Budget Resolutions

Nigel Evans Excerpts

Monday 11th March 2024 Commons Chamber

[George Freeman (Mid Norfolk) (Con)]

It is a great pleasure to follow the hon. Member for Merthyr Tydfil and Rhymney (Gerald Jones), not least to inject a little context into this afternoon’s debate. The truth is that this country is reeling, but it is not reeling from 14 years of Tory cuts. It is reeling from the most extraordinary period of economic shocks that this country has ever seen.

I remind Opposition Members that the City crash in 2007-08 cost us £875 billion in quantitative easing under the then right hon. Member for Kirkcaldy and Cowdenbeath. Brexit cost us £70 billion in QE, the pandemic cost us £400 billion and the support that the Government put in place to help hard-pressed families with the energy crisis following the war in Ukraine cost £40 billion. This country has been through a perfect storm of unprecedented, once in 400-year or 500-year events with which we are all struggling.

I welcome this Budget. I will say something about the cost of living relief for rural areas such as Mid Norfolk, and something about growth and how we can get this country out of the huge risk of stagflation arising from the sequence of events that I have just described. In a global race for science and technology investment, we have to move faster and be bolder to unlock that investment.

The pandemic and the Ukraine war have been unprecedented shocks, particularly to the rural economy. Unbelievable cost of living inflation has hit rural areas particularly hard. How much harder? The Treasury calculates that the differential cost impact is about 150% harder in rural areas because of higher transport costs; higher heating costs; higher dependence on agriculture, food processing and high-energy industries; lower incomes; marginality and rurality; a very high proportion of retired pensioners on fixed incomes; and rural councils that have been structurally underfunded for decades by a Whitehall that does not understand rural areas. We put up with it for years during an era of cheap energy, but high energy costs have hit our public services, our charities, our businesses and our households hard.

I am very grateful for the support that the Chancellor has provided, but I will continue to make the case that rural areas deserve more support and more targeted support for a very particular set of rural problems. In this Budget, I welcome the fuel duty freeze, the household support fund, the cost of childcare relief, the child benefit measures, the alcohol duty freeze, the national insurance cut worth £800 for the average worker—including the self-employed—the SME recovery loan scheme, the SME VAT threshold move and the pension triple lock being fixed at 8.6%, which is four times the forecast rate of inflation. This is a Chancellor doing everything he possibly can to help the most vulnerable and the most deserving in our society.

In Norfolk, I particularly welcome the investment in new special free schools for children with special educational needs and disabilities—that cause is close to my heart—the accelerated east-west rail delivery that is crucial to unlocking our region’s potential, and the 10 sports facilities in rural Mid Norfolk. There was good news in a very tough Budget.

Most of all, I welcome the Chancellor’s measures to support growth in the innovation economy, including the £2.5 billion for the NHS, in addition to the £3.4 billion productivity plan, that will unlock an extra £30 billion according to the NHS. There is funding for the Faraday discovery fellowships; this country’s low Earth orbit leadership; the expert advisory group on R&D tax relief; the £100 million for the Alan Turing Institute; the £45 million for our life science research charities; the £5 million for the agrifood launchpad; and the £10 million for the Cambridge cluster. That is investment in the long-term growth of tomorrow, on which we all depend in order to get out of this extraordinary 15-year triple whammy of crises that this country has gone through.

Opposition Members do not seem to understand that we cannot tax our way to prosperity and we cannot spend our way to it. [Interruption.] I know they do not want to hear it, but it is the truth. For prosperity, we need to do two big things, the first of which is reform our public sector to tackle the productivity crisis properly. I am proud to say that this Government, in the 14 years I have been here, have increased health spending by a third, but we cannot see that outcome on the ground. That is because the healthcare system is structurally geared—it is not any one party’s fault—in a way that says, “If you deliver more for less, we give you less from the Treasury.” We punish innovation and we reward inefficiency, and that has to change. I welcome quite a lot that the shadow Health Secretary has said about reforming it.

The real key, however, is growth. As I have consistently argued for 14 years, we have to do more to support innovation-led growth, as that is the only form of growth that drives up productivity, creates new industries and drives global inward investment. With stubborn debt and the risk from all of the shocks that I have outlined still with us, that is more urgent than ever. We will never get out of this crisis by short-term house price booms, short-term consumer booms and booms in the City. We have to do it by attracting private sector investment into the high-growth sectors of life science, agritech, bioengineering, clean tech, fusion energy, semiconductors, robotics, tidal energy, satellite manufacturing and quantum computing. We are a powerhouse in science and research, but we are not yet a powerhouse in attracting the global billions into those sectors and turning them into solutions around the world. That innovation is the key, both to private sector recovery and, of course, to public sector reform, particularly in health, which is the biggest public service driving the structural deficit. We need to introduce a much faster wave of innovation in artificial intelligence and all sorts of digital health, with earlier prevention and better diagnosis. In that way, we can reduce the appalling problem of pouring money in and getting less out on the ground.

Time is very short, Mr Deputy Speaker, but I want just to conclude—[Interruption.] My time is up, but let me conclude by saying that—

[Mr Deputy Speaker (Mr Nigel Evans)]

Order. As the hon. Gentleman said, time is up. I am terribly sorry. I call Sir Chris Bryant.

--- Later in debate ---

[Alison Thewliss (Glasgow Central) (SNP)]

I will touch first on arts funding. As a Member of Parliament who has a number of arts institutions based in my Glasgow Central constituency, I gently welcome the theatre, orchestra, museums and galleries exhibition tax relief. The Royal Scottish National Orchestra has said that the relief

“ensures the RSNO remains committed to serving Scotland’s communities, concert halls and schools.”

However, that comes in a wider context, as the Musicians’ Union has pointed out, of cuts to the arts over many years. It has talked about the impact of a decade of austerity. General secretary Naomi Pohl said that she fears “frankly, we are stuffed” if a Labour Government do not put money into the arts. There needs to be some change to ensure that our music and arts venues can continue.

The RSNO has done a huge amount to diversify what it does. It is involved in making music for motion pictures, as well as filling concert halls in the city of Glasgow and other places besides. It has asked that the UK Government consider proposals to exempt employers in the cultural sector from national insurance, which would encourage companies to bring workers often used on a freelance basis into employment. That is particularly important given how many freelancers, particularly female freelancers, were excluded from support during covid. I leave that for Ministers to consider. Will Ministers go further on VAT to encourage people back out to enjoy cultural events and bring life back to our cities and town centres? Music tickets having 20% VAT on them is a real inhibitor to that.

This Budget should have been a moment to bridge the funding gap for our public services, which they so desperately need. Instead, the Budget appears more concerned with setting traps for a future Labour Government. The Conservative party is once again bringing its own naked political interests into government, and we are all left paying the cost. It is money for Canary Wharf, not the Calton, or Cowcaddens or Kinning Park. The concerns raised by organisations such as the Child Poverty Action Group should not be ignored. The stark reality is that there is little in the Budget to address the crisis conditions being experienced by children and families living in poverty. The Chancellor’s claim that the Government do not pass their bills on to the next generation rings particularly hollow when 4.2 million children live in poverty in the UK today. Who does he think will be this next generation?

The decisions taken in this Budget risk leaving a legacy of millions of young people living with the scars and the real harms of growing up in poverty: hunger, poorer educational outcomes, the health risks associated with cold and damp homes, and stagnant economic growth leading to fewer opportunities. The Glasgow Centre for Population Health has commented particularly movingly on this lost 10 years of austerity and its impact on public health. It says that it could take another 10 years just to get us back to where we were in 2011. Opportunities have been lost for so many people as a result.

I call on the Government yet again, as I do at every Budget, to scrap the two-child limit on universal credit. At the moment, 222,000 families are affected by the policy, which is life limiting and damaging. It is making it more difficult for larger families to put food on the table, and it is driving them to almost impossible choices. The Government must scrap it. Equally shameful is that the Labour party will not scrap it, either. Those young people are being condemned to a life lived in poverty. That is not good enough, and the Government should do better. They could bring in the equivalent of the Scottish child payment, which is now £26.70 per child per week for eligible families. It is helping to keep those families out of the food banks and protecting the life chances of those children. They could increase the healthy start benefits to the level of best start foods, so that families do not have to go to food banks to get infant formula, as they could afford those things if they require them.

There is a serious gendered impact of the Government’s policies. The Women’s Budget Group has highlighted the regressive nature of cuts to national insurance. The cuts disproportionately affect lone mothers and couples with children. Single men will receive around £500 more than a lone mother, and couples without children will receive more than £1,200 more per year than families. Half the benefits go to the wealthiest households, and only 3% to the poorest. Yet again, the Government’s cutting taxes for Tory voters on the back of the people who can afford it the very least is warped.

There needs to be a lot more support for public services and infrastructure, greater cost of living measures and a just transition. The OBR points out that there is

“no real growth in departmental spending per person over the next five years.”

This Tory Government are committed to that, and Labour is committed to copying and pasting that policy. Scotland deserves better than this broke, broken Westminster Government. We want better than a UK that has been declared the world’s second most miserable country, behind Uzbekistan, with 35% of respondents distressed or struggling at the worst. In Scotland we think of what we could have: Ireland with its budget surplus, and Norway with its oil fund. Scotland deserves much better than this. We deserve independence.

[Mr Deputy Speaker (Mr Nigel Evans)]

Unsurprisingly, Jim Shannon is the last Back-Bench contributor. We have a bit more time, so I am not putting on a time limit; I know the hon. Member will not abuse my generosity. Could any Member who has participated in the debate start to make their way to the Chamber for the wind-ups?

[Jim Shannon (Strangford) (DUP)]

Thank you, Mr Deputy Speaker. I will not tax the patience or endurance of my fellow Members, and my contribution will be the same length as others.

It is a real pleasure to speak in this debate on the spring Budget delivered by the Chancellor last week. It is important that we are here individually and collectively to speak on this issue, and I must ensure that all my constituents feel supported financially. My office has received a large amount of emails, letters and phone calls about how so many people are struggling, especially over the last couple of months. That has been echoed by Members on both sides of the Chamber, but particularly on the Opposition Benches, and I think we really understand our constituents. I would also like to thank the Chancellor, as these decisions are not easy to take, but regardless of that, there are needs that must be met.

I was very pleased to hear about the steps taken to move in the right direction on the child benefit threshold. Members, including the Minister, will be aware that last year I introduced a 10-minute rule Bill, which called for thresholds to be determined by household income instead of individual income. There are many, on both sides of the Chamber, who hold a similar opinion. It is good news that the Chancellor and the Government recognise that. The Bill aimed to highlight the unfairness of the current threshold, whereby a single-income home earning £50,000 or above would not receive an entitlement, but a dual-income home earning £49,000 each would be in receipt of the payment. That was a real anomaly and I am very pleased that the Chancellor, the Government and others with the power to change the legislation have done so. It is no secret that I am very passionate about this issue. I have raised it on numerous occasions over the past few years. While this is welcome news, I look to the Minister for further clarity on the household income levels in terms of inflation. The increase to the lower threshold is positive, but if working-class families do not notice the difference in line with inflation, they are ultimately still going to struggle. Perhaps the Minister could provide us with some clarity on that.

Many have expressed gratitude at the decision to cut national insurance at the start of the new tax year. I am going to give a slightly different opinion, based on correspondence from my constituents. I emphasise that, in line with the rate of inflation, it is about ensuring the benefits of the cuts are truly felt. For instance, one hon. Member said that the cuts would not help the elderly, because they do not pay national insurance at pension age. I have also spoken to many health professionals who have openly said that, on the basis that our NHS and so on would be properly funded, they would not mind continuing to pay the current rate of national insurance. Given the lack of funding in our NHS, there are many who would be willing to pay just that little bit extra to get more efficient local services. Perhaps that is something the Minister could consider. I know there is a consensus among many in the Chamber that national insurance contributions should be cut or stopped, but I think they could be used for something better. My position would be to retain them as they are. Perhaps the Minister could look at that and ascertain how much better off our constituents could be.

Another issue relates to the 4 million people living in oil-heated homes in rural communities such as my constituency, who want to do their bit for the environment. Most people I speak to, whatever their class in society, want to do something for the environment, but they are being disincentivised from adopting renewable liquid fuels. Currently, renewable liquid fuels that have lower carbon emissions are taxed, while fossil fuel heating oil is not. Scrapping the tax on renewable liquid fuels in the Budget would have reduced their cost and made them a viable alternative to using fossil fuels. That, again, was perhaps an anomaly in the Chancellor’s speech, and one that needs to be addressed.

The Government can still ensure that off-grid households can decarbonise in an affordable manner by delivering the renewable liquid heating fuel obligation consultation. Assurances were given by Ministers during the Report stage of the Energy Bill that the Government would move to a consultation in “the next few months”. That was over six months ago. I figure that a “few months” is less than six months. Therefore, I suggest that we should have some indication of what is happening. Perhaps the Minister could explain why this was a missed opportunity in the spring Budget. Will he also provide assurances on when the RLHFO consultation will be publicised and we will have an idea about what exactly it will mean?

These decisions are never easy to take and we are grateful for the efforts made. However, my party, the Democratic Unionist party, and I are a strong voice for all families, but in particular working-class families. Why is that? It is because most of us on the Opposition Benches—there will be some on the other side of the House—never had very much for most of their lives. When I speak for my constituents who are working class, I speak on the basis of knowledge and a genuine interest. The working-class families in my constituency hope to reap the benefits of these decisions, and I want that to happen, but there is much to be done to enable it to happen.

I hope that the Minister and his Department can provide the answers to the queries that have been posed today. Let us make a real change not just for my constituents in Strangford, but for all families in this great United Kingdom of Great Britain and Northern Ireland. There is much to welcome in the Budget, but there are some points that need clarification.

[Mr Deputy Speaker (Mr Nigel Evans)]

I call the shadow Secretary of State for Culture, Media and Sport to open the winding-up speeches.