Autumn Statement Resolutions

Sammy Wilson Excerpts

Monday 21st November 2022 Commons Chamber

[Sammy Wilson (East Antrim) (DUP)]

First, may I say at the outset that I do not fall into the group who blame the Government for all of the problems that we face? We must recognise the impact of the covid period on supply chains not just in our country but across the world. Whether the lockdown was advisable, I was one of the few in the House who believed that it was not, that it was prolonged for far too long and that it would have an economic and health impact, and it did. Of course, there is also the war in Ukraine and the cynical use of energy that we have become dependent on. Again, the policy of pursuing net zero, weaning ourselves off fossil fuels, not producing our own and so on, has come back to bite us. We were also slow in identifying the inflationary tendencies in the economy, so we did not take the appropriate monetary policies at the right time. Once the Americans decided that they were going to tackle inflation through higher interest rates, it was inevitable that we would find ourselves in the same situation.

We could, therefore, point the finger of blame at the Government and say, “Did we really need the lockdown policies that were pursued?”—we are now paying for them—and, “Are some of our energy policies correct?” I do not believe that they are, and they have contributed to the current situation. Nevertheless, global pressures beyond the decisions made in this House and by the Government have impacted on the situation.

I welcome some of the measures in the statement, especially those designed to help the most vulnerable in our society. I therefore welcome the uprating of benefits, although I believe it is important to use all of our efforts to get people who are on benefits and requiring support into work, because that is good for them, good for the economy and good for the fiscal situation that we face. I also welcome the triple lock on pensions. The Government had made an important commitment, and political credibility depended on them honouring that.

I also welcome the support for people’s energy bills, although it has not yet appeared in Northern Ireland. Perhaps the Minister can give us some more information about that. Northern Ireland is the only part of the United Kingdom where promises have been made but not so far delivered, despite the fact that four Business Secretaries, two Chancellors and two Prime Ministers have made that promise. I would like to see it delivered before Christmas, because people are facing their energy bills now.

My next point is in the Northern Ireland context. There are those in Northern Ireland who say that being part of the United Kingdom has no value. The truth is that many of the measures that I have outlined so far would not have been possible without the fiscal and economic umbrella that we have as part of the United Kingdom. I listen to Sinn Féin saying regularly, “If only the Northern Ireland Assembly were restored, we would be able to help the people who face economic difficulties.” That is despite the fact that the Sinn Féin Minister was responsible for a budget that left us with a £650 million hole in the budget this year. Although he could never get a budget that any of the parties in the Assembly agreed with, he never made any effort to improve it or to try to deal with the difficulties. The idea that somehow the restoration of the Northern Ireland Assembly would bring forward a fountain of support for people who need it is for the fairies—[Interruption.] I hear the moaning from the SNP, who also come to the UK Govt with their hands out for more money, because they realise—although they will not admit it—the benefit of being part of the United Kingdom and having the fiscal umbrella that that affords in times of economic difficulties.

I do not believe, however, that the autumn statement and its provisions will address the major problems that the Chief Secretary outlined today. The first is inflation, which destroys businesses, people’s savings and their ability to live sustainably. There is also the issue of debt. Little in the statement points to achieving the economic growth that we require, which would increase production, increase tax revenues and reduce the burden of debt in the economy. Indeed, many of the tax measures—and Conservative Members have been as critical of them as I am—have been designed not to encourage growth, but to make growth much more difficult. I have no difficulty with taxing windfall profits—profits that were not expected, that investment decisions were never made on and that have been made on the back of decisions made elsewhere that have hurt the customers of the firms concerned—but I have a problem with taxing the profits of companies that want to grow and that rely on profits for investment decisions. We have seen that corporation tax on profits will be kept at a high level, allowances will be reduced, dividend taxes will be frozen and so on. All of that will militate against economic growth.

Secondly, the changes to personal taxation will reduce disposable income, which takes away customers from firms that want to invest. Why should they invest if the customers will not be there? If 5.4 million people are dragged into the higher tax levels and see their disposable income fall by 7.1%, and in a year’s time we will be less well-off than we were pre-pandemic, it will not be a climate in which businesses will want to innovate, invest and produce the conditions for economic growth. That being the case, how then do we even pay the interest on the additional debt—the £100 billion that has been mentioned? The Budget does not lay the foundation for dealing with the problems of paying our debt or growing our economy. If we did so, we could increase our productive potential, which could be anti-inflationary.

I could go into some of the measures that have already been mentioned today, but let me just mention one: the investment and exploitation of those fossil fuels that we have in our own country. We need energy and independence. We also need to raise the revenues from those resources. We know that we will need them anyway because we import them. The Government need to look at incentives for improving the production of the resources that we have in our economy.

Basically, I welcome some of the issues that have been addressed. However, the people of Northern Ireland would like to hear from the Minister when the support for fuel and energy will be available to them.