Budget Resolutions and Economic Situation

Martin Vickers Excerpts

Friday 23rd March 2012 Commons Chamber

[Martin Vickers (Cleethorpes) (Con)]

In my speech, I should like to give overall support to the general thrust and direction of my right hon. Friend the Chancellor’s Budget. In extremely difficult circumstances, he has produced a package that I believe will stand the test of time. Budgets too often unravel in a matter of days. Before I continue, I must apologise to the House and the Minister for not being able to be here for the winding-up speeches, but I have constituency appointments that I must honour.

This is the third day of the debate, and many of the points that are made will have been made many times over, so I should like, in the main, to look at the proposals from my constituency perspective.

[Madam Deputy Speaker (Dawn Primarolo)]

Order. A lot of Members have apologised for not being present to hear the Minister. That is the convention of the House. I sincerely hope that the Minister will be here, however, because it does not look like any other Members will.

[Martin Vickers]

The local economy of my constituency is generally a low-paid one, with an average annual salary hovering around the £20,000 mark, so it would be wrong to say that I have been overwhelmed with demands for a reduction in the 50p tax rate. To be perfectly honest, no one has canvassed me on that, and that includes two millionaires—but that is an aside. We recognise the desirability of expanding an entrepreneurial economy, however, and on balance I think it is the right decision.

Most of my constituents are far more concerned about the cost of living—most notably petrol and energy costs—so as an officer of the all-party group on fair fuel for motorists and hauliers, I am disappointed that our recent efforts to persuade the Chancellor to postpone the next scheduled increase in petrol duty have not borne fruit. I acknowledge that much has been done on this since the election, but household budgets are being severely squeezed by the cost of motoring. Lincolnshire is a predominantly rural county with limited public transport, so people have little choice but to use their own cars. The FairFuelUK campaign has done much work to highlight this, and the recent report it commissioned from the Centre for Economics and Business Research provided considerable and compelling evidence of the benefits of lowering the burden not just to individuals but to the economy. Our campaign will continue.

Before raising another couple of concerns, I want to welcome the increase in the personal allowance to £9,205. This is a major step towards achieving the £10,000 target and has been warmly welcomed in my constituency, which, as I said, is a low-wage area. I also welcome the moves to lighten the burden regarding child benefit. It is a step in the right direction. It is not entirely what I had hoped for, but, again, I recognise the pressures on the Chancellor. It was interesting to note, in the debate a day or two ago, the suggestion made by my hon. Friend the Member for Gainsborough (Mr Leigh) about a possible way forward.

It is notable that when the reporter from the local Grimsby Telegraph contacted me just after the Budget speech, their first question was not about the 50p tax rate or the impact on pensioners. Instead, it was, “What’s in it for regeneration?” Northern Lincolnshire urgently needs improvements to its infrastructure and public realm, and the Government have recognised the area’s bright future with an additional allocation of £6 million to the pan-Humber and Greater Lincolnshire enterprise partnerships.

I particularly welcome the forthcoming publication of the national planning policy framework speeding up the procedure for major applications, and note that the Red Book makes specific mention of the Able marine energy park in my constituency, which has been plagued by delay after delay from wildlife directives and a less than positive approach from some Government agencies. The specific commitment in the Red Book to change the culture of statutory bodies is therefore much needed. I also welcome the commitment to changing use class orders and the associated permitted development rights that will make it easier to change the use of buildings.

Enterprise loans are also a welcome development, particularly those aimed at young people. I was recently involved in the small business all-party group’s inquiry into entrepreneurship. It was notable that every witness pointed out the need to encourage the entrepreneurship in our young people that the economy so urgently needs. It is also notable that the Federation of Small Businesses is broadly supportive of the Budget proposals. As we all know, to a great extent it is small businesses that will be the engine of growth.

I want to comment briefly on the Opposition’s response to the Budget. Despite their playground attitude of pointing and calling us “the same old Tories”, it is notable that it was those same old Tories who have guided the country through most of its difficult periods. We also provided the opportunities for working-class people to buy their council homes. We have provided the economic conditions for some of the most notable periods of growth throughout our history. The Labour party’s renewed class warfare just does not wash, especially with people like me who come from a working-class background. The fact is that all people, whatever their station in life, benefit from a growing economy, and I believe that this Budget will do a great deal to bring that about.