Budget Statement

Lord Bourne of Aberystwyth Excerpts

Friday 12th March 2021 Lords Chamber

[Lord Bourne of Aberystwyth (Con) [V]]

My Lords, I congratulate new noble Lords on their maiden speeches.

The Chancellor has, throughout his tenure, met the extraordinary needs of this extraordinary time—most notably with the job retention scheme, which has blocked the nightmare of mass unemployment. In the Budget, he has, I believe, skilfully balanced the need to continue massive government borrowing, with a national debt of over 100% of GNP, with the prospect of paying down the debt over time. Borrowing is currently very cheap, and the decision to raise corporation tax to 25% by the end of the Parliament seems sensible given that our rates are currently the lowest in the G20.

I think most people in the country will feel that the Budget is fair and sensible. I will briefly welcome two particular measures. First, continuing VAT at the reduced rate of 5% for hospitality, holiday accommodation and attractions until 30 September 2021, and then phasing back to 20% from 31 March 2022, seems right. Secondly, the plastic packaging tax is due to come into effect in April 2022; it should help to reduce plastic waste by encouraging change in producers’ behaviour. It is a good measure but it needs to go further and faster, particularly when contrasted with what other countries are doing.

Finally, as we approach the Glasgow COP, I hope that we will announce further action to support our green agenda. However, on the whole, I think it an outstanding Budget from an outstanding Chancellor.