Amendment of the Law

Martin Horwood Excerpts

Tuesday 29th March 2011 Commons Chamber

[Martin Horwood (Cheltenham) (LD)]

The cornerstone of this Budget is undoubtedly the need to tackle the deficit. Spending £50 billion a year just on debt interest, which is double what we spend on transport, was clearly intolerable and could not go on. If we had not tackled the deficit, we would have found that an Irish, Greek or Portuguese economic future awaited us all, meaning more cuts, more public billions down the drain and higher interest rates, which would have hit everyone with a mortgage, everyone with an overdraft and every business dependent on bank borrowing. There is no point pretending that the cuts are not painful, but interest rates of 7%, 8% or higher would have been extremely painful, too, so I am glad that the Chancellor did not take that risk.

I am also very glad that the Chancellor is well on the way to fulfilling a Lib Dem election pledge to take more than 1 million people out of income tax, benefiting 24 million more by raising the income tax threshold. That will take nearly 2,000 of my constituents out of income tax altogether and benefit nearly half the population of the town.

There are also many welcome measures in the Budget for business and for investment. The cut in corporation tax will help small businesses in my constituency; I hope that we will benefit from some of the 40,000 new apprenticeships for young people not in education, employment or training; and it would be churlish of me not to mention the redoubling of the Swindon to Kemble line, which will be good for Cheltenham, good for business and good for the environment.

Good for the environment, too, will be the tripling of the endowment to the green investment bank to £3 billion, and the news that that bank will in due course be able to borrow on its own account. That is an important signal to green investors, and it will help us to lay the foundations of a low-carbon economy. So, too, will the commitment to a floor price for carbon, and, although £30 a tonne by 2020 is a pretty modest ambition, it gives an underlying message and confidence to those investing in green industry and green jobs.

I hope, however, that the measure will not lead to an accidental, back-door subsidy to the nuclear industry—not just to new nuclear but to the existing nuclear industry, which already costs us £1.5 billion of public money a year to clean up and close down. That is important, because any subsidy to the nuclear industry would run counter to specific pledges made in opposition by both Conservative and Liberal Democrat spokesmen, and I know because I was one of them.

I have a few other slight worries about the Budget. Not all red tape is bad, and I am concerned about the relaxation of the rules to be able to request flexible working. In my experience as an employer, I found that flexible working generally increased staff commitment and productivity. Progressive and innovative companies are trying to do more of it, not less.

My biggest worry about the Chancellor’s speech is about planning. He said that

“we will introduce a new presumption in favour of sustainable development, so that the default answer to development is yes.”—[Official Report, 23 March 2011; Vol. 525, c. 956.]

It may have been a shame that he did not have the space or time to explain that statement more fully, because, on the face of it, it is rather alarming. Not all development is sustainable, so how can the default answer possibly be yes?

I hope the Chancellor was guilty of no more than radical oversimplification, but one or two other statements in “The Plan for Growth” give cause for alarm. It states that the Government will enable

“businesses…to bring forward neighbourhood plans and neighbourhood development orders.”

There are many definitions of a neighbourhood, which was not clearly defined in the Localism Bill, but I am pretty sure that a business is not a neighbourhood.

“The Plan for Growth” states also that the Government will

“localise choice about the use of previously developed land, removing nationally imposed targets”.

I do not welcome nationally imposed targets, but it is important that localities are able to prioritise brownfield sites over greenfield, and any qualification of that ability would not be helpful.

Possibly the most alarming news of all in “The Plan for Growth” is:

“Local Enterprise Partnerships (LEPs) will be able to play a vital role in supporting local authorities plan for key sub national infrastructure… providing a powerful voice for business in the planning system”.

My constituents generally think that business has a pretty powerful voice in the planning system already, as it usually deploys battalions of barristers and consultants, but “sub national” worries me, because it has unfortunate echoes of Labour’s old regional spatial strategies.

People in the parish of Leckhampton with Warden Hill in my constituency know a bit about regional spatial strategies. They fought a battle against the south-west RSS for many years, and they are still fighting to protect the last substantial green space in the parish from disappearing almost completely. Such green spaces next to urban populations are vital for people’s health and physical welfare. They are opportunities for recreation; important for local food production; they absorb carbon dioxide and particulate pollution; and they are the most visited parts of the country and treasured by local people. Once lost, they are gone for ever, but they are exactly the spaces being targeted by developers, who in the past were supported by Labour’s myth that endless growth in urban extensions was sustainable. It simply was not.

The Localism Bill offers local communities real hope and the prospect that they will have a voice in the future of their own areas—

[Mr Deputy Speaker (Mr Nigel Evans)]

Order.

[Chris Ruane (Vale of Clwyd) (Lab)]

I was hoping and praying that this Budget would offer some employment chances for the people in my constituency. It has done nothing for employment chances in Vale of Clwyd; in fact, it has increased the chance of unemployment there.

There are 650 parliamentary constituencies in the UK, and of the top 50 for percentage of jobs in the public sector—including Edinburgh South with 67% and Swansea West at No. 50 with 41%—76% are Opposition constituencies and only 24% are Government constituencies. That speaks volumes. The policies that the Government are drawing up are policies not for Britain, but for the Tory and Liberal Democrat areas of Britain, and that is not one-nation conservatism. We are seeing on the economy the same partisanship that we saw on constitutional issues.

There are 13,000 public sector workers in my constituency.

[Martin Horwood]

Will the hon. Gentleman give way?

[Chris Ruane]

I am not giving way.

There are 10,000 public sector workers in the neighbouring, Conservative constituency of Clwyd West. [Interruption.] I will give way to the hon. Gentleman.

[Martin Horwood]

Does the hon. Gentleman think that the policy of the pupil premium, which is gearing education funding towards schools supporting the least well-off families, will support more Conservative and Liberal Democrat constituencies than Labour ones?

[Chris Ruane]

I will deal with that shortly; the hon. Gentleman does not have to worry about that.

In my constituency, there are already six people chasing one job. If the Government implement these 10% to 25% cuts in the public sector, another 2,000 to 3,000 people will become unemployed, with 20 people chasing each job. The Government state that they want the private sector to take up the slack of jobs in the public sector. What have they done to promote that in my constituency? Nothing. One of the biggest employers in north Wales is Sharp, which has the biggest solar panel factory in the whole of western Europe. There is also Kingspan in Delyn. In my constituency, we have the Technium OpTIC centre, which has the biggest solar panel in the whole of the UK. The changes to the feed-in tariff that the Government have announced will mean that these sectors are hit, and there will be job losses, not job expansions, in my constituency. An article in today’s edition of The Guardian stated that the UK had gone from third to 13th in green technology jobs in one year. This is not a green Government.

Young people in my constituency were looking to the Chancellor to help them to gain employment. They had help from the previous Government—a Labour Government. In my constituency, the Rhyl city strategy put 450 young people back to work in the space of 12 months. They were given hope; they were given a wage packet; they were given a future. All that has ended. The last day of the future jobs fund is tomorrow; after that, there will be nothing like it in my constituency.

Another article today in The Guardian mentioned that seaside towns and communities have the worst deprivation in the country. This Government did nothing to help those seaside towns; in fact, they worked against them. The changes that they have made to housing benefit will mean, as Boris Johnson has said, a Kosovo-style clear-out of the inner cities, especially London. Where will those people go? They will go to houses in multiple occupation in towns such as Weston-super-Mare, Hastings, Margate, Jaywick, Rhyl, Colwyn Bay and Blackpool. They will be moved from areas of employment to areas of unemployment, where slum landlords will make money out of misery—helped, aided and abetted by the Conservatives, who are altering the rules and regulations on the licensing of slum landlords.