Budget Resolutions — House of Commons, 2018-10-29
Topic: Macroeconomics
Samuel Wilson (Democratic Unionist Party, Right): Despite the gloom and doom of the Treasury’s predictions, it was pleasing that the Chancellor was able to start his speech today by blowing out of the water all the arguments being made by his own Department about the impact of the Brexit vote, our impending departure and the negotiations. Pay is growing in real terms, employment is up, the deficit is down, borrowing is going down, there is no more borrowing to cover current spending, and the Government are cutting taxes for 3 million people. The good news should be a warning to everyone—some Members have picked up on this already—who has perhaps fallen for the idea that the Treasury forecasts tell us that the economy will experience a downturn in the event of no Brexit deal and that there would have to be an emergency Budget. All the arguments we heard at the time of the referendum have not come to pass, and the Chancellor confirmed that today Today’s Budget is balanced and takes two things into consideration: that there are real problems to be addressed and that the Chancellor cannot be reckless. When the debt is such that the interest on it is the same as the total budgets for Northern Ireland, Scotland and Wales, it is clear that we cannot keep borrowing and servicing that debt at the cost of money being available for services for public sector spending. The Chancellor has got the blend right in today’s Budget. I welcome the fact that he will take more people out of tax; the fact that he will go after those who are not paying their tax and after those who use a digital platform and currently have an advantage over those who pay rates on the high street; and the fact that small businesses will have greater rate relief I am also pleased by some of the announcements about Northern Ireland. There is about £1 billion of funding here for Northern Ireland. Some of that comes from money being released that previously had conditions attached to it, but some is new money. The £350 million city deal will have a great impact on modernising industry in Northern Ireland, increasing productivity, sending us in the direction of the growth industries for the future, and promoting the tourist industry. The additional £2 million for Belfast city centre, for which my right hon. Friend the Member for Belfast North (Nigel Dodds) and my hon. Friends the Members for Belfast South (Emma Little Pengelly) and for Belfast East (Gavin Robinson) lobbied, will be important given the short-term difficulties that traders face I am disappointed, however, that more progress has not been made on reducing VAT or air passenger duty. The Irish Republic has ruthlessly pursued a tax policy to the detriment of the tourist industry and airports of Northern Ireland. That should be a warning to those who say that it would be good to stay in the single market, because the single market’s rules on state aid mean that it has not been possible to consider reductions in VAT or the air passenger duty for Northern Ireland. Some say that part of any Brexit deal should be that Northern Ireland stays in the single market, but we would be tied into EU rules, which would impact our ability to fine tune the economy. I found it strange that that the Chancellor proposes to increase passenger duty revenue in the United Kingdom by nearly 30% over the next five years by putting up the duty on long-haul flights, because that will simply allow even more leakage as people will fly from the United Kingdom through the Irish Republic to escape air passenger duty. That just does not make sense and will have an impact on regional airports across the United Kingdom The DUP is pleased by the proposals for universal credit and that measures are being taken to deal with UC migration. I do not know whether £1 billion will be enough, and we will monitor that closely because, like the hon. Member for South Cambridgeshire (Heidi Allen), I believe that universal credit is actually a good policy. It helps those on benefits, because they do not have to apply for a multitude of benefits and because it helps them into work. However, if it becomes a botched policy, it will fail and will have a stigma attached to it because sufficient resources were not put into it in the first place. We need to consider that carefully as the statutory instruments come through the House. The DUP gives a cautious welcome to this Budget. We welcome the extra £320 million for Northern Ireland and the Barnett consequentials, which we look forward to being spent.