Budget Resolutions

Richard Drax Excerpts

Wednesday 31st October 2018 Commons Chamber

[Scott Mann (North Cornwall) (Con)]

It is a pleasure to be called in the Budget debate and to follow the hon. Member for St Helens North (Conor McGinn).

This was a good Budget for my constituents in North Cornwall. It brings investment and empowerment to our local communities and businesses, while maintaining the financial discipline that we on the Conservative Benches pride ourselves in. I welcome the big announcements on defence, broadband, the NHS and mental health, but in the time that I have I would like to focus on some of the micro-elements in the Budget that will really help some of my constituents.

First, I would like to mention the mandatory rate relief on public loos. My hon. Friend the Member for St Austell and Newquay (Steve Double) and I have been campaigning on this issue for quite some time. It seemed quite ridiculous that local authorities had to charge themselves for public toilets. We are delighted that the Treasury has now excluded them and provided mandatory rate relief. What does this mean for some of my communities? Many public loos have been closed under Cornwall Council. This morning, the mayor of Bude wrote to me to say that he is absolutely delighted with this new policy and that it will assist him in being able to reopen some of the closed sites in Poughill and Stratton. I have also had representations from Wadebridge Town Council and Bodmin Town Council showing their support for this policy. This issue might be a bit of a joke to some people, but being on a beach with a two or three-year-old child is no joke if the public toilet is three or four miles away. I can assure the House that in terms of tourism for North Cornwall, this is a really big deal.

[Richard Drax (South Dorset) (Con)]

Charities tell me that 2 million people cannot be more than 10 minutes from a loo. If we do not have public loos, they are in effect stuck in their houses.

[Scott Mann]

My hon. Friend makes a very good point. Bladders are not seasonal, Madam Deputy Speaker. You cannot tell a two or three year old to hold their bladder while they are on the beach—that is impossible. We pride ourselves on our blue flag beaches. It is important to us that we recognise how good they are. We do not want people discharging themselves in the sea; we would much rather they discharged themselves in public loos. So we are delighted about this measure, Madam Deputy Speaker.

I look around my high street and I see that the majority of businesses are small businesses. They are the lifeblood of the North Cornwall economy. Some 90% of those businesses will benefit from the reductions in small business taxation. One business wrote to me today: Lindsay from Linterior Design in Wadebridge told me that she has just expanded her business. The extra money from the rates cut will enable her to refurbish her business, putting some of her hard-earned money back into it. Real people with real businesses on the high street are saying that these are the real issues that affect them. The reform of the business rate shows how the Government have found a way to support enterprise and individuals in a fair way. Coupled with the tax on internet giants who gross £500 billion a year globally, this shows that the Chancellor has the best interests of small and independent stores at the heart of government. I am very pleased about that.

It was not mentioned at the Dispatch Box, but my colleagues and I in Cornwall care passionately about fairness on the second homes issue. We have been campaigning on this issue with Ministry of Housing, Communities and Local Government Ministers. It appears that some people soft let their second homes, paying neither council tax nor business rates. I was pleased to see in the Red Book that this is being reviewed. I represent an area with a number of second homes and I receive a lot of correspondence about it. It is important that everybody pays their fair share, so I am pleased that the Government are reviewing that particular policy. We have been lobbying on it for quite some time.

I was delighted by the announcement on single-use plastics. I represent a coastal constituency. Several groups, including the Polzeath Marine Conservation Society, Surfers against Sewage and the Bude Cleaner Seas project, have written to me about single-use plastics. The announcement was good, but I think we can go further on some environmental measures. I will mention my Bathing Waters Bill here, because the Government should consider the issue of sewage going into the sea. I understand that this is a matter not for the Treasury, but the Department for Environment, Food and Rural Affairs. We find ourselves in a position where water companies are polluting the sea and that is just not right. I hope we can give further consideration to this issue at a later date.

On fisheries, I am delighted that £12 million will be dedicated to the fisheries industry. My hon. Friend the Member for South East Cornwall (Mrs Murray) has campaigned tirelessly to get transponders on smaller vessels, so I am delighted that £2 million of the fund will go to that. There will be £10 million for tech and innovation in the fisheries industry. We have not seen tech innovation in the industry for quite some time. It will enable us to fish in a more environmentally sustainable way.

On manifesto commitments, I am delighted that we are bringing forward big, macro policies on lifting thresholds. I represent an area where many people have modest incomes. They will see that money reinvested back into society. I am delighted with the Budget and will be supporting it in the coming days.

--- Later in debate ---

[Richard Drax (South Dorset) (Con)]

There is much to welcome in the Budget for my constituents, not least the raising of tax thresholds, the freezing of fuel duty, the business rates announcement, the freezing of beer duty, and other announcements, all of which are to be welcomed and will help my constituents.

I wish to sound a note of caution to Ministers—that we should use the words “the end of austerity” with care. I am afraid I do not agree that austerity has ended in the technical sense, because we have a debt of £1.8 trillion, and we have debt interest to pay of nearly £50 billion per year—and all that before the country takes one pace forward. To say that austerity is ending could be slightly misleading, suggesting that we can turn on the taps and spray money around to all the many good causes when, in effect, we cannot. I think we must accept, in all parts of the House, that the United Kingdom has spent more money than she can afford for many years, under all Governments, and it is time now to live within our means. That is the way any household proceeds—it lives within its means.

To do that, and to raise the money that we need, there is only one source of income that we can generate. Here in the House, we cannot generate income. As MPs, we only create the infrastructure for the income to be generated. Who generates income? It is business: men and women, the entrepreneurs in all our constituencies. It is they who risk their home, their future, their livelihood, their children’s future, all to generate wealth and prosperity for this country, the taxes from which pay for all the public services into which everyone in this House, on whichever side we sit, wants to put more money. So to tax those business people heavily—to punish them—in an attempt to raise the money that we all need, will not succeed, and in the worst case we will end up in the position that the Leader of the Opposition exemplifies as his ideal—that of Venezuela. [Hon. Members: “Oh.”] It is a fact! The Opposition groan, but that is what happens if you follow Marxism and punish the wealth creators—people leave the country. [Interruption.] It is a fact.

We need to prioritise what money we have, and then decide how we spend it. Let us take overseas aid, for example—0.7% of GDP. Yes, we should help those who are not well-off around the world, but to have a target and to keep to it I think is wrong. We should give the developing world and those who need our help what we can afford to give them—just like any household budget. Then we would have more money for all the causes that we want to support. Charity starts at home.

In the short time that I have left, I shall touch on one or two items. I again advise Ministers that it is reform, reform, reform, not necessarily cash, that the NHS desperately needs. On the police, as I have said many times, there is no doubt that we want more officers on the beat. On welfare—[Interruption.] I entirely back my right hon. Friend the Member for Haltemprice and Howden (Mr Davis) in his view on welfare. We need tax to be radically simplified; we need lower taxation. The corporation tax take has increased because the level has been lowered. That is a statistical fact.

On education, we do a lot of work with the f40 campaign group—all credit to them—and at a recent meeting we heard that there is a gap between education funding, which has risen in real terms, and what schools have to pay to teachers and pensions. That is where the gap is. I say to the Front Bench that more money is definitely needed for education, particularly in places such as South Dorset which have been at the bottom of the scale for far too long.

As a former soldier, I entirely concur with what an Opposition Member said about defence: £1 billion is welcome, but it is not enough. I accept that we spend the second largest amount on defence, but defence is an insurance policy we cannot afford to short-change.

[Stewart Malcolm McDonald]

The defence money is not new money; it comes from the money held at the Treasury for the Dreadnought programme. This fantasy new £1.8 billion is not new at all.

[Richard Drax]

I will leave the politics to the Scottish National party, but what I will say is that I agree that more money is needed for the defence of our country; there is no doubt about that. We need more sailors. We have two aircraft carriers, but can probably only afford to man one. Aircraft carriers need submarines underneath, aircraft on top, and ships beside; they are the biggest expense budget item we could possibly have. I ask the Treasury please not to forget our brave men and women of the armed services.

I have another minute—thanks very much to the SNP, and I am sorry that those on the Opposition Benches will regret it—so let me end on the topic of home affordability, as it is a key issue. We all talk about affordable homes, but they are not; 80% of market value is not affordable. I say to the Government that we must think about how we can provide homes that are truly affordable to those, particularly in my constituency, who simply cannot afford to buy them at current prices. Radical review of that is necessary, please.