Oral Answers to Questions

Steve Double Excerpts

Tuesday 19th March 2024 Commons Chamber

[Nigel Huddleston]

We are immensely proud of our record since 2010: living standards have increased, and growth is now better than that of many other major economies. Our absolute commitment to protecting the most vulnerable in society was shown recently when we provided an average of £3,400 in cost of living support for each household. We have turned a corner, and the economy is improving. I am just disappointed that the Opposition constantly talk down the UK economy and their constituents.

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

Will my hon. Friend confirm that, following the 4p cut in national insurance that the Chancellor has introduced, the tax take on workers will be the lowest it has been for 50 years? In St Austell and Newquay, two people in a household on average incomes will be paying £1,800 less this coming year than they did last year.

[Nigel Huddleston]

Yes, absolutely, my hon. Friend has pointed out an important point on how we have had a laser focus on reducing the personal tax rates. Furthermore, the measures announced in the autumn statement and in the spring Budget will significantly add to economic activity, contributing about 200,000 full-time equivalent jobs to the economy, and I am sure that the whole House will welcome that.

National Insurance Contributions (Reduction in Rates) (No.2) Bill

Steve Double Excerpts

2nd reading
Wednesday 13th March 2024 Commons Chamber

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

Being the last to speak in these debates has become a bit of a habit—and with you in the Chair, Mr Deputy Speaker.

I rise to speak very much in favour of this Bill. It delivers a 2% cut in national insurance, which will be hugely welcomed by thousands of households in my constituency, and indeed across the country. For someone on the average wage, this change, combined with the 2% cut that we introduced in January, will mean a £900 cut, which, for a household with two people earning, is £1,800 a year. Although that is not life-changing money, for many working households across this country, that £150 a month will make a significant difference in easing the pressures on their household budgets and the challenges they currently face.

We must acknowledge that we can make this cut only because of the difficult decisions that we have consistently made over many years to be responsible in our handling of the public finances. I know I said that yesterday, but it needs to be continually repeated. This is against a backdrop of two of the biggest shocks to our economy and public finances that any of us will ever live through: the pandemic and then the war in Ukraine and the energy crisis it produced. The Government have spent nearly half a trillion pounds supporting the country, keeping people in work, and supporting businesses and households.

I know that Labour bangs on about the fact that we have had to increase taxes to pay for all of that, but we all know that, had Labour been in power over the past few years, the bill would have been even higher, because it wanted longer lockdowns and tighter restrictions. Every time we came forward with measures of support, Labour said that they were not enough and that we should be spending more. Therefore, as much as Labour Members may criticise—and they think it is their job to do so—the country knows that, had they been in power, the bills would have been higher and we would have had to put up taxes by even more in order to balance the books. But because of the difficult decisions that we have made, we are now able to start to cut taxes for people, which is hugely welcome.

Despite all that is being said, the reality is that the effective tax rate is at the lowest it has been since 1975. Let us not forget that shortly after 1975, under a Labour Government, the top tax rate in this country was 83%. I know why Labour Members talk about high taxes; it is because they know more about high taxes than anyone else. We also have to put this in the context of the personal allowance being increased since 2010, when it was £6,475. It is now £12,570. The personal allowance has almost doubled, which has been a welcome and important measure. The Labour party criticises us because we have had to make the difficult decision to freeze the personal allowance for a few years, but let us remember that, between 2010 and 2021, Labour voted against every single Finance Bill that we introduced to increase the personal allowance. Every time we tried to increase the personal allowance, Labour opposed it, so we will take no lessons from Labour when it comes to personal allowances.

I welcome the Government’s ambition to continue to reduce national insurance and ultimately scrap it, because it is a double tax on work. That is the right ambition, and let us be clear that it is an ambition. I know that Labour Front Benchers are enjoying making a point about that. After the fiasco of Labour’s £28 billion green deal promise—which was not a promise, then was, and now is not—I would have thought that Labour would know the difference between an ambition and a promise. It is an ambition, and it is absolutely right to have that ambition. I looked up a headline from 2020 in The Guardian—not the most pro-Conservative, right-wing newspaper—which said, “A truly bold Chancellor would scrap national insurance”. I am very happy that we have a bold Chancellor who has said that the Government’s ambition is to scrap national insurance.

[Gavin Newlands]

The hon. Member mentioned the green deal. I have hundreds of constituents who were essentially screwed under the 2010 Government’s green deal with the Lib Dems. Rogue builders were allowed to screw them out of thousands of pounds. The Government have done nothing for my constituents. What does he have to say about that?

[Mr Deputy Speaker (Mr Nigel Evans)]

Order. Mr Newlands, you are incredibly intelligent. Maybe next time you will think of a different way of expressing that.

[Steve Double]

I am not sure what the hon. Member’s intervention has to do with the Bill, but I am sure that all his constituents who are in work will welcome the 4% cut in national insurance. The Scottish National party has raised taxes to their highest level anywhere in the United Kingdom, so I am sure that his constituents will be grateful for the Bill.

Like my hon. Friend the Member for Aberconwy (Robin Millar), I represent a constituency with a higher-than-average number of pensioners. Some of them have been in touch with me questioning why, as far as they could see, there was nothing in the Budget for them. Clearly, cutting national insurance does not affect them because they do not pay it. We have to remember that the Government have kept the triple lock commitment. Pensioners rightly had a 10% rise in their pensions last year. I was one of those who fought hard in the autumn of 2022 to ensure that we kept that commitment. Next month, they will rightly get a further 8.5% rise in their pensions. When those measures are combined, pensions will have gone up by 18.5% over two years, which is a significant rise. We have rightly kept our promise to pensioners. It is in that context that the Government have now rightly focused on supporting people in work and in jobs, which is very welcome.

We have to set this Bill and the 2% cut that it delivers in the context of the 2% cut that we made in January and the fact that, because of our careful management of the public finances and the economy, inflation is coming down and the green shoots of growth are back in our economy. For those reasons, we are able to make the decision to cut national insurance. I am happy to vote for the Bill this evening.

[Mr Deputy Speaker (Mr Nigel Evans)]

To start the wind-ups, I call Tulip Siddiq.

Budget Resolutions

Steve Double Excerpts

Tuesday 12th March 2024 Commons Chamber

[Darren Jones]

That is yet more evidence of the Conservatives’ ill discipline. Last time, they wanted to disregard the Office for Budget Responsibility, and announced unfunded tax cuts; now the former Chancellor supports these new, unfunded tax cuts, and yet again the Government are not giving the OBR the information that it needs to make policy forecasts.

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

Does the hon. Gentleman understand the difference between an ambition and a promise?

[Darren Jones]

I would like the hon. Gentleman to explain that to the public. Given that the Conservative party makes promises at every single election and fails to deliver them, I think the public have the same question in mind.

Moving on to the confusion about this being a tax-cutting Budget, the Budget documents confirm that the United Kingdom has the highest tax burden in 70 years, and that burden rises each and every year for the next five years under the Conservatives, so overall, taxes are going up, not down. Figures from the Office for Budget Responsibility show that for every 10p extra in tax paid by working people, the Conservatives give only 5p back. That is why the public see the measures as a pre-election giveaway by the Conservatives—but it is no giveaway at all, given that successive Conservative Chancellors have taken double what they now promise to give back.

This is bad news, and not just for those already paying taxes. Tax thresholds are being frozen for the next five years, which will increase the tax take overall by an additional £40 billion, so 3.7 million people, including pensioners, who are not paying tax at all will do so by 2028-29 under the Conservatives. The tax burden is going up; Conservative Ministers are taking more in tax than they say they will give back; and more people will pay tax after this Budget, so I have to ask: why are Conservative Ministers calling this a tax-cutting Budget at all?

May I gently point out that the Scottish National party is just as bad? In Scotland, the SNP has increased taxes on working people, so that even the low paid pay more in tax in Scotland than they would in England, yet the SNP campaigns against the windfall tax on the big oil and gas companies. Are SNP Members really putting oil and gas company tax cuts ahead of tax cuts for working people?

--- Later in debate ---

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

It is a pleasure to contribute to the debate and to follow the hon. Member for Liverpool, Walton (Dan Carden). No Budget is delivered in a vacuum. To make an assessment of the Budget, we need to consider its context and backdrop. Given some of the comments from Opposition Members, particularly the shadow Minister, I wonder whether they have been asleep for the past few years.

During the past few years, our economy has had two of the biggest shocks we will ever live through. The Government have had to step in to support jobs, businesses and households, and have spent almost half a trillion pounds to do so. It was absolutely right to provide that level of support, which amounted to around £6,000 for every person in the country, through the pandemic and the energy crisis. We were able to deliver that support only because of our careful management and rebuilding of our country’s finances when we first came into office in 2010. If we had not done that, we would not have been in a position to deliver that support. Having spent that money, it now has to be covered and we have to balance the books. That is the context in which this Budget has been delivered.

In the light of that context, the Chancellor did an incredible job delivering a Budget that was able to cut national insurance by 2p. Thousands of people in work in my constituency will welcome that because they will be up to £450 a year better off, on top of the 2% we delivered at the beginning of the year. Once again, we have been able to freeze fuel duty, which will be hugely welcomed, as will a number of other measures, particularly the extension of the household support fund for another six months, which is necessary to continue to support those most in need to recover from the impact of the last few years. Raising the VAT threshold will also be hugely welcomed by many small businesses that I represent. I simply ask the Treasury to index link it, so that it goes up every year, on a regular basis, rather than having to wait for it to be hiked up again.

There was much to be welcomed in this Budget. There was one thing in particular that I welcomed. In fact, I was deeply honoured to get a mention from the Chancellor, as he addressed the issue of the inequality in the tax system between residential landlords and short-term holiday lets. That is an issue that I have been asking to be addressed for a long time. I respect the comments of my hon. Friend the Member for Waveney (Peter Aldous) when he said that we just need to be careful. What we need to do is to focus on outcomes. We want more properties available to rent in tourist areas. I know that the Financial Secretary to the Treasury, who is a former tourism Minister, understands the sector incredibly well and I trust him as much as anyone to get this measure right. We need to ensure that we are focused on delivering the outcome and not just taxing people who are not able to put their property on the rental market. I think this is an important step to addressing some of the housing issues that we face in tourist areas.

Although I got one thing that I wanted to see in the Budget, there were other things that I was hoping to see that we did not get. The tourism sector has had a huge amount of support over the past few years, and rightly so, because it is such an important part of our economy. I have the honour of representing the constituency that I am told is most reliant on the tourism and hospitality sector, and it is still facing some huge challenges. More support for the sector, whether through cutting VAT or addressing the high business rates that companies pay, would be very welcome, and I will continue to press the case for that. I was also disappointed that the opportunity was not taken to address the issue of renewable liquid heating fuels, which are being taxed unfairly for those who are off grid for mains heating supply. I will continue to make the case for that.

Productivity is an ongoing challenge in Cornwall. Our wages are typically about 30% below the national average and our productivity reflects that. There are some understandable reasons relating to our geography and demographics, but there are also some huge opportunities for us to become less reliant on seasonal jobs and businesses. There are opportunities in the space sector, lithium extraction and renewable energy. I came into politics to try to create good career opportunities for young people growing up in Cornwall. This exciting opportunity to create well-paid jobs, to raise the average wages available in Cornwall and to give those young people the careers of the future is something that we need to grasp. I urge the Government, who have already done much to support these sectors in Cornwall, to continue to ensure that we provide those job opportunities to enable young people in Cornwall to aspire to a good career in the sectors of the future. We need to close the challenging productivity gap that we face and make the most of creating the well-paid jobs of the future.

In the context in which we find ourselves, I believe that the Budget was hugely positive and delivered what the country needs. We are seeing inflation fall and growth returning to our economy. It is time to stick with the plan and continue delivering what the country needs.

Hospitality Sector: Fiscal Support

Steve Double Excerpts

Wednesday 31st January 2024 Westminster Hall

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

It is an honour to serve under your chairmanship, Ms Bardell. I am delighted to take part in this debate, and I very much congratulate the hon. Member for Stirling (Alyn Smith) on securing it. I am delighted to see the Minister in his place to respond; along with my hon. Friend the Member for Sutton and Cheam (Paul Scully), there have never been two greater champions in Government for the tourism and hospitality sector. I am delighted that the Minister is now in the Treasury, because I am sure that he can be a champion there for this very important sector—not putting any pressure on him at all!

I represent a constituency that is one of the most dependent on the tourism and hospitality sector in the whole country. For example, it is estimated that around 60% of all jobs in the town of Newquay rely on it, and that one in three households across Cornwall derive at least some of their income from hospitality throughout the year. The subject is therefore so very important to us in St Austell and Newquay. We have some amazing hospitality businesses, from St Austell Brewery—which was established in 1851 and is, I believe, the biggest family-owned brewery in the country; it produces amazing beers, like Tribute and Proper Job, has been around for nearly 170 years, and employs hundreds of people in my constituency and well over 1,500 people in the wider region—right through to an American diner in St Austell called Rocky’s, which opened last week. I was delighted to be there on the opening night, and I wish the people there well in starting up a hospitality business in these very challenging times.

We have amazing hotels like The Headland in Newquay, with which the Minister is familiar, the Watergate Bay Hotel in Watergate Bay, and Scarlet in Mawgan Porth. On the south coast, we have the Carlyon Bay Hotel, which Mr Speaker very much enjoys, and Fowey Hall in Fowey, in which I know many hon. Members have stayed. They all play a vital part in the economy and the communities that I have the pleasure of representing.

[Mr Gregory Campbell (East Londonderry) (DUP)]

I thank the hon. Member for giving way as he extends his conducted tour around his constituency; I congratulate him on so doing. Does he agree that we all, Government especially, need to ensure that the magnificence of areas like his, and like mine on the north coast of Northern Ireland, are promoted nationally and internationally, in order to maximise the benefits for all our constituents?

[Steve Double]

I absolutely agree. We need to get international tourists who come to this country out of London. Too many never venture past London. I know that the Department for Culture, Media and Sport has worked on that, and we have certainly seen some benefits of more international visitors coming to Cornwall and enjoying all that we have to offer.

I will never forget the moment, shortly after the lockdown was announced, that I read a report that said that my constituency of Newquay was predicted to be the hardest hit by the lockdown. Those days were deeply worrying for me. I had business owner after business owner on the phone asking, “What am I going to do? This will literally devastate my business.”

There was a sense of relief a few days later when the then Chancellor—the now Prime Minister—announced the package of support that would be put in place, particularly the furlough scheme but also the targeted support for the hospitality sector. My phone lit up with the people who had rung me in the preceding days; they were so relieved that the Government were stepping in. That demonstrates that this Government understand the importance of the hospitality sector. They provided more support to the hospitality sector than to any other part of our economy during the pandemic, and I know hundreds of businesses in my constituency who are so grateful for it. It is sometimes very easy to forget that support, but it shows the importance that the Government place on the sector.

However, as we have heard, many of those businesses are finding times equally challenging right now. The challenges are different; they are mainly to do with rising costs rather than with demand being taken away. Those could be energy costs, costs in the supply chain or rising wages. I absolutely support the increase in the national living wage, but we need to appreciate that there is pressure on businesses to meet that increased wage. There is therefore a need for the Government to look at what further support they can provide to this sector, not just to get it through the current challenges, but for the long term.

I would ask two things in closing—both of which have already been said, but I will add my voice. There is a case to be made for cutting VAT. I would go for a 10% cut in the VAT rate for hospitality. We have shown that that works. I know there were concerns about how much the cut that was put in place during the pandemic was passed on; I think about 70% of businesses passed on at least some of that cut, but we need to work with the sector to ensure that if VAT is cut, all of the cut is passed on to the customer.

Business rates also need to be looked at. The rise of 6.7% is out of step. I urge the Government to look to the October rate for inflation when increasing business rates. We need more fundamental reform of business rates for the hospitality sector in order to reduce the burden of that tax.

[Robin Millar (Aberconwy) (Con)]

I recognise much of what my hon. Friend says about his constituency in the description of my constituency as the largest resort area of Wales. The difference in Wales, of course, is that the Welsh Government have not passed on the full business rates cut that has been enjoyed in England. Does my hon. Friend agree that that would be the first and most sensible measure that could be put in place to help tourism and hospitality businesses in Wales?

[Steve Double]

My hon. Friend makes a sensible and important point; I agree.

I hope the Minister senses the cross-party support for this important sector and takes away a clear message to the Treasury to look at what more can be done to support the sector in the upcoming Budget.

--- Later in debate ---

[Nigel Huddleston]

I cannot comment on any further changes, but there has been some flexibility with covid loans, as we have announced. This is important. Of course, we want those covid loans to be paid back, but that needs to be done over a period of time that is sustainable for businesses. This is in the context of the overall support, including the comments that I made about business rates relief and other things for the retail, hospitality and leisure sector. We are aware that the sector was hit so hard by the pandemic and is still in the process of recovering—it is recovering remarkably strongly, but it is not out of the danger zone yet.

[Steve Double]

Will the Minister give way?

[Hannah Bardell (in the Chair)]

Order. Before the Minister gives way, I just say that I gave him extra flexibility so that he could answer everybody’s queries and questions, but I want to give an opportunity to respond to the sponsoring Member, the hon. Member for Stirling (Alyn Smith). So please keep the intervention short.

[Steve Double]

On the housing issue, one thing that the Treasury could do is level the tax playing field on the tax breaks between short-term holiday lets and residential properties. That would make a significant difference and would really help. Perhaps the Minister will take that message back.

[Nigel Huddleston]

I thank my hon. Friend and others for their input today. I will briefly comment on a couple of more items before I close, Ms Bardell. The hon. Member for Bath (Wera Hobhouse), which is another beautiful constituency that I visit frequently, raised a range of issues, including the importance of the environment in the tourism eco-system and environmentally sensitive tourism. I think we will respectfully disagree on the efforts being made by the Government on decarbonising and so on. I think we have a very proud record. I recognise that there is a debate in this area, but her broader points about the contribution of tourism to the environment and the importance of sustainability are important.

The hon. Member for Ochil and South Perthshire (John Nicolson) raised a range of issues, and I will present to him the challenge that I also presented to my opposite number, the hon. Member for Ealing North. The hon. Member for Ochil and South Perthshire made a comment about tax cuts just for the rich and wealthy, but that is so far from reality that I will have to respectfully disagree with him. If he does not believe that we are giving tax cuts to everybody—as I said, the national insurance cuts that we made were for 27 million people— I will present him with the same challenge: let us look at his pay packet for this month and see whether the contribution is lower than December’s. If he does not believe that it is lower, with respect, why does he not give that money to charity or back to the Government? It is important that we recognise that the national insurance cuts are meaningful for 27 million people, including many people on low incomes. That is far from the characterisation of saying that these are tax cuts for the wealthy. We have a laser focus on making sure that the low-paid benefit from such tax cuts.

Public Services in Cornwall: Funding

Steve Double Excerpts

Monday 15th January 2024 Commons Chamber

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

It is a great pleasure to bring this debate to the House this evening. It is a particular joy that it has come so early, because it means that I have two hours to talk about my favourite subject—Cornwall. The whole House will be aware that I view Cornwall as a very, very special place—a unique place in many ways. I always count it as an incredible privilege that I was born and raised there, have lived and worked there my whole life, have raised my family there, and now have the joy of seeing my grandchildren grow up there as well.

Clearly, I am not the only one who views Cornwall as a very special and wonderful place. We have seen significant numbers of people choosing to move to Cornwall in recent years, and, of course, around 5 million people every year come on holiday. It is very easy to have that image of Cornwall as a wonderful place to go on holiday—we all have picture postcard images—without understanding that, behind many of those images, individuals, households and indeed businesses face a number of very real challenges.

We are a relatively low-income economy, with higher than average house prices and a number of other factors that make life challenging for many people. It is not just households and businesses that face challenges in Cornwall, but those who seek to deliver our public services as well. I think that we would all agree in this place that funding for public services should be based on two factors: the need or the demand for that service; and the cost of delivering that service locally. I hope to present to the Minister, whom I am pleased to see in his place, some of the issues that are unique to Cornwall. I particularly want to mention the combination of factors that mean that we face of number of very real challenges when it comes to delivering public services in Cornwall. There is a need, I believe, to review and reflect on those challenges when it comes to the allocation of funding for our services in Cornwall.

[Sarah Dyke (Somerton and Frome) (LD)]

I congratulate the hon. Member for St Austell and Newquay (Steve Double) on securing this important debate. As a fellow south-west MP, I know that what he is referring to is also reflected in Somerset. Somerset Council is struggling to revive discretionary public services, which it wishes to do because of the current unfair funding method. In the last financial year, rural councils could budget only £77 per head on discretionary services, while urban areas spent more than double that. Does the hon. Member agree that more needs to be done to provide our rural constituents with the services they deserve?

[Steve Double]

I wonder whether the hon. Lady actually read the subject of the debate, which is specifically about funding and delivering public services in Cornwall. She can make her points in her own debate about her part of the world; I am here to talk about Cornwall this evening.

There is a need to reflect on these challenges and this combination of factors that we face in Cornwall when it comes to the funding that we receive for our public services. My first point is about geography. Cornwall has a unique geography within the British Isles. We are long and narrow peninsula, unlike any other part of the country. We are almost an island. As I have said in this place before, if the River Tamar was 2.5 miles longer, we would actually be an island, and there is many proud a Cornishman who has talked about taking their shovel and finishing the job to create an island. The challenges we face often have more in common with those of an island than with being a part of the mainland.

[Jim Shannon (Strangford) (DUP)]

rose—

[Steve Double]

I see the hon. Member for Strangford (Jim Shannon) wishes to intervene and I will happily give way.

[Mr Deputy Speaker (Sir Roger Gale)]

Order. I trust the hon. Gentleman will adhere to the subject of the debate.

[Mr Deputy Speaker (Sir Roger Gale)]

Order. Nice try, but this is an intervention not a speech.

[Steve Double]

The hon. Member makes a good point, which I will probably come to later. Cornwall has a great deal in common with what gets called the Celtic fringe of the United Kingdom. To pick up on his point about working together, there is a group of local authorities called Britain’s Leading Edge, which represents areas on the coastal fringe of England that work together, because we recognise that the challenges that coastal areas face have some similarities across the country. Clearly there is a lot in common that we can share.

Having said that, our coastline in Cornwall is unique. We are almost an island. I know that we enjoy a bit of banter with Devon from time to time, but they are our only mainland neighbour, which impacts the delivery of services. Counties in the middle of England are surrounded by other local authorities, police forces, fire services and health services that they can share resources with. If there is a particular challenge in one area, it can draw on services from the surrounding counties to help it with that specific incident. We do not have that in Cornwall. In most of Cornwall, we have to provide our own resilience because there is no one else nearby to come and help. I am not sure that that is always understood by Government. It certainly does not seem to get reflected in the funding allocation.

We have the longest coastline in Cornwall: 422 miles. I have not walked all of it yet, but I have walked a great deal of it over the years. We have literally hundreds of small coastal communities. Nowhere in Cornwall is more than 25 miles from the sea, and the vast majority of people live an awful lot closer to it than that. It is just common sense that when delivering a public service in a coastal community, there is not as big a population to deliver that service to, and there is not as much land for people to live on. More sites are therefore needed. By definition, we need more schools, health facilities, police stations and fire stations because we have a smaller area for the station or facility to service. That means that it costs more to deliver services in a coastal area such as Cornwall. I have tried to make that point throughout my time in this place, but I am not sure that the particular challenge that Cornwall faces in delivering services because of our geography and being a narrow peninsula really gets appreciated. It is certainly not reflected in the funding formula.

We are not just a coastal area but a rural one. Cornwall Council is the second biggest by land mass of any local authority in the country—1,375 square miles—yet we have a relatively small population of just over half a million people. We have no towns with a population of more than 25,000. In fact, nearly half of all people who live in Cornwall live in communities of fewer than 3,000. That rurality and sparsity presents real challenges for delivering services because of the additional travelling that has to take place. Our police and fire engines have to travel further to reach those communities.

School travel is a very big challenge in Cornwall. With such large areas to cover, pupils with special educational needs in particular have to travel much further to get to the facilities that we have. We face a huge challenge in adult social care, partly because of the rurality and being a long, narrow peninsular, and the distance that domiciliary care workers have to travel to reach those who need their services.

About 10 years ago, we thought that we had won a big victory on funding for rural services within local government. After a great deal of pressure and arguing from MPs with rural constituencies, the Government introduced the rural services delivery grant. That was really the first time that the emphasis under the Labour Government—when most of the money went into urban and densely populated areas, because they seemed to think that those were the only places in which deprivation took place—had been corrected, with an acknowledgment that rural areas have particular needs and particular costs in delivering those services.

Unfortunately, although we won the argument in principle, when it came to allocating money, it was dampened down and we did not get as much as we should have. In the past 10 years, we have never fully put that right. I suggest to the Government that we really ought to look at that. With the current proposed local government settlement, I know that many rural authorities will face huge challenges. Cornwall is certainly one of them. One way that we could correct that is by increasing the rural services delivery grant to the level it really should be at, rather than the dampened-down level.

We have also been promised a review of police funding in rural areas, but it has not yet happened. Sadly, during that time the gap for Cornwall has actually become bigger. We were 9p per person below the average; we have now dropped to 10p per person below the average for funding. There is therefore a real need to bring forward the review of police funding and ensure that Cornwall gets the funding that it needs. The two factors of being a coastal community and being a rural community really put pressure on the delivery of our services in Cornwall. That needs to be reflected when it comes to funding.

The other element that I will mention is, again, something that I have talked about numerous times: the impact of tourism on Cornwall. Tourism is really important to the Cornish economy, and we welcome it. Typically, 5 million people a year come to Cornwall on holiday. In the UK, we are second only to London in terms of the number of visitors that we welcome every year. To put the impact of that in perspective, I am privileged to represent the town of Newquay, Cornwall’s premier tourist destination, which has a population of about 24,000. In July and August, we have 200,000 people in any given week in Cornwall, so there is eight times the population when tourists come in the peak season.

The pressure that that puts on our infrastructure and services cannot be overestimated. We particularly feel it in the pressure on the NHS. We often say in Cornwall that we have two winters every year in terms of pressure on the NHS. At this time of year, the NHS is under pressure just about everywhere because of seasonal viruses and the impact that cold weather has on people, so there is great pressure on the NHS in Cornwall at this time of year. Then in the summer, when all the tourists come, our NHS is also under huge pressure because of the sheer numbers of people who are there. While most hospitals and NHS services around the country typically have a bit of respite in the summer because all their residents go on holiday, they all come to Cornwall, so we have to pick up the pressure. I do not think that gets reflected particularly in the funding.

The demand on our ambulance services in the summer is also significant. I acknowledge that a lot of work has been done in recent years through the 111 service and Pharmacy First, which we piloted in Cornwall, to get people to think a bit more smartly about where to go to get NHS treatment and advice, rather than turning up at Treliske or trying to see one of our local GPs. That has certainly helped, but there is no way of avoiding the pressure that the NHS in Cornwall faces every summer because of the tourists. Our police face huge pressures in the summer. Crime goes up, and there are more road traffic accidents and cases of antisocial behaviour, all of which the police need to respond to, but that is not reflected in our funding.

Another area, which I recently talked about in a debate, is the impact of tourism on our housing supply and the number of Airbnbs, which push prices up beyond the reach of many people. That means that we struggle to recruit the people we need for our public services because they cannot afford to buy a house to live there. When we talk to NHS managers in Cornwall in particular, they repeatedly say that housing is one of the biggest reasons why they often struggle to recruit the doctors and nurses they need, because they cannot find anywhere to live. The impact that tourism has on our housing market is equally significant.

The final factor I want to mention is our demographics. Cornwall has a rapidly ageing population. Our number of elderly people is 6% higher than the UK average, and the number of over-70s in Cornwall has gone up by 52% in recent years. Some of that is just because everyone is getting older, but it is also because people see Cornwall as a great place to retire to. Again, I do not blame them—I want to retire in Cornwall; it is a great place to retire—but that number of people of retirement age moving to Cornwall puts huge pressure on our health and social care services.

The inverse of that is that we do not have enough people of working age willing to work in the health and social care sector to provide the services they need, so the impact of our demographics is significant. This financial year, Cornwall Council will spend over £250 million on providing adult social care. That is one third of its revenue budget just on social care, and that will only increase as the years go by. We need that to be reflected in the funding settlements we are provided with.

Each of those factors—our geography, the impact of tourism, and the impact of an ageing population—in and of themselves would present significant challenges to Cornwall. The combined effect of those factors is that public services in Cornwall face a unique set of challenges, and nowhere else in the UK faces them to the degree that we do. I want to make the case that, because of that unique combination of pressures and challenges, we need to look again at the funding that Cornwall receives and make a special case for Cornwall.

The Government have already acknowledged that Cornwall is a special place that requires special treatment. We referred earlier to the fact that the Cornish have been recognised as a national minority and receive protected status as a national minority. In 2014, the Council of Europe recognised the Cornish in that way, and the UK Government have acknowledged that. Actually, the UK Government said that they give the Cornish people the same recognition as the Scots, the Welsh and the Irish within the United Kingdom. That is very welcome, but it does not seem to have any impact on Government policy when it comes to funding. If we are going to say that Cornwall is a special place and that the Cornish are a specially recognised and protected people, that should have an impact on the way that Cornwall receives its funding.

Cornwall was the first county to receive a devolution deal back in 2015. Again, the Government at that time recognised the particular uniqueness of Cornwall. That devolution deal was recently upgraded with a new devolution deal. I am personally disappointed that we did not manage to get a level 3 deal, which would have given Cornwall a great deal more and certainly would have shifted the focus much more on to Cornwall. I am disappointed that we did not secure that, but we have had a new level 2 deal. That, again, is the recognition that the Government have given to Cornwall.

The other way the Government have recognised the challenges that Cornwall faces, particularly with regard to our economy, is through the shared prosperity fund, which replaced the European regional development fund. Cornwall received £137 million—far more than any other part of the UK—through the shared prosperity fund. That shows that the Government recognise the particular challenges we face in Cornwall, especially in growing our economy and upskilling our people, and it has been hugely welcome.

We are in the middle of the current round and projects in my constituency have received significant funding, such as essential infrastructure work at the harbour at Charlestown, one of our historical sites. Newquay has also received funding to support its tourism industry and extend the season, which will really help the economy there. We have found that the shared prosperity scheme is much easier to allocate and to access than the old ERDF programmes, which were hugely bureaucratic and always required matched funding. The shared prosperity fund money that has been provided to Cornwall has been very welcome and is doing a lot of good.

However, I want to raise with the Minister the fact that the current round runs out in 2025. That will come around very quickly, so we need to start the conversation and understand what the process will be for the allocation of the next round of shared prosperity funding. I hope the Minister will be able to confirm that, in the allocation of that funding in the next round, the Government will continue to recognise the specific challenges that Cornwall faces and continue to support the Cornish economy as they have done over the last few years.

The unique combination of challenges we face in Cornwall, and the fact that the Government already recognise Cornwall in a number of ways as being special and having particular challenges, now need to be reflected in the way our public services are funded—particularly our health service, education, local government and the police. We need the true cost of delivering those services in Cornwall to be reflected in the amount of money we receive. I hope the Minister has got the message that we have particular challenges in Cornwall and that the Government will reflect on those points, continue the conversations with MPs from Cornwall and look again to ensure that Cornwall gets the funding it needs, so that the people of Cornwall can get the public services they deserve.

Stamp Duty Land Tax (Reduction)

Steve Double Excerpts

Monday 24th October 2022 Commons Chamber

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

As the Minister will know, there is a lot of concern on the Government Benches about the proposal’s impact on second homes and holiday lets, and there will be a lot of sympathy for the amendment from the hon. Member for Westmorland and Lonsdale (Tim Farron). Last week, the Chief Secretary to the Treasury gave me an assurance that the Treasury was looking at this issue. Will the Minister reaffirm that the Treasury understands that this is an issue and that we will look at how we can address it as the Bill progresses through the House?

[Richard Fuller]

My hon. Friend is absolutely right. He echoes some of the points made by the hon. Member for Westmorland and Lonsdale about the broad range of opportunities to address the issue, because there are such wide-ranging effects. The purpose of the amendment, however, is to create a separate schedule of rates in the stamp duty land tax system for those purchasing an additional property. That would mean that the purchase of additional property would not be included in the scope of the resolution or the ensuing Bill.

The Government already have higher rates for additional dwellings, which were introduced in 2016 and which apply a 3% surcharge to the standard residential rates of stamp duty. That surcharge will continue to apply. This means that, although the Government’s changes to stamp duty will ensure that around 43% of transactions will pay no stamp duty land tax, none of those will be purchases of second homes or investments in buy-to-let properties. The Government have taken meaningful action to support local communities on second homes. I assure my hon. Friend that we will continue to look at that.

Economic Responsibility and a Plan for Growth

Steve Double Excerpts

Wednesday 19th October 2022 Commons Chamber

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

I think we all knew that whoever was Prime Minister or Chancellor and in government at this particular time were going to face some really tough decisions. The fall-out from the pandemic, the invasion of Ukraine and a number of other domestic and global factors were going to mean that some really difficult decisions would have to be made around our economy and our fiscal policy. None the less, the one thing that we should all be able to depend on is that, no matter how difficult times are, the Government will not make those decisions even harder. Sadly, that is what has happened as a result of the rushed mini-Budget. The fall-out has been a loss of confidence—a loss of confidence in the markets and, talking to many local businesses in my constituency in the two weeks immediately after the mini-Budget, a great loss of confidence in the business community.

Growth is a hard-won thing. We do not achieve growth simply by saying as loudly and passionately as possible that we are going to get growth. Growth needs to be nurtured with the right policies that instil confidence in the business community. It is therefore incredibly welcome, and I am incredibly thankful, that the new Chancellor has stepped up and taken a grip on the situation. I am also delighted to see my very good friend in the position of Chief Secretary to the Treasury. Between the two of them, I have great confidence that they will bring the grip and the leadership to the Treasury that is necessary to create the stability we now need to address this difficult situation. As a result, many elements of the original mini-Budget have now been dropped, and we await further details in the near future of exactly how the Government will now balance the books and lay out their policy going forward.

However, we really need to know what the Prime Minister’s policies are. She made a number of very bold statements in her leadership campaign to become Prime Minister, most of which have now been dropped. It is very important that we have confidence that No.10 and No.11 are in lockstep at this challenging time and that they have the same policies, so we need the Prime Minister to confirm exactly what her policies are.

We are aware that some very difficult decisions lie ahead but, in making those decisions, it is vital that we protect the most vulnerable in our society from the damage that has been caused. Those who are least able to shoulder the burden should not be required to pay the price for it. Therefore, it was incredibly welcome that the Prime Minister gave a clear statement at the Dispatch Box that the triple lock will remain in place for pensions. Pensioners in my constituency and across the country will welcome the reassurance that that triple lock will be in place and that they will get a rise in their pension in line with prices.

It is vital to do a similar thing with benefits. The Government have done a lot of work over many years in reforming benefits. Universal credit pays people to be in work, and I have heard at first hand how popular it is, but it is right that those benefits keep pace with the increase in prices and that those on benefits are not the ones who pay the price of balancing the books.

One measure that has survived the cull from the mini-Budget is the cut in stamp duty. Naturally, I am someone who welcomes a cut in stamp duty. However, Cornwall is currently in the middle of a major housing crisis. Experience from the previous cut in stamp duty during the pandemic showed that it fuelled demand for second homes and investment properties. That inflated house prices in Cornwall way higher than the national increase, meaning that even more local people are unable to afford to buy a house. If the Government are to press ahead with the stamp duty cut, will they ensure that it applies only to primary residences and that those who seek to buy second homes and investment properties for holiday lets are not able to attract the proposed cut? If the cut goes ahead, all we will do is fuel second home and investment property purchases in tourist areas such as Cornwall, making our housing crisis even worse. We need the Government to help us address that so that local people can get the housing they need. I ask the Ministers on the Front Bench to take that particular point away and look at it. Yes, a stamp duty cut is welcome to help people buying a home, particularly their first home, but it should not go to those who are buying second and subsequent homes.

All in all, after a very difficult time, I am in a much better place and am confident that the new team in the Treasury has a grip on the situation and will provide the stability and leadership that we need. I look forward to hearing more details in due course of exactly what policies will be put in place.

Brexit: Opportunities

Steve Double Excerpts

Thursday 16th September 2021 Commons Chamber

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

I warmly welcome my right hon. and learned Friend to his new role and thank him for his statement. It is absolutely right that we review retained EU law and do what is right, in the interests of this country, but does he share my concern that there will be some, I suspect even in this House—I know that will shock you, Madam Deputy Speaker—who will see this review as an opportunity to continue the referendum debate and to continue the divisions? Does he share my view that we should now accept that we have left the EU and unite together to not only face some of the challenges that we inevitably face, but grasp the opportunities for the benefit of our whole country?

[Michael Ellis]

I agree completely.

0.7% Official Development Assistance Target

Steve Double Excerpts

Tuesday 8th June 2021 Commons Chamber

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

This is a very difficult debate for me. It is very difficult because I can genuinely see both sides of this debate. It is difficult because I find myself with a different view from many colleagues on these Benches whom I respect very highly, and it is difficult because I, in my six years in this place, have possibly been one of the most enthusiastic supporters of our overseas aid budget. But we have to make some tough choices at this time, and I am sure that this is going to be the first of many tough choices that this House and this Government are going to have to make in the months and years ahead.

This pandemic started as a health crisis, but the longer- term impact will be an economic and a fiscal challenge. I say that representing one of the most disadvantaged parts of the UK, and it is forecast that the economic impact will be felt deepest and longest there. The money to continue our level of aid spending has to be found from somewhere. I am concerned that one of the effects of the last year is that we seem to have lost a sense of proportion of financial discipline. Colleagues have spoken of £4 billion as a rounding error. I can remember when hundreds of millions of pounds were talked of as a big Government spending item and now we talk of £4 billion as a rounding error. What has happened?

Many have spoken about our breaking of a manifesto promise. I remind colleagues that our manifesto also promised that we would reduce the debt over this Parliament—that the debt at the end of this Parliament would be smaller than at the beginning. We are having to break that promise—we all understand why—but let us not pretend that cutting our aid budget at this time is the only manifesto promise we are going to have to break because of the very difficult situation in which we find ourselves. I find it very uncomfortable that we have to make this cut in our aid spending, but I also feel very uncomfortable adding to the debt that my grandchildren will probably have to pay back for this country. That is a tough choice that we have to make.

We will remain one of the largest contributors in the world. The way some hon. Members are talking here today, it is as though we are completely cutting our aid budget and will never spend another pound. We are still contributing £10 billion—the third highest amount in the G7. Several Members have made comments about providing leadership and losing our influence, but in all the years that we stuck to our 0.7% aid target, how many followed us? Not very many. So let us not overplay our global influence in that regard.

It has been common to trail through tweets this week. I have been quite surprised that some people on these Benches who have been the most enthusiastically in favour of 0.7% today were putting out tweets just a short while ago saying that it was the wrong decision for the Government to make. So I think we need to look at the wider picture.

I simply say two things to the Government. I do not find it easy, but I do understand, in the current context, why the decision has to be made to start making those tough decisions to restore financial discipline. That is something that we on these Benches, in this party, should stand for.

In concluding, I ask the Minister two things. Can we please ensure that the cut to overseas aid is done in a way that minimises the impact on the world’s poorest and most vulnerable? I think there are savings that can be made, but let us make sure that they are made in the right way. With a heavy heart, I support this, but can we please make sure that we return our international aid budget to 0.7% as soon as we possibly can?

Oral Answers to Questions

Steve Double Excerpts

Tuesday 27th April 2021 Commons Chamber

[Jesse Norman]

I thank the hon. Gentleman for his question. Of course, there was no admission of any kind. He asked me a question, and I responded comprehensively and fully to the question he put. The fact of the matter is that many of the people we are talking about have other forms of income. They may have pension income. They may have dividend income. They may have property income. What we have tried to do is use all the sources of information that we have that are properly assessed and certified in order to get schemes up and running—as fast as anywhere in the world, and that is an astonishing achievement. We continue to use those schemes, and we continue to work with groups to see whether others can be included.

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

What assessment his Department has made of the effect of the temporary reduction in VAT for businesses on the recovery of the (a) tourism and (b) hospitality sectors from the covid-19 outbreak.

[The Financial Secretary to the Treasury (Jesse Norman)]

The temporary reduced rate of VAT aims to support the cash flow and viability of around 150,000 businesses and to protect more than 2.4 million jobs. As was announced at the Budget, the Government extended the temporary reduced rate of VAT to 31 March 2022, with a phased return to the standard rate. This relief alone is estimated to be worth more than £7 billion to the tourism and hospitality sectors. Applying it permanently would come at a very significant cost to the Exchequer, and that would have to be balanced by increased taxes elsewhere or reductions in Government spending.

[Steve Double]

The past year has clearly illustrated just how important the hospitality and tourism sectors are not only to our economy, with the jobs and businesses they support in the supply chain, but to our overall wellbeing and the contribution they make to social mobility. As the chair of the all-party parliamentary group for hospitality and tourism, I know just how important this cut in VAT has been in supporting those businesses, but will the Treasury take another look at the merits of making this reduction permanent to further support the sector and the growth in jobs that it can create?

[Jesse Norman]

My hon. Friend is absolutely right that this has been an incredibly challenging period for the tourism and hospitality sectors, and it is also right to recognise that many organisations within these sectors have benefited from the measures that I have described, including the extensions to the employment schemes, business rates holidays and the VAT reduction, as well as the very important wider restart grants and the additional restrictions grant. As these restrictions are lifted and demand for goods and services in these sectors resumes, temporary reliefs are being phased out and in time will be removed. Bridging that transition to a standard rate by applying a temporary 12.5% rate will help businesses to manage the change. We should want them to get back to normal trading and the support that they offer through that to their communities and the economy.