Amendment of the Law Debate

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Department: HM Treasury
Monday 28th March 2011

(13 years, 1 month ago)

Commons Chamber
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Bob Russell Portrait Bob Russell (Colchester) (LD)
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He’s one of the guilty men.

Lord Pickles Portrait Mr Pickles
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Yes.

Bolsover council states that

“we have taken this step to freeze our share of the Council Tax because we do not feel it is fair that these are passed onto you”.

I do not recall the right hon. Gentleman freezing the council tax during his time in government, but let us hear from him.

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Bob Russell Portrait Bob Russell
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Will my right hon. Friend give way?

Lord Pickles Portrait Mr Pickles
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I will give way to my hon. Friend, and then to the hon. Gentleman.

Bob Russell Portrait Bob Russell
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Will my right hon. Friend confirm that the third and sixth paragraphs of chapter 4 of the coalition’s programme for Government on communities and local government will form part of the planning legislation? I believe that they will, but I would like that to be put on the record.

Lord Pickles Portrait Mr Pickles
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The coalition agreement is not quite holy writ, but it is pretty close to it, so of course those paragraphs will be included.

I apologise to the hon. Member for Southampton, Test (Dr Whitehead) for not giving way earlier.

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Caroline Flint Portrait Caroline Flint (Don Valley) (Lab)
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I begin by saying that the violence of a handful of anarchists and attention seekers at the weekend was an absolute disgrace, and I hope that prosecutions will follow. However, I have to add that none of their yobbish and illegal behaviour could detract from the biggest demonstration of British feeling for eight years. People wanted to tell the Government that their cuts are going too far and too fast, and that their lack of plans for jobs and growth just make the pain worse.

Bob Russell Portrait Bob Russell
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Will the right hon. Lady give way?

Caroline Flint Portrait Caroline Flint
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I will shortly, but I want to make a little progress.

What the Secretary of State’s rhetoric today has revealed is that the Government have no plans for jobs or growth and no plans for the future. If he wants to talk about the economy that they inherited, let me tell him a thing or two about the legacy that we left. They inherited an economy in which growth had returned, inflation was low, unemployment was falling and borrowing was lower than forecast. I am proud to say that Labour increased funding for local authorities, built or refurbished 4,000 schools and 100 new hospitals and left the nation’s public housing stock in better shape than it had been in during our lifetime. If the Secretary of State got out of his office a little more often, he would see that Britain’s major towns and cities had been substantially regenerated.

Even when the worst recession in our lifetime was visited upon our country, bringing half the banks in the UK and Europe to their knees, we still had fewer repossessions, fewer business collapses and a lower rise in unemployment than during the Tory recession of the 1990s. Today we have an economy that is not growing at all and in which inflation is up to 4.4%, unemployment is at a 17-year high and borrowing will be higher this year, next year and in every year for the next five.

Bob Russell Portrait Bob Russell
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I am glad that my intervention was delayed, because I had not recognised the utopia that the right hon. Lady has just described. Does she accept that the last Government had any responsibility for the financial situation that the UK is now in?

Caroline Flint Portrait Caroline Flint
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We were part of a global crisis that affected countries around Europe and the world, but it is interesting that before the international crisis hit, we had the second lowest debt of any G7 country. We had brought overall public sector net borrowing down, and the now Prime Minister and Chancellor committed themselves to Labour’s spending plans. In 13 years, we created 1.1 million enterprises, and in the past two years, which included our last year in government, the World Bank ranked the UK fourth in the world and first among European countries for the ease of doing business.

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Bob Russell Portrait Bob Russell (Colchester) (LD)
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Until the Labour party acknowledges the problems it left the country and its financial mismanagement, it will never be taken seriously by the British people. The stark reality is that the previous Government took Britain to the brink of bankruptcy—just one more move and we would have been in the same boat as Ireland, Greece and Portugal.

Not everything in the Budget meets with my approval. There are things in it that I wish were not, and things not in it that I wish were. However, it is a Budget of hope, and it is pragmatic after Labour’s years of hopelessness. Among the good things is the fact that I am blessed in Colchester with the most incompetent Conservative party in the east of England, which is matched in incompetence only by the local Labour party. Although I welcome the Budget, it will come as no surprise to Members on the Government Benches to hear that, having spent 40 years opposing the Conservatives, I have not changed my spots. The Budget is more Aldi than Waitrose.

Some Members have referred to their constituencies, and I believe that on occasions such as these we need to remind people that national Budgets have local consequences. They affect local pride and civic leadership. In that respect, I want to state with great honour that last Wednesday Colchester borough council voted to apply for city status, a civic honour granted by Her Majesty the Queen under the royal prerogative. The qualifying guidelines for making such an application state:

“Any local authority… which considers that its area deserves to be granted the rare honour of city status on this very special occasion is welcome to enter the competition… The places to be honoured for the Diamond Jubilee should be vibrant, welcoming communities with interesting histories and distinct identities.”

On that basis, Colchester ticks every box. It is Britain’s oldest recorded town and the first capital of Roman Britain. It is the home of the university of Essex, the most international university in the country, and of which Mr Speaker is a graduate. As a super garrison town, it is also the home of 16 Air Assault Brigade, which is currently serving in Afghanistan. An additional reason why I hope Colchester will become the UK’s newest city is the fact that this is being driven from the ground upwards by an organisation called Destination Colchester, which is bringing together organisations, local businesses and the people of the town. This is the big society in operation.

Among the aspects of the Budget that I am unhappy about are those relating to planning. I urge the Government to look again at the VAT on old buildings, because although converting old buildings to housing is welcome, the 20% VAT levy is a penalty. I hope that they will look at that again. Colleagues will recall that I intervened on the Secretary of State for Communities and Local Government earlier to mention chapter 4 of the coalition programme for government, which relates to communities and local government. The third point states:

“In the longer term, we will radically reform the planning system to give neighbourhoods far more ability to determine the shape of the places in which their inhabitants live, based on the principles set out in the Conservative Party publication Open Source Planning.”

The sixth point states:

“We will… create a new designation—similar to SSSIs—to protect green areas of particular importance to local communities.”

I am delighted that the Secretary of State has agreed to visit Colchester to see the fields of west Mile End, which developers want to put under a housing estate of 2,200 dwellings, against all the wishes of the local community.

I will conclude on beer duty, which was an opportunity lost by our Government. I hope that they will look again at the issue, because our towns and cities are troubled by binge drinkers, and one way to address that would be to put up the beer levy by 10p a pint or thereabouts in the supermarkets and the mega-pubs and to reduce it by 10p a pint in our community pubs, traditional pubs and village pubs. In that way, our local communities—the localism aspect of the licensing industry—would receive the boost. At the moment, the supermarkets and the mega-pubs are able to outdo the local, community pubs, and we all know that the consequence is drunkenness in town centres, so I urge the Government to look again to see whether we can have a lower beer levy for our community pubs.