Budget Resolutions — House of Commons, 2018-10-29
Topic: Macroeconomics
Paul Masterton (Conservative, Centre-right): I very much welcome this Budget, which was positive but realistic in its outlook and frankly honest about the opportunities and certain challenges that face us as a nation in the months and years ahead. We heard about eight years of sustained economic growth; 3.3 million more jobs, with 800,000 more by 2023; higher employment in every region and every nation; wages growing at the fastest pace in nearly a decade; and sustained, real wage growth in each of the next five years. That is a record for this Government to be proud of—reducing the deficit and lowering borrowing, not burdening the debt on the shoulders of our children and grandchildren This Budget delivers an additional £950 million for the devolved Administration in Edinburgh. It is right that that money is for the Scottish Government to spend as they see fit, but I do hope that they will match some of the measures we have heard about today. The £20.5 billion settlement for the NHS will ultimately see about £2 billion transferred to Scotland. In the week after a damning Audit Scotland report said that Scotland’s NHS was "not financially sustainable", that performance was "continuing to decline", that health boards were struggling to break even and that none had met all key national targets, every single penny of that money needs to be invested in the Scottish NHS. Last year’s real-terms cuts to the Scottish NHS budget cannot be repeated This Budget delivered key support for Scotland’s key industries like oil and gas and whisky, as well as our world-leading innovators, backing the technologies of tomorrow with tax breaks for tech companies and investment incentives. The ambition to make Scotland a global hub for decommissioning is welcome, as is the launch of a Scotland-based team for the British Business Bank’s UK network. Increasing the annual investment allowance to £1 million is a massively important measure for Scotland’s SMEs. For the constituents of mine who were hammered by appalling business banking practices, I am delighted by the extension of access to the financial ombudsman, although for many businesses and livelihoods, it will have been too late. I agreed with the comment made much earlier by my right hon. Friend the Member for Loughborough (Nicky Morgan), the Chair of the Treasury Committee, that this could have gone and needed to go further I welcome the digital services tax announcement and the recognition that narrow targeting is key so that we do not hit tech start-ups. It is right that we tackle this threat to the sustainability of the tax system. Giving pension funds more freedom to invest in innovative start-ups can be a huge boost to our economy. I have been calling for that since my first day here, and I was pleased to see measures to enable it. I also welcome the commitment to publish a paper this winter on boosting pension saving for the self-employed This Budget demonstrates that pro-business, pro-entrepreneurial policies—policies that back job and wealth creators—lead to more investment in our public services. While Brexit often takes front and centre in this place, it is not what is at the forefront of people’s minds in East Renfrewshire. I welcome the cost of living measures announced today, such as the freezing of fuel duty, the £690 pay rise for a full-time worker on the national living wage and the income tax cut for 32 million people, worth £132 for each basic rate taxpayer—something that, for now at least, will apply to my constituents up in Scotland I, alongside others, lobbied for £2 billion to restore work allowances in universal credit, so I welcome the package of additional protection announced today, particularly the changes to work allowances under which 2.4 million families with children and people with disabilities will receive an additional £630 per year. As the Resolution Foundation said this evening, universal credit is now more generous than the benefits system it replaced. I was also pleased to receive a very nice email in the last couple of hours from the team at the Joseph Rowntree Foundation, saying that they are absolutely thrilled with these changes. These changes are not the whole step that we need to take to make universal credit the transformational benefit it can be, but they are a massively welcome step in the right direction, and I thank the Chancellor and his team for listening to the real concerns raised on both sides of the House The right hon. Member for Ross, Skye and Lochaber (Ian Blackford), the leader of the SNP, described himself as a "simple crofter"—possibly his best joke of the day. He ignored the welcome by business and industry across Scotland of measures announced in the Budget, so desperate was he to paint his own pompous picture of the state of play. He said that the Budget does nothing to help steward recovery of the oil and gas industry, but the industry calls it "a welcome recognition of the hard work by industry to encourage recovery" It is not difficult to decide who to believe. Diageo says that the Chancellor has "acted to support our world beating spirits industry." Perhaps it was the company’s "particular thanks" to the Secretary of State for Scotland, Ruth Davidson and the Scottish Conservatives that so stuck in the throat of the right hon. Member for Ross, Skye and Lochaber and made him unable to welcome that change When Derek Mackay stands to give his Scottish Budget in a few weeks, will he continue to raise taxes? I note that individuals paid between the Scottish and the rest of the UK higher tax rate thresholds now face a marginal tax rate of 53% on that slice of income. Will he continue to hit the health budget and decimate our once proud record on education, or will he follow the Chancellor’s lead today by supporting jobs, boosting our high streets, growing the economy and using the additional moneys at his disposal to back hard-working families, invest in productivity-boosting sectors and support our communities Let us be clear: through to 2021, the Scottish Government’s resource budget is up by £840 million and the capital budget is up by £110 million. There are no longer any excuses for Scotland’s lagging performance compared with the rest of the UK. Bring on that Budget, and let us see Scotland moving forward with the help of the UK Government.