Budget Resolutions and Economic Situation

Nickie Aiken Excerpts

Wednesday 15th March 2023 Commons Chamber

[Nickie Aiken (Cities of London and Westminster) (Con)]

At the start of the year, the Prime Minister set out three big economic priorities: target inflation, grow the economy and reduce debt. In this Budget, the Chancellor has set the scene for how we make those priorities succeed. I believe this Budget has shown vision and pragmatism that will help people and businesses in the two cities.

As always, households are at the forefront of the Government’s priorities, so I am delighted to hear that the energy price guarantee is to be extended to keep the average cost of energy bills at £2,500 for a further three months. Maintaining that support will save households hundreds of pounds over the coming months, preventing millions of families from falling into fuel poverty.

In the two cities, we have many residents being supplied energy by communal heat networks. I recognise that the Energy Bill is progressing, and that it will go some way towards supporting those who rely on communal heat networks. However, I hope that financial support can be extended to those households, as they are all too often overlooked through no fault of their own. Also, although I know the hospitality sector welcomes the Brexit pub guarantee, it remains concerned about energy costs for its businesses, such as restaurants and pubs. That is such a huge sector for the west end and across my constituency.

However, this Budget does so much, and goes a long way to boost employment. Rebooting the benefits system to support people back into work is something I particularly welcome. The Budget includes the biggest reform to the welfare system in a decade, meaning that disabled and long-term sick people can now work without the worry of losing out. This is important for several reasons, but principal among them is that in the real world, people’s ability to work is not as binary as the current system implies. I have seen that at first hand in the Fair Shot café in Covent Garden, run by Bianca Tavella, who is supporting young people with learning disabilities to get back into the workplace, and it makes a huge difference to the individual and their family.

I also welcome the measures to support children in care as they get to working age, as well as to help jobseekers into decent jobs with decent wages. The Chancellor is right to remove any barriers that we can with reform that strengthens our society and our economy. Building on that point, the changes to childcare will have a real impact on people’s lives in the two cities. I take this opportunity to congratulate my hon. Friends the Members for Stroud (Siobhan Baillie) and for East Surrey (Claire Coutinho), who have really driven this measure through and got it over the line.

I particularly welcome the major changes to childcare because they will give working women a real opportunity to choose what is best for them and their family—whether they stay at home with their children or want to continue with their career—not least because parents will now be afforded 30 hours of free childcare from as early as nine months until their child’s fifth birthday. The help for wraparound childcare in schools is most welcome, too. For me that is so important, because it means that parents can have the flexibility to decide what is best for them and their children.

The Chancellor has also taken a sensible and pragmatic approach to business taxation. For the two cities, that is incredibly important. As a Conservative I recognise the value of competitive tax regimes and understand the value of pro-business, pro-enterprise government, so I am glad to hear announcements on simplifying the tax system for small and medium-sized businesses.

I must take this opportunity to once again make a plea for the return of VAT-free shopping for overseas visitors. That would not only be a massive boost to London, and my constituency in particular, but would have a massive knock-on effect for jobs and businesses across the United Kingdom. I have spoken to the Chancellor about that specifically, and I know he is looking at it, but I hope we will have an announcement sooner rather than later, because the benefit it has for the whole country is so important. Having said that, I look forward to the review of taxes paid by smaller businesses and the consultation to expand the cash basis, as well as measures to simplify customs, import and export processes for small businesses. While I welcome all that, I urge the Government to keep tax simplification as an ongoing priority.

In conclusion, despite enormous global challenges, the UK economy is proving the doubters wrong. Far from entering a technical recession this year, the Government are stimulating growth, supporting hard-working families and looking forward with a powerful vision for this country.