Budget Resolutions — House of Commons, 2018-10-29
Topic: Macroeconomics
Helen Olivia Bicknell Whately (Conservative, Centre-right): It is a pleasure to follow the hon. Member for Coventry North East (Colleen Fletcher). I am sorry to hear that she was so disappointed by the Budget. One thing that I did notice is that, since 2010, employment in her constituency has halved—in fact it has done better than that—so perhaps that is something that she could welcome next time she speaks on the economy Listening to the Chancellor, I was reminded of how far we have come since 2010. Back then, borrowing was more than £150 billion per annum, the deficit was 10% of GDP, unemployment was over 8% and nine out of 10 households were receiving benefits. We had an unsustainable benefit system, disincentivising work and trapping people on benefits; an unsustainable public sector; and, overall, unsustainable finances, with the Government failing to collect enough tax to pay for our public services, even in the good times, so I will take no lessons from the Opposition on taxing the wealthy By contrast, let us look at where we are now: debt falling as a share of GDP; the deficit down four fifths; steady growth exceeding forecasts; the lowest unemployment in my lifetime; real terms wage growth; and lower tax rates, but higher tax revenues, which, after all, is what matters. We have an economy that can fund investment in infrastructure and investment in public services and do so without beating up businesses or loading debt on to future generations Throughout the Chancellor’s speech, I noticed the faces of those on the Opposition Front Bench looking very glum. I fear that there was too much good news. By contrast, I want to mention four areas of the Chancellor’s speech that I particularly welcomed. First, there was support for businesses to which we look for economic growth, for jobs, for higher wages, and, yes, for taxes. I welcomed the Chancellor’s support for entrepreneurs—I should declare an interest because I am married to one. I welcome the support for start-ups, including for entrepreneurial benefits claimants, which reminded me of a lady who came to my last surgery. She was trying to start up a business so that she was no longer reliant on benefits. She specifically asked for more mentoring, so I welcome that in the Budget, along with support for high street shops. I suspect that all of us in this Chamber shop online. I certainly do, but I also cherish the town and village centres in my constituency. We know that high street shops are struggling, so I welcome the business rate relief that they will receive and the Chancellor’s steps to level the playing field between bricks and mortar and the global online giants. As he said, there is further to go, and we would like a global answer on this, but it is a step in the right direction Secondly, I welcome the investment in infrastructure. At a very local level, we have potholes, about which I receive many letters and emails each week. There is also nearly £30 billion for major roads. As a Kent MP, this is particularly significant because we are on the corridor between most of the country and the channel, so I will continue to lobby the Chancellor for a share of that money to come to my area—resurfacing the M20, improving the M2, and specifically redeveloping Brenley Corner, a well-known local hotspot and important junction between the A2 and M2. Overall, we need greater resilience in our road transport network, which will support economic growth and, quite simply, make it easier for my constituents to get around Thirdly, I want to mention public services and the very welcome investment in the national health service—£20.5 billion was announced earlier this year, £2 billion of which is going towards mental health. The Government have shown great commitment to mental health, already putting more money into mental health, but the Chancellor has recognised that there is still further to go. For the gap to close between access to mental healthcare compared with physical healthcare, the funding for mental health needs to go up faster, so this is another step in the right direction, a step on the path to parity between mental healthcare and physical healthcare I want to talk about support for people on the lowest incomes. A couple of months ago I asked the Chancellor, in person, to think about women as he prepared the Budget, and, very practically, incomes for women, because although great progress—[Interruption.] I am glad to see a smile on the Opposition Front Bench, perhaps for the first time. Great progress is being made on the gender pay gap, but we know that women still tend to be on lower incomes than men. For instance, the rise in the national living wage to over £8 next year will help more women than men. I recognise that as another step towards bringing women on to higher incomes. That, coupled with the extra transitional support for universal credit and raising the work allowance, is all about ensuring that everybody benefits from a strong economy, particularly the lowest paid Finally, I welcome the freeze in beer duty. The largest employer in my constituency is a brewery, so I simply cannot overlook the value to my constituency of a freeze in beer duty and support for the consumption of beer All in all, I welcome the fact that the Budget shows that we have sound finances and a strong economy. I welcome the support for businesses and communities, the investment in infrastructure and public services, the support for the lowest paid and the raising of tax thresholds, so that people keep more of what they earn. I welcome this Budget.