IMF Economic Outlook

Debate between Stella Creasy and James Cartlidge

Tuesday 31st January 2023 Commons Chamber

[James Cartlidge]

My hon. Friend is an absolute champion. He talks up this country and he is right: the facts back that up and show that we should be optimistic. Of course there are challenges, and we want to get on top of them, which is why we must work hard to support our independent Bank of England in getting inflation down. But, like him, I am optimistic that if we do that, we can see the sort of growth we had last year. That is what the IMF shows; its cumulative forecast is that over 2022 to 2024 we are predicted to have higher growth than Germany and Japan and at a similar rate to the US.

[Stella Creasy (Walthamstow) (Lab/Co-op)]

The Minister seems to be walking away from the question of what role Brexit has played in this economic outlook. I can understand why, since half his own constituents think Brexit was a mistake. The benefits of Brexit seem to be like a toddler’s imaginary friend—Ministers keep talking about them, but only they can see them. The Prime Minister’s spokesman today told us we are now seeing “significant benefits from Brexit.” Will the Minister set the record straight? Can he explain to the small businesses in our constituencies, which used to be able to export with ease to the European Union, a single market where they now face a better deal than they did before?

[James Cartlidge]

I am happy to stress, for example, the hugely important Solvency II reforms that we will undertake, which will free up enormous amounts of investment in infrastructure. Of course, infrastructure is crucial to future growth. As the Minister with responsibility for alcohol duty, I am pleased to say that we will have reform in August, meaning that we could have a duty differential between pubs and supermarkets. That is only possible because of Brexit. I think the most important thing by far is that when we faced the pandemic—the greatest challenge outside war time—this country was able to move fast with an amazing vaccine programme because of its independence, which reduced deaths, freed up our economy and allowed us to reopen and get growing again.

Tax Avoidance and Evasion

Debate between Stella Creasy and James Cartlidge

Tuesday 14th November 2017 Commons Chamber

[James Cartlidge]

I do not want to go global in my answer as I am talking about the general position in the UK property market, but it is undoubtedly true that a sense of great unfairness now pertains. Prices have risen so sharply and beyond the means even of those on relatively high incomes—let alone modest ones—particularly in London. Young professionals can be on £100,000 and still struggle to get on the ladder in significant parts of the capital. But it is not just about London. My constituency of South Suffolk and those in the counties around London know that the ripple of high prices in expensive areas comes out many miles—[Interruption.] The hon. Member for Na h-Eileanan an Iar (Angus Brendan MacNeil) is shaking his head, but many people move to my constituency because of the sheer cost of living in London.

[Stella Creasy]

The hon. Gentleman is talking about property prices. He just mentioned the Government’s decision to close the loophole whereby foreign owners of residential properties were avoiding capital gains tax. Does he regret not joining with the Opposition to close the loophole regarding commercial properties? That is having exactly the same impact on the property market.

[James Cartlidge]

It has to be said that the commercial sector is one area that has been much weaker since the Brexit vote, but the main issue of fairness from the point of view of taxpayers and first-time buyers relates to residential property. Making changes to tax is about not just tax avoidance, but about provisions such as the higher stamp duty we now levy on second-home ownership and properties purchased to rent out. The key point is that those measures have had a huge impact in supporting first-time buyers.