(9 years, 4 months ago)
Commons Chamber
The Economic Secretary to the Treasury (Simon Kirby)
The Government are committed to helping the midlands to unleash its economic potential and make it a powerful engine for growth. We are backing skills and innovation. We are supporting the automotive and aerospace industries. We have made investments, and we are putting power in the hands of local people by devolving budgets from Whitehall to a new mayor for the midlands. I hope that it is in order, Mr Speaker, for me to mention our excellent candidate, Andy Street.
Earlier this year, a Grant Thornton report suggested that the east midlands could contribute £53 billion to the UK economy by 2025, reflecting the central role that Leicestershire and the east midlands continue to play in driving the country’s growth. Does my hon. Friend agree, however, that if we are to sustain that record of success, it is vital for us to continue to deliver on investment in Leicestershire’s road, rail and broader infrastructure?
Mr Speaker
Order. May I remind colleagues of the merits of the blue pencil?
(10 years ago)
Commons ChamberUrgent Questions are proposed each morning by backbench MPs, and up to two may be selected each day by the Speaker. Chosen Urgent Questions are announced 30 minutes before Parliament sits each day.
Each Urgent Question requires a Government Minister to give a response on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
As I said, the cost of special advisers has fallen since the last general election. I would just point out that Gordon Brown, when he was Chancellor, had more Spads than the current Chancellor, and that the average salary of a special adviser is currently £2,000 less than it was under Gordon Brown’s Government in 2009.
Short money, quite rightly, exists to enable Opposition parties to undertake scrutiny and parliamentary duties. Many of my constituents will therefore find it hard to understand the funding received by Sinn Féin when its Members neither attend this House nor participate in its activities. Will my hon. Friend undertake to look at this anomaly?
(10 years, 7 months ago)
Commons ChamberIt is a pleasure to follow a Minister and a shadow Minister who, although it will not surprise you to hear that I agree with one rather more than the other, Madam Deputy Speaker, always speak with passion, clarity and a deep understanding of and care for the issues that we are debating.
It is a pleasure to speak on a Finance Bill that has responsibility, security and the delivery of one nation policies at its heart. It is an ambitious Finance Bill that seeks fundamentally to reform our national finances and create a new settlement for the country. It sets out a clear plan to move Britain from the low-wage, high-tax and high-welfare economy of the past to a higher-wage, lower-tax and lower-welfare society, ensuring that those who work hard, do the right thing and take responsibility are able to get on and have their aspiration rewarded.
To working people and those who can work, the Bill says, “We will take more of you out of tax. Our new national living wage will ensure that you get a decent day’s pay for a decent day’s work, but fewer taxpayer-funded benefits.” The Budget says to businesses, “We will support you to grow through lower taxes but, in return, you must play your part, pay people more and help train our young people for work.” Doing that means taking tough decisions and not being diverted from a long-term economic plan that is working.
Let us not forget the scale of the Chancellor’s achievement over the past five years. His inheritance in 2010 was employment down, housing starts down and GDP down. The only things that were up were borrowing, debt and deficit. Since 2010, employment has gone up by 2 million, the economy has grown, GDP is up by about 3% and the deficit has been halved. Much has been done, but there is much still to do to ensure that, as a nation, we live within our means and spend only what we can afford.
This Budget package—it is a package that must be viewed as a whole with the other measures that we have debated in recent weeks—sets out the plan to finish that job and ensure that our economy remains stable and strong in the years ahead, better to weather any future global economic storms. Key to that is the welcome road map to the elimination of the deficit in this Parliament and the transition to a budget surplus by 2019-20, which will allow the UK to start paying down its national debt. The ambition to further reduce Government spending to 36% from about 40% of GDP is laudable. The state should always seek to take only what it needs in tax, and no more.
This package will help deliver another 1 million jobs by 2020, projected growth of higher than 2% per annum, a raised tax threshold to ensure that those who earn least keep more of their hard-earned money, cuts to taxes on business to deliver growth and a national living wage to ensure that work always pays. In parallel, the deficit and debt reduction will be achieved. The package requires spending in areas such as welfare to be reduced to make sure that we live within our means, but in a way that ensures that the overall package will see a majority of working families better off.
One aspect of the Finance Bill that I want to touch on in a little more detail is the tax avoidance and evasion measures that the Minister mentioned. We believe in a low-tax economy, but one in which people and companies pay the taxes they owe and contribute their fair share. Between 2010 and 2015, the last Government did more than any previous Government to tackle tax evasion and avoidance. I am pleased that the Finance Bill continues that important work. I see from tables C.3 and C.5 of the Red Book that tax receipts are projected to grow. While I am sure that much of that flows from the growth that our national economy continues to enjoy, I hope that it also reflects the improved recovery of taxes owed. I hope that the Government will continue to close tax loopholes as they are identified and finish the job of putting fairness at the heart of our tax system and, where possible, simplifying the tax system without compromising its rigour.
I strongly support the Finance Bill, which seeks to remake our country and to deliver a strong economy, economic security and one nation. Its individual measures are justifiable and necessary, but taken as a package, the logic and coherence of the Finance Bill and related Bills are irresistible.
Callum McCaig (Aberdeen South) (SNP)
The hon. Gentleman talks about logic, but one aspect of the Bill is the removal of the climate change levy exemption for green energy. Applying the climate change levy to green energy production is just about as illogical as one can get. Would the hon. Gentleman care to comment on that?
It is absolutely right that we remove the levy to ensure that, over time, we bring energy prices down and so that we do not subsidise an industry that I do not believe should receive those subsidies.
To conclude, this is a package that rewards work, pays down the deficit and debt, drives growth and productivity, and puts the country securely on track for a secure and stable economic future, with everyone having the opportunity to benefit.
I will not, because I am about to conclude.
This is a Finance Bill that truly reaffirms the position of the Conservatives as the genuine party of one nation and of hard-working people and families.
(10 years, 8 months ago)
Commons ChamberWe obviously welcome scrutiny in this area. If the European Scrutiny Committee or other Committees seek the Government’s support, for example, in bringing over Commission officials to give evidence, the Government would of course gladly support them. Let me offer that hand of co-operation if I may, but I do not see a strong case for placing this within the legislation. Indeed, I would go further and say that it would be inappropriate for us to do so. That deals with new clause 3.
We do not believe that the proposal, which would require the Government to write to various European institutions to invite them to undertake a review of one or other aspect of the EU budget, would really add to the work that the Government have undertaken and continue to undertake to improve the expenditure of the EU budget.
My hon. Friend the Member for Tonbridge and Malling (Tom Tugendhat) rightly highlighted the welcome reduction in the contribution, which is good news for my constituents in Charnwood, as it is for his. That was in stark contrast to results achieved in negotiations by previous Governments. As the Minister and my hon. Friend the Member for Wyre Forest (Mark Garnier) mentioned, while the focus may be on revenue and not expenditure, it is important that the money is well spent. Will the Minister reassure me that he will continue to push the case for reform of how the EU spends money to ensure that it is well spent, well audited and that the accounts are signed off?
I thank my hon. Friend for his excellent intervention. The answer to his question lies at the heart of our response to new clause 1. He raises an important point.
New clause 1 requires the Government to write to the Commission to review the basis of appropriations for the EU budget to see whether “alternative arrangements” would provide better value for money. Although the link between appropriations and value for money is an important one, it is not of the first order. The Government’s first priority is to control spending directly, not through the system of appropriations. Cutting low-value expenditure is the first and most important way of improving the quality of EU spending.
In delivering an historic real-terms cut to the budget, the Government took a decisive step. Within a smaller budget, we also made sure that expenditure was reoriented towards areas that provide higher value for money. Spending on the common agricultural policy will fall considerably as a proportion of the total budget, while spending on research and development and other pro-growth investment will increase. So it is possible to operate within the system of appropriations, if appropriate control is in place.
The new clause none the less raises the question of whether the system of payments and commitments is appropriate for delivering value for money. It is a question that we must ask. It is true that it is an unusual budgeting system and it is not the way in which the UK Government budget. If the EU were starting from scratch, we would not advocate using that system. Yet I do not think anything would be gained by requesting a review of the system—for one simple and compelling reason. The proposed review in new clause 1 has already been set in motion by the new Budget Commissioner, Vice-President Georgieva, through her recent “budget for results” initiative. We obviously cannot say what the review will include, but its terms of reference are widely drawn, providing ample space to review the current budget system, including the system of appropriations, and to explore possible alternative approaches that would offer better value for money and improved financial management.
The UK has publicly welcomed that initiative and has shared its expertise. The Chancellor has made it clear to other Finance Ministers during ECOFIN meetings that that is the UK’s position. The initiative will involve member states, the European Parliament and the European Court of Auditors.
(10 years, 9 months ago)
Commons ChamberIt is a pleasure to deliver my maiden speech following such distinguished contributions, including from the hon. Member for South Down (Ms Ritchie), and to have such an illustrious predecessor in representing my seat, which is such a beautiful part of the country. First elected to represent Loughborough in 1979 and becoming the right hon. Member for Charnwood in 1997, following the seat’s creation, Stephen Dorrell served for an astonishing 36 years in this House. Upon his election, he was the baby of the House, often described as “permanently boyish”—a trait that, as hon. Members will see, eluded my grasp, I fear, many years ago. Stephen served in a string of offices, from the Whips Office to the Cabinet. His commitment to serving his constituents was formidable and the respect in which he is held locally never ceased to be apparent to me as I campaigned.
But the man is so much more than a list of the offices that he held. He was once described in The Guardian as
“exuding sweet reasonableness and being recognisably a member of the human race.”
He combined this with intellectual rigour, diligence and genuine decency. While I may not be able to emulate his length of service or swift progression through ministerial ranks, I will continually strive to emulate his values, humanity and hard work.
Although a relatively new seat, Charnwood is in the ancient heart of our great country, sandwiched between Leicester and Loughborough. It also, in its short history, has a strong tradition of re-electing its Member—something I hope will continue. It is a mixed, beautiful but oddly shaped constituency, curving around Leicester from Glenfield and Leicester Forest East in the west in a large arc to the rural villages of Barkby, Beeby and South Croxton in the east, taking in historic Kirby Muxloe with its castle, through Groby and Anstey—reputedly the furthest point south reached by Bonnie Prince Charlie’s Scottish army before its swift retreat back north—and picture-book rural villages like Woodhouse Eaves, then passing Bradgate park, containing the ruins of Lady Jane Grey’s family estate and the ancient Charnwood forest.
Heading east, we pass through Cropston, Swithland, Rothley and Mountsorrel, with Thurmaston and Birstall to the south, before reaching Syston, the home of Pukka Pies. I fear that my post-election figure suggests that I have taken my support of local industry a little bit too far. Finally we reach Queniborough, East Goscote and the rural idyll typified by villages such as Cossington, Seagrave, Thrussington, Rearsby and Barkby, where, with the summer approaching and the nights getting shorter—not, I hasten to add, a reference to my constituency neighbour, my right hon. Friend the Member for Rutland and Melton (Sir Alan Duncan)—many a sunny evening can be spent at the excellent Barkby United village cricket ground.
In the past five years the Chancellor has already laid the strong economic foundations for creating the one nation we all aspire to. Now, with the proposals in the Gracious Speech, we will make that a reality for everyone in this country. I look forward to being in my place to support him in doing this.
Charnwood is a success story and it has achieved much since 2010. It is a constituency blessed with extremely high ownership rates, low unemployment and successful businesses, although there is always more to do. That success does not just happen—that it happens is down to the hard work of the people of Charnwood, the sort of people who are the backbone of this country, working hard, doing the right thing, and building a better future for themselves and their family. They are exactly the people this Government are pledged to continue to support with our focus on opportunity and aspiration.
I will always fight for my constituents and constituency—for example, in continuing to campaign for fairer funding for my county of Leicestershire and for its schools—but there are a number of broader causes that I will particularly seek to champion in this House. While we have made significant progress in recent years, we still need to go further in vigorously and energetically focusing on improving dementia care and mental health provision; both are causes on which I will be vocal. I will not, I fear, be able to emulate the moving eloquence of my hon. and gallant Friend the Member for Plymouth, Moor View (Johnny Mercer) on this subject, but he will always find me shoulder to shoulder with him in his commitment to improving this country’s mental health care for children and adults and giving a voice to those whose cause is too often not heard.
I am here to represent the whole community in my constituency but particularly those on the fringes of our society who may not have the voice or ability to speak up for themselves. Every day I will strive to help build the one nation the Prime Minister has spoken about and in which I passionately believe, and every day I will humbly endeavour to repay the honour and trust that the people of Charnwood have placed in me.
I am sorry that it has not been possible to find time today for every new colleague who sought to make their maiden speech. I hope you will all be reassured by the thought that if you have sat here all day partaking in this excellent and important debate, should you seek to catch Mr Speaker’s eye again in the near future you will be looked on favourably.