Budget Resolutions and Economic Situation

Paul Maynard Excerpts

Monday 8th March 2021 Commons Chamber

[Paul Maynard (Blackpool North and Cleveleys) (Con)]

I welcome the chance to speak in this debate in support of a Budget that is a delicate act to get the balance just right between not choking off the economic recovery fundamental to recouping our covid expenditure over the medium to long term, and ensuring that we live within our means for day-to-day spending from now on and future-proofing our debt repayments against the potential for interest rate rises.

To be a truly Conservative Government, we must go further by championing growth, promoting free enterprise —a concept rarely mentioned these days—but also improving financial resilience. We know that the economic harm done at an individual and family level during the pandemic has been aggravated by a lack of financial resilience. We should be accelerating the Government’s response to the Woolard review, tackling with vigour the disproportionate costs faced by those living in poverty and turbocharging schemes such as Help to Save.

Nowhere should that be more important right now than protecting access to cash. Important as it is to celebrate International Women’s Day, I note that the Fawcett Society is once more highlighting the lack of women on our banknotes. I do not disagree with that analysis, but what we should be debating is whether we will even have banknotes soon if we fast forward to a cashless economy without taking stock of how we get there. That is the debate we should be having. I declare an interest as a member of LINK’s Consumer Council, which seeks to safeguard access to cash machines.

As the Economic Secretary well knows, I am a little disappointed there is no commitment right now to an access to cash Bill, but I am in no way downhearted. I believe there is much that can still be done that is either regulatory or non-legislative. Any Bill would merely put in place a regulatory framework that would require steps that can be taken now without legislation to facilitate continued access to cash. Chief among those would be the rapid renewal of PSD2 regulations, which enable cashback without purchase. A number of pilot projects have demonstrated that it works well as an idea, but the commercial providers of the system will not invest without the confidence that the Government will renew the regulations. I urge the Minister to make it clear that the regulations are forthcoming soon.

All told, the hidden wiring that underpins our cash system costs some £5 billion per annum. The less cash in circulation, the higher the fixed costs for everyone who processes cash, right down to the smallest trader or shop owner. No wonder some have opted out of cash and might never return. There is much organisations, such as the Bank of England or the Financial Conduct Authority, can do in advance of legislation to consolidate and reduce those fixed costs. The Government should be not just pushing them in that direction, but shoving them forcefully towards the right agenda.