Budget Resolutions and Economic Situation Debate
Full Debate: Read Full DebateSimon Clarke
Main Page: Simon Clarke (Conservative - Middlesbrough South and East Cleveland)Department Debates - View all Simon Clarke's debates with the Ministry of Housing, Communities and Local Government
(1 year, 9 months ago)
Commons ChamberI think it is Newcastle-under-Lyme, not Newcastle-upon-Lyme, but as someone who lived in Gosforth for five happy months, I am always happy to talk about Newcastle with the hon. Lady.
Will the Secretary of State give way?
However, I am even happier to give way to my right hon. Friend.
My right hon. Friend is exactly right in what he says about the recent vote at Middlesbrough Council. Does he agree that effective devolution to the structures of local government, which can deliver change most effectively—including, in Middlesbrough’s case, a development corporation led by the Mayor, but with full democratic accountability ensured by its membership—is the right way to make sure that left-behind communities in towns such as Middlesbrough are not ignored and forgotten, as they were for far too long?
My right hon. Friend is absolutely right. All the communities of Teesside—Redcar, Normanby, Eston, Middlesbrough, Stockton, Darlington—are benefiting as a result of Conservative leadership, but in particular, the development corporation that the Mayor is bringing forward is the right thing to do.
I must draw my remarks to a close in a minute, but before I do, because I think it is always right to offer praise to members of other parties who have done the right thing, I want to thank all those across local government who have contributed to the extension of devolution that we saw in the Chancellor’s statement. I have known the Chancellor since we both entered the House of Commons in 2005, and he has long been a champion of devolution, decentralisation and empowering local government. It was thanks to his leadership and the support of the Chief Secretary to the Treasury and the Prime Minister that we were able to secure two significant trailblazer deals with the Mayors of the West Midlands and of Greater Manchester. We hope to emulate that by having further powers devolved to Mayors in mayoral combined authorities across the United Kingdom.
Of course, the Chancellor of the Exchequer is underpinning that investment with the money that he has secured for innovation accelerators in Glasgow, Manchester and Birmingham, and through the eight investment zones designated for England and the four in other parts of the United Kingdom. However, today I want to thank the Mayor of Greater Manchester, Andy Burnham, who has signed a devolution deal—a new trailblazer deal. Mayor Burnham says that this deal marks
“a new era for English devolution”.
I know that some Conservatives will not always necessarily want to hear praise for Mayor Burnham, but I think it is important that all of us across the House recognise that, if we want to see our country operate in a way that gives us truly sustainable growth, we need to empower local leaders. We need to have central Government investing in science and technology, in changes to the labour market and in our children’s future, as with the changes to childcare, education and skills that this Budget brings.
I opened my remarks by reminding us how much we owe to Lord Heseltine of Thenford. His determination to work across party boundaries and across the United Kingdom to raise the hopes and the ambitions of people in areas that had been overlooked and undervalued contributed to an economic renaissance from Liverpool to Canary Wharf. It is a similar spirit that animates our Prime Minister and our Chancellor in this Budget, and I commend it to the House.
The shadow Secretary of State, the right hon. Member for Doncaster North (Edward Miliband), said in his speech that by their choices you will know their priorities. He was absolutely right. The Chancellor showed last week that his priorities are the priorities of Teesside. The Secretary of State for Levelling Up, Housing and Communities, my right hon. Friend the Member for Surrey Heath (Michael Gove) said in his speech that he would take anyone who wanted on a tour of Teesside to see our freeport and the fantastic progress being made there. Many Opposition Members would benefit from such a tour, because they would see the transformative impact of the carbon capture and storage investment that the Chancellor reaffirmed last week.
Contrary to what the shadow Secretary of State said in his closing remarks, Net Zero Teesside is a reality. It is going up as we speak, backed by Shell, Equinor and BP—real companies investing in a real project that is transformational not just for the industries of the future, but our existing industrial base in steel, chemicals, plastics and all those industries which emit carbon dioxide as an intrinsic part of their production, not just in terms of the emissions released as part of energy generation, but as a by-product. That is why carbon capture is so vital. That is why it was so welcome that it was backed strongly in the Budget last week. We had a welcome decision on new nuclear and its classification as a sustainable technology, which is absolutely right and vital for the future. I welcome warmly the position to keep Hartlepool nuclear power station producing for two more years.
Critically, there was direct investment in our communities—£20 million secured by my hon. Friend the Member for Redcar (Jacob Young) for Eston Square, which my right hon. Friend the Secretary of State rightly celebrated in his remarks. That follows the £15 million for Guisborough in my constituency, the £6 million for Loftus and the £36 million for the Middlesbrough town deal. That is investment in the economic drivers of growth and in the communities that need it. By the time we go to the polls in 2024, the Government’s levelling up plan will have transformed people’s lives—that is a good sign.
There was much else to welcome in the Budget including, critically, the announcements on childcare—something that the group Next Gen Tories has been campaigning hard for. We all know across this House that the cost of childcare is unsustainably high and deeply unfair. The campaign group Pregnant Then Screwed has reported that for two thirds of families, childcare costs are as much as their mortgage. That is totally unjust and clearly an obstacle not just for the economy but for our having the children we need as a society. It is right that the Chancellor has taken bold action to address it.
I also welcome the abolition of the lifetime allowance on pensions, which will have a major impact on our retaining the doctors we need. The response of the British Medical Association says a lot more than that of shadow Front Benchers, who we have seen in complete chaos, with the shadow Chancellor and the shadow Health Secretary utterly at odds about this important measure.
As we heard from my right hon. Friend the Secretary of State, there is bold action on worklessness. The OBR estimates that 110,000 more people will be supported into the workplace by 2027-28. That is exactly what we need—the combination of challenge and support that people across the country want from the welfare state and our excellent jobcentres. It is an absolute scandal that too many people have their lives written off as economically inactive owing to health conditions, when they could work. There is all the support and ingenuity that can be deployed available to help with that vital process. All that was to be welcomed in the Budget.
There were some aspects of the Budget that I wish had been different. I have made no secret of my deep concern about the decisions surrounding the future of our corporation tax increase. I think that we have seen the consequences already with the decision of AstraZeneca to choose the Republic of Ireland over the UK for its next investment. I welcome the offsetting benefits of the full expensing that the Chancellor announced. If that is to work, it is vital that it is a permanent decision rather than simply a temporary relief, otherwise it will have a distorting effect on business investment. I very much hope that the Chancellor will make that permanent if the headroom is there to enable it, as he said he would. That will be vital to ensure that the measure is a success.
It will not surprise Members across the House that I believe that we need to do more on the generators of growth more generally. I point out the importance of housing, which my right hon. Friend the Secretary of State mentioned. In the end, the only sustainable way to improve our economic activity in this space—and the social justice of our housing debate—is to build more homes, addressing the challenges of nimbyism and nutrient neutrality. I hope and believe that there will be more progress on that in the months ahead.
I call the Scottish National party spokesperson. No time limit.