Budget Resolutions

Sally-Ann Hart Excerpts

Thursday 7th March 2024 Commons Chamber

[Sally-Ann Hart (Hastings and Rye) (Con)]

Hastings and Rye is a vibrant and dynamic place that is home to amazing and resilient tourism, retail and hospitality businesses, hundreds of small and medium-sized enterprises, and a robust manufacturing sector specialising in vacuum and precision engineering. However, it has pockets of deprivation. That is why I welcome the measures taken by the Chancellor in yesterday’s Budget, which is bolder than it seems, reflects a dose of optimism and a good dollop of resilience, and builds on policies that have halved inflation, reduced debt and promoted a growing economy. I particularly welcome the measures taken to support hard-working families. The Budget addresses the cost of living burden by reducing employee national insurance contributions by another 2%; they have gone from 12% to 10%, and now to 8%. It is giving thousands of people in Hastings and Rye a tax cut—a cut of over £900 for the average worker.

Let me take this opportunity to correct the shadow Chancellor and dispel the nonsense being spouted by Opposition Members. The Chancellor did not promise to abolish national insurance contributions yesterday. He expressed an ambition to do so, without compromising public services, but said that it could not be achieved any time soon, and would require responsible fiscal management. Cutting class 4 national insurance contributions from 9% to 6% will help self-employed people in my constituency, and alongside the duty freezes on fuel and pub pints and the extension of the energy price guarantee, it will help put hundreds of pounds back into people’s pockets.

I also welcome the historic investment in early years and childcare, which will help hard-working families. The 2024 Budget builds on the significant strides made in 2023, when an unprecedented sum of more than £1 billion was allocated for early learning and childcare. The 8% increase in funding for early learning and childcare for 2024 will directly benefit our children, our hard-working families and the dedicated professionals who nurture our children’s growth.

The enhancement of teacher training will, I hope, help to ensure early intervention and prevention of problems for all children, including those with special educational needs, so that they receive the support that they need to reach their potential. Addressing the unfairness of the child benefit system will benefit thousands of families in Hastings and Rye, promote equity and social justice, and ensure that families receive support based on their needs.

I also welcome the measures taken to help the most disadvantaged in my communities, such as the increase in the repayment period from 12 to 24 months for those on universal credit who are forced to take out advanced budgeting loans, and the fact that the £90 charge to take out a debt relief order will be scrapped completely. The household support fund was set up temporarily to help the poorest through the cost of living crisis with a one-off payment of £500, depending on circumstances. Its continuation for another six months is vital for a number of reasons, not least because it provides immediate relief to vulnerable households facing financial hardship. Its extension means that particularly vulnerable families in Hastings and Rye can continue to receive essential support during challenging times and avoid debt. However, it is worth noting that the fund is a temporary fix, and the Government need to continue their focus on longer-term solutions to address poverty and prevent families sliding further into financial distress. Work is the only route out of poverty. That is why the Department for Work and Pensions back to work plan and our family hubs, which support families in so many ways, are vital policy measures.

It is really good news that, despite the challenges posed by the pandemic and the war in Ukraine, our economy is showing signs of recovery. The OBR’s revised growth forecasts for 2024 show a modest improvement from 0.7% to 0.8%. That may seem incremental, but it does signify progress.

Small and medium-sized enterprises are the backbone of our local economy. I welcome the £27 billion tax cut for businesses through the radical policy of full expensing, and through capital allowances reform. This move will drive investment, stimulate growth, empower our entrepreneurs, encourage innovation and create jobs in Hastings and Rye, but we need to encourage more local young people into science, technology, engineering and maths, further education and apprenticeships. University technical colleges and UTC sleeves will be a real step forward in providing skills for the future.

While tourism and hospitality have greatly benefited from generous Government support over recent years, including the extension of reliefs into 2024-25, I would have liked more of a boost for our tourism and hospitality businesses from the Chancellor; a clear pathway for reform of business rates in England up to 2026, including reliefs; and action on VAT. The British Retail Consortium said some time ago:

“We need a business rate tax that flexes with overall economic performance, is shared equitably across different industries and comes with positive incentives for business.”

I will briefly mention student loans. We all recognise the punitive rates of interest paid on student loans by our graduates, and it is not feasible to write off all the debt. Could the Chancellor please ensure that no graduate pays interest at a rate higher than the average available commercially? That will help millions of graduates who deserve a fairer rate of interest, allow our young professionals some financial stability, and give them the certainty to make sound life choices.

Let us embrace this Budget with optimism. The last few years have not been easy for the British economy, with the legacy of covid, and war in Ukraine and the middle east. It is only because our economy was in a better state as a result of the Government’s policies since 2010 that we could afford to protect people and businesses, and support Ukraine. Our economy is now turning a corner. We cannot allow the Labour party to play fast and loose with our economy again, and take us back to the economic tatters of 2010, after all we have been through in the past few years. This Budget is a road map to a bolder, brighter future for Britain—a future in which businesses flourish, our families thrive, and our communities can stand resilient.