Income Tax (Charge)

Richard Drax Excerpts

Thursday 4th March 2021 Commons Chamber

[Richard Drax (South Dorset) (Con) [V]]

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

It was an impressive and assured performance by the Chancellor. Rightly, it was a no-harm Budget, aimed at steering us through treacherous waters, a light hand on the tiller essential. It has been heartbreaking for me and, I am sure, all colleagues to hear from so many businesses of their dire circumstances. They are run by men and women who have worked hard and taken risks, often having to mortgage their homes, all to make a living for themselves, their families and, of course, their staff. It is this industrious activity that pays for the public sector, not least the NHS and our schools. To raise taxes now would be the straw that broke the camel’s back, so I applaud the Chancellor for not listening to one or two commentators who used to frequent this place.

The Chancellor’s upbeat speech rightly called on enterprise and innovation to reignite our economy, both internally and from abroad. Global Britain requires low taxes, less state and a lithe public sector. Bureaucracy and red tape still afflict progress, but now that we are out of the EU, there is no excuse not to pursue Conservative values and philosophy, and that includes low taxes.

“Levelling up” is an expression frequently used by the Government, and nowhere is that more needed or deserved than South Dorset. At or near the bottom of every source of funding for decades, it is our turn to be nurtured. I shall soon be presenting a business plan to the Prime Minister and Treasury drawn up by business leaders in my seat. To ensure that we attract businesses and investors, we need help to improve our infrastructure. Our over-reliance on tourism and hospitality does little to boost incomes and raise living standards.

I also compliment the Chancellor on extending help to those who are struggling, many through no fault of their own. However, this staggering level of borrowing cannot go on forever. The way out of this financial meltdown is to work our way out. The Chancellor is right to warn that repairing our finances will take the work of many Governments over many years, and that is not taking into account the dual spectres of inflation and rising interest rates. One or both could easily put the ship on the rocks.

Nothing is more important now than to support and nurture the private sector. I welcome the extension of the business rates holiday, the VAT cut, the new restart grants and the recovery loan scheme. However, it should be noted that some businesses will not be able to repay the loans that they have already taken out. On a positive note, the Budget will give reassurance to business, with restrictions lifting and the economy reopening. Let me repeat: we must never forget that it is the tax paid by these businesses that funds our NHS, schools and more besides. The country getting back to work is crucial, and the sooner the better.

With an eye-watering debt of £2.8 trillion, the Chancellor is right to promote growth, growth and more growth. That is not a licence to splurge money now and hike taxes later. The former is necessary in the short term but clearly cannot go on indefinitely. Cutting this support is going to cause pain. Dishing out money is easy, but taking it away is another matter. That is why everything must be done to support those in the private sector, because it is they, not the politicians, who create the jobs. We create an infrastructure within which business thrives. My concluding message to the Chancellor is this: watch the spending and do everything you can to help those who generate our prosperity and jobs.