Budget Resolutions and Economic Situation

Pauline Latham Excerpts

Thursday 9th July 2015 Commons Chamber

[Pauline Latham (Mid Derbyshire) (Con)]

I rise today to congratulate the Chancellor on his Budget. His amazing job yesterday is warmly welcomed by most of the country. I am disappointed to follow the right hon. Member for Newcastle upon Tyne East (Mr Brown), who said that the Budget will make no difference—he probably said the same thing about previous Budgets brought in by the same Chancellor. Surely unemployment is down in his constituency; I cannot believe that it has gone up. What did his Government do, in all the years they were in power, to help people in the north-east? They did not do anything, which is why there have been problems. This Government, though, have made a difference.

I am also disappointed to follow the hon. Member for Banff and Buchan (Dr Whiteford). I found it astonishing that she should be advocating that people on benefits should be allowed to have—encouraged to have—more than two children. Completely responsible people who recognise that children are expensive to bring up and cannot afford to because they are not on benefits subsidise those who the hon. Lady would like to have three, four or five children. That is completely mad.

[Dr Whiteford]

The hon. Lady completely misrepresents what I actually said and what the record will show I said. The point I was trying to make was that half of all families in Scotland receive tax credits, a huge majority of whom are in work. They are people who work extremely hard.

[Pauline Latham]

I recognise that most people getting tax credits are in work, but I still do not believe that people who are in work, not receiving tax credits, acting responsibly and having the number of children they can afford should be subsidising those who want to have more children. That is completely topsy-turvy economics; perhaps it is how some Opposition Members from Scotland deal with economics there, but it is not what we want to do here in London. I am very disappointed by the hon. Lady’s attitude, and I feel that she completely misrepresents what the Government are doing.

I congratulate the Secretary of State for Work and Pensions on doing a fantastic job in bringing the welfare budget under control. It was not under control for many, many years—it was completely out of control, which is one reason why this country got into such difficulty with the deficit.

[Ian Blackford (Ross, Skye and Lochaber) (SNP)]

One of the things that we hear about in the Budget is the importance given to increasing productivity, but if we are to increase productivity, we need incentives for investment in the economy. The Government are incentivising those who have financial assets by changing the inheritance tax rules to benefit the type of people who sit on the Government Front Bench. That is the reality of what they are doing. If we want to make sure that work pays, we need to drive investment in the economy, and we need incentives for business to do so. [Interruption.]

[Mr Deputy Speaker (Mr Lindsay Hoyle)]

Order. I certainly think that we have got the message. Can we have short interventions? I have a lot of speeches to get in, and someone cannot intervene on a Member who is intervening.

[Pauline Latham]

Thank you, Mr Deputy Speaker.

I will ignore what the hon. Gentleman said because, again, it is topsy-turvy economics. We are trying to increase investment in business to provide more jobs. We have created 2 million more jobs in the past five years, and that is carrying on. Apprenticeships are increasing, which will help people into work. In my constituency of Mid Derbyshire, which started off with 1,267 claimants in 2010, the figure went down to 340 this May. That is a huge reduction. I would still like those 340 people to be in work.

Some hon. Members have talked about youth unemployment. I started off in Mid Derbyshire with 350 such claimants; the figure is now down to 80. That is a huge increase in the number of young people who have jobs, thanks to our brilliant local industries. Young people are better off in work—everyone is better off in work than on benefits. We want to stop the culture of people relying on benefits.

As the Secretary of State for Work and Pensions said, when the Labour party was in government, it put up benefits before an election, flatlined them and then put them up again before the next election. Labour Members should not be playing politics with benefit claimants, who need honest, clear benefits. Those who need benefits will get them under this Government, but we want to get more people into work because that is better for their self-esteem and health; it is also better for their children to have as a role model someone who is in work.

[Chris Green]

When it comes to the relationship between the individual and the Government, it is healthier not to be recycling money and taxing people into poverty, only to give them some of that money back. Does my hon. Friend agree?

[Pauline Latham]

My hon. Friend makes a very good point, and that is exactly what the Government are trying to escape from. They are trying to raise the tax threshold, so that more people keep more of the money that they have earned. That must be a good thing to do. We need to grow the economy and get the finances under control, with the national debt falling.

[Mr Clive]

(Sheffield South East) (Lab): The hon. Lady rightly talks about the need for honesty in politics. Obviously, she believes profoundly in what the Chancellor has proposed in his Budget. Why, then, was that not set out for the electorate to take a view on before the election? Why was it hidden away until after people voted?

[Pauline Latham]

As the hon. Gentleman knows, we did not know what the result of the election would be. We did not even know that we would be in government; we thought that we might be in a coalition. It might have been the Labour party in a coalition. We have now had a Budget that sets out extremely clearly for the electorate exactly what we will do over the next five years. We want to invest in business. We want to help businesses, so that they can employ more people. That has certainly happened in my constituency, as it will have done in his constituency and those of every hon. Member, because business has created so many jobs. The climate is right for business. Britain is open for business, and we need to get more people working hard.

[Bob Stewart (Beckenham) (Con)]

We have created 2 million more jobs in the past five years, and we intend to create 1 million more. That is a target. It is how we will increase the productivity of this country and the wealth of the individuals in it.

[Pauline Latham]

My hon. Friend is absolutely right. One of the ways in which we will do that, hardly mentioned by Opposition Members, is by changing inheritance tax. People have paid taxes on their money. They have bought their houses, and it is good to allow them to leave their houses to their children, so that they can benefit as well. The housing market is difficult for younger people. If parents can leave their houses to their children, that will benefit society.

Something that has not been mentioned at all is the 2% commitment on defence. I would have thought that everyone in the Chamber would welcome that; it was certainly welcomed by Government Members yesterday. I cannot believe that no one wants to mention it at all. Surely the Opposition believe that that is a very good thing for the country, to secure our safety and security here.

Labour Members should welcome the fact that the success of our long-term economic plan has created jobs and is encouraging growth, which has meant that spending on welfare as a percentage of GDP has been falling since 2012.

I should like to finish because time is short—I apologise, Mr Deputy Speaker. This is a good Budget for jobs, for employment and for this country. I commend the Chancellor and the Secretary of State for Work and Pensions for their sterling work and how they have put this country on a much better footing.