Budget Resolutions

Philip Dunne Excerpts

Monday 11th March 2024 Commons Chamber

[Philip Dunne (Ludlow) (Con)]

It is a pleasure to follow the hon. Member for Aberdeen North (Kirsty Blackman), because it gives me the opportunity gently to point out to her that she represents a party that is presiding over the part of the United Kingdom with the highest rates of personal taxation in the UK. She does not seem to understand that we can address the cost of living pressures for those in work by cutting taxes, as the Chancellor has just done for 27 million people in this country. Cutting the national insurance rate by 2p next month, on top of the 2p cut this January, will make a material difference for families across the country—in particular, in south Shropshire. It sets a clear direction of travel for lower rates of personal taxation in the future under the next Conservative Government.

[Kirsty Blackman]

Will the right hon. Gentleman give way?

[Philip Dunne]

No, I am afraid I have no time. Madam Deputy Speaker is being very strict.

Those measures, combined with the above-inflation increases to thresholds since 2010, mean that the average south Shropshire worker now earns £34,500, and in the next fiscal year will pay over £1,500 less in personal taxes than they otherwise would have done had the Government increased thresholds only in line with inflation. I welcome what has been done. I also welcome the raising of the threshold and the halving of the rate at which higher income child benefit is withdrawn, which means that by April 2026 the Chancellor will have ended the unfairness for single-earner families.

Those who are over 65 years old—I declare an interest—comprise 31% of south Shropshire’s residents, compared with 18% nationally, so pension incomes are of particular importance to my constituents. Thanks to the fact that the triple lock has been maintained, the full annual amount of the basic state pension is £3,700 higher in cash terms than in 2010. The triple lock increased the state pension by 10.1% this year, and it will increase by a further 8.5% next month. In addition, the tax-free personal allowance, at £12,570, remains high enough that a pensioner receiving only a full basic or new state pension will not pay any tax on that income. That is a significant advance for pensioners on the legacy left by the Labour party.

My constituency is very rural and most people have to rely on cars. The extension of the fuel duty freeze will keep fuel costs lower than they otherwise would have been, and the freeze on alcohol duty and the extension of business rates relief will significantly help the hubs of our communities in rural areas—our pubs.

As a farmer, I was very pleased that the Chancellor listened to calls from farming organisations and the Conservative Environment Network, of which I am a member, and addressed the anomalous disincentive under which agricultural property relief was not available for land entered into some natural capital land use schemes. That is a welcome correction.

In the remaining moments I have, I want to touch briefly on how the work of the Environmental Audit Committee relates to the Budget. I was very pleased that the Government have committed to the sixth round of the contracts for difference for renewable energy projects getting the largest funding allocation to date—more than £1 billion. I am pleased to see the Minister for Energy Security and Net Zero, my right hon. Friend the Member for Beverley and Holderness (Graham Stuart), in his place. The Government have clearly learned lessons from the previous round, and have recognised that prevailing market conditions will inject commercial realism into the UK’s approach to this increasingly competitive global market.

Although support for renewable energy production is welcome on the path to decarbonising the economy, it cannot happen in isolation. It is clear from our Committee’s current inquiry into enabling sustainable electrification of the UK economy that electricity infrastructure, including transmission, distribution and storage, will also have to increase materially to handle the increased generation capacity that will be required to meet the increased demand. It was good to see that recognised in the Budget, which builds on the energy system announcements last autumn to reform grid access. Since November, more than 40 GW of energy projects have been offered earlier grid connection dates, accelerating and modernising the system to allow more renewable energy projects to connect more quickly. I do not wish to pre-empt the conclusions of our inquiry, but the Government are bringing forward measures to remove barriers to infrastructure investment, and are developing important guidance to encourage better community benefit for those affected.

I turn to the other energy announcement. I was very pleased by the progress on the acquisition of nuclear energy sites from Hitachi, both in the constituency of my hon. Friend the Member for Ynys Môn (Virginia Crosbie) and in Oldbury in south Gloucestershire. I have written on behalf of our Committee to raise concerns about the pace of progress, and in a debate on the civil nuclear road map two weeks before the Budget I called on the Government for progress on site selection. Hon. Members who were up early enough this morning will have heard the chair of Great British Nuclear, Simon Bowen, announce that Great British Nuclear now envisages taking two small modular reactor projects through to final investment decision in the next Parliament, which is a welcome breakthrough.

Finally, I welcome the further clarity on the carbon border adjustment mechanism—first confirmed in December—which will be introduced from January 2027. Our Committee did a significant amount in laying the groundwork for that policy, which I hope the Minister might recognise. By giving a date to which the industry can plan, it will have the confidence to invest in decarbonisation efforts; it will know that a carbon border adjustment mechanism will mean that less environmentally harmful products will be manufactured here and that we can reduce imports, so that the investments of UK manufacturers in decarbonising cannot be undercut through weaker environmental standards.

This was a thoughtful, prudent Budget, which will generate lower taxation for individuals over time and grow the economy under the Conservatives.