Cost of Living Increases — House of Commons, 2022-03-16
Topic: Mixed Topics
Scott Lloyd Benton (Conservative, Centre-right): I am grateful for the opportunity to speak in this debate on an incredibly important issue for many families in Blackpool. My constituency is among the most deprived in England, with the numbers of households in poverty, in receipt of benefits and looking for work being far higher than the national average. Indeed, eight of the 10 most deprived neighbourhoods in England are in Blackpool. Some commentators have said we are on the cusp of a cost of living crisis, but the sad reality is that many of my constituents have been struggling to manage their household budgets for a very long time Let us be clear that to frame this debate, as the socialists and Scottish nationalists have, as a "Tory cost of living crisis" is completely ridiculous and ignorant of the facts. The unavoidable truth is that the inflationary pressures created by economies emerging from the pandemic, the increases in wholesale gas prices and Russia’s illegal invasion of Ukraine have caused, and will continue to cause, a huge strain on household budgets for the immediate future, so we need to be honest with people about the causes of inflation and the fact that higher energy bills, food prices and prices at the pumps are not going away any time soon We also have to be honest with people that there is only so much that Governments can do to mitigate these higher costs. Governments cannot eliminate every single price rise in a free market, and we should not pretend otherwise. This Government are already providing a £20 billion package of support to help families with the huge increases in the cost of living. More families are in receipt of universal credit in Blackpool than anywhere else in this nation, and many of them will be benefiting from an effective £1,000 tax cut through our changes to the universal credit taper rate. People in Blackpool will also disproportionally benefit from the significant rise in the national living wage to £9.50 per hour. Of course, those are not the only measures through which this Government are supporting families. The Chancellor has already announced the £350 package of household support for energy bills and council tax, which is worth some £9 billion, and we are providing more discretionary funding to local authorities to help those in need, as well as increasing the warm home discount to £150 and extending its eligibility. This Government have a good record in supporting families, but these are unprecedented times. We can do more and we must look to do more. Whether by looking to temporarily reduce fuel duty to protect motorists from the surge in prices or looking again at the national insurance increase, the upcoming Budget presents an opportunity to demonstrate that we understand the pressures that families are facing On energy, Governments of all colours, for decades, have failed to ensure a supply of affordable and domestically produced energy, and the successive failures are now coming home to roost. The drop of UK nuclear output to its lowest level since the 1980s is particularly concerning, and previous Governments, of both parties, have dithered on nuclear for far too long. I have some sympathy with the Opposition’s call to cut VAT on energy bills, and I have spoken about that on several occasions, but my understanding is that the cut would not apply to Northern Ireland, due to the Northern Ireland protocol, and of course the money to fund public services has to come from somewhere—I am afraid there are no easy options here. I also believe that there is a strong case to remove the cost of so-called "green levies" from energy bills, which could save households about £150 to £200 per year, on average. Many of my constituents would be shocked to find out that these levies cost them so much, and that some of the schemes they subsidise are not particularly green. However, once again, if they are taken away from bills, they will no doubt end up in the Exchequer’s lap and fall on general taxation, so we have to be careful what we wish for In the longer term, the Government must ensure that more nuclear power plants are brought online, and I welcome the new finance model for nuclear, which encourages a wider range of private investment into new nuclear projects. I also welcome the Government’s support for and investment in the small modular reactors currently being pioneered, which would reduce the cost of nuclear in the long term, letting it work alongside renewable sources.