Amendment of the Law — House of Commons, 2015-03-19
Topic: Macroeconomics
Annette Lesley Brooke (Liberal Democrats, Centre to centre-left): May I start by apologising for my absence during part of the debate? I am pleased to be here now to make a short contribution. I have been following Budgets for decades, because my former occupation was that of an economics teacher and I always liked to use real-world examples in my lessons. I remember the first time I sat in the House to listen to a Budget speech; it was absolutely awesome. It was such an honour and privilege to be right here listening to it after so many years of just following it on the television I was teaching economics on black Wednesday, 16 September 1992. In my role as a teacher, I found that day incredibly exciting, because it provided illustrations for many of the chapters of the economics textbooks. Members might remember that that was the day on which we fell out of the exchange rate mechanism in a big way and interest rates went up rapidly before our eyes, with the threat of their going up to 15% at one point. I can remember the mortgage interest rate that I had to pay in those days; it was at a staggeringly high level. My colleagues recall my being on top of the world on that day. I was terribly excited while they were all desperately worried about how they were going to manage their budgets and pay their mortgages This is relevant to the reason that the coalition was formed. I genuinely believed that we were on the edge of a precipice at that time, and that we faced a major decline in the financial markets. I felt that achieving financial stability was the most important thing to do. It is well known that I have had difficulties with many aspects of coalition policy, but I remain convinced that we did the right thing in this regard, and there are many aspects of this Budget that I am proud to stand up and defend. I shall touch on just a few of them People would probably expect a Liberal Democrat to start by commenting on the increase in the income tax allowances. That policy was on the front page of our manifesto, and I am pleased that we in the coalition have now gone beyond that amount and are proposing that the threshold should be raised even higher. It is important to take 26 million workers to the point at which they pay less tax, and to take 3 million people out of tax altogether. That clearly benefits lower earners. My hon. Friend the Member for North Dorset (Mr Walter) and I will probably benefit a little bit from the Budget as well, because pensioners will now be brought into the increased allowances. That will be really appreciated by the many constituents who have written to me to say how unfair it was that their income tax allowance was fixed I should also like to comment on the savings income allowance. This represents a really important and interesting principle. It might not initially make a lot of difference financially to people, but it is not a good principle to tax someone a second time when they have saved all their life and paid tax before putting their money into savings. That is a great disincentive to saving, and the change in the rules will be an important concept in the future I would also particularly like to comment on the increased expenditure proposed for children’s mental health services. I have drawn the House’s attention to the fact that in Dorset we have no intensive psychiatric care units whatsoever for young women and that they have to travel afar. We have enormously long waiting lists for children’s mental health services and I have argued many times in this House that when, for example, a child is suffering from abuse, it is vital that they can access treatment quickly. I have made many proposals in education and children’s Bills that there should be an absolute duty to provide mental health support in such circumstances. I have never managed to achieve that legislatively, although we now have a clear policy framework in which the Department of Health and the Department for Education work together. Delivering the service needs money, however, and that is very important for our young people I welcome the new proposals to tackle tax avoidance and would like to refer to the statement made by my right hon. Friend the Chief Secretary this morning. I thought that some important points were made while this House was less than attentive. Let me give two of them. First, for offshore evaders, following consultation we will introduce a new strict liability criminal offence so that people can no longer plead ignorance in an attempt to avoid criminal prosecution. Secondly, we will introduce a new offence of corporate failure to prevent tax evasion or the facilitation of tax evasion. They are very important and I personally find the idea of a tax dodging Bill very attractive for any future Government. It is important to appreciate that by raising billions in such a way we can help fight poverty in the UK and in developing countries In my maiden speech, I focused in particular on the underfunding of the two education authorities that I represent, Poole and Dorset, which are both in the 40 lowest-funded education authorities. I argued long and hard against the previous Government’s not tackling that and I was really pleased that this year we had some extra money to acknowledge that gross underfunding. The future Government must introduce a fair funding formula. It is all ready to run and I hope that the next Government will do that so that children in my constituency and across Dorset will get a fair deal My constituency is diverse. I have farmers who will benefit from yesterday's proposed change to tax. Businesses have been well supported by various measures that have been introduced. It is a constituency that, proportionately, has very little public sector employment and it is very strong in employment and business terms because it is a mixed economy. It has a sustainable future, but even so I welcome the contribution that the Dorset local enterprise partnership has made, with successful bids supporting new industries, such as the creative digital industries I believe that working within the coalition we have achieved a strong economy, but for me the future must be about tackling the fairness side of things. I therefore welcome the fact that the Liberal Democrats have a different approach for the future. Finally, I want to thank all the staff of the House who have been so supportive in the time that I have been here.