intimately involved in PFI. I wonder whether, in her seven years in that area, she looked at the PFI project in Hereford, on which I had to run a process that saved £5 million for the taxpayer and greatly improved the delivery of hospital care to my constituents.

The fact of the matter is that this Government and their predecessors have had to deal with the terrible crisis of 2008, even now, and I remind the House that the tragedy—[Interruption.] Those are desperate attempts by the Opposition Front Bench to put me off.

The fact of the matter is that the banking sector in this country was at 20 times its capital leverage in 1960, at 20 times its capital leverage in 1970, at 20 times its capital leverage in 1980, at 20 times its capital leverage in 1990 and at 20 times its capital leverage in 2000. Between 2000 and 2007, that 20 times went up to 50 times—pin seven years. No further explanation need be given for why, when the crisis struck, it had a catastrophic effect, an effect that we are still seeking to remedy.

The United Kingdom has entered a new decade and a new era in which our prosperity as a nation will be shaped by the dynamism of our economy, the ingenuity of our entrepreneurs and the success of British businesses of all kinds. Yesterday’s Budget is emblematic of the sense of purpose and energy that defines this Government as we seek to chart a bold new path for this country in the global economy to ensure that we remain a competitive place to do business; that we deliver the infrastructure and investment necessary to spread jobs, growth and opportunity across this country; and that we build on our historical strengths, referenced on many occasions in this debate, in science, technology and innovation to position ourselves at the forefront of the industries of the future. Thanks to the decisions we have made, we are building on firm foundations. We have kept corporation tax at 19%, the lowest in the G20, so that businesses have more freedom to invest in their own priorities. We have cut business rates—referenced in speeches on several occasions and rightly so—for more than half a million of the smallest firms, which pay nothing at all a result.

We are delivering £20 billion of patient capital action—

Alison Thewliss Portrait Alison Thewliss
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Will the Minister give way?

Jesse Norman Portrait Jesse Norman
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There have been so many interventions and I simply cannot cover all the speeches if I take an intervention now. I know that the hon. Lady will excuse me. We gave the party opposite the chance to intervene.

We are delivering a £20 billion patient capital action plan to unlock private financing in high-growth innovative companies, and we have established a regulatory system that strikes the balance between responsibility and opportunity to allow us to embrace the most exciting ideas in technology.

Let me touch on many of the important speeches that have been made today. The hon. Member for Glasgow Central (Alison Thewliss) raised the question of Barnett consequentials and, if she looks at page 49 of the Red Book, she will find them in paragraph 1.159.

The right hon. Member for Wolverhampton South East (Mr McFadden) raised the question of human capital. I know that he will be thrilled that we have a £2.5 billion skills fund—

Alison Thewliss Portrait Alison Thewliss
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Will the Minister give way?

Jesse Norman Portrait Jesse Norman
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I will not give way, for the reasons I have already described. I can continue to waste the hon. Lady’s time and the House’s time responding to these interventions, but we need to press on.

I am sure that the right hon. Member for Wolverhampton South East will also enjoy the investment we have made in further education colleges—more than £1.5 billion for further education capex over the next few years.

The hon. Member for Kingston upon Hull North (Dame Diana Johnson) asked where the revenue from the tampon tax would go. The tampon tax fund supports women’s charities, as she knows, and I am happy to tell her that the revenue will go to that. The competition for the next round of funds will be launched by the Department for Digital, Culture, Media and Sport shortly for the 2019-20 VAT receipts.

My right hon. Friend the Member for South Holland and The Deepings (Sir John Hayes) rightly stressed the importance of long-term investment and as little bureaucracy as possible in making capital investment, and how right he was.

My hon. Friend the Member for Tonbridge and Malling (Tom Tugendhat) asked us to reach for wartime analogies in fighting coronavirus. He will have seen that the Chancellor made it perfectly clear that we are prepared to do whatever it takes to assist the British people in dealing with this temporary crisis. We will continue to do that.

The hon. Member for Makerfield (Yvonne Fovargue) asked about free debt advice. I think she knows that the Government are investing an initial £12.5 million in HMRC in 2020-21 to begin implementing the breathing space initiative. Those in problem debt will be able to get 60 days’ breathing space, including from HMRC, while they engage with debt advice, and I think that is a very important contribution.

What a delight it is to see my hon. Friend the Member for North East Bedfordshire (Richard Fuller) back in this Chamber. He rightly celebrates the small business focus of the Budget and asks us to consider business rates in relation to nurseries, and other petitions have been made in relation to that, including by my hon. Friend the Member for Arundel and South Downs (Andrew Griffith). Let me remind my hon. Friend the Member for North East Bedfordshire that most nurseries will pay no rates if their rateable value is under £12,000 because of the small business rate relief. They will now also get a £3,000 coronavirus cash grant, of course, if they are in receipt of small business rate relief. There should be some bounce already in there, but of course we continue to reflect on business rates. We have a business rates review coming up, and he and my hon. Friend the Member for Arundel and South Downs would be welcome to contribute to that.

The hon. Member for Rutherglen and Hamilton West (Margaret Ferrier) raised the question of red diesel. As she will know, there is a consultation associated with the changes we are making and she is welcome to support it and to make a petition to it if she wishes.

The hon. Member for Birmingham, Selly Oak (Steve McCabe) raised a range of questions, some of which I have already touched on, such as business rates. He asked whether we would be monitoring the impact of the reduction in entrepreneurs’ relief. Let me tell him that of course we will. The problem with entrepreneurs’ relief is that it is not very well targeted on entrepreneurship. We wish to support entrepreneurship, small business growth and rapid innovation and that is what we are seeking to do.

The hon. Member for Richmond Park (Sarah Olney) raised the question of green packages and rightly stressed the tough choices involved in a Budget. Let me refer her to the national infrastructure strategy. We already have a green package in this Budget. It is quite wide-ranging, but we intend to do more on it. What will not be true of us is what was true of Lord Prescott when he was in this place, when he said, “The Labour party supports the green belt and we intend to build on it.” We will not be doing that.

My hon. Friend the Member for Hitchin and Harpenden (Bim Afolami) raised the question of the “Winds of Change” and gave us a historical dimension. I celebrate that, and I celebrate Lord Hennessy in his wisdom, because he is truly an ornament to the House of Lords.

Let me close by saying that this is a Budget for this country as a whole. It will make our economy and our country stronger still.