Budget Resolutions and Economic Situation

Barbara Keeley Excerpts

Thursday 21st March 2013 Commons Chamber

[George Freeman (Mid Norfolk) (Con)]

I congratulate the Chancellor and his Treasury team on the work they have done on the historic and disgraceful debt legacy that this generation, this Parliament and this Government are having to deal with. The lack of any apology from Labour in the nearly three years in which I have had the honour to be a Member of this place is deeply shaming—[Interruption.] For the record, the Opposition’s barracking of my point serves simply to highlight their lack of ability to deal with the truth, difficult though it may be.

We are still trying to deal with a legacy of debt that we and future generations inherited from the Labour party—a legacy that hangs over the economy and this country. The Budget has been warmly and widely welcomed by all serious commentators: the International Monetary Fund, the OECD, the Bank of England, the CBI, the Institute of Directors and the British Chambers of Commerce. I urge the Chancellor to stay the course and not to be lured by the siren voices of Opposition Front Benchers calling for more borrowing, or of those calling for borrowing-funded tax cuts.

[Barbara Keeley (Worsley and Eccles South) (Lab)]

Will the hon. Gentleman give way?

[George Freeman]

I will develop my argument a little further, if I may, as time is limited.

We need a credible programme for deficit reduction, a fair burden of taxation and a long-term vision for the British economy, and that is what the Budget delivered. Simon Walker of the Institute of Directors said yesterday:

“We applaud this Budget. The Chancellor has stuck to his guns and held his nerve—which is exactly what we wanted to see. Deficit reduction is not an optional policy, it is an absolute necessity, and he is right to reject the siren calls to abandon it.”

Plan A is right for three central reasons. First, it tackles the appalling structural debt legacy that we were bequeathed by the Opposition. Secondly, it does so in a way that is fair in allocating the burden of taxation that must be paid. Thirdly, it is bold in setting out the platform at the base of an industrial policy for a sustainable economic recovery in which future generations—particularly the current young generation, who will have to deal with the debt crisis—can have confidence.

Let me remind the House, particularly Opposition Front Benchers, of the nature of the debt legacy we inherited. We started with the worst debt to GDP ratio of any country in the western world, worse than that of Greece and other economies that have been put into special measures by the IMF. The annual deficit when we started was running at 11% of GDP and is now 7%—that, for the benefit of Opposition Front Benchers, is a reduction.

In the situation we inherited, the interest on our debts was set to rise, if we had not acted, to £76 billion a year. We were spending £1 on interest for every £4 the Government were spending on public services. The national debt was just short of £1 trillion—roughly £15,000 for every man, woman and child in this country. As 1 trillion is a big number and people are baffled by big numbers, let me try to break it down. If it took 11 days to pay off £1 million, how long would it take to pay off £1 billion? Thirty-two years—[Interruption.] Opposition Members might think that it is funny, but I can assure them I do not, my constituents do not and the young people who will have to claw their way out of the crisis do not. If it takes 11 days to pay off £1 million and 32 years to pay off £1 billion, it takes 32,000 years to pay off £1 trillion at the same rate.

The truth is that we inherited not just an annual deficit but a structural deficit. For the benefit of Opposition Members who are not aware of the difference, the structural deficit is that bit of the Budget which, even when the economy is growing, continues to haemorrhage money. The biggest drivers of our structural deficit are pensions, benefits and the NHS. The IFS pre-Budget briefing yesterday, which was made available to all parties, makes it clear that the structural deficit continues to put a black hole at the heart of our public finances. The IFS forecasts that between 2011 and 2018 we will be spending an extra £5 billion on pensions, £20 billion on benefits and £15 billion on the NHS. That is after the sensible and pragmatic reforms we have introduced. It is a legacy the Opposition should be ashamed of.

Plan A sets out three key ways of dealing with that—tackling the deficit, a fair burden of tax and a sustainable long-term platform for growth. We have cut the deficit by 30%, from 11% of GDP to 7%, although the shadow Chancellor seemed unable this morning to accept that that is indeed a reduction. The IFS has made it clear that under the Labour party’s plan B we would incur £201 billion more debt by 2016-17. Who on earth could think that borrowing another £200 billion, given that legacy, is the answer?

On the second part of plan A, the fairness of the burden of taxation, the Opposition have been scaremongering about it and need to understand it. First, the Chancellor has decided, rightly, to pay off 80% of the debt through public spending reductions and 20% through taxation. The burden of taxation is powerfully shifted towards those with the broadest shoulders. I remind the House that 1% of taxpayers in this country pay 25% of all tax, and 50% of our income tax is paid by the top 20%. We have taken 2 million people out of tax altogether. The £130 billion funding to help new homeowners is the largest package of support—far larger than anything the Opposition were asking for. The £6 billion relief on fuel duty is a massive support for hard-working families, and coming from a rural constituency I particularly welcome its effect on the rural economy. The beer duty measure, too, is a substantial one for rural communities where pubs are at the very heart of rural life; substantial help is also being provided with child care.

This is a Budget to help the working poor. Taken alongside the universal credit and the welfare reforms, it will have a substantial impact on those who are striving to get on. In the remaining seconds, I want to pay tribute to the Government’s work in laying the foundations for a sustainable economic recovery. We cannot borrow our way out of this crisis. We will have to trade our way out.

--- Later in debate ---

[Barbara Keeley (Worsley and Eccles South) (Lab)]

People in my constituency must have hoped that the Budget could provide some light at the end of the tunnel created by austerity and cuts, but they will have been disappointed. Thousands of them are being hit this year by the coalition Government’s fiscal and welfare reform measures, to be implemented after 1 April. After so many Government U-turns there could have been action in the Budget to soften the blow of these changes. The Chancellor could have done that, instead of the tax cut for millionaires he is going ahead with.

Manchester and Salford are cities hardest hit by the bedroom tax. More than 2,600 families in my constituency will be hit by that policy, and many will have to pay between £500 and £900 extra to continue to rent their homes. If they cannot pay, they are expected to move, but the catch is that there are very few smaller properties available for those trying to move. City West housing trust told me that some 460 families have asked to downsize. However, it expects to have re-housed only 43 families by April, and 260 more in 2013-14. The trust believes that some 80 households might find a mutual exchange. So, the total number of households that can be helped to move is less than 400, leaving more than 2,000 to find between £500 and £900 extra in rent. It is estimated that the bedroom tax will cost our local economy £1.9 million in my constituency and almost twice that in Salford, because tenants will have so much less to spend.

This year, pensioners in my constituency lost more than £80 because the personal allowance was frozen, and people who turn 65 this year will lose much more—£320—owing to the change in age-related allowances. Parents in my constituency have lost out on child benefit. Constituents who lost this previously universal benefit felt deep resentment at that. A survey carried out by the Child Poverty Action Group found that child benefit is overwhelmingly spent on clothes, books, education and food—so that is a further loss to our local economy. The hon. Member for Mid Norfolk (George Freeman) spoke about serious commentators. The Child Poverty Action Group did not welcome yesterday’s Budget, for obvious reasons.

Unemployment rose yesterday in my constituency— 3,477 people are now unemployed, an increase on the previous month’s figure. As a result of the Government’s failure on growth and jobs, borrowing is set to be billions higher. To pay for this failure, the Chancellor is taking billions from working-age benefits and tax credits by uprating them, as we know, by only 1% over the next three years, a real-terms cut.

[Sheila Gilmore]

One thing that has not been discussed much is that, on top of that 1% cut, the Government appear to want to cap the type of expenditure that has always been demand-led. That will presumably require further cuts to benefits; otherwise, it will not happen.

[Barbara Keeley]

It is frightening both in extent and in scale. In Worsley and Eccles South, 7,500 people are in work and receiving tax credits. They are the ones who will lose out over the next three years. Most of the savings the Government are making are not from out-of-work benefits, as we have discussed in previous debates, but from tax credits, maternity allowance, maternity pay, sick pay and housing benefit, all of which are claimed by working people—the strivers whom David Cameron promised to stand up for and who are now being hit by Government cuts.

As my right hon. Friend the shadow Chancellor said earlier, the 1% benefits uprating, along with all the other changes that keep being trumpeted, such as the tax allowances, will mean that a one-earner family on £20,000 with two children will lose £380 a year. A family on that level of income is also likely to be hit further by the bedroom tax and the cut to council tax benefit. Indeed, 20,000 households in Salford will be affected by the 10% cut to council tax benefits that the Government are leaving it to the city council to implement.

On new announcements, it is disappointing for families with children that the Government are pledging to help with child care costs in a scheme due to start in autumn 2015. Families on middle and low incomes have already lost up to £1,500 through earlier Government cuts to child care support. They need help now, not in two and a half years’ time.

[Seema Malhotra]

Does my hon. Friend agree that that is yet another example of delaying giving people the resources and support they need, which in turn will delay the recovery and people’s ability to go back to work?

[Barbara Keeley]

I very much agree, particularly in the case of child care support. Families with a couple of children will now have to wait two and a half years before they can get help with child care, which is very expensive. That delay is bad enough, but, worse still, the proposed child care scheme will give a tax break to families earning up to £300,000 a year but offer no help to families on tax credits, whose incomes are already squeezed. Once again, the coalition Government are giving more help to higher earners and less to those on low and modest incomes, the people with the greatest need of child care support.

The Government propose to set the cap for social care at £72,000. Although we welcome the fact that a cap is finally being set, having waited more than a year for the announcement, we must remember that the Dilnot commission recommended a cap of £35,000. Setting the cap at that level would have offered the best protection to people on lower and middle incomes. It is very disappointing, to say the least, that the Government have ignored the advice of the experts whom they put together in the commission, and set the cap at a much higher level while also—this point tends to be ignored—making people pay accommodation costs of £12,000 a year, the very top end of what Dilnot recommended. People who need care when they are elderly, frail or ill will continue to face the shock of large care bills. Examples I have seen of the cap being set at such a high level show that the reality is that often, people will have to pay for their care for four or five years before getting any state help. Many fewer people will be helped by the Government’s proposals.

The final hit on my constituency, which I was disturbed to hear about, is the damage that will be caused to the value of homes as a result of exploration for shale gas. The Government have already caused confusion and uncertainty through their drastic overhaul of the planning system, yet the Red Book states:

“As the shale gas industry develops the Government will ensure an effective planning system is in place”.

That does not inspire confidence, because exploration for shale gas is going ahead in my constituency and, worryingly, it appears we do not have an effective planning system in place to deal with that. Drilling and fracking operations have been known to bring down house prices in an area by as much as 20%. People of course do not want to live in areas where fracking is planned, particularly after the disturbing events that took place when exploration first went ahead in other parts of the north-west. Exploration for shale gas could have a long-lasting adverse impact on the quality of life of people in my constituency. I am strongly opposed to it.

Mr Deputy Speaker, you know the geography of my constituency, so you will know that it is ringed by motorways; I am sure they are very useful in getting you home in the evening. A final aspect of the damage that the Budget will do to my constituency is that it goes ahead with an ill-advised widening of the M60 motorway, which will bring absolute chaos to 800 households in my constituency. When the motorway was built through my constituency, it was called the Stretford bypass. Now, the plan is to widen it by using the hard shoulders. “Hard shoulder running” will bring the M60—and you, Mr Deputy Speaker, if you are motoring—right next to the homes, windows and gardens of my constituents. Those 800 homes will be blighted by that ill-advised scheme, which I will continue to oppose to the best of my ability.

The Budget is a huge disappointment and will be seen as such in my constituency, because it is a massive missed opportunity and is damaging in so many different ways.

--- Later in debate ---

[Andrew Gwynne]

I very much doubt it; we can but hope. There are some good ideas that build on the many regional initiatives that the last Labour Government left in place in May 2010. The strategy almost reinvents the wheel, but I do not care who reinvents the wheel; the fact is that the wheel should never have been smashed up in the first place.

My Denton and Reddish constituency has been badly affected by unemployment. The figures that were released yesterday showed an increase in those claiming jobseeker’s allowance over the past 12 months. There are now 2,642 unemployed claimants in my constituency, which is 6% of the economically active population. The longer-term picture is far worse. The number of those claiming jobseeker’s allowance over the past 12 months has now gone up 32%. The figure has gone up 44% for young people and, staggeringly, for people over 25 claiming jobseeker’s allowance, the figure has gone up 70% in the past year.

[Barbara Keeley]

Is my hon. Friend as concerned as I am to learn from the OBR forecasts that unemployment has not peaked? It will peak later this year or early next year, so the figures that he and I have quoted will get worse.

[Andrew Gwynne]

My hon. Friend is absolutely right. She may have read the Manchester Evening News research, which showed that Tameside, which is part of my constituency, is the worst place in the north-west of England for young people to access job opportunities. There are real issues here that need to be resolved by Government.

Some good local initiatives are being pushed through by my two local authorities. One is Tameside, a Labour local authority, and the other is Stockport, a Liberal Democrat authority. They are doing their best in very tight circumstances, not least because every man, woman and child in Tameside is losing the equivalent of £163 in central Government grant to the local authority and Stockport is losing £94 per head of population.

We are seeing initiatives such as the introduction of town teams in Denton—I am proud that my office is represented on the Denton town team—and a pooled apprenticeship scheme in Tameside, which enables firms to reduce the risk in taking on apprentices. That initiative has been ably led by the leader of Tameside council, Councillor Kieran Quinn, who set out an ambition to have every young person in work or training by 2020. Tameside council has done a deal with New Charter Housing, the local registered social landlord, to ensure that one affordable house is built per week for the next three years. Stockport has the Stockport Boost initiative, its town centre is a Portas pilot, and there are huge opportunities along the M60 corridor with its close proximity to the airport city enterprise zone and the Grand Central redevelopment. That initiative is being pushed forward by the Greater Manchester combined authority and the Association of Greater Manchester Authorities—a Labour-led, city region initiative.

Lord Heseltine talks about combined authorities and giving more responsibility to local enterprise partnerships, and that is where Greater Manchester takes a lead. He also mentions local leadership, which is a thorny issue. I personally support the idea of a Greater Manchester-wide mayor, and although I realise that others in the city region are not convinced, I at least welcome the debate started by Lord Heseltine in his report.

My final point—which I have already touched on—is about housing, which continues to be a big problem in my constituency. The new homes bonus announced by the Government in 2010 was supposed to unleash growth and help build at least 400,000 additional homes, but it has failed to deliver.

--- Later in debate ---

[Damian Collins (Folkestone and Hythe) (Con)]

Following the speech by the hon. Member for Denton and Reddish (Andrew Gwynne) I feel I should point out that the Government do welcome Lord Heseltine’s report, which is why they have adopted the vast majority of his recommendations. I was also pleased to hear the hon. Gentleman mention the success of town teams and the Portas pilots, although he failed to mention that those initiatives were introduced by this Government.

I am sure, Mr Deputy Speaker, as a bit of context for this debate, that you will be familiar with the novel by Chris Mullin, a former Member of this House, called “A Very British Coup”—many Members will have read it; I think it was almost a manifesto for certain Opposition Members at one point. It tells the story of a left-wing Labour Government who run out of money and go cap in hand to the International Monetary Fund, but they cannot accept the terms that the IMF offers, so instead they go cap in hand to the Russians.

That scenario has, thankfully, been avoided here, but it is the meat and drink of a member of the eurozone and a European country, albeit a small country: Cyprus. It has lost control of its debts and spending and is in the awful position—as countries are when they get to this point—where the cuts it is being asked to make at this late stage are much worse than those it might have made earlier, at the right time. Countries find that they cannot go on borrowing for ever because one day the people lending the money will not lend it any more, or only at a rate so punitive that it cannot be accepted. That warning is live. It is affecting a member of the eurozone and may soon affect other countries. The Labour party ignore that peril, but the Chancellor of the Exchequer is steering this country away from it.

Throughout this debate Opposition Members, just as the shadow Chancellor and Leader of the Opposition did yesterday, have pointed out how much the country is borrowing and said that we are borrowing more than was forecast—a perfectly legitimate point. They are, however, much more reluctant to be drawn on whether they would borrow even more. The shadow Chancellor seems to be very happy when he is touring the news studios and sitting on the sofas to be a bit more frank and open about this, but he was asked about it twice in the debate and refused to answer both times. Last week, he was asked by Gavin Esler on “Newsnight” whether his plans would mean that the Labour party would borrow more, and his answer was, “Of course it would.” He is right. His plans do not come out of thin air. He must borrow the money to put in place the stimulus he wants. The reason he is not forthcoming is that he knows that that is not what the country wants. He knows that people are genuinely concerned about the high level of debt we have and about the costs we will put on future generations if we do not get on top of it now. He knows that people are looking at countries such as Cyprus and thinking, “That could happen here if we do not get a grip of our debts.”

[Barbara Keeley]

The hon. Gentleman does not hear what I hear from the shadow Chancellor. I heard him say, first, that we want a cut to VAT to stimulate the economy—the economy has been badly affected by the VAT increase—and, secondly, that we would use the proceeds from the 4G spectrum auction to build 100,000 houses, which would also stimulate the economy and the construction sector. My right hon. Friend the shadow Chancellor does answer those questions; the hon. Gentleman should listen to him.

[Damian Collins]

I hear the shadow Chancellor tell us how he will spend the same money a number of times. A VAT holiday could not be paid for, and would be only a temporary measure—the rate would go back up again. It would be an artificial stimulus, and the country cannot afford any more of those. Why will Labour Members not have the courage of their convictions and say, “Yes, of course borrowing would go up. That is the truth of the matter.” That is what the shadow Chancellor said on “Newsnight”. When they challenge the Chancellor, it is like a sumo wrestler giving unsolicited advice on dieting. Their prescription is worse. They want to borrow more than we have borrowed. People need to understand that. I do not understand why Labour Members will not be up front about it.

What can we do to get our economy going? Labour Members do not like to talk about the growth in jobs, because the recovery of the private sector economy and its response to the measures put in place by the Chancellor of the Exchequer in his series of Budgets is an inconvenient fact.

I was recently at the London launch of the campaign to market the east Kent regional growth fund. Doug Richard, the entrepreneur and former dragon on “Dragons’ Den”, was there to support the event. He is a great supporter of start-up businesses, particularly in the tech and digital sectors. He said that now is a great time not only to start a business—that is why we have a record number of private sector businesses in this country—but to go to the market to look for finance to set up a business. He highlighted, as have many entrepreneurs—particularly in the tech, creative and digital sectors, which are so important to the future growth of our economy—that initiatives such as the seed enterprise investment scheme, which the Chancellor mentioned in his Budget, provide great incentives to bring private sector money into start-up business, and to encourage individual investors to support the growth in those businesses.

--- Later in debate ---

[Nic Dakin (Scunthorpe) (Lab)]

It is a pleasure to follow the hon. Member for Hexham (Guy Opperman), who was hyperactive and animated in his contribution. On balance, I feel that he protesteth too much about most things on this particular occasion.

The Chancellor can certainly talk the talk. The question the country is asking is whether he can walk the walk. In his Mais lecture on 24 February 2010, the then shadow Chancellor argued that there were a series of benchmarks for the policies of the next Parliament

“against which you will be able to judge whether a Conservative Government is delivering on this new economic model.”

He also said:

“I have set out the benchmarks against which we can be held accountable”;

that

“we will maintain Britain’s AAA credit rating”;

and:

“We have to deal with our debts”.

We can mark the Chancellor against his own benchmarks. He has lost the UK’s triple A credit rating because he has failed to deliver growth and to reduce the deficit. The lack of growth has resulted in more, not less, borrowing. It is up £254 billion. Today’s Financial Times has a graph that demonstrates that the deficit is getting wider and that debt is going up. The headline says, “Things are worse and Plan A is off course.” It is now forecast that national debt as a percentage of GDP will not start falling until 2017-18.

In a sense, the Chancellor has supervised his own deficit expansion programme. Nice work by the Chancellor! But it was all too predictable. At least one learned commentator gave a warning in 2010—the Business Secretary who spoke from the Dispatch Box earlier. He said:

“Slashing spending now could push the economy back into recession and inflict further structural damage on the UK that will make it harder to sustain our credit rating.”

He said of the then shadow Chancellor:

“He…fails to appreciate that what the markets are looking for is a credible plan to reduce the deficit, not a willingness to slash regardless of economic conditions. In the current climate, it is essential that decisions about the speed and timing of tackling the deficit are based on the state of the economy, not political dogma.”

There we have it: decisions made from millionaires’ row and in yesterday’s Budget are affecting ordinary, hard-working people in my Scunthorpe constituency, and they are not making a difference for the better.

People are suffering from the removal of the education maintenance allowance, tuition fees, the rise in VAT, short-term working, tax credits being taken away, rising energy bills, fuel bills still going up despite the welcome move in the Budget, and the bedroom tax; and they are £381 a year worse off than they were in 2010. This Budget prefers a bedroom tax to a mansion tax, and it prefers giving a second home subsidy to those who can take advantage of it to building homes for those who need them. This is a Budget for millionaires, not hard-working people. It is a Budget of desperation and exasperation rather than aspiration, and another omnishambles.

[Barbara Keeley]

On a point of order, Mr Deputy Speaker. There has been lot of confusion over the last few hours about the Government’s new mortgage guarantee scheme, and while we have the opportunity I would like to ask those on the Treasury Bench to clarify whether second home owners are eligible for the scheme. Can the scheme, which can be used for new builds and other types of housing, be used in that way?

[Mr Deputy Speaker (Mr Nigel Evans)]

That is not a point of order for the Chair. As the hon. Lady knows, we still have another half hour of this debate and two full days on the financial statement. No doubt I will be in the Chair at times during those two days, and I know that her point will be raised, and that the Government will respond, probably in a way similar to the responses we have heard during this debate. I am absolutely certain that it will be part of the debate.

--- Later in debate ---

[Sheila Gilmore]

As a result of the stimulus provided by the previous Government, all those measurements were turning in the right direction at that time—[Interruption.] Perhaps the Minister who is laughing ought to look, as I did last weekend, at the OBR report on the June 2010 pre-Budget report. He might not be laughing quite so hard then. The Government fail to analyse the problem correctly, so it is not surprising that they do not arrive at the right decision.

On jobs, it is not surprising that the Chancellor did not want to dwell on unemployment and this week’s increase. All we hear about is the increased number in employment. For once, I will not dwell on the statistics—others have done so, and I mentioned them in an intervention, but I want to highlight what the jobs situation means in the real world.

Last Saturday, I was out knocking on doors in my constituency. Within half an hour, I had met two people who were good examples of what the jobs situation means for them. One man had a 15-hour a week job in a local supermarket. No doubt these flexible short-term jobs are quite useful for the employer in meeting peak demand, and, of course, a person working 15 hours for the minimum wage will be below the national insurance threshold, which is another advantage for the employer. He had asked for more hours because he will be hit by the bedroom tax, but he was told that extra hours were not available.

Even if the hours were available, whom would they be taken from? My constituent might be given more hours, but unless there is a need for extra hours to be done in that job, another employee will get fewer hours, or another person would not get a job. Counting low-hour part-time jobs—we should remember that some so-called full-time jobs involve low hours—and saying, “Aren’t they wonderful?” is to forget that we are talking about real people. What effect does that have on them? The man is working and wants to work. More work in future would be good for his well-being, but he remains in poverty, like so many others.

[Barbara Keeley]

My hon. Friend makes some excellent points. Does she agree that, although people want those jobs, taking them often means they are denied the chance of further training and other opportunities? They would rather stick in the jobs they have than take the risk of going for those opportunities.

[Sheila Gilmore]

I know from work by single parent organisations that that is a problem for single parents who want to re-skill so that they can get jobs that will help them to bring up their children.

In the situation I have described, the individual stays poor, and the economy stagnates. That is the reality of the so-called jobs miracle. It is time the Government got real about what is happening.

On the housing measures, if the Government want to help the housing crisis and stimulate the economy, the best way would be through direct investment, which could be done very quickly. There are lots of sites with planning permission that could be used to build affordable homes. To say that 15,000 additional so-called affordable homes will be built as a result of the Budget is so far away from helping the problem that I do not know where to begin. As I said in an intervention, those are not really affordable homes—homes at 80% of market value are not affordable to most people. If they become affordable for people on low incomes, the housing benefit bill will be ratcheted up, when the Government have told us for so long that they are trying to reduce it. One part of the Government is ensuring that many of my constituents suffer a substantial cut in their income from the bedroom tax to cut the housing benefit bill, but another part is busily putting the housing benefit bill up. The policy does not make sense. Last year, we were told that 100,000 people will benefit from the Help to Buy scheme. The reality is that only 1,5000 have benefited. It is not enough to talk about all those plans and say how wonderful they will be when none of them results in anything.

Frankly, an athlete who became slower after their trainer told them they had only to diet to get faster would sack the trainer. That is what we need to do.

--- Later in debate ---

[Barbara Keeley]

Does the Minister not think it is time to stop living in the past? Will he give an answer to the point of order I raised about the new Help to Buy scheme? Can it be used for second mortgages? The information about it states that a borrower could be remortgaging an existing property with a new lending institution. It is a very confusing scheme.

[Sajid Javid]

I shall come to the Help to Buy scheme in a moment. I was hoping the hon. Lady would offer an apology, but no such luck.

As my right hon. Friend the Business Secretary stated, yesterday’s Budget had economic growth at its heart. The economy is still feeling the impact of Labour’s disastrous policies, but we continue to find practical ways to turn the economy around and to restore growth. Through the private sector, we have created 1.25 million new jobs since we came into power—more new jobs in three years than were created under the last 10 years of Labour. Under this Government, private sector employment has been growing more quickly in the north-east, the north-west and Yorkshire than across the country as a whole. There are more people in employment today than at any other time in our history. We did not hear a single Opposition Member mention that fact.

We might think that Labour Members would have welcomed that development, but they did not. Instead, we heard cheap political talk. They asked about employment, which of course we all want to fall, but they avoided the facts.

On their behalf, I have looked at the change in youth unemployment in the constituencies represented by virtually every Opposition Member who spoke today and mentioned unemployment. Let us look at the facts. This is what happened to youth unemployment during the last term of the Labour Government in those constituencies. In Paisley and Renfrewshire North it was up 150%; in Clwyd South up 103%; in Feltham and Heston up 77%; in Worsley and Eccles South up 124%; in Luton South up 45%; in Birmingham, Selly Oak up 96%; in Edinburgh North and Leith up 60%; in Scunthorpe up 135%; in Edinburgh East up 87%; and in Denton and Reddish up a record 148%. In each of those constituencies, youth unemployment rocketed during the last term of the Labour Government and in every one of them it is down under this Government.

Let me turn to the employment allowance, which a number of hon. Members mentioned. We are proud to be introducing the £2,000 employer national insurance contributions allowance, which will benefit 1.5 million companies throughout the country and take almost a third—450,000 of the smallest businesses—out of NICs altogether. Cutting this payroll tax will be a boost for employment, but our tax changes do not stop there. We are overseeing a system of competitive tax rates that will be strictly enforced—a system that encourages companies to invest and employ here. That is why we are reducing the main corporation tax rate by April 2015 by an additional 1% to 20%, making it the lowest in the G7 and the joint lowest in the G20.

Let me turn briefly to Lord Heseltine and his report, “No Stone Unturned”. As hon. Members are aware, this week the Government published their full response to the report. I am sure that hon. Members have seen the impact Lord Heseltine made on the docklands and in Merseyside. We all know that he is a man with a vision for cities. I am sure that Members will join me in wishing Lord Heseltine, who turns 80 today, a very happy birthday. To help to celebrate, the Government have accepted, in full or in part, 81 of the 89 recommendations he made in his excellent report.

While I have time, I want to turn to aspiration. We know that businesses, buildings and companies start with the vision of individuals. Yesterday’s Budget was for an aspiration nation. It is a Budget that will support people who want to work hard and get on, by preventing higher costs of child care and disincentives to work, creating a simpler system for retirement and giving people a real opportunity to buy their homes, through the help to buy scheme, the extension of the right to buy scheme and our further investment in affordable homes.

Lastly, I want to turn to the cost of living. This Budget also recognises the pressures on the cost of living, as my hon. Friends the Members for North Swindon (Justin Tomlinson), for Harrow East (Bob Blackman), for Henley (John Howell), for Tiverton and Honiton (Neil Parish) and for Hexham (Guy Opperman) all outlined. We have cancelled September’s planned fuel duty rise. Fuel duty will no longer be 10p a litre lower than the previous Government had intended; it will be 13p a litre lower from April this year. We have also cancelled Labour’s hated beer duty escalator and gone one step further by taking a penny off beer duty. I thank my hon. Friends the Members for Burton (Andrew Griffiths) and for North Swindon for raising the issue and campaigning on it so hard.

We have also achieved our commitment to take the personal allowance to £10,000 by April 2014, a year ahead of schedule, which will be a further tax cut for 24 million people up and down the country. Together, these tax allowance changes have taken 2.7 million people out of taxation altogether. Someone working full time on the minimum wage would see their tax bill more than halve because of the measures this Government have taken. As we heard from my right hon. Friend the Chancellor yesterday, every individual who was benefiting from the 10p tax rate under the previous Government is now on a zero per cent tax rate.

Yesterday’s Budget put faith in hard-working people. It was a Budget that told businesses that they are welcome to set up here and encouraged to employ people here. It was a Budget that told individuals up and down the country that if they want to work hard, they will be rewarded in our aspiration nation. I commend these Budget resolutions to the House.

Ordered, That the debate be now adjourned.—(Greg Hands.)

Debate to be resumed tomorrow.