Budget Resolutions

Karin Smyth Excerpts

Wednesday 22nd November 2017 Commons Chamber

[Kevin Foster (Torbay) (Con)]

It is a particular pleasure to follow the hon. Member for Belfast South (Emma Little Pengelly). Like her, I want to see a devolved Government back in place and making decisions again on spending in Northern Ireland. She is right to say that to have had 10 months without direct accountability to the people of Northern Ireland is unacceptable, and this needs to be moved forward. She is also right to make observations about the role that one or two other parties could be playing, one of which decides not to come here to make its comments on the budgets and spending. It should be providing a constructive way forward so that these decisions can be made in Northern Ireland, because this cannot be put off forever.

I welcome the Budget and the general tenor it set. I want to look in particular at what it means for those living in my constituency, which means starting by examining the impact that raising the basic allowance will have for many families. It is hard to believe that not that long ago, someone earning less than £7,000 a year would have been deemed to be earning enough to start paying income tax, yet now that threshold will be heading up to £11,800, meaning that those on lower pay keep more of what they are earning. Freezing fuel duty has a similar effect, particularly in the Bay; again, that makes quite a difference for those on low incomes, for whom transport will be an increasing cost. This is not just about car drivers; it is about those who use all forms of transport that rely on fuel. The idea that only motorists benefit from this measure is incorrect, so this is very welcome.

Given my Parliamentary Private Secretary role, I am conscious that I have to restrict some of what I say about the housing element of this Budget, but it is right to welcome the huge amount that is being done and that has been announced today. Getting towards 300,000 homes a year will be a great achievement and will make a real difference. Some of the reviews that will be launched are welcome, particularly those examining issues in the planning system.

I welcome the change on stamp duty, which will make it easier for many first-time buyers. One of the nasty surprises people get when they buy their first home, as I did when I bought mine, is that they think they have got the money together to purchase the property, including the deposit, and then suddenly are presented with a lovely bill for several thousand pounds, which they have to pay almost immediately. That puts an instant pressure on people who have already had to save for a higher deposit. I have heard some of the complaints from Opposition Members, but if they feel the way they say they do, there will be a chance for them to divide the House on this matter and to tell their constituents why they oppose this change. They will be able to tell first-time buyers in their constituency why they do not think this is the right idea. It is a bit strange to spend the afternoon in the House of Commons complaining about something and then going away to support it. For me, this measure is absolutely welcome and will make a difference for first-time buyers in Torbay.

Given the age demographics of the Bay, it is welcome to hear of the extra funding for the NHS, and in particular the £350 million to deal with winter pressures. I hope that that can be used in accident and emergency and to look at some pressures created in each area by its demographics. As I say, Torbay is very much driven by an older population, whereas other areas will have different challenges that will require funding to be put in. There is an ongoing discussion about social care, but that issue will never be resolved in just one Budget. It needs to be part of a long-term discussion, probably on a cross-party basis, to provide a solution, as no one Parliament will be able to resolve it in a way that will give confidence to the public going forward.

The emphasis on productivity and the investment to increase it are welcome. I see the impact that the south Devon link road has had on productivity in Torbay. People no longer spend an hour in peak times trying to get between Newton Abbot and Torquay. That shows the regenerative effect that infrastructure investment can have. I hope that we will see more of it, particularly with the announcement of the £8 billion productivity investment fund.

[Karin Smyth (Bristol South) (Lab)]

Does the hon. Gentleman not share my disappointment at the paltry recognition of the south-west in today’s Budget? It does not even warrant a headline in the Red Book. What does that say about the Government’s approach to the whole of the south-west economy?

[Kevin Foster]

I thank the hon. Lady for her intervention. I enjoyed our time together on the Public Accounts Committee. On the commitment to the south-west, I just say two words to her: Stonehenge tunnel. For decades we have waited and for decades it has not been delivered. Now, £1 billion will go into delivering it and into dualling the whole of the A303. I will judge the Government by what they do, not by what they spin.

I welcome the £2.3 billion for research and development. In the long run, I hope that that will include an institute of technology based around South Devon College in Paignton to deliver the highest levels of skills training in our local community. Torbay is famous for its beaches and tourism industry, but it also has, though slightly more hidden, a vibrant photonics industry that needs more people with skills to come to the area. If training is available on a large scale, businesses will be far more likely to invest in our area, to grow and expand, and to give local people those opportunities. The bid is being prepared literally as we speak and that is very welcome.

There are problems in the Bay to do with alcohol and substance abuse. The Chancellor’s comments about super-strength ciders are therefore welcome. The issue of preloading affects our night-time economy, and that is connected to the fact that some cider is cheaper than mineral water, yet is far stronger than most other things on the market. I think that the Chancellor’s approach is right. It will be interesting to see what happens in Scotland. I am not persuaded by the arguments for minimum pricing, but we will see what practical difference it makes in Scotland and learn from that. We will have an example of whether it works or not.

I welcome the changes to universal credit that have been announced, given that full service will be rolled out in Torbay in May 2018. I look forward to hearing the statement tomorrow, when we will get more detail. Again, it is good to know that the Government have listened, particularly to the comments that were made in last Thursday’s debate in the Chamber.

Torbay is famous for its many small businesses, so people will welcome there being no change to the VAT threshold. That will keep many small businesses out of the administration of VAT. It is also welcome to hear about the action being taken to crack down on online tax avoidance. For me, that is a key issue. It does not make great sense that businesses can avoid tax if they have a very large website, yet there is little that a small business based in a shopping centre in Torbay can do to avoid it. I welcome the other comments the Chancellor made about tax avoidance. We have heard many comments about tax avoidance today, but if these things are so easy to deal with, why were they not dealt with in the past? To be fair, there was a cross-party spirit in my time on the Public Accounts Committee when looking at tax avoidance issues. However, some of the rhetoric we hear in this Chamber does not sit well with the record of some people in this area.

Finally, having spent the weekend talking to Daniel Maddock, who is campaigning around Watcombe on the issue of potholes, it is always good to see the reference in the Red Book to the £45 million that is going into dealing with them. It might sound like a minor issue compared with building a new tunnel under Stonehenge or delivering a major piece of infrastructure, but it is the sort of thing that annoys those who pay their taxes and want to see a service in return.

This is a welcome Budget. It is a Budget that will help people reach their aspirations, a Budget that will help people buy a home, and a Budget that will help Britain move forward and have technology industries and a vibrant private sector as we approach Brexit. It is a Budget that will make Britain fit for the future and it should be supported by the House.

--- Later in debate ---

[Karin Smyth (Bristol South) (Lab)]

I would like to start by again reminding the House that the Bristol economy is a net contributor to the Treasury of £10 billion annually. Once again, I ask, what do we get for it? I have looked in the Red Book for the south-west, and it is not there—there are a few paltry comments. Once again, we are short-changed by this Government.

I have heard about high employment levels, but in Bristol they mask the reality that there are too many low-paid jobs. Some 18% of workers in my constituency earn less than the voluntary living wage. Young people are the least likely in the country to go to university, and our people are ending up on the lowest level of apprenticeships. We have 20% of our people living with a life-limiting disability. This is a scandalous loss of human potential.

I do concede that there are some small signs of hope in today’s Budget as regards housing. I welcome the Chancellor’s commitment to house building, as this is crucial for my constituency. However, with house inflation at 14% in Bristol, the cut in stamp duty will not be of much help. I look forward to hearing whether Bristol is regarded as an area of high affordability pressure and therefore whether the council will be able to borrow more to build much needed council houses to rent in future.

We have young people in Bristol South ready to build these houses to feed the supply chain, but we desperately need an opportunity to train them. The wage differential for housing construction apprenticeships is good compared with others, but most of our young people do not get on to good apprenticeships. Last November, City of Bristol College was awarded pipeline status to get a construction centre in my constituency. When the previous Skills Minister, the right hon. Member for Harlow (Robert Halfon), visited with me earlier this year, I pointed out to him the site where it can be built, but the local enterprise partnership has still not invested the money. There is no coherence in the Department for Education on capital money and investment. The Chancellor needs to stop wasting taxpayers’ money and invest it where it is needed.

We have heard a lot this week about the pledge on automated driverless cars and other headline-grabbing sectors that the Government declare a priority: contrast that with the £500 million for technical qualifications. I have supported apprenticeship schemes for a long time in this House, but the ambitious, arbitrary targets and the focus on new starts as a measure of success have meant an emphasis on quantity over quality. I remind the Chancellor of the 61% decline in new apprenticeship starts in just the past few months since the levy started. Without further significant investment, the Government’s target will not be met. It was not good enough today simply to refer to the levy as something he is going to keep an eye on.

I welcome the Government’s commitment to technical education as part of an attempt to fill the skills gap, but again, there is no money in this for further education—a bare £20 million. I am acutely aware there have been huge delays in rolling out this programme. I fear that T-levels will face similar implementation problems as apprenticeships, and we are losing critical time. If the issues stem from a lack of funding, then I would have expected to see something more in this Budget. Instead, my local college is facing cuts from £9.7 million to £5.4 million since 2013, and, crucially, participation rates have halved. Two and half thousand adults ceased to be eligible for Government subsidy for their learning—more wasted human potential. We already have the lowest higher education attainment results of any constituency in the country. This disadvantage starts in early years and in schools. There are £1.9 million of school cuts coming across Bristol, and the below-inflation funding formula next year will represent a further per pupil funding decrease.

I would like to say a few words about health. Last year, the Public Health Committee and the Health Committee nailed the lie that the NHS got what it asked for last time. Let us not get into this again next time. Of course new money is welcome, but it is not sufficient to do the job that the Government have asked the NHS to do. It is also absolutely scandalous that we have heard nothing today about the silent misery for families who are living with the social care crisis. Since becoming an MP, I have not heard a single Tory defend the Lansley reforms. The destruction caused by the Health and Social Care Act 2012 is apparent to us all, with no one locally in charge to do anything about it.