Income tax (charge)

Jonathan Gullis Excerpts

Tuesday 17th March 2020 Commons Chamber

[Jonathan Gullis (Stoke-on-Trent North) (Con)]

I am delighted to speak in this debate about levelling up, especially in relation to the Budget. Following the comments of my esteemed hon. Friend the Member for Stoke-on-Trent South (Jack Brereton), I could not think of a better place for the levelling up agenda to take place. We in Stoke-on-Trent are at the heart of the midlands engine. We are on the cusp of the northern powerhouse. We have the M6, the A50 corridor, the A500, the Handsacre HS2 link is coming to our fine city, and we have four international airports within 60 minutes of us. I could not think of a better place, and I am delighted that the Chief Secretary is in his place. I remember when he came with me to Stoke-on-Trent North to visit some of the amazing businesses that we saw on display. He was excited and impressed, and I am sure, having had my hon. Friend the Member for Stoke-on-Trent South as his Parliamentary Private Secretary in his previous role, that he has heard about Stoke-on Trent more times than he cares to imagine. I know that the Treasury will be looking to ensure that this fine city, and obviously Kidsgrove and Talke, are delivered for as well. [Interruption.] I say to the hon. Member for Aberdeen South (Stephen Flynn): I will say Stoke-on-Trent much more, believe me, my friend!

I welcome the business-friendly measures set out in the Budget by my right hon. Friend the Chancellor, especially the effective abolition of business rates for businesses in properties valued at £51,000 or less as we fight coronavirus for the next financial year. This is excellent news for the high street across my patch, and an opportunity for regeneration as we rebuild after coronavirus, so that we can review business rates to make them fairer and not a burden to our beloved high streets.

I welcome the town deal in Kidsgrove and the opportunity that that will bring to economically regenerate a much-forgotten town, but I also wish to urge that we see an opportunity to improve the high streets within the city of Stoke-on-Trent. Many Members might be aware that, while we are a city under the Office for National Statistics definition, we are the six towns. Sadly, under the future high streets criteria, we are unable to access that type of funding. I hope that when that scheme is rolled out again, towns such as Burslem and Tunstall, but also ones such as Fenton and Longton in the constituency of my hon. Friend the Member for Stoke-on-Trent South, will get an opportunity to bid. Burslem, tragically, already has the most closed high street shops in the UK. With this terrible coronavirus, which is going to ravage our economy, the high street will only suffer more.

That is why I urge the Government to continue what they did in Burslem by match funding us to allow £10 million for the Royal Doulton site, so we can redevelop and repurpose the use of some of the land and buildings that we have. Sadly, in Stoke-on-Trent, Kidsgrove and Talke, property is so cheap that there is no financial incentive for developers to go in, regenerate those high streets and turn buildings into purpose-built flats. I would be most grateful for any help from the Government in that regard. As we learn to adapt to the consumer changes brought about by the digital revolution, it is absolutely right and correct for the Government to step in and take action to protect the hearts of our towns and cities.

In addition to the supportive measures for business announced in the Budget, I was delighted, as I know many of my constituents will be, to see the national insurance contribution thresholds increase, saving the average employee £104 per year from April. In Stoke-on-Trent North, Kidsgrove and Talke, changes to national insurance mean that people can keep more of their hard-earned cash, and with the increase in the national living wage, those hard-working people will also see a pay rise.

I can hardly go any further without mentioning education. I have a vision of prosperity for Stoke-on-Trent North, Kidsgrove and Talke. That vision can materialise only through investment in education. With the Government investing vast sums in further education, silicon Stoke is very much a real possibility. I want to see Stoke on Trent College partnering with Staffordshire University and Keele University to become an institute of technology and a beacon of the technological revolution. That is even more possible with the money invested prior to this Budget in the redevelopment of Burslem campus, which has included a new, innovative £10.5 million technology hub.

My ambition is to bring free schools to my constituency. I want schools with high standards and high expectations, both at primary and secondary level, which could therefore drive outcomes. That could lead into the ambition of my right hon. Friend the Chancellor for one of 11 16-to-19 specialist maths schools to be opened in Stoke-on-Trent, Kidsgrove and Talke, with support, I hope, from local entrepreneurs such as Denise Coates of Bet365, Carol Shanahan of Synetics Solutions and Ian Donaldson of Autonet.

Added to that is the £14 billion going into schools to level up per-pupil funding. That means my constituents in Stoke-on-Trent North, Kidsgrove and Talke can be provided with more opportunity to unlock their potential. It is fantastic to see investments also announced in apprenticeships and sports.

On a similar note, the Government announced a whopping £5 billion of investment in ensuring that gigabit-capable broadband—that is full fibre, 5G and so on—can reach every UK home by the end of 2025. I have held meetings with the excellent Swedish firm, VX Fiber, operating in Stoke-on-Trent, which informed me that the UK is around 15 years behind Sweden in this technology. This money is enormously welcomed, not only to bring silicon Stoke ever closer, after the Government have already invested £9.2 million to support gigabit into every home in Stoke-on-Trent, but to increase entrepreneurial endeavours, boost the housing market and increase provisions for flexible working. I have been working with my Staffordshire colleagues to bring the very best connections to Stoke-on-Trent, Kidsgrove and Talke, so much so that silicon Stoke is slowly morphing into silicon Staffs.

We have a plan, with the backing of our local enterprise partnership, businesses such as JCB and Bet365, and local universities, for a Staffordshire 5G-connected regional growth deal. That would make Staffordshire and Stoke-on-Trent the first region in the UK to develop a publicly owned digital infrastructure, underpinned by fibre, 4G and 5G, and would make us the first region in the UK to provide 100% gigabit coverage, as this Budget demands. Such a development would create both an at-scale commercial 5G network and a regional 5G demonstrator for future roll-out across the UK. That could potentially unlock billions into a region that, for too long, has seen very little investment.

In one of the first debates I took part in, I advocated a freeze in beer duty and championed the great British pub, so I am over the moon to see duty rates frozen on beer, cider and spirits. I know that Titanic Brewery, a first-class brewing company that I have mentioned before in this House, will be relieved and will be celebrating appropriately.

I applaud my right hon. Friend the Chancellor and the Treasury team for their hard work on finding a way to freeze fuel duty for another year. That is an essential measure to ease the cost of living for many across the country and help people and businesses reliant upon vehicles. I do believe we should set our sights to the longer term when considering greener transportation and more public transportation, and this Budget’s record investment in infrastructure will certainly help to deliver that. However, in the meantime, I believe securing access to be extremely important, and I am proud to be a part of a Parliament that is taking ordinary people’s lives and concerns seriously.

I would like to take this moment to unreservedly welcome Stoke-on- Trent’s shout-out in the Red Book as a potential multi-modal transport hub, under the transforming cities fund. Such a hub would change the landscape of travel across Stoke-on-Trent. A revamped travel map for Stoke could improve connections, with Longport receiving a park and ride, if we are given, as we must be, the full ask in the transforming cities fund bid, and finally deliver accessibility for all at Kidsgrove. Back in 2015, under my predecessor’s predecessor, £5.5 million of public money was given to Network Rail for this, but it is yet to deliver those important Access for All upgrades—that is an abomination.

We could also realise the huge potential for improved cycle and pedestrian routes, especially alongside the Trent and Mersey canal to Stoke station, and pave the way for improved bus services. We hope that that would be through the excellent superbus pilot, which I know my colleagues from north Staffordshire have been anxiously bidding on in order to secure it, especially for Stoke-on-Trent, Kidsgrove and Talke. To parrot the words of my hon. Friend the Member for Stoke-on-Trent South again, we have seen 1 million fewer passengers on our buses in the past 12 months and 5.4 million fewer over the past decade. That is a shocking thing to hear and it is certainly not going to help us to reach our net zero target, so that superbus pilot, with the transforming cities fund, would fundamentally revolutionise public transport across Stoke-on-Trent.

This vision stands strong enough on its own, but let us imagine the connective capabilities when the Handsacre link of HS2 is delivered to the area. The transforming cities fund and the opportunities it unleashes for my constituency cannot be understated. This hyper-connectivity could set the foundation for further expansion, such as reopening the Stoke to Leek line, bringing back Milton station and having a station at Chatterley to serve Tunstall. It will also be central to delivering on our campaign promise of levelling up, and regenerating post-industrial towns and cities, while remaining conscious of the environmental framework to reduce emissions and improve air quality. I understand that my right hon. Friend the Chancellor has an awful lot on his plate, and of course our response to coronavirus must take precedence over all other things, but I would like to raise some issues that remain prominent to my constituents.

Chatterley Whitfield is an incredible example of a heritage site that has huge historical significance and huge potential. Would the Minister be willing to meet me to discuss regeneration projects for sites such as Chatterley Whitfield and how we can create financial incentives for former coalfield sites and communities, as we have seen in the industrial Ruhr, in Germany?

Kidsgrove sports centre is another key local campaign of mine, and its closure, under the then Labour-controlled Newcastle-under-Lyme Borough Council, was a blow to the local community. Is my right hon. Friend the Chancellor making all provisions necessary to ensure that, public health allowing, core community hubs, especially those focused on encouraging a healthy lifestyle, are supported to remain open and active?

I wish to finish by putting on record my thanks to all those in our NHS, social care, schools and other public services, and hope that every one of them is as safe as possible. I know that that feeling is shared among Members from all parties. Like them, I will work tirelessly to ensure that people, businesses and voluntary sector groups are protected as much as possible during these unprecedented times. Never in my lifetime have I ever known such a situation.

In my short time as the Member of Parliament for Stoke-on-Trent North, Kidsgrove and Talke, I have met some remarkable people such as June Cartwright, and organisations such as Middleport Matters Community Trust. I know that they will work tirelessly to ensure that we level up Stoke-on-Trent North, Kidsgrove and Talke and unlock its potential. I know that my community is stronger than any adversity.

[Mr Deputy Speaker (Mr Nigel Evans)]

I congratulate the Whip on duty, the hon. Member for Walsall North (Eddie Hughes), on having resisted any temptation to say yes to any request in that speech in the Minister’s absence.

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[Neil Parish]

And, of course, I know the Chief Secretary very well.

I am encouraged by the tireless efforts of NHS staff, and I very much pay tribute to what the hon. Member for Lewisham East (Janet Daby) said: we need to thank medical staff throughout the NHS for all the excellent work that they are doing to tackle coronavirus because it is unprecedented, though we can make all sorts of predictions. We need to be out there and sort it out. That is why the Government have introduced clear measures that will help.

We are going to come under greater pressure over the coming weeks and months, so I welcome the £5 billion emergency response outlined in the Budget. The funding will ensure that the NHS will receive the support that it needs. Even with that large sum of money, we will probably need to keep it under review. I welcome, too, the Government’s commitment to support local councils—the £500 million hardship fund will help local authorities to protect the most vulnerable members of our community. The Government, however, must ensure that that funding is readily available and distributed quickly. We must cut bureaucracy to ensure that individuals and businesses get the support that they need. Very often, we are laudable in this place—Governments of all colours always want to take action—but we must make sure that we take action quickly.

Many local businesses have contacted me rightly to express concern about how covid-19 will affect them. Government measures to suspend business rates and refund sick-pay payments for smaller firms are welcome, but the Government need to be ready to provide more emergency payments to support those businesses. My fear, especially for smaller and, indeed, all types of businesses, is that if they cannot pay their bills the knock-on effect on all other businesses and employees will be huge. This is unprecedented, and we need to take action.

The scientific knowledge and understanding of the virus are constantly changing. We need to ensure that the Government have the flexibility to adapt as the situation unfolds. Across Devon, we have seen an outpouring of offers of support for all those affected. I wish all charities and organisations well across the country, especially in my constituency, so that they come together and keep communities together, because we will very much need to do so through this very, very challenging time. As many Members have said in the House, it is probably the most challenging time that anyone has experienced in living memory, especially because the virus has the potential to lay the whole economy low.

In the Budget, we predicted that the economy would grow by 1.1% this year. It will be interesting to see the effect of coronavirus on that. I would say to the Opposition, who will naturally pour a little doubt on the economy, that in both the coalition and Conservative Governments we have turned the country round with the hard work of the British people. We have turned the economy round, so that we can go forward and spend this money on infrastructure in particular. At the moment, interest rates are low, and we have the ability, according to the Chancellor, to take up loans over 15 years, so we can set reasonably low interest rates for them, all being well, over that period. We need to upgrade our rail and road infrastructure, and deliver broadband across the country, and now is the time to do it. I have said in three or four elections that I am going to deliver broadband to the whole constituency, but I think my constituents are still waiting. I do not want to have to go to them in another election and say about the promise of broadband, “It’s coming—it’s still definitely coming!” Seriously, we have to make sure that we deliver that, as the issue has a huge effect on our economy and businesses as well as on our ability to deliver good business opportunities in the countryside. With the right broadband infrastructure and a very good broadband connection, many businesses can be run anywhere in the countryside.

Naturally, I am delighted that the Chancellor maintained the availability of red diesel for farmers in particular, but also for commercial ferries and fishing boats. It is absolutely vital that we maintain that at this particular moment. Agriculture has seen one of the wettest, if not the wettest, winter of all time, and there are huge challenges. That brings me neatly to the doubling of the money for flood defences to £5.2 billion over the next five years. We have to work out what we are going to do about flood protection. The Environment Agency needs to be absolutely clear about what it is and is not going to defend. We may have long periods of dry weather, but when we have rain it comes quickly and we get a lot of flooding. I look forward to putting the money to good use, but we must be clear about where we are going to spend it.

I am happy to see that £2.5 billion will be made available to fix potholes. Perhaps not at the moment, given the coronavirus, but in normal times, believe it or not, one gets as many letters about potholes as anything else. There are as many roads in Devon as in the whole of Belgium, so imagine the number of potholes. One or two constituents have lost wheels and various other parts of their cars going over them, so it becomes a major issue.

I was very keen to see the money for the A303 and the tunnel under Stonehenge. If my hon. Friend the Member for Salisbury (John Glen) were here, he would be delighted. Edward du Cann talked about the A303 in 1958, and it has still not been dualled. We now have the opportunity to build the tunnel and the rest of the dualling from Andover right the way down to Ilminster. I would then like the last piece from Ilminster to Honiton to be done, but I will wait for that to happen. We must get the diggers actually digging the road and delivering. It is important that not only do we put these roads and rail in our Budgets but that we actually deliver them. That is what people want.

I welcome the £1.5 billion in capital spending on further education colleges. There are FE colleges in Axminster, Honiton, Cullompton and Tiverton, and they provide a very good education, including for those who left school young and perhaps did not know exactly what they wanted to do with their lives. They go to further education colleges later in life and do good things for themselves, their families and the country.

[Jonathan Gullis]

On further education, does my hon. Friend agree that it is so important that we continue with level 2 courses? They may be at a lower level, but for the people my hon. Friend is describing they are an access route to higher level apprenticeships further on.

[Neil Parish]

I could not agree with my hon. Friend more on level 2 schemes. Going back to nursing and all those types of occupations, it is so necessary and there is a pool of people out there who will be wanting to do that work, so long as they can build their skills and so long as we have the necessary education there. I very much welcome that suggestion, but again we have to deliver it to our colleges.

I also very much welcome the £500 million over the next few years for electric vehicles and charging infra- structure, because we will need many more electric cars. I do not think building roads and bypasses is wrong for air quality and air pollution. Actually, Mr Speaker— Mr Deputy Speaker, I beg your pardon; I have elevated you—I think that when we build a bypass or a dual carriageway and we stop that congestion, we lower the pollution that comes from our vehicles. It is therefore not only good for getting people through. Looking at the A303 and the motorways into the west country—it is a very big holiday area and very good for the economy—it is good for air quality if we can keep those cars moving. If we can make sure that in the future the majority of cars and eventually all cars are electric, then we solve many problems. We would also still have a great ability to have the family car, which I think so many people want.

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[Kevin Hollinrake (Thirsk and Malton) (Con)]

It is always a pleasure to follow my hon. Friend the Member for Tiverton and Honiton (Neil Parish), who has such knowledge of rural matters. It is also a pleasure to follow so many fine maiden speeches from my hon. Friends the Members for South West Hertfordshire (Mr Mohindra), for Blyth Valley (Ian Levy), for Bolton North East (Mark Logan) and for Derbyshire Dales (Miss Dines) and the hon. Member for Liverpool, West Derby (Ian Byrne)—they were all fantastic speeches.

I draw the House’s attention to my entry in the Register of Members’ Financial Interests. I would like to talk primarily about the impact of the current situation on business, but I will touch briefly on levelling up, which was going to dominate my speech. I have always been a huge advocate of levelling up—we used to call it “a fairer deal for the north”—so the investment spending is welcome. However, I have made the point before in the Chamber that simply public sector spending will not do.

It is said that if all the economists in the world were laid end to end, they still would not reach a conclusion. I will mention two economists who have different views on this subject. Andy Haldane, chief economist at the Bank of England, said that connectivity is crucial to prosperity. At the other end of the scale, Mark Littlewood of the Institute of Economic Affairs points to places like Doncaster, which are very well connected, yet their economy is not in great shape. The arbiter on this is another economist, David Smith, who writes in The Sunday Times. He says that public sector spending without private sector investment is a waste of money, so we need to ensure that we encourage and incentivise the private sector to invest.

One way of doing that is through super enterprise zones. We could look at the devolved regions. The Tees Valley is a very good example in my neighbourhood. There are nine devolved regions, each with an elected Mayor, and of all those regions, the Tees Valley comes bottom in terms of average wages and GDP. We could, for example, make the bottom three combined authorities super enterprise zones for their entire area, with enhanced capital allowances and no business rates.

[Jonathan Gullis]

I could not agree more with my hon. Friend. In Stoke-on-Trent we have the ceramic valley enterprise zone, which is thriving. Does he agree that, especially in the time of coronavirus, such zones should be expanded to give those businesses every opportunity to survive?

[Kevin Hollinrake]

Yes, definitely. That will level up in the process, but we have to get private sector involvement. It is the private sector that creates jobs, not the public sector. That is a means to an end in terms of transport spending. We have to get the private sector to move into these areas, start up and scale up or expand their businesses.

I primarily want to talk about covid-19. We are talking about levelling up. If we are not careful with this, there will be levelling down, because the coronavirus will have a huge impact. We cannot even contemplate the size of the impact that this could have on our economy and business sector. This could be an existential crisis for hundreds of thousands of businesses. It is huge.

The situation is so fluid, but we need to give people confidence—and we are getting there—that we will support them through this crisis. I was heartened by the Chancellor talking at the Dispatch Box about what he has done so far and what he will do in future if that is not enough. He has spoken this afternoon about a massively enhanced package, and that is exactly what we need, because the scale of this is huge. Capital Economics does not give the rosiest outlook in its forecast of the economic situation in the UK. It predicts that there could be a 15% drop in gross domestic product within a three-month period. If we compare that with the great financial crash, we saw a 6% reduction in GDP over a few years from 2008.

We need to say to businesses and consumers—and if we do not, it will cost us the amount anyway—what the German Finance Minister said a week ago: that, as far as possible, no company should get into existential trouble and no job should be lost as a result of this crisis. That is the message we need to get out. Macron has said the same thing, with a €300 billion guarantee that no firm will go bust due to social distancing.

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[Ben Everitt]

I thank my right hon. Friend for that intervention. Of course, the productivity gap is core to levelling up.

Speaking of gaps, I have to declare an interest before moving on to the next important section of my speech: I am a councillor. The next section includes the perennial election-winning issue of potholes. The Chancellor has announced additional funding—£2.5 billion over the next five years—to fill millions of potholes across the country, which will make a huge difference for the many people who spend hours each week travelling on poorly maintained roads. That will speed up journey times, reduce vehicle damage and make our roads safer.

The Government are investing record amounts in improving and expanding our transport infrastructure—triple the average of the past 60 years. The Chancellor has announced £640 billion of capital investment in roads, railways, communications, schools, hospitals and power networks over this Parliament. I know that many of my colleagues will join me in welcoming this investment not just for the large national infrastructure projects, but for local roads, regional railways and urban transport. We will be increasing bus journeys. We will be reducing the cost of transport for young people, workers and those in retirement. We will have a modern and well-maintained road network.

I am a big fan of this Budget, as Members have probably noticed, but there is one piece that I was surprised to see in there. It is my single criticism of the Budget, so please bear with me. The small print of the supporting documents for the Budget contained an allocation of £94.6 million for a housing infrastructure bid to build 5,000 homes east of the M1 in Milton Keynes. That housing infrastructure bid is an indicative commitment to fund, subject to continuing local commitment, which is how the bidding process works for housing infrastructure fund bids. “A continuing local commitment” is news to me. Anyone who looked at my postbag and my inbox would not find a continuing local commitment; they would find quite the opposite.

That is not to say that people in my constituency are anti-growth. Far from it: Milton Keynes is a growing place. It is growing because it is a great place in which to live and work, in which to grow a family and grow a business. However, we must have the right houses in the right place at the right time. There is a balance to be struck. We need to get this right. We have a choice between growing local jobs and becoming a dormitory. If we get the right houses in the right place at the right time, we will incentivise pure economic growth—local, productive growth—but if we get it wrong and build too many houses, Milton Keynes will be cursed by the very benefit of being only 32 minutes away from London on the train. If we build too many houses too quickly we will become a dormitory for jobs elsewhere, and that is not what we need.

[Jonathan Gullis]

Does my hon. Friend agree that we need a good-quality mixture of housing, from one and two-bedroom homes to city centre living, and also the four and five-bedroom homes that the executives are seeking?

[Ben Everitt]

Absolutely. The point is well made, but I will not dwell on it, because, finally, I want to say this. We must also have the benefit of a university in our town, and I am proud to support a £100 million bid to make Milton Keynes a university town. The benefits will be fantastic.

With that I will sit down, having had a very good Budget, apart from that very small thing.