Budget Resolutions — House of Commons, 2020-03-11
Topic: Macroeconomics
Samuel Wilson (Democratic Unionist Party, Right): It is a joy to follow the hon. Member for Grantham and Stamford (Gareth Davies), who has reminded us that his constituency was the home of the man who discovered gravity and of the woman who discovered how to defy political gravity, to rise to the highest office of state in our country and become one of our best known and greatest Prime Ministers The Chancellor came to his position at a very difficult time. He had to bring forward a Budget today that would calm many of the concerns of businesses, workers and people across the United Kingdom because of the impact of the coronavirus. He has brought forward measures to make sure that businesses have sufficient cash flow at a time of disruption and to support workers who may well be asked to make a public sacrifice by staying away from work and should not be penalised for it. There is also, of course, the co-ordination with the Bank of England to try to stabilise the situation The Chancellor tried to give the impression that it was quite an expansionary Budget, but when we look at terms of it, we can see that it is not really expansionary at all. Much of it was made up of past announcements, and some of it of announcements for the next five years. It is about raising spending to a certain level, rather than by a certain level. When one looks at the overall increase in total managed expenditure of around 1.8%, one can see that, given some of the things that we are facing, it is actually quite a modest Budget, with modest expenditure However, I welcome a number of policies that have been introduced in the Budget. I will probably get a lot of criticism now from those who share the climate hysteria that seems to have gripped this House. The pressure was on the Chancellor to impose additional costs on ordinary people who drive their cars, on businesses that rely on fuel, and on consumers who require that their food be delivered to the shops in the cheapest way possible. I am glad that he did not increase fuel duty because, of course, that would have been an imposition on the very people whom some Members of this House today have said they want to defend. They have also said that they do not want to see their standard of living affected, but those kinds of taxes would have had an impact on those people I am also pleased that the Chancellor has not increased the tax on red diesel for farmers. I know that many farmers in East Antrim, for whom fuel is a substantial but inescapable cost, will welcome the fact that they will not now have an additional tax imposed on it Having said that, this Government will still be dipping into the pockets of the people of the United Kingdom to the tune of £18 billion next year in various green taxes. The carbon tax that the Chancellor proposes to impose on gas will impact severely on energy bills. We still produce a lot of our energy, and people still have to heat their homes using gas. That carbon tax will substantially increase those people’s bills, especially when one remembers that 20% of electricity bills at present are taken up with various green levies and green costs. On top of that, some of the bill is made up of infrastructure costs, which are incurred only because of the move towards more wind energy and so on. The tax on gas will have an impact on many people, especially in places such as Northern Ireland, where we rely heavily on gas for electricity generation. My second point relates to the Government’s announcement that they want to disperse jobs outside London. We had asked the Government to consider that during the confidence and supply arrangement that we had during the previous Administration. Of course, there has been a degree of centralisation: we have lost jobs from HMRC and the Driver and Vehicle Licensing Agency. If the Government are sincere about levelling up the economic growth across the United Kingdom, it is important that jobs are dispersed from the south-east of England to other parts of the United Kingdom, including to places such as Northern Ireland There was no mention in the Budget of air passenger duty—at a time when connectivity is so important and when we had discussions following the Flybe episode. So many airports across the United Kingdom depend on connectivity. We know the cost of air passenger duty on internal connectivity across the United Kingdom. Although I understand that the Chancellor could not have made a decision in this Budget because the review of air passenger duty and aviation taxes is ongoing, I hope that there will be some announcement in the future, so that places such as Northern Ireland that are heavily reliant on air transport see that additional cost—about £4.8 billion a year—reduced and are given some reliefs The announcements on infrastructure spending are important. I welcome the expenditure on roads and infrastructure projects across the United Kingdom. The one thing that I have some concern about, though, is that the Government are proposing to spend £110 billion on infrastructure projects by the end of this Parliament, but—as we have seen with the Heathrow expansion decision—these projects are under threat from the challenges we face due to commitments made in the Paris agreement and the Climate Change Act 2008. I believe that those who are determined to prevent the infrastructure developments that are necessary to make this country work will use the courts to try to stop many infrastructure projects that the Government are proposing. That is because all of those projects—roads, housebuilding, airport expansion, railways—will have some impact on CO2 emissions, through concrete production, steelmaking, the building process and so on.