Oral Answers to Questions

John Stevenson Excerpts

Tuesday 11th September 2012 Commons Chamber

[Sajid Javid]

The Government’s policies, including those of the Treasury, are helping women. The change I mentioned previously—to the personal tax credits—will take 1.1 million people out of income taxation altogether, which will disproportionately benefit women.

[John Stevenson (Carlisle) (Con)]

14. What assessment he has made of the effect on the cost of living of the increase in the personal allowance.

[The Chief Secretary to the Treasury (Danny Alexander)]

In this year’s Budget, we announced a £1,100 increase in the personal allowance for 2013-14—the largest ever cash increase. The combined increases that the coalition has announced will reduce the tax paid by a typical basic rate taxpayer next year by £350 in real terms and £546 in cash terms.

[John Stevenson]

Given that the policy of significantly increasing the personal allowance has been hugely successful, would the Chief Secretary agree that the long-term goal should be to link the personal allowance with the minimum wage, thereby ensuring that anybody on the minimum wage does not pay income tax?

[Danny Alexander]

I am grateful for my hon. Friend’s endorsement of the policy. The coalition Government have committed to increasing the personal allowance to £10,000—a policy that was on the front page of the Liberal Democrat election manifesto—but I agree that the long-term objective, which I and my party share, should be to link the personal allowance to the minimum wage. However, a considerable cost would be attached to that.

Community Banks

John Stevenson Excerpts

Tuesday 10th July 2012 Westminster Hall

[Guy Opperman (Hexham) (Con)]

The case for local community banking and the break-up of the Royal Bank of Scotland to create a series of local banks has never been stronger. Since the global financial crash, the merits of a vibrant system of local banks have become apparent; it is the issue of our time. We need to look at finding new ways to unlock the finance that households and small businesses need. We need new local banks that will promote competition, reinvigorate community lending, improve the finances of small and medium-sized enterprises, and encourage local saving. They would work on the principle of using local credit to support manufacturing and start-ups, and they would not leave the disadvantaged at the mercy of loan sharks and money changers.

Local banking works. We should bear it in mind that 70% of German lending to SMEs is via local banks. And we wonder why the German economy is doing better than ours. The experience of other countries that have a thriving local banking sector—countries such as Germany, the US and Switzerland—has demonstrated that smaller, locally focused institutions are the ones that provide economic resilience. Studies of the humble German savings banks—or Sparkassen, as they are called—which form a network of 430 independent but mutually supporting local institutions, show that they have made modest but steady profits through both boom and recession. By comparison, the mighty Deutsche Bank has plunged from huge profits to calamitous losses.

In this country, we have a missing tier of banking. Let us consider the period between December 2007 and December 2011, which saw a sharp decrease in lending by the large commercial banks in Europe. In that period in Germany, large commercial bank lending fell by 18%; in Switzerland, it fell by 34%; and in the UK, it fell by 17%. During the same period, however, lending by local savings banks rose; the German savings banks saw lending rise by 18% and the Swiss cantonal banks saw lending rise by 22%. But in the same period the UK saw neither a rise nor a fall in lending.

[John Stevenson (Carlisle) (Con)]

I am grateful to my hon. Friend for giving way and indeed for securing this very important debate. Does he agree that what we need in the UK is a two-tier banking system? We need the large banks nationally, but we also need—as he is suggesting—smaller banks operating at a local level. Having a two-tier system would be beneficial to our economy overall.

[Guy Opperman]

I completely agree with my hon. Friend and I entirely applaud the Government’s approach—by way of the Vickers report—to addressing the problems with the larger banks. Everyone can see that there is a fundamental problem with large banks and their failure to lend. The fact is that they are almost operating as a monopoly; the largest six banks run the show completely.

The other end of the telescope and the other end of the problem is the lack of local banking. My hon. Friend talks about a two-tier banking system and I agree that, instead of having a single monolithic and almost monopolistic banking structure in which only the five or six big banks lend money, we need the larger banks—of course—but we also need the smaller banks operating at a local level.

Quite frankly, we have lacked that system in this country. Ever since the 1930s, approximately, the banks and building societies in the UK have become ever larger as some of them have been swallowed up by their neighbours and by their more predatory rivals. Consequently, we have gone from having a large variety of banks and building societies to having fewer and fewer banks and other organisations working in the banking community. Of course, that has the effect of reducing competition, reducing the ability for a new entrant to gain access to the market and reducing the ability of businesses to gain access to credit.

I must stress at the outset of my speech that the present crisis in banking and in bank lending is not in any way the fault of local branch staff. I assure the House that those staff are just as frustrated as I am at their inability to run accounts as they used to in the old days. I come to this particular debate with a background in business and with two years of experience as a constituency MP in Northumberland, where I have repeatedly seen decisions on lending being made by a Hexham bank manager, or another local Northumberland bank manager. Those decisions then become part of the responsibility of the credit risk team whenever there is any difficulty with the account.

If an individual SME has a problem with its account, such as a bad debt or a problem with cash flow, it is almost impossible for it to go back to the same manager and argue the case that it is a viable, proper business going forward. That is because the decision-making process has been taken away from the individual local bank manager in Hexham, Ponteland or wherever. What happens now is that the decision is not even taken in Newcastle or anywhere else in the north-east but by a credit risk team that is many miles away. I have attempted to go to those credit risk teams to make a case, but of course it is almost impossible to do so. That system must change. Again, I make it clear that what I am saying today is not a criticism of local bank staff who are working throughout the country. It is a criticism of the board members in London, who seem to have totally forgotten their fundamental role.

I was interested to see that the Leader of the Opposition has commented on banking in the last few days. Like the Church, we always welcome new converts, given the past record. However, the necessary reform of the banks is being left to this Government, as we bring the banks to heel with the Vickers report, clear up the LIBOR mess and implement a much stronger system than the light-touch regulation that we saw before.

Change will not happen without competition. Yesterday the Leader of the Opposition was extolling the need to create more competition for our banks. However, on 23 April in the Financial Services Bill Committee the Opposition voted to prevent competition in banking. I was present for that debate, which saw the Opposition introduce amendment 28, which would have deleted clause 5 of the Bill, thereby deleting the requirement for enhanced competition. So I must ask the question: how can one be in favour of local banks while stopping competition?

The Leader of the Opposition is also out of touch if he thinks that the answer to this banking crisis is to force banks to close some of their high street branches. That is hardly what the voters in my part of Northumberland are crying out for; that much is certain. Residents in Haydon Bridge and Haltwhistle who are losing their local bank branches will tell the Leader of the Opposition that the problem with the banking sector was casino banking and greed, and not—as we heard from Labour this week—having too many local branches. My constituents want to see local branches providing a local service.

Jobs and Growth

John Stevenson Excerpts

Thursday 17th May 2012 Commons Chamber

[Paul Uppal (Wolverhampton South West) (Con)]

The right hon. Member for Barking (Margaret Hodge) used the term “victim”, and also spoke of a lack of hope. That is a theme to which I shall return later. I think that we should be very careful in our choice of words, given how corrosive they may be in the world out there—the real world, not the Westminster bubble.

In difficult economic times, we should not be seeking quick fixes. It is important that we continue to build the foundations that are necessary for economic recovery. The solution to a debt crisis should never be more debt.

[John Stevenson (Carlisle) (Con)]

Does my hon. Friend agree that part of the Government’s problem is the fact that the last Government borrowed in good years, and had borrowed some £40 billion before we even entered the recession?

[Paul Uppal]

That is an excellent point, and it is not made only by Members of Parliament. Hamish McRae, the acclaimed journalist, made it in The Independent during 2003 and 2004. He regularly asked readers what had happened to those golden economic rules—but that is by the by, and we cannot change it.

I want to raise an issue which I spoke about during the Budget debate. We are right not to allow protectionist rhetoric to creep into our political system, and continually to challenge protectionism abroad. That is crucial to the rebalancing of our economy to change it from an economy that spends on imports to one that earns through exports. I am encouraged to note that British exports rose by £50 billion last year, and that unemployment has fallen by over 45,000 in the first quarter.

I believe that there are two areas in which the Gracious Speech can make a real difference: the creation of the right conditions for private sector investment, and investment in our work force and the work force of tomorrow. Analysts have estimated that UK businesses have cash assets of more than £750 billion, equating to nearly half our GDP, and that investing just £20 billion of that in the UK could deliver a 1% increase in growth. We need to ask the difficult question: why are these cash-rich institutions not investing domestically?

The answer begins with the boom that preceded the recession. Unlike booms preceding earlier recessions, that boom was financed by public and private debt, which has continued to depress household borrowing and spending. The IMF’s analysis of advanced economies over the past 30 years concluded that recessions preceded by an unsustainable increase in household debt tended to be more severe and protracted. That is because as long as households pay down debts and increase savings, demand will remain weak.

One explanation for the weakness of private investment is concern among companies about the future availability of bank finance. They are becoming more reticent in their investment strategies, and are using cash as an insurance against a crisis. The situation is not helped by fears of contagion, or by the lack of liquidity in the banking sector. A solution to the problem would be the creation of a banking system that improved lending and the supply of credit. The introduction of a ring fence around retail banking separating retail banking services—such as deposit holdings and lending—from investment would pave the way for a more competitive banking system.

Tellingly, the removal in 1999 of the Glass-Steagall Act, which separated deposit holdings and lending from investment, changed the landscape of banking in America. It allowed larger investment institutions to enter the deposit and loan markets, creating a grab for small banks. In 1999, there were 19 significant large banks in America; today there are four. The picture in the UK is similarly worrying. Although there are smaller banks in the UK and the US, large banks have consolidated their position, creating market dominance. The consolidation of banking on such a scale is bad for businesses and bad for lending. With only a handful of lenders, concern arises about the availability of credit. We often talk about how banks are too big to fail, but rarely do we talk about banks being too big to be effective. Banks can only be described as quasi-public institutions, and will be accountable to the public long after they are sold. They are the engine of any economy, as they provide credit, investment and savings. We need a banking sector that not only serves shareholders, but benefits the wider economy.

I would also like to discuss how investing in the UK should involve our work force today and the work force of tomorrow. On a personal note, I recently held a jobs fair in Wolverhampton. We had more than 1,500 young people attending and more than 30 employers. One conversation I had on that day still sticks in my mind. It was with a young person from Wolverhampton who said, “I want to thank you, Mr Uppal, for organising this. You’ve given me hope.” When the Leader of the Opposition stands up and says that there is no hope in the Budget or the Queen’s Speech, the effect is deeply corrosive. I know that the situation in places such as Wolverhampton is challenging, but to dismiss people and just wipe away their dreams so quickly and flippantly is very damaging. Sometimes politicians in this House need to think carefully about the terminology they use.

We all appreciate that the Opposition have a job to do in holding us to account. However, it is important that we do not respond with knee-jerk reactions, but instead always look at the broader picture of what we are doing for the economy and not look to make political capital out of the situation. Investing in the work force of tomorrow means preparing young people for work today. Careers events in schools, inviting local companies to speak at schools, and lessons on interview and presentation skills could all help, and not just in year 11, but early on, when children are starting to think about options and subjects. It is not about getting young people to pick a career early on; it is about them knowing that their options will help them to make the right choices and give them goals for the future. If young people know that maths and science are essential for accessing the type of job they are considering, such subjects will seem more beneficial.

Ensuring a skills base for the future to drive Britain’s industry and manufacturing is evidently important, and recent reports point to a skills gap. It is disappointing to hear companies say that they cannot find the skilled people they need, especially when that is coupled with high unemployment. The west midlands is a great base for manufacturing, and, with the introduction of the i54 site, we can only improve on this. Taking the long-term view on jobs and growth—helping young people to get the best possible start early on—can only be beneficial in preventing them from ending up not in work, training or education.

Let me finish by saying, for the second time in this Chamber, that when it comes to the difficult decisions, at least those of us on the Government Benches are walking the walk, whereas Opposition Members are just talking the talk.

Oral Answers to Questions

John Stevenson Excerpts

Tuesday 24th April 2012 Commons Chamber

[Danny Alexander]

Of course I did read the explanatory notes. The right hon. Gentleman will know that we have listened to the representations in favour of extending the consultation period and have extended the deadline to 18 May to enable individuals such as him, and his constituents, to make representations as part of that consultation.

[John Stevenson (Carlisle) (Con)]

3. What recent representations he has received on reducing the budget deficit.

[The Chancellor of the Exchequer (Mr George Osborne)]

Every significant business organisation and international body has welcomed this Government’s decisive action to deal with the record budget deficit that we inherited from our predecessors. Not only has that action brought low interest rates for families and firms, but it has made Britain a safer haven in what, as everyone can see today, remains a very volatile European debt storm.

[John Stevenson]

The Office for Budget Responsibility’s Budget report stated that the interest paid on our national debt will be about £43 billion this year, rising to about £60 billion by the end of this Parliament. That rise in interest payments is a direct consequence of the previous Government’s action, but what action is the Chancellor taking to ensure that this interest rate bill does not rise any further?

[Mr Osborne]

My hon. Friend is right to remind us all that the Government have to pay interest on the enormous debts that the Labour party racked up and the budget deficit it bequeathed us. The action we have taken means that we are paying £36 billion less in interest payments over this Parliament, which completely dwarfs any initiative ever put forward by the shadow Chancellor.

The Economy

John Stevenson Excerpts

Tuesday 6th December 2011 Commons Chamber

[John Stevenson (Carlisle) (Con)]

It is a pleasure to have the opportunity to participate in the debate. I appreciate that it is primarily concerned with the state of the economy at present, and I accept the reality that the economy is likely to dominate our debate and politics for the next few years as we concentrate on improving it and trying to achieve some growth. However, as this is a general debate I thought I would take a slightly different approach. In the short time that I have, I wish to consider what sort of economy I would like to see in the next five or 10 years, and what sort of economy we should aspire to.

Members of all parties want a rich and growing economy that provides quality public services and well-paid jobs. That is clearly our ultimate goal. We therefore need to consider matters such as: the balance between the public and private sector; what level of taxes we should have and what those taxes should be; how much regulation there should be and what we should be regulating; what industries the Government should support and encourage; what the relationship should be between central and local government on economic policy; and what policies on education, training and the like will best support a growing economy. Those are all very big issues in their own right, but I shall concentrate on three general themes.

My first theme is the public sector. The critical starting point for me is that government, whether it be national or local, can and should be a vehicle for good. However, the danger of government being a hindrance is all too obvious. It can become too big, acquire too much debt and an oversize deficit that crowds out wealth-creating sectors, and introduce too much regulation, strangling any innovation. Probably worst of all, officialdom and bureaucracy can become all-powerful and interfering. That has happened to some extent over the past few years, and it is this Government’s job to try to reverse it.

It is vital that over the next few years, we start to rebalance things. I accept that the state has an important role to play, but it should be smaller and more efficient. Government should not try to do everything, it should try to do some things extremely well, particularly the things that the private sector cannot do. The state sector needs to raise its productivity levels, and we must always remember that it is not always about the amount of money that is spent, it is also about how we spend it. We need to create a competitive environment within the public sector wherever possible, and most importantly of all we need to encourage clear leadership and quality management, to maximise freedoms in the public sector so that leaders and managers can perform their jobs to the best of their ability and as efficiently as possible. Those overriding concepts can lead to a much more productive and effective public sector providing better services for the people of this country.

We also have the wealth-creating sector, which must also be a vehicle for good, creating jobs and wealth for our country. Our goal should be to create an environment in which the private sector can flourish, with a sensible tax regime and an appropriate regulatory regime. We need consistent Government policy so that business can plan for the future, and we need to ensure that the Government’s finances are stable. That should be their aim.

We need a balanced economy, but at the same time we must recognise that we have certain strengths as a country, for instance our financial sector, and should play to those strengths where appropriate. The key is to ensure that we have a competitive environment and a skilled and educated work force. Wherever possible, we need to ensure that barriers to entry are kept to a minimum. The prime example is the banking sector, in which organisations are too few and too big. Indeed, we could go on and criticise the accountancy world, in which we have four very large firms. Are they also too big and too few? There is work to be done over the next few years in helping our economy rebalance, creating the right environment for business to grow and ensuring that we have a skilled and educated work force and a competitive market for businesses to compete in.

The final key area on which I wish to reflect is how Britain made its fortune in the past, which was through trade. We are a trading nation and a very open economy, but we appear not to have performed as well as we should. We have a deficit of £100 billion in the trade in goods, so there is clearly a problem. Some 50% of our trade is with Europe, and our main trading partner is Ireland. What about the BRIC countries—Brazil, Russia, India and China? Ten years ago they represented 8% of the world’s GDP. It is now 20%, yet we have only £2 billion-worth of trade with Brazil.

[Charlie Elphicke]

Does my hon. Friend agree that a key Government priority should be to boost trade with BRIC countries so that we can diversify our economic base internationally?

[John Stevenson]

I completely agree. Growth is not in Europe but elsewhere in the world, and we should try to increase our trade with the BRIC countries. We need to look at those new markets and rediscover our trading instincts.

I accept that our concern is primarily the state of the economy here and now and in the next 12 months. However, we need to remember to raise our eyes above the horizon and think about what kind of economy we aspire to in five or 10 years’ time, and how we will create it.

Summer Adjournment

John Stevenson Excerpts

Tuesday 19th July 2011 Commons Chamber

[John Stevenson (Carlisle) (Con)]

I shall be as brief as I can. It would be an understatement to say that there has been a great deal of interest in the national media and, in particular, in newspapers in recent weeks. Indeed, that interest continues today. Whatever we think, a free and thriving press is undoubtedly important to us all. In any vibrant democracy there are two important ingredients—the first is competitive politics. We need parties competing with each other, and of course the battle of ideas. Secondly, we need diverse, challenging and inquisitive media, which legitimately hold to account politicians and others in positions of power and responsibility. Those media should be diverse, with a variety of radio stations, newspapers, television channels and the new media.

We often underestimate the importance of the media at the local level. That is the subject of my short speech today. Strong local media are equally important to hold people to account, whether they are politicians or others in local communities or regions who have positions of influence and power. In my area I am fortunate to have a diverse range of media. We have a daily newspaper, a weekly newspaper, two radio stations and two TV channels, all covering local issues in and around the Carlisle area, north Cumbria and south-west Scotland. However, if we scratch beneath the surface of those media, we discover that all is not necessarily as good as we would hope.

The papers are struggling because the recession has affected advertising and the income that that generates for them. The purchase of papers has fallen in recent years, which is worrying for the sustainability of the local newspaper. One of the TV channels is, in effect, a north-east channel and only occasionally covers Cumbria. The second channel has been greatly reduced. It was once known as Border TV. Now it is, to a certain extent, an outpost of the north-east. As for radio, we have CFM, which functions well on limited resources. The real strength is in Radio Cumbria, but that is under potential threat from BBC cuts. I shall concentrate on that.

We cannot underestimate the importance of Radio Cumbria and its contribution to local community. Back in 2001 we had the foot and mouth crisis, and in 2005 the Carlisle floods. In many respects it was the only source of information during that period. Then in 2009 there were the west Cumbrian floods. More recently Radio Cumbria provided information and reassurance to many people when Derrick Bird was murdering people in west Cumbria. Radio Cumbria is also a source of local news, information about community events, coverage of the local football team and coverage of politics. It is one of the most listened-to radio stations in the country.

I support other radio stations up and down the country, as I believe that local radio is extremely important for local communities. The danger is that with the proposed cuts by the BBC, that will be a much diminished service. I therefore call upon the Minister to put as much pressure as he can on the BBC to ensure that local radio is taken care of and is supported properly. I would rather see local radio survive than channels such as BBC 4. There is enough national coverage already. What we need is more local support.

Oral Answers to Questions

John Stevenson Excerpts

Tuesday 21st June 2011 Commons Chamber

[Mr Gauke]

For a moment, the hon. Lady got quite close to supporting the policy the shadow Chancellor announced last week, but she did not quite do so. The fact is that the Bank of England says the main causes of inflation are to do with the devaluation and rising global commodity prices. That is the truth; that is the reality—[Interruption.] Well, that is what the Bank of England says, and I suspect it has a bit more expertise than the hon. Lady.

[John Stevenson (Carlisle) (Con)]

5. What recent estimate he has made of the size of the structural deficit.

[The Chief Secretary to the Treasury (Danny Alexander)]

The independent Office for Budget Responsibility published its latest forecast on the structural deficit in the March economic and fiscal outlook. The OBR forecast shows the structural deficit was 7.4% of GDP in 2010-11.

[John Stevenson]

I thank the Minister for that answer. Does he agree that one of the main reasons we are experiencing financial difficulties and the large budget deficit is the simply that for a number of years prior to the recession the Labour Government were borrowing money while other, prudent economies were repaying debt, and that has exacerbated our problems now?

[Danny Alexander]

I am grateful to my hon. Friend for that question, and he makes an important point. This country was running a structural deficit from 2002 onwards, so his analysis is exactly right. However, that was not the only problem with the previous Government’s policy, of course; another was their abject failure to regulate the banks and deal with the financial system. That is a further major cause of the problems we face.

Oral Answers to Questions

John Stevenson Excerpts

Tuesday 10th May 2011 Commons Chamber

[John Stevenson (Carlisle) (Con)]

8. What recent estimate he has made of the size of the public sector borrowing requirement.

[The Economic Secretary to the Treasury (Justine Greening)]

The public sector finances first release published by the Office for National Statistics estimates that the first provisional out-turn for public sector net borrowing in 2010-11 is £141.1 billion, or 9.6% of GDP. That is £15 billion lower than in 2009-10.

[John Stevenson]

Manufacturing has been undergoing a renaissance under this Government, and clearly has a role to play in helping the economy grow and in reducing the deficit. Does the Minister agree that manufacturing also has a significant role to play in helping to reduce the other deficit: the balance of payments deficit?

[Justine Greening]

I completely agree with my hon. Friend; he is absolutely right that manufacturing has a vital role to play. In fact, the total trade deficits narrowed in each of the past three months, and that recovery in exports has been driven largely by strong growth in the export of manufactured goods, which accounted for almost 50% of the UK’s total exports. That is not just good news for those businesses; it is good news for jobs, too. It shows that under this Government Britain is not just open for business in the UK; it is open for business abroad, too.

Scotland Bill

John Stevenson Excerpts

Monday 14th March 2011 Commons Chamber

[Mr Gauke]

We will consider that. At the moment, however, we are concerned with Scotland and Wales in particular. There is a slightly different issue with Northern Ireland, where the Government have not yet made a decision on the devolution of corporation tax. Clearly, however, the circumstances in Northern Ireland are different: it does not have a land border with the rest of the UK, but does have one with a country that has a substantially lower rate of corporation tax.

There are a number of detailed questions about how some of these tax matters will be addressed. Various points arose from last week’s Scottish Parliament report, and we will respond to those in due course. However, I am keen that the joint exchequer committee—that is the title suggested by the Scottish Parliament, and it is one we are happy to take onboard—which will consider these matters in some detail, meets as soon as possible after the Scottish elections and the formation of a Scottish Government. We can then discuss some of these matters and provide further details in the future.

[John Stevenson (Carlisle) (Con)]

Can the Minister assure me, as a Member representing a seat on the English side of the border, that such reviews will take into consideration the effects that any tax powers may have on the English side of the border, as well as the Scottish side?

--- Later in debate ---

If changes such as pension deduction rules are required, should they not be effected through primary legislation, or should not the Scottish Parliament and Government at least be given the right to be formally consulted? As I said earlier, we are concerned about the potential retrospective application of orders. Do the Government not agree that individual taxpayers deserve a degree of certainty in regard to their tax affairs as the end of a tax year approaches?

[John Stevenson]

The hon. Lady has raised many issues connected with income tax. I may be demonstrating my ignorance of the Scotland Act 1998, but under that legislation the Scottish Parliament could have increased or decreased the basic rate by 3p. Why were these issues not addressed then?

[Ann McKechin]

I was not a Member of Parliament at that time, unlike some of my colleagues who were in the House when the legislation was discussed in detail. I think it fair to say, however, that a great deal was left to the potential for secondary legislation. As the hon. Gentleman knows, those provisions have never yet been used. That is one of the reasons that the Calman commission specifically addressed the issue of fiscal accountability.

The hon. Gentleman may also be aware of recent debates in the Scottish Parliament following the decision of the Finance Secretary—without informing the Parliament—to advise HMRC that it would not be required to implement the rules for a few years. I do not wish to discuss that controversy, but I will say that the establishment of the Calman commission was partly due to the fact that the rules had never been implemented. Much of the detailed work that we are now considering had been put on the shelf without being properly examined. I take the hon. Gentleman’s point, but I think it necessary for me to ask the Minister a number of detailed questions in order to ensure that the Government’s intentions are on record.

Capital Gains Tax (Rates)

John Stevenson Excerpts

Wednesday 23rd June 2010 Commons Chamber

[John Stevenson (Carlisle) (Con)]

As a north-west MP, I welcome you to your new role, Mr Deputy Speaker.

I would like to think that a bit of history is being made today because, as the first Conservative MP to have been elected for Carlisle since 1959, I am the first Conservative from Carlisle to be making a maiden speech for 50 years. Since becoming a new Member, I have become conscious of the protocol that interventions, questions, answers and speeches should be short and to the point. I am sure that hon. Members will be pleased to hear that I shall follow that tradition.

My predecessor was a Labour Member, and although our politics, outlook and the way in which we do things are different, I acknowledge that Eric Martlew had the interests of Carlisle at heart. He came from Carlisle, he believed in Carlisle and he clearly did his best for Carlisle, and I do not think that more can be asked of a constituency MP.

I would like to cite two examples of Eric’s work. In 2005, when we had the great floods in Carlisle that were devastating for many people, he got heavily involved and managed to convince the Government to spend considerable sums on building flood defences. I am delighted to say that those flood defences are now almost complete. Eric also had a great interest in rail and was a member of the all-party group on the west coast rail line. During his years as a Member, the Euston-to-Carlisle train journey time dropped considerably. I am benefiting from that, in that my train journeys are half an hour to an hour shorter than they would have been. If the high-speed rail link is introduced, I would like think that that journey time will drop further.

If hon. Members were to get the train to Carlisle, I do not think that they would be disappointed by our great city. Our compact border city is welcoming and friendly, and in many respects it is a well-kept secret—it was so secret that it successfully avoided being mentioned in the Domesday Book. The city is just 10 miles from the Scottish border, and as a Scot who has been elected for an English constituency right on the border, I am delighted to report that border relations are good and we support England’s result today.

Carlisle has a rich heritage. Its castle was built by William II, and its cathedral, although small, dates from the 12th century. Of course, we have the world heritage site of Hadrian’s wall, which is a popular spot for people walking from the east coast to the west coast, as well as the Tullie House museum.

We also have an industrial heritage. In the past, we had railways and crane makers, and the builder Laing originated in Carlisle; today, we still have a lot of manufacturing, with Pirelli cars, Nestlé, Carr’s Milling and, with food manufacturing being a big thing in Carlisle, Carr’s water biscuits—a real favourite of mine. We also still have a strong building society—the Cumberland building society—and long may that continue to be the case. Sadly, we have lost Border Television, although probably the only thing that people remember about that company is that it produced “Mr and Mrs”. I hope that there will be a rebalancing of the economy. Carlisle may well benefit from that, because manufacturing is still very much a part of our local economy.

The most important thing is, obviously, people. I came to Carlisle 18 years ago and was made very welcome by the people of the city. I have lived and worked there, and there is no greater privilege than to become their representative. However, there are problems everywhere, and Carlisle is no exception. We have the legacy of the previous Government to deal with, and I believe that rebalancing the economy, improving education and helping the low-paid will be the key issues for Carlisle.

How are we to make those improvements? In my view, first, we must decentralise. It is important that we take decision making back to the communities and allow local people to make local decisions for themselves. Whitehall has a role, but that role has become far too big. We now have the opportunity to return power to local people. I genuinely believe that elected mayors offer a way forward, because they bring transparency to local decision making and make people aware of who is in charge of their local community.

The Budget has been described as tough but fair. I genuinely agree with that description and think that three things flow from the Budget. First, we must encourage business. The real recovery will come from the private sector and we can achieve that only through the changes to taxation, which I welcome, and, of equal importance, less regulation and less interference in business. That is how businesses thrive.

Secondly, and very relevant to Carlisle, we must look after the low-paid. I think that the Budget helps with that through the increase in the personal allowance and child tax credit, linking pensions with earnings, and the council tax freeze. The pay freeze does not affect the low-paid—those paid less than £21,000—in our public services.

Thirdly, we have the public sector. The public sector is still important—still vital to our economy and our communities—but it has to innovate, think differently and do things differently. Let me make one suggestion to Government Departments. Carlisle has a low cost base, housing is of good quality but relatively cheap and our industrial sites are cheaper than those in many other places. I therefore suggest that the Government should consider moving Departments from the south to the north. Doing so will save them money and help to regenerate parts of Carlisle.

The Treasury team and Ministers in other Departments have many difficult decisions to make in the coming months, but they will not go far wrong if they follow Carlisle city’s motto, “Be just and fear not.” If I follow that motto as the Member for Carlisle, I think I will have done okay.

[Several hon. Members]

rose—