Budget Resolutions — House of Commons, 2021-10-27
Topic: Macroeconomics
Samuel Wilson (Democratic Unionist Party, Right): I might not be as gushing as the right hon. Member for South Northamptonshire (Dame Andrea Leadsom), but nevertheless this Budget has been delivered in a very difficult economic circumstance. A plethora of figures and initiatives have been thrown at us today, and on the first day of a Budget debate we always comment on measures with some trepidation because of course once we start looking at the detail of the Budget and the implications of its measures we often feel a bit embarrassed at having embraced some of them with enthusiasm. Indeed, sometimes even Chancellors have had to retreat quickly from measures they earlier announced with great euphoria Nevertheless, I am encouraged by the general thrust of the Budget and the path the Chancellor has outlined. First, he believes we must get the high levels of debt down to leave us less vulnerable to interest rate changes in the future; that is good. Secondly, he believes that has to be done in the context of returning to making fewer demands on people through taxes. Again, that is good; my party believes people and businesses are far better placed to decide how to spend their money than Government. Thirdly, although we are spending vast amounts on public services, and the Chancellor will have to continue doing so in the future, he believes that must be spent wisely. He therefore must not be afraid to tackle the question of whether money is being wasted and to stop spending it and change direction if it is I am also pleased that the Chancellor wants to reward people who are in work. The national living wage increase is welcome, as is the reduction in the universal credit taper to encourage people to move from not working to working or from working in low-paid jobs to working in higher-paid jobs, but we must not forget that there is still a marginal rate of 55% on people in that position, so there is still that disincentive However, I still worry that those in low-paid or even medium-paid jobs will face a bleak period in the near future, whether through the tax rises already declared or the fact that we are already facing huge energy price increases. While Members have condemned that in this House, we must not forget that part of the reason for it is the climate hysteria that seems to have overtaken Members and the Government themselves. One reason for higher energy bills is the fact that we are turning our back on cheaper fuels and expecting people to heat their homes in more expensive ways The Chancellor has of course said that he has already written to the Bank of England about the current inflation rate. There is only one reason why he would write to the Bank. He cannot instruct it to increase interest rates, but if he is raising concerns about the current level of inflation the implication is that the Bank may well look at introducing higher interest rates, which of course will hit homeowners. So while I welcome some of the incentives to get people into work, we must not ignore that there are challenges ahead, especially for those in low-paid industries Turning to specific matters, the Chancellor made a big issue of the additional money going to the devolved Administrations. An extra £1.6 billion per year will go to Northern Ireland, which is a real increase, but there is to be a real increase in expenditure in Northern Ireland of 1.3% each year on average over the period. That is half the increase that will go to Scotland, about one and a half times less than is going to Wales and about a third of the general increase in Government spending. While spending in Northern Ireland is going up in real terms, which I welcome, relatively speaking it will go down, and that at a time when the Government are talking about levelling up and when there are additional pressures on the Northern Ireland economy because of the Northern Ireland protocol and its impact on industry. There has to be an explanation why, relatively speaking, expenditure in Northern Ireland will be lower over this spending period than it is currently Let us look at some of the initiatives that have been undertaken under the levelling-up agenda. I welcome the fact that £300,000 will be spent on a digital hub in Cushendall in my constituency. I already know from speaking to those involved in it how that will create jobs—good jobs—in a relatively poor rural area. The extra money for Dundonald Ice Bowl will be welcomed by my hon. Friend the Member for Belfast East (Gavin Robinson), and of course the money that is going into the city region deal will benefit massively some capital projects in my constituency. I welcome all that The hospitality industry has taken a hammering. The Chancellor has said that there will be a 50% discount on rates for the industry. I take it that there will be a Barnett consequential of that for Northern Ireland, and I hope that it is replicated by the Finance Minister in Northern Ireland There is one question that I would like a response to, and it is about the changes in excise duty on alcohol, which will be important for the likes of Diageo in my constituency and the hospitality industry. Since Northern Ireland is part of the EU excise regime due to the Northern Ireland protocol, will those changes apply to taxation on alcohol in Northern Ireland? That is a technical question that I do not know the answer to; it would be interesting if the Chancellor came back to us on that The Chancellor has been a steady hand on the tiller in the storms of the past. There are still economic storms for him to take the country through. We wish him all the best with that, but we will also be scrutinising the route that he takes as he seeks to guide the nation economically.