Autumn Statement Resolutions

Nickie Aiken Excerpts

Monday 27th November 2023 Commons Chamber

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

The measures announced by the Chancellor of the Exchequer in his autumn statement are sensible and responsible and will make a real difference to the people and businesses across the two Cities.

The Government have taken a pragmatic approach to delivering tax cuts. We all know that the cost of the measures to support businesses and households through the covid pandemic and the energy price shock caused by Putin’s illegal invasion of Ukraine drove up spending and meant that tax cuts were impractical for a long time. However, as we continue to rebuild our economy, improve productivity and focus on growth, we do so by following competent and careful economic management. That is why I was pleased to see my right hon. Friend the Chancellor announce fully funded tax cuts that will have a real impact on both families and businesses. The autumn statement was the biggest package of tax cuts announced as a fiscal event since the 1980s.

For me, there were two major headlines. First, there was the permanent extension of the full expensing policy, which will act as a springboard to help UK companies to invest in the latest technologies and machinery and create highly skilled jobs. Secondly, of course, there was the 2% reduction in national insurance—a tax cut for 27 million people, which will ensure that they will keep more of their earnings to spend or save as they wish.

The Chancellor was also right to prioritise helping people into work to boost the economy. Just last week, I was pleased to join the then employment Minister, my hon. Friend the Member for Hexham (Guy Opperman), on a visit to the Italian café and deli Ben Venuti in Pimlico, where we discussed the Government’s new hospitality sector-based work academy programme trial run, in partnership with the trade body UKHospitality, to encourage more people into careers in the hospitality sector. That programme, and last week’s announcement of a further £50 million to support apprenticeships, clearly show that the Government recognise that getting people into work, and helping them to train, retrain and develop their careers—no matter their age or background —is the best way to help people and support the economy. I am delighted that my hon. Friend the Member for Hexham is now the Under-Secretary of State for Transport and will see the Pedicabs (London) Bill through this place.

Not only will the autumn statement provide more opportunities for people to get into new and exciting careers, but the Chancellor has announced significant support for households. Raising local housing allowance rates to the 30th percentile of local market rents in April 2024 will benefit 1.6 million low-income households, which will be £800 a year better off on average. That will certainly be welcome news for thousands of households across the two Cities.

I am proud that my constituency is embracing the life sciences sector, having attracted thousands of jobs to the Paddington basin development. I am delighted that the Imperial College Healthcare Trust’s new Fleming Centre is being created in Paddington, backed by £5 million of seed funding announced in the autumn statement. It was where penicillin was first discovered, and the new centre will help us in the global fight against antimicrobial resistance and further establish the two Cities as an important centre for the growing life sciences industry.

I would be remiss not to mention the important work undertaken by the City of London Corporation as it strives to ensure that our financial and professional services remain the best in the world, and that the square mile remains the place in which companies from every corner of the globe want to do business. We know that that has a massive and positive knock-on effect, supporting more than two million jobs across the UK, so it is good to hear that the Chancellor is pressing ahead on the pension reforms that were unveiled with the signing of the Mansion House compact in the City in July this year.

The measures announced in the autumn statement protect not only economic prosperity but our communities. Nobody can be immune from the dreadful scenes in the middle east. Sadly, we have seen the repercussions of terror attacks, and of the ongoing conflict in Gaza, on our own streets. I have been appalled by the testimonies that I have heard from the Jewish community in my constituency, who are genuinely scared of the 1,350% rise in antisemitic incidents in London alone. I therefore welcome the Chancellor’s announcement in the autumn statement of £3 million of additional funding this year for the Community Security Trust, and of a further £7 million over the next three years, for organisations such as the Holocaust Educational Trust, to help tackle antisemitism.

I must take this opportunity to highlight one measure that, sadly, we did not see in the autumn statement. It is one that would have profound economic benefits for Cities of London and Westminster, the capital and the whole country: tax-free shopping for international visitors. I recognise that the autumn statement delivers support for the retail, hospitality and leisure industries by extending the retail, hospitality and leisure relief scheme, which will continue to provide eligible occupied retail, hospitality and leisure properties with 75% relief on business rates. That is all welcome, but new research from the Centre for Economics and Business Research shows that if the former tax-free shopping scheme had not been scrapped, the total spending from international visitors would have been £3.3 billion more in 2022. The reason for that is the dynamic nature of international visitors’ spending habits. Although they would receive a tax break on their shopping, they would still pay VAT in restaurants, theatres, pubs, bars, clubs, hotels and, of course, black cabs. Places such as Knightsbridge and the west end—particularly Oxford Street, Bond Street and Regent Street—have been feeling the pinch since international tax-free shopping disappeared. Large international luxury brands all report seeing a fall in their revenues compared with their outlets in Milan and Paris. We need that scheme back.

The Government recognise the tremendous opportunities that lay ahead for the economy and the United Kingdom, and I applaud the Chancellor for his work to strengthen the economy so that we can now focus on growth and prosperity for all. I look forward to working with him to ensure that the economy continues to bounce back from the pandemic and flourish for years to come.