Budget Resolutions

Julian Knight Excerpts

1st reading: House of Commons
Thursday 1st November 2018 Commons Chamber

[James Brokenshire]

As I said at the outset of my speech, we have had to make those difficult decisions and I know so many people have contributed to this—the British public up and down the country. This Budget is indicating how we are now turning things around and looking positively at what our country can be and what it can do, and how we should be optimistic about our future.

[Julian Knight (Solihull) (Con)]

I look forward to welcoming my right hon. Friend to Solihull on Friday. Has he seen the report in today’s Times that there has been a surge of activity in UK house building over the last three months, with the greatest number of new homes signed off since the global crash? Is the truth not that Britain is building again, and just because of this Government’s policies?

[James Brokenshire]

The National House Building Council figures published today are very encouraging about the levels of building activity. We must build the homes our country needs, and we are firmly putting in place a number of steps and measures to help deliver on that. I know there is more to do, but we should recognise that progress is being made. We need to continue to see everyone building across the economy, because as a country we have failed to build enough homes over the decades under successive Governments. As a result, the most basic of needs—a place to call home—is out of reach for many, particularly our young people.

That is changing, thanks to this Government. Since 2010 we have delivered more than 1 million new homes and helped nearly half a million families get on to the housing ladder through Help to Buy and the right to buy, and we are taking action to ban the unjustified use of leaseholds on new homes, crack down on rogue landlords, ban unfair letting agent fees and cap deposits, and end rough sleeping for good.

We should contrast that with the record of the Labour party; not only did housing become more unaffordable under Labour, but under the current Labour leadership it has consistently voted against the reduction in stamp duty, which has helped more people get on to the housing ladder.

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[Julian Knight]

I think that my hon. Friend is talking about productivity. Does he recognise that if we are to ensure that we have sound public finances in the future and that the debt-to-GDP ratio falls, we will need to increase our nation’s productivity, which means investing in the regions so that we bring up our national wealth?

[John Stevenson]

I completely agree—the central theme of my speech is exactly that. We have to recognise the success of the south of England and also make sure that other parts of the country are equally successful and drive the productivity goals that we all want.

There is a housing imbalance that we have to acknowledge as well. The south-east and the south are where we find housing pressures regarding demand and price. I shall therefore come on to how we can, I hope, address this, although I have to accept, acknowledge and support the initiatives that the Government have already brought in to help places like Carlisle. Tax cuts; raising the living wage above inflation; a job creation machine that is taking unemployment back to 1970s’ levels—these policies have helped the job security of the people of Carlisle, whose living standards have actually increased.

We have also seen the Government’s northern powerhouse initiatives. I commend the work of the Under-Secretary of State for Housing, Communities and Local Government, my hon. Friend the Member for Rossendale and Darwen (Jake Berry), who is responsible for the northern powerhouse and takes a very positive and active approach to his role. The city growth deals also benefit various parts of the country. The Government’s borderlands growth initiative has been extremely welcome and well supported right across my region. Indeed, five councils are actively working together and have made a very positive submission to the Government. I look forward to reaching the heads of agreement in the new year and seeing some decent finance going into the region to help to support growth and productivity.

I believe that we can achieve so much more, however. Devolution is a Conservative principle. We want more powers devolved down to the regions—tax-raising powers, but also more responsibility for local government. We should be proactively promoting the unitisation of local government so that we have unitary authorities up and down the country. I am a great supporter of elected mayors. We have had success in that regard in the north of England, and I would like to see it spread right across the whole region. To take Cumbria as a simple example, we have seven councils and 400 councillors for half a million people, which is a completely ridiculous situation that is badly in need of reform. The difficulty is that while everybody in Cumbria recognises the need for reform, they cannot agree on what that reform should be. That is where central Government can help by giving a lead.

I want the Government to start to think more radically. Thinking about education, should we be saying to all schools in the north of England that they should become academies? We need to make sure that skills initiatives are locally based so that they are relevant to the local economy, not necessarily the national economy. The industrial strategy should be beefed up, for example so that we have a far more robust energy policy—again, that is very relevant to Cumbria. Should there not be financial incentives so that people who want to invest look to the regions and the north, rather than always to the south and London? How can we alter capital allowances, the planning laws, VAT, rates and national insurance to incentivise people to invest in the north? Of course, infrastructure spending can improve the economic performance of the regions. In my area, an application has been put in for housing infrastructure funding that would unlock the possibility of 10,000 new homes.

If businesses invest in the north, people will move to the north—they move to where there is economic activity. That would spread wealth and create a more balanced economy. People will move to the north rather than the south, relieving housing pressures down in the south. We will then have a stronger economy that produces better public services and a more balanced country. Government policy has recognised much of this, but I encourage Ministers to be more radical in recognising that local government can be a driver of change and a positive influence. I will certainly support the Government in taking a far more radical approach.

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[Julian Knight (Solihull) (Con)]

It is a great pleasure to follow the right hon. Member for Wolverhampton South East (Mr McFadden).

I had the dubious pleasure of reporting on nearly 20 Budgets and countless pre-Budget reports in my time as a journalist. Gordon Brown used to stand at the Dispatch Box with his clunking fist and talk about golden rules, fiscal balance and investing for the long term, and the horror show was always in the Red Book. As a journalist, I knew that to see what was in the Budget I had to look in the Red Book.

For days now, journalists across the country have been poring over the Red Book looking for holes similar to those they have found in many other Budgets over the years, but they have failed to do so because the Chancellor has adopted what I would call—pardon the pun—retail policies to address some of the major issues that people in this country face. For example, in 2015 my constituency was the only place in the country with increased footfall in the town centre on the year before, but that was reversed in 2016-17. Our main shopping centre, the Touchwood shopping centre, is now having to invest in the night-time economy, and for the first time I am starting to see empty shops on the high street, so the change in business rates is hugely welcome.

Another of my local high streets, in Shirley—a long, 1960s, straight-line, very old-fashioned high street—is being redeveloped through the intermingling of community resource and people living and being brought into the local area. For example, we have extra care living and other such developments, as we look to a future that is designed not specifically around retail, but around how the high street interacts with our lives. The retail fund of £675 million is therefore hugely welcome.

The right hon. Member for Doncaster North (Edward Miliband) made a mainly good speech, which was perhaps too focused on social housing. We need to look at housing in the round. We have to increase the supply of housing in this country. For years, housing has been distended, which in many respects has damaged our economy. That will happen even more now that house prices are so high, because houses have become so unattainable. We therefore need to increase supply.

We have to admit that a deficit of 82% is still too high. It leaves us less able to face a global recession, but we made a decision in 2010 that we would basically try to follow a middle way. We get out of that through productivity—the other way would be inflation, which none of us wants. Productivity is the only way in the long term, and the Budget develops that.