Autumn Statement Resolutions

Steve Double Excerpts

Monday 27th November 2023 Commons Chamber

[Steve Double (St Austell and Newquay) (Con)]

Thank you, Mr Deputy Speaker.

It is a pleasure to contribute to this debate on the autumn statement because there is so much in it to be welcomed, but most importantly I welcome the pragmatic approach being taken to see inflation fall and address the challenges in our public finances in a responsible manner.

It is important that we acknowledge the difficult circumstances that are the backdrop to this statement: the once-in-100-year challenge of the covid-19 pandemic, followed so quickly by the Russian invasion of Ukraine and the shock that sent through the global energy markets, mean that this Government are having to face a set of economic and public finance challenges that we have not seen in living memory. One of those challenges on its own would have been enough; the difficulty created by having to deal with both in such quick succession cannot be underestimated.

The Government rightly spent the money they did to protect jobs and businesses and to support households through the pandemic and the energy crisis, but we are often quick to forget all that they did. We must also remember that the money has to come from somewhere. We must not forget, either, that no matter how loudly those on the Opposition Benches shout, on almost every measure we introduced to support households and the economy, the Opposition said it was not enough and we should do more.

We will also never forget that the Leader of the Opposition wanted lockdowns to be longer and harder. We know that if the Opposition had been in government for the last three years, lockdowns would have been longer, more money would have been spent, the recovery would have been slower, and debt would be higher and we would have to be raising taxes even more in order to pay for it all. In the light of that backdrop, it is remarkable that the Chancellor has been able to announce the measures he has, and that has only been possible because of our responsible approach to managing the economy.

I welcome the 2% cut in national insurance, which will put hundreds of pounds back in the pockets of those in work. I welcome the increase in pensions by inflation and the retention of our commitment to the triple lock; the 8% rise will mean the state pension will be £3,750 a year more than in 2010, which is a testament to this Government’s support for and commitment to pensioners. I welcome benefits being increased by 6.7%, in line with inflation; I represent a constituency where 13,500 households are on universal credit and it is vital that benefits keep pace with rising prices. I very much welcome the increase in the local housing allowance, too; it is particularly important in Cornwall that the Government have been able to do that, because we have among the highest rents when compared with average incomes.

I also welcome the support to businesses, especially the extension of the 75% reduction in business rates for many high-street businesses. That is so important, particularly for hospitality businesses in mid-Cornwall that in recent years have been facing some of the most difficult times. I also welcome the rise in the national living wage to £11.44 an hour. That will give a substantial pay rise to so many workers in St Austell and Newquay, but we have to be clear that although the Government set that figure, it is businesses that will have to find the money from their revenues to pay it. I therefore encourage the Treasury team to continue to look in the coming months at what more can be done to support our small businesses. Although the measures announced are welcome, many businesses will still face challenging times in the months and years ahead.

I was delighted that the Chancellor made clear that the content of the autumn statement was only the start of tax reductions, and we look forward to more. If I may be so bold, I will suggest one. I welcome the new Financial Secretary, my hon. Friend the Member for Mid Worcestershire (Nigel Huddleston) to his place, and he will be familiar with this idea. I encourage him to use his new position to influence the Treasury to look again at cutting VAT for tourism and hospitality. When that was cut through the pandemic, we saw how positive it was in boosting that important part of our economy, so I encourage him to look at that again.

My final point is on the care sector, which is already struggling in so many ways and is concerned about the impact of the rise in the national living wage. Will the Treasury look again at what more can be done to support that sector in the coming months, because otherwise absorbing the rise in the living wage will put even more pressure on a system that is already creaking?

I very much welcome the autumn statement. With the backdrop of the challenges we are facing, it is welcome that we have been able to come forward with these measures. We have made the right decisions at this time, and I look forward to more to come in the months ahead.