Budget Resolutions

Debate between Tim Farron and Lord Hanson of Flint

Monday 27th November 2017 Commons Chamber

[David Hanson (Delyn) (Lab)]

This is a debate on Britain in the world but, as hon. Members know, all politics is local, so I wish to focus on what is happening in my constituency and how issues in the world are affecting it. This Budget has shown me, once again, that austerity is not working, that the pain of austerity is hitting the poorest people in my community hardest, that major businesses have real uncertainty about the future because of the current EU situation, and that key industries in my area need real answers from the Government about the future of their economy in the next few weeks and months ahead.

My area in Wales has faced a 7% cut in its budget from the Welsh Assembly over the past seven years—this is real money being lost. That has had an impact on our ability to build council houses, although my local Flintshire County Council is trying to defy that by building them now, and on public services. The public sector pay cap is squeezing hard the incomes of people who are contributing to our society and working hard in their communities. We have uncertainty about the European Union, and the Foreign Secretary’s opening remarks provided no clarity on the key issues that my constituents face. We also have that squeeze on local government spending, which is difficult.

In my area, we make things. We make planes and cars, we produce steel, we do construction and housing, and we have farming and tourism. Yet all those industries, even today, face uncertainty because of the inconsequential approach of the Government to the European Union issue. Let me take Airbus as just one example. It employs 6,000 people in my constituency. It is asking for a transitional deal for two years and wants to remain in the single market. Its chief operating officer, Tom Williams, has said that the world is now a dangerous place for this successful company with high-skilled workers that produces world-class planes. Airbus exports £6 billion-worth of goods to the European Union each year as part of the manufacturing industry. Its employees make 80,000 trips each year to make those planes in France, Spain and elsewhere. This is a really important issue.

EU funds worth £680 million come into Wales each year, but I heard nothing from the Foreign Secretary about what will replace those funds. The farming industry in my area exports £250 million-worth of sheep and beef products to Europe, but we have heard nothing today about tariffs or what will happen in respect of contracts that may well be signed as early as February and March next year. We will potentially have to compete with Australia and New Zealand in the sheep and beef markets.

[Tim Farron (Westmorland and Lonsdale) (LD)]

The right hon. Gentleman makes an incredibly important point about sheep farming and exports. Does he acknowledge that 40% of British sheep products are exported, with 90% of that going into the single market? We face a 52% tariff on those products under World Trade Organisation rules.

[David Hanson]

The hon. Gentleman is absolutely right. His is a sheep-producing area. Alongside tourism, and the production of planes, cars and steel, my area produces sheep and beef products that are exported. It is critical that we have answers on these issues. If we are to leave the EU, which my constituents voted to do, we need to understand at least what the access to markets will be, what the tariffs will be, and what future production values will be. In his response to this debate, and elsewhere, the Minister should provide some clarity on these matters so that my constituents know exactly what we face.

We face a squeeze on local government expenditure. On behalf of Labour councillors on Flintshire County Council, my hon. Friend the Member for Alyn and Deeside (Mark Tami) and I sent a petition to the Treasury last week. We face a real squeeze at a time when we are seeing increased charges for services and cuts to real expenditure. The county council has been doing a good job in trying to manage the economy as well as it can.

With all that uncertainty, we need not only clarity from the Government, but something referred to in paragraph 4.88 of the Budget document, which says:

“The government will begin formal negotiations towards a North Wales growth deal.”

With due respect, the Chancellor promised that a year ago, and he promised it again in March this year. When he came to Mold in my constituency during the general election campaign to try to unseat me, he promised it then. He is now promising “negotiations” in this Budget, so all I ask of the Minister is that he tells us how much money is behind that plan and how long the negotiations will take. Can we ensure that, when they are finished, we will have improved infrastructure, improved transport links and improved investment in our economy to create jobs, given that jobs may well be put under pressure because of what is happening now with the European Union?