Budget Resolutions and Economic Situation

Michael Gove Excerpts

Tuesday 21st March 2023 Commons Chamber

[The Secretary of State for Levelling Up, Housing and Communities (Michael Gove)]

It is a pleasure to open this final day of the Budget debate. It is a particular pleasure to be opposite my old friend, the right hon. Member for Doncaster North (Edward Miliband). It is a pleasure that both of us now—I think I can fairly say as elder statesmen of our respective parties—have a chance to be taken around the parade ring one more time in front of everyone. There is a difference, however, between me and the right hon. Gentleman. I went from rising hope to elder statesman without an intervening period of achievement, whereas he was a very distinguished Energy Secretary and Leader of the Opposition. It is a pleasure to see him in his place.

The fact that we are both in the Chamber today also demonstrates the wisdom of one of the Budget measures. In the Budget, the Chancellor of the Exchequer made it clear that he wanted to bring people who had been dropped from the frontline of the workforce back into the frontline if they still had something to contribute. It is welcome to see not just both of us here, but, within days of the Budget, someone of real talent who had been retired from the frontline coming back: I am referring, of course, to the news that broke just an hour ago that Roy Hodgson has returned as manager of Crystal Palace.

I am conscious that this is not the most significant political or parliamentary event this week. All of us will this week be thinking of another political figure—a blond titan who divides opinion, a figure of undoubted achievement who defied the then Prime Minister over Europe but whose passion for Britain and especially for overlooked and undervalued communities cannot be denied. I am referring, of course, to the former Member for Henley, Lord Heseltine of Thenford, who is 90 today. I hope I speak for the whole House in wishing Lord Heseltine many happy returns. He is a personal hero of mine, although we do disagree on some things. He is that rare thing—a Conservative who has been given the freedom of the city of Liverpool—

[Yasmin Qureshi (Bolton South East) (Lab)]

He was against Brexit.

[Michael Gove]

He was against Brexit, that is true. We all have our flaws, myself included. I am pleased to say that many people were in favour of Brexit, including well over 70% of the members of the constituency of the right hon. Member for Doncaster North. Brexit has been delivered by this Government, Brexit is a settled fact and we are all committed across this House to making Brexit work.

Lord Heseltine set an example of leadership: pro-enterprise, compassionate and inclusive in the best traditions of one nation conservatism, which are being carried on by my right hon. Friends the Prime Minister and the Chancellor of the Exchequer. Look at what the Prime Minister has already achieved this year. In the early weeks of this year, he issued a section 35 notice with the Secretary of State for Scotland in order to uphold the principle that the Equality Act 2010 should be a shield and not a sword. As a result, women’s rights were protected across the United Kingdom. Shortly after that, he concluded the Windsor framework, which further strengthened our United Kingdom and ensures a closer and more effective relationship, not just within these islands but with our neighbours and friends in the European Union. He then concluded the next stage of the AUKUS defence pact, which means that the waters of the Pacific will be patrolled and democracy will be defended by submarines built here, in Barrow-in-Furness on the shores of the Irish sea, securing jobs and investment for thousands of talented young people for decades to come.

Shortly after that, we had legislation to control illegal migration and a concordat with President Macron, with money being spent in order to ensure that the French police are supported in making sure that illegal people smugglers are dealt with effectively. After that, we had steps to ensure that tech firms were protected in this country from Chinese takeover, and we also had the rescue of the UK branch of Silicon Valley Bank. We also had the establishment of a new Government Department, the Department for Science, Innovation and Technology. That innovation was called for by William Hague and by Tony Blair—remember him?—and it reflects what every world-leading jurisdiction is doing, ensuring that more research and development investment is directed to where we need it.

All this time, as the Prime Minister and the Chancellor were recording those achievements, what has the Leader of the Opposition, the right hon. and learned Member for Holborn and St Pancras (Keir Starmer), done? Well, he has been energetic in expressing profound concern about the presenter rota on “Match of the Day”. While our Prime Minister has been a new statesman, I am afraid that the Leader of the Opposition has been a mere spectator. While our Prime Minister has been shaping global events, the Leader of the Opposition has been furiously scrolling through his Twitter feed. While our Prime Minister has been halving inflation, reducing debt, growing the economy, cutting waiting lists and stopping the boats, I am afraid that the Leader of the Opposition has been reduced to an irrelevance on the bench. We in this Government are delivering impactful, progressive government, while Labour can only look on in consternation and admiration.

[Jonathan Edwards (Carmarthen East and Dinefwr) (Ind)]

Before the right hon. Gentleman gets too excited, the Office for Budget Responsibility’s report provides a rather sobering analysis about economic stagnation for the duration of the forecasting period. That is predominantly down to the same old problems, including low productivity—according to the OBR, productivity has halved since 2010. Business investment has stagnated since 2016. Why have successive Governments and Chancellors failed to get a grip on these issues?

[Michael Gove]

The hon. Gentleman raises an important point, which goes to the heart of what the Budget addresses. It is the case that there is a productivity challenge that has bedevilled Governments of different colours for years now in this country. Whether Labour Governments, coalition Governments or Conservative Governments, we have all in different ways recognised that productivity has been too low in too many parts of the economy, particularly the overlooked and undervalued communities of the north, the midlands, and indeed south Wales.

But that is what this Budget addresses directly, through a series of labour market and supply-side interventions that are explicitly designed to raise the trend rate of growth of the British economy. We have welfare reform to support those who have been disengaged from the labour market. My right hon. Friend the Secretary of State for Work and Pensions has introduced a groundbreaking White Paper to help those people—they may be struggling with mental health or other difficulties—who need to be re-engaged with care and thought, so that they can again contribute to the economy and enjoy pride and purpose in their lives, as well as contribute to growth.

It is also the case that my right hon. Friend the Secretary of State for Education and the Minister for Children and Families, my hon. Friend the Member for East Surrey (Claire Coutinho), have brought in groundbreaking childcare reforms. These reforms are a win-win-win. They ensure that men and women can return to the workforce at an earlier stage to contribute economically, they ensure that children can have the best care and support, so that they can arrive at school ready to learn, and they contribute to making sure that we are both family-friendly and pro-growth. These are exactly the sort of supply-side interventions that will contribute to not just a growing economy, but a fairer society.

[Tim Farron (Westmorland and Lonsdale) (LD)]

Like the two gentlemen on the Front Benches, I was also the future once. The point that the Secretary of State makes about labour market reforms is extremely important; in the lakes and dales of Cumbria, 63% of our employers are operating below capacity because there are not enough workers in the area. The big problem for us, which I know the Secretary of State is seeking to tackle, is the collapse of the long-term private rented sector into Airbnb. Could he give me some assurance of when this Government will change planning law to allow communities such as mine to control our housing stock, so that there are enough homes affordable and available for local families and local workers?

[Michael Gove]

The hon. Gentleman makes a very good point: whatever our other disagreements, he is absolutely right to focus on that issue, as so many others have done. Of course we want to have a labour market that works, and of course we want to have a tourism sector that works, but there is a problem in the private rented sector, particularly in beautiful parts of our country such as those he represents, where homes are being turned into Airbnbs and holiday lets in a way that impedes the capacity of young workers to find a place where they can stay in the locale that they love and contribute to the economy of which they wish to be part. We will be bringing forward some planning changes to the Levelling-up and Regeneration Bill, which are intended to ensure that we have restrictions on the way in which dwelling homes can be turned into Airbnbs. I look forward to working with the hon. Gentleman and other colleagues, including my hon. Friends the Members for North Cornwall (Scott Mann) and for North Devon (Selaine Saxby), to make sure that those reforms will work.

[Barbara Keeley (Worsley and Eccles South) (Lab)]

The Secretary of State talks about childcare measures, but when it comes to people with caring responsibilities, childcare measures are not enough in themselves. Some 1.7 million people are economically inactive because of caring responsibilities, and there was no support for unpaid family carers in the Budget. Caring responsibilities are a major reason for people not being able to work or having to cut back their hours, and this Budget was a massive disappointment to those people.

[Michael Gove]

I appreciate the point that the hon. Lady makes, and she is right to draw attention to and thank those who exercise caring responsibilities. The family is the foundation of our welfare society, even before the creation of the welfare state, and we need to work in partnership with carers everywhere. I know that she and others—including, if I may say so, the leader of the Liberal Democrats, the right hon. Member for Kingston and Surbiton (Ed Davey)—have come forward with proposals to ensure that we can better support carers. It is the mission of the Secretaries of State at the DWP and the Department of Health and Social Care to see what more can be done, particularly in the wake of the covid pandemic, which has placed particular pressures on some of the most vulnerable in our society.

[Sir Desmond Swayne (New Forest West) (Con)]

Where families make a choice that one parent will remain at home for full-time childcare, their tax treatment is much, much less eligible than for couples where both parents work. If we are to have true freedom of choice in childcare arrangements, there is an agenda on taxation that we need to address.

[Michael Gove]

I know that my right hon. Friend and other Members of this House, including my hon. Friend the Member for Penistone and Stocksbridge (Miriam Cates), have raised interesting questions about how we can better support families overall. Both the Prime Minister and the Chancellor of the Exchequer are absolutely determined to explore what more we can do, but tax changes are, and always have been, above my pay grade. They are a matter for the Chancellor of the Exchequer in consultation with the Chief Secretary to the Treasury, and I know better—particularly after recent weeks—than to try to guide their hands.

[Jeremy Corbyn (Islington North) (Ind)]

Will the Secretary of State give way?

[Michael Gove]

I am very happy to.

--- Later in debate ---

[Jeremy Corbyn]

I missed the first two minutes of the speech, and I apologise. Following on from the point that was raised by the hon. Member for Westmorland and Lonsdale (Tim Farron), the issue of the private rented sector is devastating in inner-city areas such as mine, where private rents are now going up—the worst I have heard is an 80% increase—because of the end of restrictions on them. Will the Secretary of State take some action to bring about a rent freeze in the private rented sector? It is devastating, particularly for young people looking for flats in London, to try to find anywhere to live. They are spending a vast proportion of their income on rent, which is simply wrong and not fair. We need rent control in the private rented sector.

[Michael Gove]

I am very grateful to the right hon. Gentleman for his intervention. No one can doubt the sincerity of his concern and care for people, both in the private and the social rented sector—standing up for them has been a consistent theme of his time in this House—but I respectfully disagree with him. I think there are legislative changes that we can make in order to help those in the private rented sector, including the abolition of section 21, but if we want to ensure that there is a pipeline of affordable private rented homes for people, there are two things that we need to do. First, we need to improve supply, particularly in London, and to do so in partnership with the Mayor of London, who has not always been as energetic as his predecessor in bringing forward new homes. The other thing we need to do is make sure there is fairness in the tax treatment of landlords and others. I look forward to working with the right hon. Gentleman and others on that. A rent freeze, while often attractive, has the effect, as we have unfortunately seen in Scotland, of reducing the supply of rented homes. Although I know his heart is in the right place on this issue, the methods he proposes run counter to what we both want to see.

I was talking about supply-side reforms earlier, and I briefly mentioned pension reforms. It is important we recognise that the pension reforms unveiled earlier in the debate by my right hon. Friend the Chancellor of the Exchequer have been widely welcomed, including by the British Medical Association, the Royal College of Surgeons, the leaders of police and crime commissioners everywhere and, most conspicuously, the hon. Member for Ilford North (Wes Streeting), the shadow Secretary of State for Health and Social Care. He called some time ago for a change. He said that he recognised it may not be “progressive”, but that it was “pragmatic” to introduce a pension change that will see more doctors coming out of retirement and on to the frontline, ensuring that more patients are treated more quickly, that fewer people are in pain and that our NHS is there for those who need it.

This wholly welcome change to pensions was addressed in Treasury questions earlier. Labour Members had an opportunity to express their dissatisfaction with that change, but not a single Labour Back Bencher did so. I know that the measure is a source of synthetic and confected rage from elements of the Labour Front-Bench team, but this initiative will cut waiting lists, has been welcomed everywhere—from the shadow Health Secretary to Labour Back Benchers, and from the BMA to the Royal College of Surgeons—is progressive and is in the country’s best interests.

Other changes made in the Budget also contribute to economic growth and social justice. The full expensing of capital receipts is a way of ensuring that our companies address what is, as the right hon. Member for Islington North (Jeremy Corbyn) rightly pointed out, one of the long-term property problems in this country. We have not always had the level of business investment—this runs across Governments of all colours—that we need to ensure we have high-paying jobs and the capital required to take advantage of the technological changes of the future. The full expensing proposals, amounting to a tax cut of some £9 billion, are a pro-business tax cut, and they also mean we maintain not just one of the most competitive corporation tax regimes, but the most competitive business environment in the G7.

[Alan Brown (Kilmarnock and Loudoun) (SNP)]

The right hon. Gentleman must know by now that the measures taken on the annual allowance and all the rest of it were a sledgehammer to crack a nut. It did not need to be a full £4 billion package. In terms of growing the workforce, when he was having his cross-party summit to discuss Brexit problems, did they discuss the problems that ending freedom of movement has caused in the health and social care, hospitality and agricultural sectors? If they did not, why not?

[Michael Gove]

The hon. Gentleman makes an important point about freedom of movement. If we want to have the benefits of freedom of movement within the United Kingdom, and if we want to ensure that talented people across the United Kingdom can go to the jobs where they are needed, the one thing we need to avoid is a divisive debate focused on separatism, which he and his party have been leading. There is no more expensive and harmful intervention to the economy of this country and that of Scotland than a perpetuation of an obsession with independence.

I am grateful to the Member of the Scottish Parliament for Skye, Lochaber and Badenoch for how she has made it clear that the SNP needs to address its mediocre record in government, get rid of politically correct obsessions and focus once more on partnership with the UK Government in order to generate economic growth. If the hon. Lady wins, I hope we can work together in the interests of everyone in Scotland. If it is one of the other candidates, I am afraid that the SNP will continue on the vortex of decline, which I know will be a source of sadness to the hon. Member for Kilmarnock and Loudoun (Alan Brown) but a relief to many of the rest of us.

The other key changes that I want to mention in the context of improving productivity were the changes on regulation, particularly of the Medicines and Healthcare products Regulatory Agency. Those are coming about as a result of Sir Patrick Vallance’s review of how we can better regulate the science and tech sector outside the European Union. Then there is the investment in energy. I know that we are not going as far as the right hon. Member for Doncaster North wants—indeed, he is not even being allowed to go as far as he would want by the shadow Chancellor, the right hon. Member for Leeds West (Rachel Reeves)—but with our investment in Great British Nuclear and carbon capture and storage, we are ensuring that we move towards net zero in an environmentally and economically sustainable way.

One key point of distinction between those on the Government Benches and those on the Opposition Benches is that this is the Government who legislated for net zero and who introduced the 25-year environment plan. We have been the greenest Government ever. We are also the Government who believe in moving to net zero in a sustainable way. If we are to do that, it is vital that we continue to have the means, through oil and gas from the North sea, to have a just transition. Jobs in the north-east of Scotland need to be protected, as do jobs in Middlesborough, Tyneside and Humberside. It is those on this side of the House who believe that we can have sustainable and prudent new exploration and new drilling. The message from those on the Opposition Benches, whether SNP, Liberal Democrat or Labour, to the north-east of Scotland and to workers in Aberdeen, Middlesbrough, Tyneside and Humberside is, “We put our ideology ahead of your jobs and growth.” Those of us on the Government Benches will not stand for it.

[Several hon. Members rose—]

[Michael Gove]

I look forward to the intervention from the hon. Gentleman who represents the energy-intensive steel town of Port Talbot.

[Stephen Kinnock (Aberavon) (Lab)]

I thank the Secretary of State for giving way; he is being very generous. He talks about the importance of jobs and energy-intensive industries. Is he aware that Labour has committed to a steel renewal fund, which will facilitate the transition from blast furnace technology to electric arc furnace technology, which is vital for the future of the Port Talbot steelworks in my constituency? Can he set out whether his Government have anything like that sort of plan? Is he aware of the fact that Tata Steel has said that if the Government do not make up their mind as to whether they will support our steel industry by July, it will close down one of the blast furnaces?

[Michael Gove]

First, the hon. Gentleman is a fantastic advocate for his constituency and the steel sector. Secondly, as far as I know, the Labour proposals that have been put forward, which we welcome, are not funded. [Interruption.] No, I do not believe they are. Thirdly, it is the case that if we are to have a sustainable steel industry, we need to move towards its decarbonisation and a bigger role for hydrogen, but no scientist and no one in the steel industry thinks that will be an answer tomorrow.

As has been pointed out, we will need, alongside the development of those technologies, to ensure diversity of supply of the different types of energy needed in steel production. That is why the independent planning inspector said to the Government that we should go ahead with a new coalmine producing coking coal in Cumbria, and it is why the Opposition, without even having read the planning inspector’s report, once again put ideology before jobs and growth in rejecting it. I will always listen to the hon. Gentleman when it comes to the steel industry, but I will not take lectures from Opposition Front Benchers when they set their face against precisely the type of jobs that will help sustain steel for the future.

[Several hon. Members rose—]

--- Later in debate ---

[Michael Gove]

I will give way to the hon. Lady, and then I will try to make a little progress.

[Debbie Abrahams (Oldham East and Saddleworth) (Lab)]

Does the Secretary of State want to comment on the CBI report on climate change and the relative investment of different countries, including the UK? It puts us below Germany, France, the US, the EU and the World Bank for investment through public spending on climate change.

[Michael Gove]

It is the case that this Government have seen a massive uptick in solar power—I think more than 90% of the increase in solar panels and solar power generation in this country has occurred under this Government. It is also the case that this country is the world’s favourite destination for offshore wind investment. It is also the case that with our investment in carbon capture and storage and in nuclear power, as I have mentioned, we have exactly the diversity of supply required.

Could this Government do more? Could any Government do more? Yes, but it has to be paid for. I am afraid that Labour’s position, with the commitment to spend £28 billion on a green new deal, is unfunded. Not a penny has been allocated by the shadow Chancellor to pay for that. Do not just take it from me. Take it from the former shadow Chancellor, Ed Balls, who pointed out on Channel 4 that we have to make sure, if we are governing the economy well, that debt as a proportion of GDP reduces every year. He pointed out explicitly that the unfunded £28 billion green new deal was only going to be funded, and could only be funded, by borrowing. He explicitly pointed out that if the plan put forward by the right hon. Member for Doncaster North for unfunded, borrowing-financed investment goes ahead, he runs exactly the same risk as others have in the past of tanking the economy, pushing up interest rates and having the bond markets catch fright. It was not a voice of reaction making that point, but the man who the right hon. Gentleman thought should be Chancellor of the Exchequer.

[Mr John Baron (Basildon and Billericay) (Con)]

We should also remember that no Labour Government have left office without unemployment being higher than when they came to power. Does my right hon. Friend accept that small and medium-sized enterprises employ by far the largest number in the private sector, and that in order to help them we perhaps need to take a fresh look at the amount of regulation they have to abide by? It needs to match the complexity and size of the company in question. Perhaps we should place greater emphasis on, say, a small firms regime that actually addresses this point head-on.

[Michael Gove]

My hon. Friend makes an important point. People will know—particularly readers of the Investors’ Chronicle, in which he writes a regular column—that there are few keener students of exactly how we can make changes to the supply side in the labour market in order to drive growth. The point he makes about SMEs and, indeed, microbusinesses is one that I know the Chancellor of the Exchequer, as a former small businessman and entrepreneur himself, takes very seriously, so I am grateful to my hon. Friend for making that point.

[Anna McMorrin (Cardiff North) (Lab)]

Yesterday, the Intergovernmental Panel on Climate Change issued its most damning report yet. This Government go around the world telling other Governments not to open coalmines, yet that is exactly what this Government are doing. They are also issuing new oil and gas licences, yet not investing in the most efficient and cheapest renewable energy of all, which is onshore wind. Will the Secretary of State at least admit that this Government are not doing anything to commit to ensuring that our next generation has a future linked to the economy, and a more sustainable future at that?

[Michael Gove]

I am very grateful to the hon. Lady, who is a brilliant advocate for the environment. Some of the arguments she has made in this place have weighed with me, and she has helpfully corrected me in the past when I have been in the wrong, but on this occasion I have respectfully to disagree with her. I cannot see how we can have an effective and just transition to a net zero future—not a total zero future, but a net zero future—without oil and gas playing a diminishing but significant and strategic part.

If there are people in this House—and there are on the Front Benches of almost every other party—who believe that we should get rid of oil and gas like that tomorrow or overnight, let them say so. If there are people who think that there should be no further exploration or drilling of our own domestic oil and gas resources, let them go to Aberdeen, Middlesbrough or Grimsby and say so, but I do not think they will receive a warm welcome from the voters there or from the investors. On the point about the coalmine, again I am restricted in what I can say because I have merely followed the advice of the planning inspector. The planning inspector was very clear that both the net zero and downstream emissions as a result of this change would actually contribute to a stronger environmental posture for the UK, not a weaker one.

I want to turn to the area of renewable energy, which the hon. Member for Cardiff North (Anna McMorrin) mentioned. She, like me, is a fan and an advocate of renewables. Let me take her on a journey—a journey to Teesside. I would invite her to join me in visiting Teesport, in the constituency of my hon. Friend the Member for Redcar (Jacob Young). I would like her, and indeed everyone in the House, to join me in seeing what Ben Houchen and the Tees Valley Combined Authority have done there; to see the way in which turbines are assembled there; and to see the way in which the investment secured through the freeport there is providing high-quality, high-paying jobs in green technology, at the cutting-edge of the future, alongside hydrogen work.

I am sure the hon. Lady would want to applaud what Ben Houchen has done, because she is an enlightened and thoughtful Member of this House, but I have to tell her that not every member of the Labour party has been supporting Ben Houchen in bringing high-quality green jobs to working class areas in Teesside. Recently, when the Mayor of Teesside was creating a new development corporation to bring new jobs and new investment into renewables, Middlesbrough Labour councillors voted against it. When the freeport was being debated recently, Labour activists sought to undermine the efforts of Ben Houchen in bringing jobs into that area. The economic policies of those on the Opposition Front Bench that would undermine what is being done.

Teesside has been transformed thanks to Conservative leadership, and in the Budget most recently, Eston—which for 20 years Labour had promised it would invest in, but where it never spent a penny—secured £20 million to see that community at last given the money it needs, so that people’s pride in that place can be supported by central Government. For decades, Teesside was neglected and overlooked by Labour, and it is still being undermined and attacked by Labour, but it depends on Conservatives for its future. That is levelling up in action.

[Catherine McKinnell (Newcastle upon Tyne North) (Lab)]

I would be delighted if the Secretary of State could demonstrate that his Department knows where the places are that he is talking about. Is he aware of Government advertising boasting about levelling-up funding for the Grainger market in Newcastle that was advertised in Newcastle-upon-Lyme?

[Michael Gove]

I think it is Newcastle-under-Lyme, not Newcastle-upon-Lyme, but as someone who lived in Gosforth for five happy months, I am always happy to talk about Newcastle with the hon. Lady.

[Mr Simon Clarke (Middlesbrough South and East Cleveland) (Con)]

Will the Secretary of State give way?

[Michael Gove]

However, I am even happier to give way to my right hon. Friend.

[Mr Clarke]

My right hon. Friend is exactly right in what he says about the recent vote at Middlesbrough Council. Does he agree that effective devolution to the structures of local government, which can deliver change most effectively—including, in Middlesbrough’s case, a development corporation led by the Mayor, but with full democratic accountability ensured by its membership—is the right way to make sure that left-behind communities in towns such as Middlesbrough are not ignored and forgotten, as they were for far too long?

[Michael Gove]

My right hon. Friend is absolutely right. All the communities of Teesside—Redcar, Normanby, Eston, Middlesbrough, Stockton, Darlington—are benefiting as a result of Conservative leadership, but in particular, the development corporation that the Mayor is bringing forward is the right thing to do.

I must draw my remarks to a close in a minute, but before I do, because I think it is always right to offer praise to members of other parties who have done the right thing, I want to thank all those across local government who have contributed to the extension of devolution that we saw in the Chancellor’s statement. I have known the Chancellor since we both entered the House of Commons in 2005, and he has long been a champion of devolution, decentralisation and empowering local government. It was thanks to his leadership and the support of the Chief Secretary to the Treasury and the Prime Minister that we were able to secure two significant trailblazer deals with the Mayors of the West Midlands and of Greater Manchester. We hope to emulate that by having further powers devolved to Mayors in mayoral combined authorities across the United Kingdom.

Of course, the Chancellor of the Exchequer is underpinning that investment with the money that he has secured for innovation accelerators in Glasgow, Manchester and Birmingham, and through the eight investment zones designated for England and the four in other parts of the United Kingdom. However, today I want to thank the Mayor of Greater Manchester, Andy Burnham, who has signed a devolution deal—a new trailblazer deal. Mayor Burnham says that this deal marks

“a new era for English devolution”.

I know that some Conservatives will not always necessarily want to hear praise for Mayor Burnham, but I think it is important that all of us across the House recognise that, if we want to see our country operate in a way that gives us truly sustainable growth, we need to empower local leaders. We need to have central Government investing in science and technology, in changes to the labour market and in our children’s future, as with the changes to childcare, education and skills that this Budget brings.

I opened my remarks by reminding us how much we owe to Lord Heseltine of Thenford. His determination to work across party boundaries and across the United Kingdom to raise the hopes and the ambitions of people in areas that had been overlooked and undervalued contributed to an economic renaissance from Liverpool to Canary Wharf. It is a similar spirit that animates our Prime Minister and our Chancellor in this Budget, and I commend it to the House.

[Several hon. Members rose—]