Budget Resolutions

Simon Kirby Excerpts

Monday 13th March 2017 Commons Chamber

[The Economic Secretary to the Treasury (Simon Kirby)]

This debate has focused on our future. It has asked what kind of Britain we want to be as we write an important new chapter in our history. In opening the debate, my right hon. Friend the Foreign Secretary expressed, in his very clear style, the fact that Britain must now, as ever, continue to play an active, engaged and constructive role on the international stage. Many hon. Members have echoed that sentiment, and I thank the 32 right hon. and hon. Members who have spoken for their thoughtful and varied contributions this evening. In the short time available, I will do my best to address the points that they have raised.

Many hon. Members have focused on that most pressing of priorities: how we make Brexit—I will say the word—a success for the whole country. In summing up this debate, I want to look beyond that to how we want the rest of the world to view 21st-century Britain. For me, and I hope for the hon. Member for Bristol West (Thangam Debbonaire), that means a prosperous country that is open for business and that is pioneering global developments in science and technology. So let me make a few remarks on that theme and respond to some of the points that we have heard today.

First, there is the need for a prosperous, stable and economically successful Britain. Once again, I remind those who do not acknowledge it of the absolute importance of Britain living within its means. Everyone should agree on that. For the sake of our long-term prosperity and for the good of our public services, we simply have to put our national finances on a stable and sustainable footing. So we are going to keep preparing Britain for whatever comes, getting the structural deficit below 2% of GDP and getting our debt falling during this Parliament.

We are also focusing on growing our economy. We want the world to see Britain as a country that is open for business, backing entrepreneurs, creating jobs and attracting foreign investment. That is the best way to raise living standards for people right across our society and up and down our country. That is why we have established a competitive tax environment. Corporation tax, which the hon. Member for Stalybridge and Hyde (Jonathan Reynolds) mentioned, will this year be the lowest in the G20 at 19%, falling even further to 17% in 2020. I should point out to him that when it was reduced from 28% to 20%, it resulted in a 28% increase in tax revenues and in more jobs. Also, there are an additional two thirds of a million new jobs in the forecast period, meaning more money, more businesses doing well and more people with a wage packet at the end of the week.

[Alan Brown]

Will the Minister give way?

[Simon Kirby]

I will not give way.

Let me move beyond tax, because there are many other ways in which we are making Britain more productive and more attractive as a place to start or run a business. The big investment in skills—half a billion pounds a year—will benefit hundreds of thousands of our young people, giving them the best choice since A-levels were introduced 70 years ago and bringing forward the next generation of talent that businesses will rely on. The changes that we have made to invest in current and new schools and to make our technical education as good as that of our international competitors are important for everyone. Not only are they good for business, they will make a huge difference to the lives and careers of our young people. It is a good policy for everyone.

Something else that shows the world that Britain is open for business is the £23 billion investment package that we announced only weeks ago in the autumn statement: the national productivity investment fund. The Budget set out some of the important improvements that the fund will make, such as addressing pinch points on our national road network and investing in the digital infrastructure that modern businesses depend upon. There is much going on to establish Britain as a world-leading country for business.

The Government are ensuring that Britain plays its part at the forefront of tomorrow’s technology. More than half a billion pounds was allocated at the Budget to help our innovators compete on the international stage, including support for trailblazing advances such as electric vehicles, robotics, and artificial intelligence. Investing in upholding the UK’s reputation as a world leader in R and D is not only a point of pride; it is a valuable boost to jobs and opportunities for British people.

I tell the right hon. Member for Islington South and Finsbury (Emily Thornberry), my hon. Friend the Member for Stafford (Jeremy Lefroy), and the right hon. Member for Carshalton and Wallington (Tom Brake) that we have protected the FCO’s budget in real terms to promote British interests around the world. I say to the right hon. Member for Carshalton and Wallington that both trade and human rights are clearly important.

My hon. Friend the Member for Halesowen and Rowley Regis (James Morris) raised the important issue of the Black country, making good points about productivity, transport infrastructure and skills. To the hon. Members for Aberdeen North (Kirsty Blackman) and for Airdrie and Shotts (Neil Gray), I say that living standards grew at their fastest rate in 14 years in 2015 to reach their highest ever level and are forecast to have gone even further in 2016. My hon. Friend the Member for Horsham (Jeremy Quin) made a skilful speech and commended the skills measures in the Budget—the biggest change in post-16 education in 70 years.

The hon. Member for Bury South (Mr Lewis) asked about uncertainty, and I should make it clear that the Prime Minister’s first objective in the negotiations is to provide certainty and clarity. The hon. Member for Luton South (Mr Shuker) asked about the type of Brexit, but the Prime Minister has been abundantly clear that we are aiming for a comprehensive deal based on the highest levels of goods and services. My hon. Friend the Member for Erewash (Maggie Throup) made an important point and is clearly a strong voice for her constituency and her region. The right hon. Member for Doncaster Central (Dame Rosie Winterton) raised the important issue of protecting workers’ rights. We are, after all, the party of workers, and we will do all that we can in that area.

I tell the hon. Members for Ealing, Southall (Mr Sharma) and for Glasgow North West (Carol Monaghan) that the Government have been clear that the UK will remain open for business, outward facing, and global looking. The benefits of immigration will be retained, but immigration will not be uncontrolled. My hon. Friend the Member for Witney (Robert Courts) applauded measures relating to skills and R and D, and I thank him for doing so. The hon. Member for Stretford and Urmston (Kate Green) asked about the Budget’s lack of environmental measures. We will consult on a national air quality plan in a matter of weeks. Along with the right hon. Member for Knowsley (Mr Howarth) and the hon. Member for Dulwich and West Norwood (Helen Hayes), the hon. Member for Stretford and Urmston also asked about school funding, and I remind them that the Government are giving more money to schools than ever before, reaching over £40 billion this year.

To my hon. Friend the Member for Tiverton and Honiton (Neil Parish) I say that the Government remain committed to devolving powers to support local areas to address their specific productivity barriers. To the hon. Member for Ilford South (Mike Gapes) I say that the Government remain committed to controlling migration and living within our means.

On business rates, I point out to Members that the £435 million package is in addition to the £3.6 million transitional relief scheme. The Government are also reducing business rates for all rate payers over the next five years—this is costing almost £9 billion—and that includes taking 600,000 businesses out of paying business rates altogether.

National insurance contributions were mentioned by the hon. Members for Kilmarnock and Loudoun (Alan Brown) and for Birmingham, Erdington (Jack Dromey). The Prime Minister has made it very clear that the changes to national insurance will require legislation later this year, which will be brought forward after we publish a paper explaining the full effects of the changes, along with the changes to rights and protections for self-employed workers.

We have heard questions about regional infrastructure, and as far as the north is concerned we have put in place £90 million to tackle congestion. The hon. Member for Norwich South (Clive Lewis) asked me about businesses relocating, and I can assure him that we will be seeking a bold and ambitious free trade agreement. The hon. Member for Swansea West (Geraint Davies) said that the Budget is not doing enough for Wales, but I wish to point out that the Welsh Government’s resource budget will increase by almost £150 million through to 2020. The hon. Member for Argyll and Bute (Brendan O'Hara) mentioned an increase in alcohol duties. We do recognise the importance of the Scottish whisky industry and I am pleased that those exports have increased.

The hon. Member for Tooting (Dr Allin-Khan) asked us to show her the money, and I would say that £2.4 billion over the next three years for social care is quite a lot of money. She, along with the hon. Members for Great Grimsby (Melanie Onn) and for Heywood and Middleton (Liz McInnes), also asked about supporting women, and I wish to point out that the gender pay gap is at a record low and there are more women in work than ever before. The hon. Member for York Central (Rachael Maskell) talked about the economy shrinking, but ours was the second fastest growing major advanced economy in 2016. I wish to point out that the NHS is free at the point of delivery and that is not going to change.

In closing, let me say that as the UK takes a new direction, we are paving the way for a Britain that is economically strong and stable; a Britain that is open for business; and a Britain at the forefront of technological progress. In short, this is a Britain that takes its place in the world as a prosperous, forward-leaning, outward-facing country. It is a truly global Britain and a country that works for everyone.

Ordered, That the debate be now adjourned.—(Mark Spencer.)

Debate to be resumed tomorrow.