Income tax (charge)

Neil Parish Excerpts

Tuesday 17th March 2020 Commons Chamber

[Neil Parish (Tiverton and Honiton) (Con)]

It is a great pleasure to speak in this Budget debate. It is also a great pleasure to speak after some very excellent maiden speeches from my hon. Friend the Member for Blyth Valley (Ian Levy), the hon. Member for Liverpool, West Derby (Ian Byrne), and my hon. Friends the Members for Bolton North East (Mark Logan) and for Derbyshire Dales (Miss Dines).

I was particularly intrigued by my hon. Friend the Member for Blyth Valley who told us that his wife, Maureen, had said, “If you feel strongly about something get out and do it.” That is why he became an MP. His wife Maureen has much in common with my own wife, Sue. Whenever I complain about something, she will say, “You are a Member of Parliament, do something about it.” So I endeavour to do so immediately, as you can imagine, Mr Deputy Speaker.

We plan to level up the whole country, and we are starting very well with this Budget. As we go north, let us also goes south, west and east. Let us do it all while we are at it. We have excellent new Members of Parliament on these Conservative Benches, plus those of us who have been here a little while, to help get this policy delivered, because it is right that we do that.

I welcome the Chancellor’s first Budget. He came into the hot seat and delivered an excellent Budget, but the coronavirus has meant that the six days from the time that he delivered the Budget to now is a long time, so I look forward to his statement this evening.

[Stephen Flynn]

It is my understanding that the Chancellor has just made an announcement in relation to support for businesses. I hope that the hon. Gentleman will agree with me that, when the Minister sums up, he should provide clarity in and around the terms of the loans that are being proposed for business. Although the overall sum is welcome, we do need some clarity on the loans.

[Neil Parish]

The hon. Member has very much made his point, and I suspect that our Ministers and the Secretary of State have listened to what he said, and I suspect that there will be complete clarity from the Government, as I would expect nothing else.

[The Chief Secretary to the Treasury (Steve Barclay)]

My hon. Friend knows me well.

[Neil Parish]

And, of course, I know the Chief Secretary very well.

I am encouraged by the tireless efforts of NHS staff, and I very much pay tribute to what the hon. Member for Lewisham East (Janet Daby) said: we need to thank medical staff throughout the NHS for all the excellent work that they are doing to tackle coronavirus because it is unprecedented, though we can make all sorts of predictions. We need to be out there and sort it out. That is why the Government have introduced clear measures that will help.

We are going to come under greater pressure over the coming weeks and months, so I welcome the £5 billion emergency response outlined in the Budget. The funding will ensure that the NHS will receive the support that it needs. Even with that large sum of money, we will probably need to keep it under review. I welcome, too, the Government’s commitment to support local councils—the £500 million hardship fund will help local authorities to protect the most vulnerable members of our community. The Government, however, must ensure that that funding is readily available and distributed quickly. We must cut bureaucracy to ensure that individuals and businesses get the support that they need. Very often, we are laudable in this place—Governments of all colours always want to take action—but we must make sure that we take action quickly.

Many local businesses have contacted me rightly to express concern about how covid-19 will affect them. Government measures to suspend business rates and refund sick-pay payments for smaller firms are welcome, but the Government need to be ready to provide more emergency payments to support those businesses. My fear, especially for smaller and, indeed, all types of businesses, is that if they cannot pay their bills the knock-on effect on all other businesses and employees will be huge. This is unprecedented, and we need to take action.

The scientific knowledge and understanding of the virus are constantly changing. We need to ensure that the Government have the flexibility to adapt as the situation unfolds. Across Devon, we have seen an outpouring of offers of support for all those affected. I wish all charities and organisations well across the country, especially in my constituency, so that they come together and keep communities together, because we will very much need to do so through this very, very challenging time. As many Members have said in the House, it is probably the most challenging time that anyone has experienced in living memory, especially because the virus has the potential to lay the whole economy low.

In the Budget, we predicted that the economy would grow by 1.1% this year. It will be interesting to see the effect of coronavirus on that. I would say to the Opposition, who will naturally pour a little doubt on the economy, that in both the coalition and Conservative Governments we have turned the country round with the hard work of the British people. We have turned the economy round, so that we can go forward and spend this money on infrastructure in particular. At the moment, interest rates are low, and we have the ability, according to the Chancellor, to take up loans over 15 years, so we can set reasonably low interest rates for them, all being well, over that period. We need to upgrade our rail and road infrastructure, and deliver broadband across the country, and now is the time to do it. I have said in three or four elections that I am going to deliver broadband to the whole constituency, but I think my constituents are still waiting. I do not want to have to go to them in another election and say about the promise of broadband, “It’s coming—it’s still definitely coming!” Seriously, we have to make sure that we deliver that, as the issue has a huge effect on our economy and businesses as well as on our ability to deliver good business opportunities in the countryside. With the right broadband infrastructure and a very good broadband connection, many businesses can be run anywhere in the countryside.

Naturally, I am delighted that the Chancellor maintained the availability of red diesel for farmers in particular, but also for commercial ferries and fishing boats. It is absolutely vital that we maintain that at this particular moment. Agriculture has seen one of the wettest, if not the wettest, winter of all time, and there are huge challenges. That brings me neatly to the doubling of the money for flood defences to £5.2 billion over the next five years. We have to work out what we are going to do about flood protection. The Environment Agency needs to be absolutely clear about what it is and is not going to defend. We may have long periods of dry weather, but when we have rain it comes quickly and we get a lot of flooding. I look forward to putting the money to good use, but we must be clear about where we are going to spend it.

I am happy to see that £2.5 billion will be made available to fix potholes. Perhaps not at the moment, given the coronavirus, but in normal times, believe it or not, one gets as many letters about potholes as anything else. There are as many roads in Devon as in the whole of Belgium, so imagine the number of potholes. One or two constituents have lost wheels and various other parts of their cars going over them, so it becomes a major issue.

I was very keen to see the money for the A303 and the tunnel under Stonehenge. If my hon. Friend the Member for Salisbury (John Glen) were here, he would be delighted. Edward du Cann talked about the A303 in 1958, and it has still not been dualled. We now have the opportunity to build the tunnel and the rest of the dualling from Andover right the way down to Ilminster. I would then like the last piece from Ilminster to Honiton to be done, but I will wait for that to happen. We must get the diggers actually digging the road and delivering. It is important that not only do we put these roads and rail in our Budgets but that we actually deliver them. That is what people want.

I welcome the £1.5 billion in capital spending on further education colleges. There are FE colleges in Axminster, Honiton, Cullompton and Tiverton, and they provide a very good education, including for those who left school young and perhaps did not know exactly what they wanted to do with their lives. They go to further education colleges later in life and do good things for themselves, their families and the country.

[Jonathan Gullis]

On further education, does my hon. Friend agree that it is so important that we continue with level 2 courses? They may be at a lower level, but for the people my hon. Friend is describing they are an access route to higher level apprenticeships further on.

[Neil Parish]

I could not agree with my hon. Friend more on level 2 schemes. Going back to nursing and all those types of occupations, it is so necessary and there is a pool of people out there who will be wanting to do that work, so long as they can build their skills and so long as we have the necessary education there. I very much welcome that suggestion, but again we have to deliver it to our colleges.

I also very much welcome the £500 million over the next few years for electric vehicles and charging infra- structure, because we will need many more electric cars. I do not think building roads and bypasses is wrong for air quality and air pollution. Actually, Mr Speaker— Mr Deputy Speaker, I beg your pardon; I have elevated you—I think that when we build a bypass or a dual carriageway and we stop that congestion, we lower the pollution that comes from our vehicles. It is therefore not only good for getting people through. Looking at the A303 and the motorways into the west country—it is a very big holiday area and very good for the economy—it is good for air quality if we can keep those cars moving. If we can make sure that in the future the majority of cars and eventually all cars are electric, then we solve many problems. We would also still have a great ability to have the family car, which I think so many people want.

[Bob Stewart (Beckenham) (Con)]

Can I remind my hon. Friend that I think hydrogen cars will be making a big entry into the market very shortly? I am waiting for the hydrogen car, so I do not have to plug it in every night.

[Neil Parish]

My hon. Friend may have to wait a little while for the hydrogen car. I think that there will be some hydrogen cars, but what there will be many more of before that are hydrogen lorries. There is no doubt that the one vehicle where we have a problem is the lorry. It needs huge power for towing loads and the diesel engine, whether we like it or not, has that capability. We actually need a hydrogen lorry, rather than an electric lorry, because at the moment an electric lorry would have to carry most of the weight that it can carry in batteries in order to deliver the power. I can therefore see hydrogen lorries being very effective in the long term.

[Stephen Flynn]

On that topic, I invite the hon. Gentleman to Aberdeen, where we have hydrogen lorries, hydrogen cars and hydrogen refuelling stations.

[Neil Parish]

Putting my hat on as the Chair of the Environment, Food and Rural Affairs Committee, and having done a lot in previous inquiries on air quality, I should come and see exactly what Aberdeen is doing, because hydrogen has huge capabilities.

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

Forgive my ignorance, but does a hydrogen-propelled vehicle work on the same principle generally as the internal combustion engine, in that there is an explosion that creates a vacuum that turns a crank?

[Neil Parish]

I do not have the detail to give an exact answer to my right hon. Friend, but I do know that hydrogen is mainly produced from water with electricity, so the actual fuel itself is so much cleaner and so much less polluting. I cannot give him all the details of exactly how the engine itself runs, but it uses a clean fuel and gives that support.

Overall, I believe that this Budget is very good for the future of this country and the people of this country. I look forward, as I have said, to the statement later this evening from the Chancellor, because I think that the thing that is worrying all our populations and all our constituents at the moment is coronavirus. We need to get through this. We need people to have enough income to pay their rent or their mortgage and keep their families running, as well as their businesses, so that we do not have a knock-on effect of business failure bringing other businesses down with it. I look forward to the statement, and I very much welcome this Budget.

--- Later in debate ---

[Kevin Hollinrake]

My right hon. Friend makes a very good point. One of the difficulties with the announcement last night was that it was not brought forward with a package of remediation or mitigation. I think that has come today, and clarity of that is very welcome.

We are going to need to pump hundreds of billions of pounds—not the odd billion, £5 billion or £10 billion—into the economy. I think the Chancellor has announced today £330 billion-worth of loans for the business sector, which is absolutely right, with £25,000 for businesses that are not insured for losses from business interruption, plus business rates holidays and three-month mortgage holidays, which is also absolutely right. If we talk about this in terms of hundreds of billions of pounds, the natural question is: where are we going to get that money from? This is a time when we have to set aside the fiscal rules. We will be paying for this anyway, in lost jobs and businesses, redundancy payments and reductions in tax receipts, if we do not put a huge fiscal stimulus into the system right now, so I welcome the measures from the Chancellor.

We need a few things in addition. We saw in 2008 that banks did not support businesses through that financial crisis—there is no doubt about it; in fact, quite the opposite. We need a commitment from the banks, UK Finance and the Treasury that they will continue to cash-flow businesses for as much as they need until they get through this period. To make sure that they do that, we should introduce emergency legislation to bring SME loans and financing commercial loans within the regulatory perimeter. That would mean that banks would have to have the oversight of the Financial Conduct Authority, and indeed of Members in this place, if they did not do the right thing through that period.

[Neil Parish]

We need to urge the banks to make sure that they offer commercial loans at very competitive rates. We do not want to see the banks trying to profit from the misery for all the businesses out there.

[Kevin Hollinrake]

I absolutely agree with that, and we must have oversight of that. We also have to make sure that all banks are included in these emergency loan schemes, such as business interruption loans. At the moment, some of the major banks, such as OakNorth, are not in that scheme, because they are not overseen by the British Business Bank. We need to see a widening of the scope of the scheme. We need to do a lot more for micro-businesses, the self-employed and sole traders. I have not seen a lot of support for those people at the moment.

The big thing I want to say is about how the support is provided. The £330 billion of support is great, but businesses will never again see the income lost, so in my view support cannot purely be through loans. We have combine loans—soft loans, interest-free loans or whatever—with putting grants into these businesses, otherwise we are just kicking the can down the road. We cannot simply say that businesses will have to pay, which is what we are saying if they are loans. We are going to have to go further, and that will put up the national debt by a significant degree: £100 billion, £200 billion or probably £300 billion. I am sure we will get the Opposition’s support for that. We have to see businesses through this time, because we will pay for it whatever happens.

I really welcome the measures from the Chancellor so far, and there are great measures again today. We must get through this. We have to give businesses confidence and to say to consumers: “You won’t lose your job. You won’t lose your business. We will get you through this.” That is what we have to say, and that way we will avoid the worst possible side of recession, we will save jobs and we will save businesses. It is the right thing to say, and I am absolutely confident that the Chancellor will do it.

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[Peter Aldous]

I agree with the hon. Gentleman to a large extent, and we need more companies to be investing in, and based in, the UK. It is important to have UK companies, but I am also proud when companies from around the world invest in the UK. That is something we should be pleased about.

Let me return to infrastructure projects and the need to have the right skills and supply of materials. In 2014, funding was provided for six schemes on the A47 from Lowestoft through Norfolk to Peterborough. Six years later, five of those schemes have yet to see any work starting on the ground. We must ensure that planning and legal frameworks are fit for purpose. The third crossing project in Lowestoft will bring about great positive change to the town. It is an oven-ready scheme—we are ready to go, yet we still await a planning decision that should have been made more than three months ago.

I wish to highlight three aspects of levelling up. First, coastal communities have been left behind in recent decades, but they have so much to offer to UK plc. In Lowestoft, there is a compelling case for investment in the port, which occupies a strategic location. It lies in close proximity to one of the UK’s most productive fishing grounds, from which, as we leave the EU, we have a great opportunity to land more fish and to revive the local industry.

[Neil Parish]

There is a huge opportunity as we leave the European Union; we will gain much more fish for our fishermen. We must ensure that we not only land those fish but process them. We also need a great marketing ploy across the country to encourage people to eat many more different types of fish, so we do not have to export quite as much and we eat more of our own fish.

[Peter Aldous]

My hon. Friend is spot on. To make the most of this opportunity, we need to invest in infra- structure—in port infrastructure, markets and processing factories. That would be so much help to coastal communities that have been left behind.

In Lowestoft, we are close to the main cluster of offshore wind farms in UK coastal waters. We are also an area of the southern North sea UK continental shelf, which has an important role to play in the transition to the low-carbon economy, and where there will be an enormous amount of work in the decommissioning of gas and oil facilities over the next decade.

The Budget places much emphasis on free ports. It is good news that the Government recognise the important role that ports play, but it is vital that free ports add to the UK’s trade, making our ports more attractive than their international competitors, rather than diverting business from one UK port to another.

Coastal communities along the East Anglian coast face a significant challenge from coastal erosion and storm surges. The sea does not just damage homes and businesses; ultimately, it destroys them. The Lowestoft flood defence scheme will remove that threat. At present, it is only part funded, so it is good news that the Budget recognises the threat of coastal erosion, provides an additional £5.2 billion for flood defences and includes an undertaking to carry out a review of the Green Book.

--- Later in debate ---

[Ben Everitt (Milton Keynes North) (Con)]

It is a pleasure to follow my hon. Friend the Member for Waveney (Peter Aldous), who spoke passionately about coastal communities. My beautiful constituency of Milton Keynes North is not famously coastal, although we apparently have more miles of shoreline than Jersey; the definition of shoreline is stretched somewhat to include the many beautiful lakes that Milton Keynes has.

[Neil Parish]

Milton Keynes may not have much coastline, but it does have a lot of people. My hon. Friend could promote the great fish we catch all around our coast. I urge him to go out and feed his constituents with our great British fish.

[Ben Everitt]

That is an excellent point and it is well made. The nutrition of the people of Milton Keynes is well served by the Chairman of the Environment, Food and Rural Affairs Committee.

We find ourselves in a strange situation in this Budget debate. It is almost as if the rules have changed. As I stand to speak, we are digesting the words of the Chancellor of the Exchequer, who has launched a £330 billion fiscal bazooka at the coronavirus to support our businesses, many of which are in my beautiful constituency. In that context, it feels odd to be talking about last week’s Budget. It was going to be the levelling-up Budget. It was going to be the got-Brexit-done Budget. It was going to be the Budget of infrastructure. Of course, it was the first-swing-at-corona Budget. As we look at it now, it was last week’s Budget. These are indeed strange times. However, I am sure that many Members on the Conservative Benches, and possibly some others, were struck by the optimism, hope and positive spirit of the Budget. It was enthusiastic about our future. While we deal with the sheer scale of the coronavirus outbreak, we should take some joy from the fact that this is a Government who are looking forward beyond the coronavirus and into a world where we have levelled up and we will have a more equal, more productive and more aspirant, tolerant society. It is a Budget of hope and positivity.