Budget Resolutions

Thérèse Coffey Excerpts

Wednesday 6th March 2024 Commons Chamber

[Dr Thérèse Coffey (Suffolk Coastal) (Con)]

It is a pleasure to speak in today’s debate. I strongly welcome the measures announced in the Budget. We heard about increasing investment and growth. I am pleased that the Treasury Committee will scrutinise the OBR and the Chancellor next week. It is important that we consider the Bank of England’s policy on selling gilts, which my hon. Friend the Member for Poole (Sir Robert Syms) referred to, and the impact for the OBR and the room that it gives. I recommend that hon. Members look at Ed Conway, the Sky journalist, for more on that. I am sure that will open their eyes in many ways.

I enjoyed the measures on investment in life sciences. The Speke factory in Liverpool is getting a massive boost, which will have a welcome impact on jobs. The Budget responded to SMEs by adding leasing to full expensing. The ongoing activity of the Department of Business and Trade and all of Government shows that Britain is open for business.

I welcome the measures on pensions. When I was working in the DWP with my hon. Friend the Member for Hexham (Guy Opperman), who was then Pensions Minister, we were concerned about the poor returns for defined contribution savers. I welcome the progress in that regard that has been set out today. The British ISA is a brilliant idea, and I look forward potentially to investing in one myself.

The overall outcome of the Budget is to make work pay. National insurance is a tax levied on weekly income. The current threshold is £242 a week, which is equivalent to just over 23 hours a week at the current national living wage. In Suffolk Coastal we have a lot of seasonal workers. The national insurance cut will be welcome to them, because during the summer months, when there is an increase in the hospitality sector, employers are often looking for more employees. Combined with the cut that is already applied to people’s pay packets, the average saving is £900 per person, which is significant.

Those on lower incomes should bear in mind that when the Prime Minister was Chancellor, he cut the universal credit taper rate to 50%. That provided a significant boost to make sure that work pays. I welcome some of the sensible changes to help with that. The fact that 800 jobs a day have been created since we came into power in 2010 is truly astonishing and shows how important it is to get people into work and keep them in work. My right hon. Friend the Work and Pensions Secretary will continue to work on that, particularly considering the impact of covid.

I also welcome the assurances on childcare. I have a new nursery opening on 2 April in Leiston in my constituency called Spring, in response to the Government’s support. I wish Daisy Plumridge well.

Another aspect that my constituency will particularly welcome is the abolition of the furnished holiday lettings tax regime, as visitors are an important part of our economy. Too often, the measure has become a way to, in effect, subsidise people buying second homes, with the extra income from letting the property out for part of the year. It is wise that we have considered the matter. There have been a few things along the way, but I think this significant change will ensure that we have professional landlords who think about families and the longer term.

I expect Suffolk will welcome the tax relief extended to Freeport East. I recently visited Felixstowe port alongside the new Maritime Minister, the noble Lord Davies of Gower.

A number of pubs in my constituency and, indeed, the brilliant Adnams Brewery will welcome the freeze in alcohol duty.

I hope that more of my village halls will take advantage of the £5 million fund investment. The extra £75 million in section 4.24 of the Red Book for internal drainage boards will provides a useful boost to the important work done by local farmers. Also in the Red Book, I am pleased to see reference to the consultation that we launched in March 2023 on tax relief relating to those entering environmental land management schemes. It has been the case that people only get agricultural tax relief from generation to generation on land that is actually farmed. That is an unnecessary barrier and I welcome the change that will come into effect from April next year. The support for tenancies is also important for our countryside.

To deliver efficient, economic and effective outcomes for users of public services, it is important that the Government get the public sector productivity plan right. I am thinking of the NHS, in particular. In my short time as Secretary of State for Health and Social Care, we started to look at why there were so many agency workers. The NHS, as many on the ground in hospitals and other parts of it will know, can be an exceptionally inflexible employer. It is no surprise that quite a lot of people turn to being bank staff or go to agencies. I hope that the plan is not just about doing an economic exercise; this is about culture and leadership in our hospitals. The variable performance around the country, which we have made much more transparent, shows the changes that good leadership can make. That is often driven by culture, as well as high expectations, and is to be welcomed. I say to those on the Front Bench that that it can be too easy to be a locum exclusively.

I look forward to voting for these measures. This is a Budget for growth and to make work pay, and I look forward to its being supported by the House.