Budget Resolutions and Economic Situation

Nigel Evans Excerpts

Tuesday 9th March 2021 Commons Chamber

And it is declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.

[Mr Deputy Speaker (Mr Nigel Evans)]

I inform the House that I have not selected the amendments in the names of the Leader of the Opposition or John McDonnell.

Before I call the Minister to open the debate, I have had notice of a point of order. I call Mr David Davis.

[Mr David Davis (Haltemprice and Howden) (Con)]

On a point of order, Mr Deputy Speaker. Budgets and Finance Bills were the first reason for having a Parliament —to approve the expenditures of the Executive. For more than a century, the first resolution for a Finance Bill has been what is known as the general amendment of the law resolution. The resolution allows Members to table amendments that deal with tax administration and relief provisions not otherwise provided for by the specific Ways and Means resolution.

However, since Philip Hammond’s Finance Bill 2017, the Government have not included such a resolution. The effect is that any amendments tabled by Members to the Finance Bill must be tied to one of the specific resolutions already agreed by the House. In effect, by not including the amendment of the law resolution, the Government have shut down the rights that the House has enjoyed for more than 100 years. The result is that Members’ hands are tied when it comes to effectively amending the Finance Bill. Mr Deputy Speaker, can you give guidance as to how the House can recover those fundamental rights, which have been arrogated by the Government?

[Mr Deputy Speaker]

I thank the right hon. Gentleman for giving me notice of the point of order. There is no matter of order for the Chair arising from the absence of an amendment of the law motion. There was no such motion after the last three Budgets and I think I remember, during the last Budget, a very similar if not identical point of order from the right hon. Gentleman. There is a lot of tradition around Budgets, and it may well be that the David Davis point of order becomes part of that tradition. Anyway, it has no effect on the scope of debate—the reasons for and implications of the absence of an amendment of the law resolution are themselves a proper matter for debate. The right hon. Gentleman has put his point on the record.

Before I call the Minister, I point out that up until and including No. 6, Darren Jones, on the call list, Back-Bench contributions will have a five-minute time limit. Thereafter—No. 7 onwards—the limit will be reduced to three minutes. For those who are contributing remotely, please look at the timer on the bottom right-hand corner of the device that you are using. If, for whatever reason, you do not have sight of that, please use an alternative way of ensuring that you keep within the time limit that has been set. Please do not be tempted to try to extend it, because we have 101 contributions to this debate. For those who are taking part in the Chamber, the timer will be displayed as usual on the monitors in the Chamber.

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[Mrs Theresa May (Maidenhead) (Con)]

I refer the House to my entry in the Register of Members’ Financial Interests.

In unprecedented times, I commend my right hon. Friend the Chancellor for recognising the need to combine continued support for people in jobs, even as we see the light at the end of the tunnel of this pandemic, with the need to restore our public finances and to set us on the path of growth for recovery in the future. I will not dwell on the first of those, but I welcome specifically the funding for tackling domestic abuse, focused as it will be on the perpetrator programmes often overlooked in the past. However, I continue to fail to understand why the Treasury, and, I fear, the Department for Business, Energy and Industrial Strategy, seem institutionally incapable of understanding the significance of the aviation sector for jobs and for our economy.

On other specific issues, I wish to refer to one group who are badly affected by the impact of dealing with the pandemic: women. There is evidence to show that lockdown measures have been particularly difficult for women, and that there are women who have abandoned their careers because they have found it impossible to juggle the requirements of lockdown, with home schooling and so forth, with their careers. We need those women in the workplace. We need those female entrepreneurs for our future. I urge the Government to look actively at what they can do to deal with that issue and to encourage women entrepreneurs.

Another group badly affected by the pandemic is young people, with the hospitality sector being a case in point. The intergenerational divide between young and old has been exacerbated by the measures taken to deal with the pandemic, so it is absolutely right that we take measures to restore our public finances and do not simply land the bill on young people and future generations. I know there are those, including some of my colleagues, who will say, “You don’t need to do anything to taxes. You just need to have growth”, but one worry from this Budget must be the OBR forecast for growth. It is forecast in the medium term not to return to the pre-financial crisis level of an average annual rate of 2.5%, but to be around the pre-covid rate of 1.5%. There is no doubt that the pandemic has had an impact, but pre-covid the uncertainty around Brexit was also having an impact on our economy. Of course there is every prospect that Brexit will have a continued impact in reducing the size of our economy into the future. So we need to focus on growth, and I will say a little more specifically about that in a moment.

I am concerned that the Government have simply adopted the Treasury orthodoxy that if we wish to encourage investment by business, all we do are capital allowances. I can tell my right hon. Friend the Business Secretary that year after year that is the answer the Treasury comes up with. If we want an innovation economy, we need to invest and support investment in areas that encourage growth and innovation, and that means research and development. We are to see another consultation on R&D tax credits—I believe it is the third in three years. I have to say to him: stop consulting, just get on and do something. We could extend the definition of R&D expenditure or increase the rate, but we must act. We need investment in innovation, not in chief executives’ Jacuzzis.

Another area I want to emphasise for my right hon. Friend is that there is a lot of talk from Government—we all do it and we have done it in the past—about capital spending, and infrastructure is always what we reach for. We must never forget, however, that human capital is increasingly what we must be investing in. We should be ensuring that there is effort and funding available for the skills White Paper and for the response to the Augar review. What we need to build back better is a plan that transforms the economy: ideas and an innovation economy; people investing in skills; upgrading infrastructure; and making this the best place to grow and start a business. That was the modern industrial strategy.

The Government say they need a new framework. My right hon. Friend has said that that framework builds on the industrial strategy, but it does not. There are two reasons this is the wrong approach. First, we need a long-term strategy. We cannot just magic a plan out of thin air and expect it to work in a year or so—we need something that will work longer term. We should make changes where necessary, not just for the sake of making a change.

Secondly, a huge amount of effort went in, with Government working with the private sector, to develop that modern industrial strategy. The private sector welcomed it, because it was not about picking winners. This is where I depart from the former Leader of the Opposition, the right hon. Member for Doncaster North (Edward Miliband), because Labour’s answer was always to pick winners; we agreed with business the sectors that needed to be strengthened and in which we were strong, and let the market decide the companies that were going to be the winners. We need to continue with that effort. The industrial strategy was welcomed by the private sector and it was recognised internationally. Do not abandon it. Build on it, for the sake of all our futures.

[Mr Deputy Speaker (Mr Nigel Evans)]

It was like a blast from the past there, momentarily.

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[Marion Fellows (Motherwell and Wishaw) (SNP) [V]]

I am in no doubt that the Chancellor’s Budget will result in the continuation of Tory austerity for those on the lowest incomes, especially disabled people and children. During the global pandemic and health crisis, people have been denied vital support to ensure a dignified standard of living. Like successive Tory Governments, this Tory Government are entrenching class inequalities, which weigh heavily on people’s lives.

I welcome the extension of the universal credit £20 uplift. However, those receiving it face a sudden £1,000 cut to their incomes in six months’ time. The Chancellor must provide people with certainty and agree to make the uplift permanent. People claiming legacy benefits will not even see the £20 uplift; 60,000 Scots, including 20,000 children, will be left in poverty and forced to choose between heating and eating in a cynical attempt to force people on to universal credit, which could leave many worse off and facing a gruelling wait of weeks for their first payment. That means that 2.5 million people across the UK, 1.9 million of whom are disabled, are being denied that support.

Being disabled incurs ongoing costs. The disability price tag means that disabled people already pay a premium for normal living, but the UK Government have opted to deny them support to protect their standard of living and health at the time they need it most. Yesterday, I asked the Work and Pensions Secretary whether she had asked the Chancellor to consider extending the £20 uplift. Her answer was no. Refusing even to consider the £20 lifeline for those on legacy benefits is a complete dereliction of duty by this UK Government to the very people they are supposed to protect, particularly after anti-poverty organisations have been asking for the extension for 11 months. Instead, people claiming legacy benefits are being given a pathetic 37p a week extra. When the UK Government have stuffed billions into the pockets of their cronies for bungled contracts, it is clear whose side they are on.

The UK Budget was an all-round kick in the teeth for disabled people. There was no commitment to increasing statutory sick pay, no commitment to the real living wage and making it available for 52 weeks, no commitment to increasing funding for the Access to Work scheme to keep disabled people in work, and no commitment to a fair day’s pay for a fair day’s work with a real living wage. Whether people are working or seeking work, the UK Government have yet again failed to support them.

Coronavirus has exposed the deep inequalities that exist under this Westminster Government. People in Scotland—

[Mr Deputy Speaker (Mr Nigel Evans)]

Order. Marion, you are going to have to leave it there. I am terribly sorry, but we are out of time.

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[Giles Watling (Clacton) (Con) [V]]

[Inaudible.]

[Mr Deputy Speaker (Mr Nigel Evans)]

You are on mute, Giles. If you don’t mind, we will take Andrea Leadsom straightaway. We hope we will get back sequentially. We will be back with you, Giles, I promise.

[Andrea Leadsom (South Northamptonshire) (Con)]

I am full of praise for the Chancellor’s work to protect jobs and businesses as we emerge from lockdown, and I support the measures he announced in the Budget, but I also urge him to give even greater focus than he has done to the prospects for our green economy.

In my stint as Business Secretary, I rewrote the Department’s objectives, so that its top priority was for the UK to lead the world in tackling global climate change. On the one hand, there is no doubt that that is the right thing to do—the future of our planet keeps far too many people awake at night. However, on the other hand, building a green economy also makes superb business sense for the UK.

First, the UK is at the forefront of developing green technologies: from offshore wind to nuclear fusion and green hydrogen, we are leading the way. Secondly, the UK has more than 450,000 people in the green collar workforce already. In my time at BEIS, I was confident that a target of 2 million green jobs by 2030 was possible. The particular beauty of the green economy is the breadth of employment opportunities—from apprenticeships in solar power to decarbonisation of heavy industry to cutting- edge scientific discoveries, there is something for all talents. The UK’s green economy could become a bigger jewel in our crown than UK financial services is today, and I urge the Chancellor to share that vision.

COP26 is a great platform, and we need radical action with world-changing initiatives, so I want to put forward three specific ideas. The first is to announce at COP26 a yearbook in which the Paris agreement signatories can record their Government, state and business-level achievements—transparency so that all can see and challenge, while the discussion continues over the more formal measurements.

The second idea is to announce at COP26 three ambitious bilateral commitments to decarbonisation by 2030. The UK can be a key role model, and those pledges could include, for example, working with India on delivering 100 GW of battery storage around the world, with China to deliver 200 GW of offshore wind, and with Brazil, say, to deliver 0.5 billion hectares of new woodland around the world.

The third idea is to announce at COP26 a global green investment bank. Our former rock star central banker, Mark Carney, is now the Prime Minister’s green adviser, and he should be pulling together the global pensions industry, project financing and green investment expertise to work together on financing the decarbonisation of our planet.

As one of the great heroes, Sir David Attenborough, has said,

“real success can only come if there is a change in our societies and in our economics and in our politics.”

The UK has the chance post Brexit to lead that change.

[Mr Deputy Speaker (Mr Nigel Evans)]

Very professionally done, as we expected, Andrea. Thank you for helping us out. I think our comms are now back. Let us see if we have Barry Sheerman.

[Mr Barry Sheerman (Huddersfield) (Lab/Co-op) [V]]

Thank you so much, Mr Deputy Speaker—I am, I think, unmuted.

First, I thank my constituents, not only for sending me back to Parliament yet again, but for being so forthright in what they want me to do when there is a Budget speech. I have been present at many Budgets and spoken in most of the Budget debates; I am a bit of permanent feature. I have seen a lot of aspirant merchant banker types—the George Osbornes who come and do their bit on the Front Bench and then go on their way to the next stage in their career. I just hope that this time, this merchant banker, who is the wealthiest Member of Parliament we have ever had, will stay the course. I do not usually trust merchant bankers because I trade as an economist and I would prefer an economist’s view of our country’s future.

My folk in Huddersfield tell me that what they want is pretty simple: good jobs on good pay, a good health service, a good education service, a clean environment, and a modernised welfare state that is up to date. One of the things this country can be proudest of is a welfare state that really looks after people when they are sick or out of work. The covid crisis has pointed out to us that there are some severe deficiencies in our welfare state. If someone is thrown out of a job and has no employment, the support and the income they get are dramatically lower than in most of our competing nations. This Budget should have addressed that, bringing the NHS up to date—I will not even go into the shameful 1% pay rise that is in fact not a pay rise—and looking thoroughly at equipping it for the future after it has been systematically cut and cut again since 2010, but also looking at the welfare state in its entirety.

Many people have talked about the green economy. Our good science, good technology and good manufacturing have meant that we have sorted covid and we are winning against this global pandemic. Now we have the science, the technology, the partnerships and the manufacturing capacity to set about saving our planet from climate change and global warming, so let us do that. This Budget should have taken a lead. It should have shown passion, partnership and a real ability to build relationships that work. I only hope that this Chancellor will stay on and do a proper job for a change.

[Mr Deputy Speaker (Mr Nigel Evans)]

We will now see if the technology and science are going to bring us Kate Osamor.