Budget Resolutions — House of Commons, 2018-10-30
Topic: Macroeconomics
Geoffrey Robert Clifton-Brown (Conservative, Centre-right): I am grateful to have caught your eye in this important Budget debate, Mr Deputy Speaker I would like to begin by welcoming the Chancellor’s statement and recognising that UK public finances are in a much better shape than they were. Despite the narrative of negativity from the Opposition, the economic facts demonstrate a much more positive reality. I thought the Opposition might welcome the fact that average real wage growth in the public sector is now 3.1%—a 10-year high—or that the Chancellor is predicting an additional 400,000 people in work by 2023. That is on top of the 3 million extra jobs we have created in the last 10 years or so. But nothing came from the Opposition, except that they have 39 uncosted expenditure pledges. That is irresponsible public policy making As my hon. Friend the Member for Mid Norfolk (George Freeman) said, we need to build on the high-tech areas of our economy, such as AI, where we are world leaders. We need to ask ourselves why, when we can do the innovation in this country—for example, inventing the world wide web—large IT companies such as Google did not emerge in this country. We need to concentrate on the high-tech sectors of the economy. As my hon. Friend said, that is the way to build ourselves out of the debt created by previous Governments. We need to encourage more students from around the world—the brightest and the best—to come to our universities to study subjects such as computer sciences, so that our universities are at the world forefront of this much needed research We need to relentlessly pursue a growth strategy post Brexit. I was delighted that the Chancellor was able to release some of his cushion in this Budget. I hope that we get a deal; I am optimistic that we will get a deal and that this Parliament will pass it. We can then move forward, businesses that are currently shelving investment decisions will make those decisions and the economy will start to thrive One thing we can do in the post-Brexit era is to look carefully at the business rates system. I held an Adjournment debate on that earlier this month, in which I pointed out that business rates are not necessarily related to the ability to pay. There are some unfair quirks in the business rates system. For example, a business with a rateable value of under £12,000 gets small business rate relief, but if someone has two businesses with a rateable value of, say, £3,000 each, they get no small business rate relief for either of them I welcome the fact that the Government have put £900 million into the rating system, but again, that is a sticking plaster over a system that needs to be thoroughly reformed. I also welcome the fact that there is a third off business rates for retailers with a rateable value of up to £51,000 and a fund for the sustainable transformation of high streets Perhaps the most important thing that we need to look at in public services over the next few years is education. As I have alluded to, education is the way that we will be at the forefront of innovation in this country. I have campaigned over a number of years as part of the f40 group to ensure that my schools in Gloucestershire get fair funding. I welcome the additional £475 million for capital spending, but that does not address the current spending problems. In Gloucestershire, we have overspent by £3.2 million on the high-needs block of the education budget. As I mentioned in my intervention on the Health Secretary, that is unfortunately because our children are getting more and more complex health and other problems at an earlier age and need more special assistance in schools While I welcome the additional £1.3 billion put into education as a result of our manifesto commitment, it was predicated on the basis that secondary school children throughout the country were to get £3,800 under the fair funding formula. In fact, we will only be able to afford per pupil secondary school funding of £3,600 in Gloucestershire. That additional £200 per pupil would make a huge difference to my schools. I have to report to the House the sad fact that while we had a period of years when our schools in Gloucestershire were going from good to outstanding ratings, that has begun to drop back, which is of great concern One way in which the Chancellor has responded to public concern over IT companies such as Google and Facebook is to introduce a digital services tax. I agree with a little bit of what Opposition Members said—I think the tax is unambitious. If we look at the Red Book, we see that the tax is only 2% on profits, with a £25 million annual allowance, and it only covers relevant global revenues in excess of £500 million. The result is that hundreds, and maybe thousands, of relevant small and medium-sized IT companies around the world will be exempt from it. The tax is only predicted to raise £440 million by 2023-24. If we raised more from that tax, we would be able to put more money into schools. The Chancellor needs to look at that carefully. He introduced the diverted profits tax to start to deal with the issue of international companies not paying proper tax in the UK, but that has only raised £388 million this year Infrastructure is very important in this country, and I welcome the £25.5 billion for the roads programme. I desperately hope that that extra money will finally secure the construction of the missing link on the A417 in my constituency, for which I have campaigned for 15 years. The Chief Secretary is listening, and I hope I will get good news shortly. We have consulted on it, and we have a preferred route. All we are waiting for is the Government to announce which route they want. Affordable housing is very important, and I welcome the extra £500 million for the housing infrastructure fund. I welcome the fact that a lot more money is going into housing. Providing housing is one of the most important things that we can do for our young people, and intergenerational fairness needs to be looked at. Low-paid public sector workers in my constituency, whether they be nurses or teachers, often cannot afford to live in the Cotswolds, and we need to look at more innovative ways of providing social housing for them.