Budget Resolutions and Economic Situation

Nigel Evans Excerpts

Wednesday 3rd March 2021 Commons Chamber

[Laura Farris (Newbury) (Con) [V]]

There is nothing inevitable about high unemployment. Even when the storm has raged as violently as it has in the last 12 months, we have seen what the Government can achieve. Twelve months ago, the term “furlough” was completely unknown to us. Today, more than 30 million people have had most of their wages paid by the Government for most of the year.

To me, the most moving part of the Chancellor’s statement earlier was from the OBR—that it had revised its forecast that unemployment would peak at 11.9% and estimated that Government action had saved 1.8 million jobs in this country. That matters to me personally because, when I made my maiden speech on 24 February last year, I closed by saying that the jobs and livelihoods of my constituents would

“guide my work in this House.”—[Official Report, 24 February 2020; Vol. 672, c. 88.]

That has not changed.

There are three issues I want to touch on this evening. First, I want to talk about what this Budget means for female employment, which I have looked at carefully in my role as co-chair of the all-party parliamentary group on women and work. There are different reasons why women’s employment has been particularly affected by the crisis, but some of it is sectoral. Hospitality, retail, leisure and the beauty industry employ disproportionate numbers of women and have been particularly hard hit. In this Budget, every business in those sectors can claim a restart grant of some kind, whether it is £6,000 or up to £18,000. Taken together with the continuation of the furlough, that will be a huge factor in sustaining and rebuilding opportunities for women in the labour market.

The second point I want to raise is linked to training and apprenticeships. The kickstart scheme, which we heard about last year, was directly focused on young people and their opportunities, but today’s announcement went wider. It links apprenticeships to the lifetime skills guarantee and incentivises businesses to offer apprenticeships irrespective of age. That is hugely significant. It is fair to say that, whenever long-term structural unemployment has taken root in any period since the second world war, Governments of whatever party have tried and failed to tackle it. The reason for that has always been the long-term attrition of workers’ skills. This is the first time, to my knowledge, that any Government have put training and skills at the front and centre of the recovery package, and I welcome that.

The jobs that exist in 10 years’ time will depend on our choices today, their impact on the labour market and our readiness to react to changing circumstances. The super deduction, the offering to innovators through R&D tax credits, the visa reforms for highly-skilled workers and the work on productivity through the Help to Grow scheme are all welcome. I represent a part of the world that sits at the heart of the—

[Mr Deputy Speaker (Mr Nigel Evans)]

Order. I am sorry Laura, but we have to leave it there.

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[Antony Higginbotham (Burnley) (Con)]

In this Budget, the Chancellor and everyone in Her Majesty’s Treasury have pulled out all the stops, left no stone unturned and directed the enormous financial firepower of the Government at building back better. But before we can do that, we have to get through the next few months, as millions more vaccines are administered and businesses prepare to open.

The restart grants will be an enormous lifeline to so many local businesses—gyms such as FX Fitness Experience; salons and barbers such as Jack Jones; and pubs such as the Hapton Inn and the Crooked Billet. They now have a date to reopen and Government support to do it.

However, the Chancellor has also been honest about the economic impact that coronavirus has had. When I was elected in December 2019, yes, it was to level up and give Burnley and Padiham the Government focus they deserve, but it was also to ensure that our economy was properly managed—not the reckless spending that was on offer from the Labour leadership, but Conservative management, which meant that we entered this economic crisis in a way that has allowed us to wrap our arms around the country. That same management will ensure that we can do the same again when the next crisis hits.

It is with that in mind that, as a low-tax Conservative, I agree with the tax measures announced today. While this Budget keeps taxes low, with things such as the VAT reduction sustained and alcohol and fuel duty frozen, it also begins the task of repairing the public finances, which we must do. It strikes the right balance, paving the way for corporation tax to increase on businesses that are making healthy and sustainable profits, but ensuring that losses can be carried back for longer, and it provides much-needed support to our SMEs through a reduced tax rate.

Then we have the announcement of the super deduction. For areas such as Burnley, where we have a significant manufacturing sector, that could be transformational. It means that local businesses in everything from aerospace to construction are incentivised to invest in new equipment and new machinery, boosting productivity, creating jobs and powering our local recovery. We should not under-estimate the impact any of that will have.

Finally, I turn to the levelling-up agenda, which I care deeply about. Just a few weeks ago, I was on the BBC’s “Politics North West”, and the shadow Business Minister said that when Labour was in government, it invested in the cities. As this Budget shows, this Government are investing in the towns, too. Nothing embodies that more than the levelling-up fund and the community renewal fund. These two funds will allow Burnley and Padiham to bid for tens of millions of pounds to regenerate our town centre, boost the high street, improve our infrastructure and make our area a place that people want to live, work and invest. As this Budget shows—

[Mr Deputy Speaker (Mr Nigel Evans)]

Order. I call Andrew Griffith.

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[James Daly (Bury North) (Con)]

Although I will try to be more articulate, all I can say to begin with is that this is a brilliant Budget. It is transformational, dynamic, hopeful and inspirational, and it is the basis to change lives.

Colleagues have talked at great length about various parts of the Budget, but I would like to concentrate on a number of factors that affect my constituency. Page 60 of the Red Book refers to the community ownership fund: a £150 million fund to help ensure that communities across the UK can buy local facilities that benefit the people in their areas. I quote:

“In exceptional cases up to £1 million of matched funding will be available to help establish a community-owned sports club or buy a sports ground at risk of loss from the community.”

That could have been written for Gigg Lane. Gigg Lane is central to Bury’s identity. It is a heritage asset, a cultural asset and a sporting asset. This Chancellor has delivered the opportunity for my community—and hopefully my council will come on board—to bid to ensure that Gigg Lane is owned by the community for the people of Bury in perpetuity.

But it does not stop there with the fund. Not only can a community group bid for a sporting asset like that—it can also bid for theatres. As you are an MP very close by, Mr Deputy Speaker, you will know this, but in Ramsbottom in my constituency there is a theatre, Co-op Hall, one of only five in the country, built in 1870 as a court meeting place. It has its original features inside. It is a unique cultural jewel within the country, let alone my region. Local community activists are working together hoping to find a way to buy this asset to create a meeting space for people of all ages, sexes, backgrounds, disabilities, whatever it is, and this offers a chance to do that.

My colleagues have spoken articulately about some of the wide-ranging policies that will benefit millions upon millions of people within our country, but this hopeful prospectus gives communities such as mine the chance to change lives and to change and impact how we feel about our areas. If the pandemic has done one thing, it has made everyone aware of how much pride we take in where we are from, and this Budget reinforces that.

Like the constituencies of a number of colleagues, Bury thankfully has priority status for the levelling-up fund. I have already started speaking to the Chancellor about investment in the world-famous Bury market. Hopefully, with the funding of £125,000 that has been provided, we will not only have Gigg Lane and an 1870s theatre but the world-famous Bury market, supporting our fantastic traders and bringing prosperity to the town. I congratulate the Chancellor on a fantastic, brilliant Budget that gives hope to my constituents.

[Mr Deputy Speaker (Mr Nigel Evans)]

And Bury market has the best black pudding.

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[Mr Richard Holden (North West Durham) (Con)]

I want to concentrate quickly on three key points today. First, I thought that this was an excellent Budget, which was about recovery, delivering on our manifesto and economic credibility in the long term.

On the recovery, I support the extension of the support and the grants through to September this year. That is really important for all our businesses and for people in employment locally. The VAT support—5% rising to 12.5%—will also give our hospitality sector real time to get on its feet. I ally that with a campaign that I was involved in, along with many Conservative Members, to ensure that our pubs and clubs could get back to recovery with no increase in beer, spirits or wine duty. That is really important. Fuel duty is hugely important for communities such as mine, because those taxes are particularly regressive on people just going back into work at the moment, so those measures are absolutely vital and very welcome.

On delivering the manifesto, it is quite clear that we are doing a cracking job. The cash is there for the police and the NHS. There is a cash increase for schools, as well as cash for the environment—that is really important —and for levelling up, and I will touch briefly on what that means for the north-east today. We have seen that great new freeport in Teesside. We are seeing the Treasury coming to Darlington. That is really important and recognises how important our towns are. Hopefully, that will feed through into some of the Treasury thinking more broadly. I hope that that boosts our campaign for the A68 upgrade, which I am working on with several other Members from across the north-east. I thank the Chancellor for ensuring that that cash going into the NHS means that Shotley Bridge gets the extra £10 million that I have been campaigning for over the last few days.

This is about credibility; we have had a really honest approach from the Chancellor today, outlining where the cash has to come from. That is in stark contrast to the Labour party, which for years banged stealth taxes on our constituents against their wishes. Until the Opposition learn that lesson, they will never be in government again.

Ordered, That the debate be now adjourned.—(Michael Tomlinson.)

Debate to be resumed tomorrow.

[Mr Deputy Speaker (Mr Nigel Evans)]

Will those leaving the Chamber please do so in a covid-friendly manner, particularly in order for the Minister to take his position?