Autumn Statement Resolutions

Wendy Morton Excerpts

Monday 27th November 2023 Commons Chamber

[Wendy Morton (Aldridge-Brownhills) (Con)]

As someone who spent many years in business myself, I will begin there. We started our family business back in 1991 with an enterprise allowance of £40 a week from the Government. It is not possible to make business risk-free, but it is possible to create the conditions that support entrepreneurs. SMEs are the real wealth creators of our economy, and in this, the week leading up to small business Saturday, I am proud to support those in my constituency. Microbusinesses, with up to nine employees, constitute 89% of the businesses in my constituency. These are the people who get up early in the morning, put in the hard yards, and take risks with their money. They are the backbone of local economies.

I welcome the measures in the autumn statement that back British business, such as the extension of rates relief for the hospitality, leisure and retail sectors. Freezing alcohol duty will help the local micropubs, such as The Turtles Head, that are the heart and soul of so many communities. Measures on class 2 and class 4 national insurance contributions to help the self-employed are also welcome. However, we need to continue to look at ways in which to go further. The extension of full expensing will be welcomed by the larger companies, but I fear that it will make little difference to too many small businesses. That is why I feel that we need a cut in corporation tax from its current high rate of 26% to its former level of 19%. That, I think, would be another tool to lead us towards the growth that we all want to see.

The increase in the national living wage will be greatly welcomed by many employees, but some businesses and community organisations in my constituency tell me of the challenges that it will pose to them. For some, it will risk pushing up prices to service users. I therefore urge the Government to exercise a bit of caution, and to continue to look at that balance.

As for personal taxation, I welcome the 2% cut in the main rate of employee national insurance from 6 January next year, which will bring relief to some 27 million workers, but I think we should recognise that we must not stop there. With wages rising, there is a real risk that people will pay more income tax. Let us not forget about the need to go on looking at the tax-free allowance thresholds—and I, for one, will be continuing to push for increases. I feel that that makes sense, because we need to address the fiscal drag.

Turning to welfare reform, the commitment to the triple lock will mean a fantastic 8.5% increase from the start of April 2024, which is equivalent to £900 a year. I know that that will help the pensioners in my constituency, and that is good news. The plan to work is also welcome. It is just not fair for the majority of British people to work while some people think they can get away without working. The key to employment is the Government working with training providers, education providers and employers, with everyone working closely together to understand where the skills gaps are today and where they are likely to be in the future. Our young people, our students and those returning to work later in life need a pathway of apprenticeships and education that will lead them smoothly and successfully into a job.

In the west midlands, we are fortunate to have our brilliant Mayor, Andy Street, who absolutely understands that. The announcement of three new investment zones, including one in the west midlands, is especially welcome, providing the opportunity to drive £5.5 billion of growth across our region and creating 30,000 new jobs. The autumn statement also seals the deal on the single settlement to provide the deeper devolution deal that we want and to end what has been described as a begging-bowl culture for so many devolved areas. That settlement has been pioneered by our west midlands Mayor, Andy Street.

The decision to invest a further £50 million in apprenticeship pilot schemes will be invaluable too. I note that the Minister for Skills, Apprenticeships and Higher Education, my right hon. Friend the Member for Harlow (Robert Halfon), is nodding on the Front Bench, and I remind him that he is welcome to come to Aldridge-Brownhills to visit our apprenticeship provider. It is important that we do not neglect the traditional industries, which still provide an economic powerhouse in places such as the Black Country. We cannot afford to leave those communities and businesses behind. Our ambition of levelling up will be fully realised only when we embrace all sectors of industry, whether new or traditional.

The focus on supply-side reform is also much needed to deliver growth, particularly in areas such as planning, but I caution Ministers that, while that is welcome, we must ensure that our local authorities have the planning expertise and capacity to deal with the applications. I also ask Ministers to consider extending any such new policy practices to other organisations—for example, the Environment Agency. We have a situation in my constituency where it is taking up to 71 weeks just to validate permits and licences, so I am rather hoping that someone on the Front Bench or in the Department for Environment, Food and Rural Affairs will have taken note of that and will come back to me on it.

In a time of continued global uncertainty, especially given the war in Ukraine, I welcome our commitment to spending 2% of our GDP on defence. I also welcome the extra commitment of £10 million to support the Veterans’ Places, Pathways and People programme. We have moved the dial forward, and I am sure we will continue to move it further forward.