Budget Resolutions and Economic Situation

Nickie Aiken Excerpts

Tuesday 9th March 2021 Commons Chamber

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

There is so much to welcome in this Budget that will benefit the businesses and individuals across the Cities of London and Westminster: the extension of the furlough until the end of September; a host of restart grants worth an extra £5 billion and the new recovery loans to replace our existing loan scheme; £700 million for arts, culture and sports to reopen safely; a further 600,000 self-employed people eligible for covid-related financial support; the extension of the 5% VAT cut for the hospitality industry for a further six months; and the extension of the 100% business rates holiday for a further three months until June. I would like to take this opportunity also to congratulate the Corporation of London on announcing its own £50 million covid business recovery fund, which will be made available to City-based small and independent businesses in certain sectors to support a return to work.

Central London is likely to see a very slow recovery that takes several years to reach pre-pandemic levels. Its economy depends on workers and international visitors, both of whom will be slow to be return to the capital. I hope the Government will consider launching a marketing campaign to encourage workers to return to their offices in the spring. From the conversations I have had with local employers, it seems that most do not expect to see their staff back until the autumn. This could be difficult for the hospitality and retail sectors as they begin to pay rates and rent from July. We also need a robust transport system that commuters are confident to use again, and I hope the Mayor of London will work constructively with the Government to ensure that this is the case.

I wholeheartedly welcome the Chancellor’s announcement to amend UK listing rules, making the UK a more attractive location for initial public offerings and introducing improvements to tech visas to attract global talent and boost the fintech workforce. Both of those were recommendations from the Kalifa review on the FinTech sector, which is worth £110 billion to the UK economy and is set to grow to £380 billion by 2030. We currently have 10% global market share, and with Government support we can build our technology talent. Covid has been a game changer for FinTech. Six million people— 10% of the population—downloaded a banking app for the first time last April, the first month of lockdown. We have seen digital transactions and interactions for both business and individuals grow hugely. I hope we will see more of Kalifa’s recommendations introduced, including a centre for finance, innovation and technology to strengthen our national FinTech co-ordination.

I thank the Chancellor for a long list of progressive and sensible policies announced in this investment recovery Budget, making the UK the best place in the world for high-growth, innovative companies bringing strong job growth across the country.