Finance Bill

Gavin Williamson Excerpts

2nd reading
Wednesday 13th December 2023 Commons Chamber

[Priti Patel (Witham) (Con)]

I praise and congratulate my right hon. Friend the Chancellor of the Exchequer on bringing forward the Bill. As we have previously discussed, it will implement the important measures set out in the autumn statement.

We have already debated some of the key measures that were included in the National Insurance Contributions (Reduction in Rates) Bill, which was considered in the other place yesterday. I do not want to go over the arguments on fiscal drag and lower taxes, as I have set out my views previously, but I commend the Government for bringing forward those measures quickly and in the right way, as they will go some way to easing the tax pressures the public are feeling.

My right hon. Friends on the Front Bench are well versed in my views on the tax burden, so I will not go on about how about I feel about that or measures we can bring in going forward. However, I would like to press them to ensure that we think about long-term provisions and that the next Finance Bill goes further by raising thresholds for income tax, including for higher-rate taxpayers, and for national insurance.

It is worth noting that in the Budget after the general election of summer 2015, the then Chancellor outlined plans to increase the tax-free threshold to the equivalent of 30 hours’ pay at the national living wage. The new £11.44 national living wage rate for 2024 commences in April, so if the tax-free threshold rose to cover 30 hours per week next year, that would equate to £17,000 to £18,000, rather than remaining at £12,570 through to 2028, as currently planned. I press my right hon. Friends to keep that under review—thankfully, all tax measures are under review—and to prioritise uplifts to those thresholds, because we believe in enabling people to keep more of their earnings.

At the same time, when we see GDP figures not growing as fast as they could, as we have today, it is important to focus on how we can grow the economy much more, and with that people’s incomes. We want to see more growth in those GDP figures, but they represent the impact of high interest rates and what they mean for inflation. High interest and inflation have placed a burden on businesses and households. The Bill outlines reductions in business taxation that are well timed and well placed but, as ever, they need to be kept under review. Businesses grow the economy by employing more people, which helps economic growth, and that is the space where we, as a Government and a country, want to be.

It will not surprise my right hon. Friends on the Front Bench that I wish to speak to certain clauses, as I have spoken about clauses on business taxes in the past. I want to focus on the provisions in clause 21 and schedule 12 of the Bill, on pillar two and the global minimum corporation tax measures that we are adopting. I have been on record about this previously, but the Minister is also well aware of my long-standing concerns over the implementation of pillar two measures. Binding ourselves to pillar two undermines our fiscal sovereignty and risks deterring investment into our country. I labour this point because we have just seen the publication of our GDP growth forecasts. Obviously there will be revisions in our growth forecasts, even by financial institutions, and we should be mindful of that, but this measure undermines our competitiveness. It is known that some 130 countries have signed up to pillar two, but, unlike the UK, barely a quarter of them are implementing it at the end of the year. Given our economic backdrop and GDP forecasts, I would rather see a delay in the implementation of this measure.

A written parliamentary answer earlier this month shows that just 30 countries are implementing this measure at the same time as we are. They will be followed by Japan in April, and then Guernsey, the Isle of Man, Jersey, Hong Kong and Singapore from January 2025. We also know that the US, our big economic ally, is not likely to implement the measure, so by pressing ahead with this fiscal measure, we are basically limiting the scope that we give ourselves—oxygen, basically—to develop and grow.

When the Finance (No. 2) Act 2023 went through Parliament last year, it contained more than 150 clauses, which were spread over two parts, with a further five schedules, covering 170 pages in total. Many of us remember carrying those weighty tomes into the Chamber and flicking through all the pages. There was a large and complex change in tax laws. But despite that legislation being passed in the summer, this Bill makes even further changes to pillar two and the domestic top-up levels. Clause 21 and schedule 12, which cover those changes, span 55 pages and include multiple amendments to the Finance (No. 2) Act passed only a few months ago. I recall saying that the amendments alone would generate more complexity to the system. I say politely to those on the Front Bench that the 55 pages here point to the complex nature of the matter. The fact that we are amending something that went through the House not that long ago says it all.

No impact assessment has been provided of these measures, which give effect to the accounting periods beginning on or after 31 December 2023. Companies and partnerships will be impacted by the changes coming into effect in less than three weeks’ time, even though the Bill will not receive Royal Assent until next year. We must be cognisant of the burdens that we are again putting on businesses. I am no fan of accountants, but by putting more burdens on to businesses, we are increasing their dependency on accountants and on process, which we should be freeing them from. I ask the Minister to provide us with further details as to why these changes are needed when the previous Finance Act was passed only earlier this year, and with an impact assessment of them.

I would like to understand the merits of the global minimum income tax, and I hope that, in the same way that all tax is under review, Ministers will consider removing all the provisions from our statute book in due course, because other countries will not follow suit or are delaying implementing some of these measures.

I wish to comment on clause 2, relating to research and development tax credits. It merges the current R&D expenditure credit with the small and medium-sized enterprises scheme. These tax credits help and support businesses to invest and take risks, and, importantly, to innovate and grow, set up jobs and employ people. I have previously raised the concerns that some businesses have about the complexity of claiming them and the processes that they experience. I am aware of many businesses that have spent more than a year having their claims investigated, with multiple rounds of questions and inquiries from HMRC officials. There are many live cases, which I will not reflect on now, but previous Treasury Ministers have committed to hold discussions on them.

[Sir Gavin Williamson (South Staffordshire) (Con)]

I thank my right hon. Friend for giving way. In Staffordshire, which is a manufacturing powerhouse, R&D tax credits are vital in driving productivity in manufacturing businesses. Does she agree that it would be good to hear those on the Front Bench make a commitment to reviewing and slimming down that scheme, so that it actually gets those small businesses embracing it and getting the investment that we need?

[Priti Patel]

My right hon. Friend is spot on. The scheme was set up for a very good reason, which is, effectively, to support entrepreneurism and innovation and to grow businesses. Now we are seeing those businesses saddled with bureaucracy and burdens. What is worrying is the number of small businesses that have been under investigation by HMRC for over a year, as that is now having a detrimental impact on their performance. As a representative not just of Witham, but of Essex as a whole, I can see businesses that have now come together to make wider representations to HMRC and the Treasury about that. I hope that those on the Front Bench will learn from some of these experiences and look at how we can evolve and adapt the process, so that the scheme can revert back to its original premise of supporting businesses. As I have said many times, the only way is Essex. Essex is a county of entrepreneurs and they are the ones who are feeling the pressures.

In his summing up, will the Minister outline the operational aspect of these changes? In particular, what interactions is he having with HMRC about some of the cases that have been under investigation for more than a year, and the impact that that is having on those smaller businesses? At the end of the day, they are SMEs that are not able to grow their businesses because of these inquiries and investigations. Naturally, that has an impact on the profits that they can then reinvest in their businesses.

I also wish to make a few comments on air passenger duty and the provisions in clause 24. Many of us in this House have spoken about air passenger duty for many years. I have been a long-standing campaigner for reform of this tax to encourage and support economic growth. It is ironic that we are having this debate on a day when the GDP figures have come out as they have. I believe in globalisation—in the sense of more global competition—and in our being more open to the world when it comes to those global dynamic markets.

We should also make travel more competitive and affordable for families, especially as they are struggling with the impact of the cost of living. Reforms that have taken place under previous Conservative Chancellors have been welcome. I query the small increase in the APD rates for 2024-25 in the Bill. Back in the summer, in his speech on net zero, the Prime Minister pledged to scrap plans for new taxes on flying, but the Bill provides for an increase in APD rates, ranging from 50p to £6 per flight. Although they are small increases, they are still increases. They are lower than the rate of inflation planned for and assumed in previous Government statements and OBR forecasts, which is to be welcomed. Therefore, any clarification on what is happening with APD going forward is welcome. Again, that is important for certainty and also for forecast purposes.

On the subject of air travel, I am disappointed that the autumn statement and this Finance Bill do not contain reforms to end the so-called tourism tax. I was one of the few Members to speak on that during the Humble Address debate. If we look at London, our great city, we can see that, at this time of the year, it is a magnet for tourism and for people coming from overseas. It is great for our businesses, great for our country and great for our brands—our British brands and our small brands. Our tourism sector and shopping and retail businesses are losing out to their European competitors as a result of the removal of the VAT refund and the VAT-free shopping and arrangements that had previously been in place. I think that we can reintroduce those measures. In the last debate, those on the Front Bench committed to looking at dynamic modelling in this area, and some external reviews of the potential revenue base. It would be a boost for business and jobs, and we should be looking at all measures to boost economic growth and competition. There are plenty of reports and studies out there. I do not want to labour the point; I know that those on the Front Bench will be aware of them.

It is winter, and we are heading towards a spring fiscal statement. Since 2010, the Government have consistently kept fuel duty down, cutting and freezing rates. This is an opportune moment to remind the public what the Government have achieved on that alone, because it is very important. Families, businesses and households depend upon it, and I very much hope that we will continue to stand up for the measures that we have put in place historically. I urge the Government to commit to maintaining the 5p reduction, and perhaps even to go further where there is fiscal headroom. Finding fiscal headroom is difficult, but sometimes—I say this as a former Treasury Minister—it can be found when we really look for it.

As the Bill passes through the House and is subject to further scrutiny, I know that my colleagues on the Front Bench and the Chancellor of the Exchequer, who is dedicated to dealing with the difficult fiscal challenges that we face, will be focused on unleashing future growth by reducing taxes and, importantly, empowering the very businesses that employ people and keep people in their jobs for long-term economic security.

Bank Closures: Stoke-on-Trent North

Gavin Williamson Excerpts

Wednesday 14th June 2023 Westminster Hall

[Jonathan Gullis]

The hon. Gentleman is absolutely right not only about the elderly, but about people who do not have online access, or have no desire to have it, or who do not understand the modern technology about which we have the benefit of learning in this day and age. Such people have a natural mistrust of online banking because they are fearful of scammers and the online hoaxes that have sadly become all too apparent in our criminal justice system. If the Barclays closure goes ahead, Stoke-on-Trent North, Kidsgrove and Talke will be left with just one high street bank, which is simply not good enough.

I am pleased to have secured the debate given the terrible news that Barclays has announced its intention to close the Kidsgrove branch on 11 August. That decision will leave that great town without a single bank and leave the community isolated from vital in-person banking services, which provide local people with reassurance and confidence with respect to their money, particularly during a cost of living crisis.

It is right to point out that digitalisation has transformed the way that families and businesses deposit, withdraw and save their money, and in Stoke-on-Trent we have been rolling out brand-new 5G broadband, which is increasing our connectivity, and which will undoubtedly make online banking more effective. The digital revolution means that banks are innovating, and Barclays points out in its argument for closing the branch that

“the way people bank today is unrecognisable from 50 years ago”.

However, it is of paramount importance that we do not let digitalisation exclude people in our community from banking services.

The services that bank branches provide are most important for vulnerable members of society, and closures impact them the most. One of my constituents, Dawn from Kidsgrove, told me that her father, who is an elderly customer, would find it “impossible” to travel to Crewe or to Hanley to visit a Barclays branch, that his deafness means he cannot use telephone banking, and that he is not confident enough to use internet banking.

As the Chief Secretary to the Treasury pointed out in the 2020 access to cash call for evidence:

“exclusion from banking services can have a detrimental impact on people’s lives. Whilst card payments and other payments services are becoming increasingly popular, the evidence shows that a significant proportion of the UK population continues to rely on cash in their day to day lives.”

The Financial Conduct Authority states that banks are expected to carefully consider the impact of planned branch closures on the everyday banking and cash access needs of their customers, and to take particular care for their most vulnerable customers.

I have launched a petition to save Barclays branch from closure, and it has nearly 450 signatures already. That shows the strength of local feeling that Barclays is not upholding its responsibility to look after its most vulnerable customers.

[Sir Gavin Williamson (South Staffordshire) (Con)]

I congratulate my hon. Friend on securing the debate. We are also facing the closure of a Barclays branch in Wombourne, which is going to have a devastating impact on the village, and on the access to banking facilities for many elderly people, as well as for businesses. Does my hon. Friend agree that it is time for Barclays to rethink? It is often the last bank in town, and we need that in order for our communities to thrive.

[Jonathan Gullis]

My right hon. Friend and Staffordshire colleague has been a fantastic champion for that great country for many years. He is entirely correct that there needs to be a rethink. It is starting to feel, albeit unintentionally, like Barclays has something personal against Staffordshire, with Kidsgrove, Newcastle-under-Lyme and Wombourne all facing branch closures. This has not been well thought through, particularly as residents may have to travel to Crewe or Hanley. That is not an easy journey for the constituents of my right hon. Friend the Member for South Staffordshire (Sir Gavin Williamson), as I am sure public transport connectivity is not what he would desire.

A journey to Crewe is a significant one even from the place I am proud to serve, particularly if households do not own a vehicle and rely on public transport that is not well connected to the surrounding north Staffordshire area and the Cheshire boundary. I hope that common sense will prevail here, and that Barclays will engage with my right hon. Friend, my hon. Friend the Member for Newcastle-under-Lyme and myself to talk about what can be done to help protect its customers in these difficult times.

One of my constituents, Ms Green, told me that

“many disabled people and pensioners will suffer”.

That makes me question whether Barclays is even complying with the FCA’s guidance. Crucially, 40% of over-65s—over 4 million people—do not manage their money online. That is because online banking is difficult to navigate and automatic telephone responses are monotonous and impersonal. A constituent wrote to me to say that they found telephone banking

“confusing and difficult to hear.”

A recent survey by Accenture illustrates that point, finding that 44% of over-55s would rather visit their branch. It also showed that in-person banking was also popular among over 20% of younger people.

Alongside the impact the branch closure will have on vulnerable people, it is impossible to underestimate the financial security implications of a lack of in-person banking. Since Barclays announced its closures, I have been inundated with correspondence from local people outraged that Kidsgrove is losing its last remaining bank. One constituent told me that they are “appalled” at the announcement, and that it will put the elderly

“at greater risk of getting scammed.”

Dr Daniel Tischer of the University of Bristol noted that,

“the danger of mass cyber-attacks... looms ominously”.

He also noted that there is a genuine risk of cyber-crime, scams and fraud. I am certain that the precedent set by bank closures will put people at greater risk, especially the most vulnerable in our society, who lack the digital awareness younger people have to spot clear signs of illicit financial activity. For those people, in-person banking with specialist advisers is crucial. By closing the branch, Barclays is putting people whom it has an obligation to support and protect at a much greater risk.

--- Later in debate ---

[The Economic Secretary to the Treasury (Andrew Griffith)]

It is a pleasure to see you in the Chair, Ms Nokes. I congratulate my hon. Friend the Member for Stoke-on-Trent North (Jonathan Gullis) on securing this debate on a very grave matter that faces his constituents and many others across the country. I thank the hon. Member for Strangford (Jim Shannon), my right hon. Friend the Member for South Staffordshire (Sir Gavin Williamson) and my hon. Friend the Member for Newcastle-under-Lyme (Aaron Bell) for their contributions, which shows the depth of concern about this significant change.

There is strong feeling here. My hon. Friend the Member for Stoke-on-Trent North talked about his incredible 450-strong petition from local residents, which demonstrates the real concern of people in Kidsgrove, as well as his formidable capability in representing them and bringing the issue to the national stage. As a fellow local Member of Parliament, I have also focused on helping small high streets in my constituency. I understand the real concern that when an amenity such as a local bank branch closes, there is more jeopardy for the high street. My hon. Friend is quite right to highlight that. It is a credit to him and to Members who have supported him that he has secured that commitment from Barclays for a Barclays Local, which will be just a three-minute walk away from the current branch, offering the face-to-face service that people value so much, three days a week at Kidsgrove Sports Centre. That comes on top of the three free-to-use ATMs at which his constituents will continue to have free access to their cash, and the Post Office, which is doing a valiant job. As consumer patterns change, we often see the Post Office stepping in, and that is one of the things underpinning the continued fortunes of our post office network.

Although it is uncomfortable and difficult, we are seeing a very rapid change in consumer patterns. Local bank branches across the nation are getting fewer and fewer visitors. That does not mean that face-to-face banking is not vital, which is why there are so many regulations in place, administered by the FCA. It is also why it is so important that we all remain vigilant to ensure that the FCA does its job of challenging and pushing back when communities such as Kidsgrove are threatened by the loss of a bank branch, and why it is imperative that adequate alternatives are in place. I fall short of the Government stepping in and making commercial decisions for firms, and I think Members broadly understand why that might be the case.

[Sir Gavin Williamson]

My hon. Friend the Member for Stoke-on-Trent North (Jonathan Gullis) set out the interesting idea of hubs working together, which is already being trialled. The Minister rightly says that there is commercial pressure on banks, and they are looking at a different model, but Government have a great ability to act as a convening power, bringing the major high street banks together to look at how they can co-operate and work together to ensure that communities such as those in Kidsgrove, Wombourne and Newcastle-under-Lyme are not excluded.

[Andrew Griffith]

My right hon. Friend, who exercised his great convening power and delivered great service to the nation, makes a very good point. This agenda is never far from my mind. Only last week, I visited the new banking hub in Acton to see how the Government and the sector are working together to bring forward viable alternatives, and it was impressive to see the range of services offered in a new community hub. I wish my hon. Friend the Member for Stoke-on-Trent North all the best with the regeneration project, and perhaps there could one day be a banking hub. For the time being, Barclays is seeking to mitigate the change that is happening.

Members may know that the Financial Services and Markets Bill, which has had its final day of debate in the House of Lords, will shortly be coming back to the Commons for a final time before being put on the statute book. I hope, that will happen within a matter of weeks, if not days. The Bill enshrines for the very first time a statutory right of access to cash—free cash, no less—working with the LINK network and with UK Finance, convened by the Government. That is one of the ways that we seek to underwrite this, and I understand that it is underwriting; it is not the full provision that every colleague seeks.

As my hon. Friend the Member for Stoke-on-Trent North said, we have to be very mindful of the vulnerable. The Government are committed to cash. It is not the Government’s policy to seek to extricate cash entirely from the system. It is very important to underwrite it for those who are vulnerable, those who have some sort of impairment or simply those who manage their finances through cash.

We have made significant interventions through that Bill—the great clunking force of law—to ensure that our constituents can continue to have access to free cash and, potentially more importantly, although it does not show up as much in our inboxes, that businesses can continue to have access to deposit cash. If they do not have that really important part of the supply chain, businesses will find it more onerous to accept cash, and we will not have the ability to pay with cash.

There is a range of alternatives in place. My hon. Friend is right to have secured this debate on behalf of his constituents and others.

Autumn Statement

Gavin Williamson Excerpts

Wednesday 5th December 2012 Commons Chamber

[Mr Osborne]

Capital spending is higher than the level in the plans that we inherited from the last Labour Government. That is simply the case. We inherited big planned cuts in capital spending, and we have increased capital spending, off those plans. We have that new money for schools, and I would hope that the hon. Lady would welcome that.

[Gavin Williamson (South Staffordshire) (Con)]

Can my right hon. Friend confirm that someone earning £10,000 who would have paid £1,180 in national insurance contributions and income tax in 2010-11 will pay £380 in 2013-14? Does that not show that Government Members support people and families on low incomes, unlike the Labour party?

[Mr Osborne]

My hon. Friend speaks very powerfully about the way in which we have helped people. We have helped basic rate taxpayers by increasing the personal allowance, we have taken 2 million of the lowest paid out of work, and we have halved the income tax bill for people on the minimum wage; but, above all, we have helped working families throughout the country with a further income tax cut today.

Oral Answers to Questions

Gavin Williamson Excerpts

Tuesday 6th November 2012 Commons Chamber

[Chris Skidmore (Kingswood) (Con)]

2. What fiscal steps he is taking to encourage job creation in the private sector.

[Gavin Williamson (South Staffordshire) (Con)]

8. What fiscal steps he is taking to encourage job creation in the private sector.

--- Later in debate ---

[Danny Alexander]

Yes, I certainly will. [Interruption.] I know the Opposition do not like to hear this, but my hon. Friend is right to highlight the good performance of the British labour market and the facts that the private sector has created more than 1 million new jobs in the last two and half years and that there are more people in employment in this country than ever before.

[Gavin Williamson]

Under the Labour Government, we lost 65,000 private sector jobs in the west midlands. In stark contrast, since 2010 my constituency alone has already secured £400 million in investment. What more will my right hon. Friend do to secure private sector jobs in South Staffordshire and the west midlands?

[Danny Alexander]

My hon. Friend is right to say that the Labour party’s record on encouraging the private sector was at its most catastrophic in the west midlands, for which the figures he gave are absolutely correct. That is why another £124 million of funding for projects in the west midlands was announced in round three of the regional growth fund and why we are providing additional support for the automotive sector, which is so important in his constituency and region. Of course the improved climate for business, the removal of regulations and the funding for apprenticeships will benefit businesses in the west midlands, as well as in the rest of the country.

Oral Answers to Questions

Gavin Williamson Excerpts

Tuesday 11th September 2012 Commons Chamber

[Danny Alexander]

As the question that the hon. Lady is following up on concerns the personal allowance, let me limit my answer to that, Mr Speaker. Her constituents, in common with other Members’ constituents, are benefiting from the fact that the Government have introduced the most radical policy for many years by putting more money back into the pockets of hard-working families across the country. She would do well to accept that.

[Gavin Williamson (South Staffordshire) (Con)]

15. What steps the Government have taken to reduce the cost of credit to the real economy.

[The Financial Secretary to the Treasury (Greg Clark)]

rose—

[Greg Clark]

Goodness. Thank you. I feel like Boris Johnson.

The Government and the Bank of England have launched the funding for lending scheme to enable banks to make loans cheaper and more easily available to households and businesses. In addition, 19,000 cheaper loans have been offered to smaller businesses under the national loan guarantee system.

[Gavin Williamson]

I welcome my right hon. Friend to his new post and wish him every success. Many businesses in South Staffordshire face a great challenge in raising finance to grow and recruit new workers. Will he explain how the measures that he has outlined will help small and medium-sized businesses in my constituency to grow and expand?

Finance Bill

Gavin Williamson Excerpts

Tuesday 3rd July 2012 Commons Chamber

[Catherine McKinnell]

I have just answered it. I would be grateful if the Minister could similarly provide detailed costings as to where the Government’s tax reduction for the fuel relief is going to come from. If he were able to do that, we could certainly provide detailed costings of our tax proposal. The point is that the reduction to 17.5% will put money back into people’s pockets, get the economy moving and get growth back into the economy. That will help to bring down borrowing, which is increasing at the moment.

[Gavin Williamson (South Staffordshire) (Con)]

Can the hon. Lady quantify, for the benefit of those in the Chamber, how much that 2.5% reduction would cost?

[Catherine McKinnell]

I repeat what I said before: the Government’s current policy of increasing VAT to 20% is taking money out of people’s pockets and is causing a slump in demand. It is very strange that these questions are coming from a Government who are borrowing more than they intended over the spending period, not less.

--- Later in debate ---

[Catherine McKinnell]

I beg to move, That the clause be read a Second time.

In this new clause we call on the Government to consider repeating the bank bonus tax, which raised £3.5 billion in 2010-11, and to use the revenue to create 100,000 jobs for young people. It is an understatement that this has not been a good few weeks for the banks. First, there were the disgraceful mistakes at Royal Bank of Scotland that left thousands of people unable to access their own money for up to a week. I am sure that top bankers there managed to get by for a few days, but for people on low incomes it is no laughing matter to be left without a week’s wages.

[Gavin Williamson]

Does the hon. Lady think that those who set up the regulatory system that governed the banks, such as the shadow Chancellor, should come to the House to apologise?

[Catherine McKinnell]

Then came the shocking revelations at Barclays—[Hon. Members: “Oh!”]—of traders fiddling the markets, cheating with mortgage and lending rates.

[Catherine McKinnell]

I will answer the question, but it was rather an insult to the people who have suffered from the situation at RBS, which was caused by administrative failures and poor management. The question put by the hon. Member for South Staffordshire (Gavin Williamson) does not address the severity of the matters that I am laying before the House.

Then came the shocking revelations at Barclays: of traders fiddling the markets, cheating with mortgage and lending rates—

[Gavin Williamson]

rose—

[Catherine McKinnell]

It would be more appropriate for the hon. Gentleman to make his intervention now, but I will complete my sentence. Those traders then paid each other for the favours with bottles of Bollinger.

[Gavin Williamson]

The point that I was trying to ask the hon. Lady to explore was that the regulatory system put in place under the last Labour Government has led to market failure and the recent LIBOR problems. Does she not think that the shadow Chancellor should come to the House to explain why he took no action when he was City Minister? Yes or no?

[Catherine McKinnell]

I was talking about the situation at RBS, which was caused by a total administrative meltdown and computer failure; it had nothing to do with regulation. On the subject of regulation, Conservative Members called for less regulation. Politicians on both sides of the House need to consider where we go from here.

--- Later in debate ---

[Catherine McKinnell]

My hon. Friend sums up in a nutshell why I am speaking in favour of the new clause.

The shocking revelations from Barclays this week are nothing short of a scandal. Barclays—along with we do not know how many other banks now under investigation —broke the rules to make a profit and put global economic stability at risk. It played fast and loose with rates that affect people’s mortgages and credit cards and, it would appear, gave little thought to how people could be affected.

In another shocking scandal, we found out that thousands of small businesses had been sold expensive insurance products that they did not need and could not use, spending money, which could have been used to protect jobs, to pay for products that never should have been offered to them in the first place. How many businesses have lost out as a result? All those actions on the part of the banks were totally unacceptable. The banks have been taking without giving back. The Government can take action now to put the situation right.

[Gavin Williamson]

I thank the hon. Lady for being so generous in giving way. I agree that the Government should take action to address some of the issues that have been raised. She mentioned a number of scandals. Will she name, for the record, the years when they occurred and which Government were in power when they occurred?

[Catherine McKinnell]

Members of the public will find this distasteful. We all share concern about the situation with the banks and the terrible events that have come to light in the past week or so. Government Members should be taking the lead on putting the situation right, but all they are interested in is scoring party political points. They need to be careful if they are not to lose all the public’s trust in their ability to start putting things right.

The Government can take action today. Stephen Hester, chief executive of RBS, has rightly said that he will decline his bonus this year in recognition of the serious damage that his bank has caused. Bob Diamond, chief executive of Barclays, resigned this morning over the currently developing scandal. It is right that those in charge take responsibility.

However, the banking industry as a whole is still benefiting from a tax cut this year—a tax cut, when their incompetence has cost thousands of people days of frustration, inconvenience and hardship. They have a tax cut when champagne swaps and dodgy dealing have been used to fiddle internal lending rates and when small businesses have been ripped off in yet another mis-selling scandal.

Our bank bonus tax would set that right, making the banks pay their fair share in tax instead of letting them get away with it. We want the money to be used to create 100,000 jobs for young people who are at risk of becoming the next victims of this double-dip recession made in Downing street. Labour’s bank payroll tax raised £3.5 billion in 2010-11 but this Government replaced it in 2011-12 with a levy raising just £1.8 million—barely more than half. Those are the Office for Budget Responsibility’s own figures, set out on page 101 of its economic and fiscal outlook paper in March this year.

The autumn statement in November last year had forecast a higher first take, but that turned out to be over-optimistic. That could be the case with future forecasts. The levy is supposed to raise £2.8 billion in 2014-15, but we cannot be sure of getting that. The OBR has had to keep revising all forecasts down and down, apart from those for Government borrowing, which keep going up and up. It is clearly inadequate to introduce a levy on banks with only half the yield of the previous tax. Along with the richest 1% of the country who have benefited from the scrapping of the 50p tax rate, this is one of the only parts of the Budget where the Government have given handouts. What does that tell us about their priorities? It tells us that they are not on the side of working people hit by the banks’ recent malpractice, but on the side of banks and millionaires. That shows just how out of touch this Government are.

We want to take tough measures to make the banks pay their way, and bringing back the bonus tax on top of the new levy is the fairest way to do that. It is clear where that extra money needs to go. We would use our double bank tax to plug the gaping hole in jobs and growth left by the Chancellor’s omnishambles of a Budget, which contained not one mention of the word “jobs”.

Finance Bill

Gavin Williamson Excerpts

Monday 2nd July 2012 Commons Chamber

[Jacob Rees-Mogg]

It would be an impertinence for someone who entered the House in only the past two years to aspire, even hypothetically, to the height of Chancellor of the Exchequer. I leave that question to my hon. Friends on the Government Front Bench, who, having listened carefully to all that is said in this debate, will no doubt advise the Chancellor. They may consider the figure of 36p in the pound to be perfectly suitable—or they may go further and advocate a flat tax, which is a very attractive proposition. Perhaps people could have tabled an amendment to that effect, but sadly they did not. As I understand from my hon. Friend the Member for Amber Valley (Nigel Mills), who is no longer in his place—

[Gavin Williamson (South Staffordshire) (Con)]

He’s behind you.

[Jacob Rees-Mogg]

Oh, he is behind me. My hon. Friend the Member for Amber Valley said that the effect of the amendment from our Labour friends would be to bring the tax rate down to 40p. I am not sure that it was wise of him to say that, because those of us who were listening may be tempted to go into the same Lobby as the Opposition later, to help them achieve that objective.

I want to talk about the other great aspect of the Budget, and to give full credit to our Liberal Democrat friends for twisting Conservatives’ arms to get them to do something that they have always wanted to do anyway: get as many people out of taxation as possible by raising the thresholds. As the thresholds are raised, so the incentive to work becomes greater. The hon. Member for Edinburgh East (Sheila Gilmore) said that we wanted to make the out-of-work work harder by cutting their benefits, and the in-work work harder by cutting their taxes, and thought that was illogical. Of course it is not, because a person does not get unemployment benefit for working; if a person works, they lose their benefit, and if we encourage people to work, they have more money. Likewise, if we cut people’s taxes, they have more money, so they are likely to work harder.

When we raise the threshold, we find that many millions of people are able to work more easily. They will be taken out, to some degree, of the poverty trap, which is one of the most crushing and pernicious taxation and benefit traps that anyone has to face. The move, in stages, to a £10,000 threshold is a very bold thing to do in a time of economic difficulty, but it may have some of the greatest social benefits of any of the policies that the Government are following. It really is a noble approach to taxation—an objective that is fundamentally worthy.

Beer Duty Escalator

Gavin Williamson Excerpts

Monday 2nd July 2012 Commons Chamber

[Gavin Williamson (South Staffordshire) (Con)]

It is a great privilege to have secured this debate this evening. It is an even greater pleasure to see so many hon. Members in their places as we start this Adjournment debate at this late hour. One could say that an Adjournment debate is akin to an after-hours lock-in, but probably without so much pleasure or enjoyment. We are all here because we care passionately about both the brewing industry and, of course, our pubs right across our constituencies and across the nation. We care about them because we know they are part of the fabric of our nation. We all have concerns about the beer duty escalator and the impact it is having on the many pubs and breweries across the land.

We have to go back to 2008 to see the introduction by the last Labour Government of the beer duty escalator, which saw beer duty rise by inflation plus 2% each year. This, sadly, has been carried on, and it is having a detrimental impact on our pubs and breweries.

[James Wharton (Stockton South) (Con)]

My hon. Friend makes a very good point, and I congratulate him on securing this important debate. He will be aware that it has been predicted by the British Beer and Pub Association that the escalator could cost as many as 5,000 jobs. When he talks about a detrimental impact, does he think it important for the House to recognise just how significant that detrimental impact could be on such an important industry?

[Gavin Williamson]

My hon. Friend makes a valid point about the impact on jobs in the industry of the beer duty escalator, which I was coming on to. In my constituency of South Staffordshire, 1,286 people are employed in breweries and pubs—whether in the fantastic brewery of Enville, the brewery of Kinver, the Morton brewery in Essington, the Marston’s brewery in neighbouring Wolverhampton, or in the 86 pubs scattered across the constituency. Unfortunately, however, these pubs have declined in the last few years, and I am afraid that the beer duty escalator has had an impact in that respect.

[Alec Shelbrooke (Elmet and Rothwell) (Con)]

Does my hon. Friend agree that a sensible way of helping pubs might be to lower the duty on draught beer but raise it on canned beer?

[Gavin Williamson]

My hon. Friend is not known as a visionary—I believe that his new wife often refers to him thus—for nothing. I hope that the Minister is noting his ideas eagerly, and will recommend them to the Treasury as a host of examples of radical new thinking that could improve and support our breweries and pubs.

[Greg Mulholland (Leeds North West) (LD)]

I congratulate my hon. Friend on securing this debate, and assure him that his cause has the full support of the all-party parliamentary save the pub group.

Pubs pay even more tax per pint because of the other forms of tax to which they are subject. I fully support my hon. Friend’s proposal—indeed, I think that a separate duty should apply to real ale, which requires an increased cost of production and increased cellarmanship—but there is also a problem with European legislation. Rather than saying that we should not challenge that legislation, should not Ministers convey to Europe the message that it could do something important that would greatly help not only our brewing industry but our pubs?

[Gavin Williamson]

It is always welcome when a Liberal Democrat speaks so vociferously against the European Union. I thank the hon. Gentleman, who has fought so hard for pubs not just in his constituency but throughout the country.

Almost 1 million jobs in the United Kingdom are generated by the UK beer and pub industry, which affects all our constituencies, including that of the Economic Secretary to the Treasury, my hon. Friend the Member for Norwich North (Miss Smith). Some 550 people work in the industry there, and I am sure that, like the rest of us, my hon. Friend wants the number to increase.

[Mr Andy Slaughter (Hammersmith) (Lab)]

I am trying to extend the debate to the Opposition Benches. Although my local brewer, Fuller, Smith and Turner, is internationally famous, it is still a family firm, but last year it paid 37% of its turnover—not its profit—in tax, and beer duty will rise by 27% during the current Parliament. Should not the Government take notice of that?

[Gavin Williamson]

The hon. Gentleman has made an important point about how difficult it is for many pub and brewing companies to invest more money in generating new jobs and products in a sector in which we are world leaders. We in the United Kingdom are clearly paying far more duty than the European average. Although we consume only 13% of the beer consumed in the European Union, we pay 40% of the tax bill. I do not often talk about the need for European harmonisation, but I should like us to harmonise with the Germans, who only pay a tenth as much beer duty on their pints. Perhaps we should explore that idea further.

[Mr Robin Walker (Worcester) (Con)]

My hon. Friend mentioned new products a moment ago. The Firefly, a pub in Worcester, recently embarked on the first new brewing venture in the city for 16 years. I am sure that the pub, and Worcestershire, would support my hon. Friend’s campaign.

[Gavin Williamson]

My hon. Friend has made a valid point. Not only is everyone in South Staffordshire rooting for the ending of the beer duty escalator, but so are those in the great county town of Worcester. Obviously their pubs are not as fantastic as those in South Staffordshire, but we all have our crosses to bear in life.

We recognise that the Government face a great challenge. It is not easy to do what they are doing, and Treasury Ministers carry a burden on their shoulders that I am sure none of us on the Back Benches would wish to carry.

[Andrew Griffiths (Burton) (Con)]

As chairman of the all-party group on beer, I congratulate my hon. Friend on securing this debate. I am sure he agrees with me that the packed Benches at almost midnight show the strength of feeling in this House in support of Britain’s brewing industry. Does he share my shock that British brewers are paying half their income in tax to the Treasury, yet the future of the industry is at a critical point? Does he agree we can save jobs and pubs if we cut the duty on beer?

[Gavin Williamson]

As always, my hon. Friend and fellow Staffordshire Member of Parliament makes an excellent point. We want to encourage investment by our brewers into this vital industry and into our pubs.

[Neil Carmichael (Stroud) (Con)]

rose—

[Gavin Williamson]

Over the last eight years there has been a 50% increase in beer duty but only a 10% increase in revenues from that duty. That is a great concern.

[Neil Carmichael]

rose—

[Gavin Williamson]

My hon. Friend is bobbing up and down, so I had best give way to him.

[Neil Carmichael]

We are talking here about small and medium-sized businesses—businesses that employ some 1,600 people in my constituency. My four breweries are very successful small businesses, but they could do with some help in respect of this policy.

[Gavin Williamson]

All the Members who have intervened have made the most wonderful points, and my hon. Friend certainly has not disappointed in that regard. I am a little disappointed, however, that he did not mention his four breweries for a potential future press release.

[Richard Fuller (Bedford) (Con)]

I, too, congratulate my hon. Friend on securing this important debate. As the Member for Bedford, the home of the largest family-owned brewery, Wells and Young’s, may I ask him whether he agrees that it is also a timely debate? The Treasury recently took action to reduce the fuel duty escalator, and it would be a welcome addition if we were also to eliminate the beer duty escalator and its impact on our economy.

[Gavin Williamson]

I would never dream of supposing that I knew more than Treasury Ministers, but that would certainly be a good idea to bear in mind for future Budgets. We must look at the economics involved. As I mentioned, there has been a 50% increase in the rate of duty, but only a 10% increase in the amount of revenue.

I have had the great privilege over the past few months of serving on the Finance Bill Committee, where I heard many emotive and brilliant arguments from my hon. Friend the Economic Secretary about the need to get the balance right between the rate of tax and the money it brings in.

[Heather Wheeler (South Derbyshire) (Con)]

I must declare an interest: for 25 or 26 years, I have been married to a brewery man—and thank goodness for Bass and for Young’s. Many pubs in South Derbyshire are still under threat or are going to close, even though the Shardlow brewery, the John Thompson brewery and in particular the Burton Bridge brewery, which has just opened, are fantastic. I should also mention the Brickmakers in Newton Solney. We are trying to do our best, but the yoke of taxation is too high. Does my hon. Friend agree?

[Gavin Williamson]

I entirely agree. I think we have gone too far, and it is having a detrimental effect on the amount of tax revenue the Treasury can get from this important potential source. The Exchequer already brings in £8 billion in tax revenue from the beer and pub industry, but my concern is that that amount will go into slow decline. Already, the Office for Budget Responsibility and Her Majesty’s Revenue and Customs have made it clear that the money coming in from the increase in beer duty is not going to increase. It has not done so in the past year and it is not expected to do so in the next year. We therefore need to look at different ideas. One of them is not to keep taxing. We have had many debates about the Laffer curve and its benefits, but the simple reality is that beer duty is getting to the point where it is too high and it is pricing people out of the market.

[Nigel Mills (Amber Valley) (Con)]

Does my hon. Friend agree that one of the problems of getting the duty rate too high is that it gives a boost to the illicit trade, which now makes up about 10% of the off-sale market? The higher the duty is pushed, the higher the illicit sales go and so no duty at all is received.

[Gavin Williamson]

The worst thing we could possibly see is the growth of the illicit trade and the Chancellor of the Exchequer getting none of the money whatsoever. We want to make sure that people are paying their taxes and their duty, but we do not want to tax people out of the market.

[Richard Drax (South Dorset) (Con)]

May I add a slightly solemn note to what has been a light-hearted debate? I had a great friend, David Woodhouse, the chairman of Hall and Woodhouse in Blandford, who died aged 49 of a heart attack, running his company. He said to me on many occasions that he could not understand why Governments, and ours in particular, were proposing this tax every year, given that it is a tax on jobs at a time when we are trying to increase jobs. Surely that must be a point for the Government to take away from this debate.

[Gavin Williamson]

My hon. Friend touches on an important point: this is not only about jobs, but about British jobs. Some 68% of the drinks that our pubs sell are beers, so this duty is having a detrimental impact on every one of our pubs. Furthermore, 86% of all that beer that is consumed is produced in this country, which compares with a figure of 0.2% for wine.

[Julian Sturdy (York Outer) (Con)]

I congratulate my hon. Friend on securing this very important debate. He is absolutely right in what he says about the jobs in the pub and brewing industry, but let us also not forget the malting industry, which has a great tradition, especially in Yorkshire. I must declare an interest, because there is also an impact on the farming industry. The job creation that is affected by the beer duty escalator goes right from the grain to the glass.

--- Later in debate ---

[Gavin Williamson]

I would never expect anything other than an intervention from a great colleague of mine, who also is a farmer, to enable us to understand the whole process of the brewing industry and to put it into perspective for us.

[Julie Hilling (Bolton West) (Lab)]

I congratulate the hon. Gentleman on securing this debate, and he is being extremely generous with his time. Does he agree that it is also ironic that we are increasing the tax on beer, which drives people to drink much more harmful substances—drinks with a much stronger alcoholic volume—so raising the duty all the time is not good for the nation’s health either?

[Gavin Williamson]

The hon. Lady makes a very valid point. One of the consequences of having a Scotsman as Chancellor for quite a period of time is that the duty on Scotch whisky seemed to be frozen. Perhaps now that we have an English Chancellor what we need is to freeze the duty on English beer. There is so much that we need to be doing. We need to be reviving our pubs. We need to be seeing that vigour and sense of community returning to all our pubs across the country.

[Andrew Bingham (High Peak) (Con)]

I congratulate my hon. Friend on securing this debate; the number of Members here at this late hour shows its importance. Does he agree that pubs not only sell beer, but provide a great community centre in small and rural communities? So many charity collections and fundraising exercises begin in pubs, where people meet and talk.

[Gavin Williamson]

My hon. Friend makes a valid point. In addition, pubs are an important part of the economy and employ young people. In my constituency, 50% of those employed in the beer and pub industry are under the age of 25.

We all talk about the beer duty escalator. Just the other day, I was in a department store. I went up an escalator, and then I noticed that I went down one. So I say to the Minister that we could keep a beer duty escalator, but perhaps put it in reverse.

[Andrew Jones (Harrogate and Knaresborough) (Con)]

My hon. Friend is being very generous and possibly setting a world record in taking interventions. A suggestion that might meet the requirement from the Treasury Bench to raise revenue and which builds on the points made by colleagues about supporting the industry and supporting pubs is to remove the escalator just from cask ales. Those ales are available only in pubs. British pubs are of course part of our heritage and we are talking about a British product with a British supply chain, as my hon. Friend the Member for York Outer (Julian Sturdy) said. We have great pubs, particularly in the Yorkshire area.

[Gavin Williamson]

Unfortunately, they are not as good as those in the county of Staffordshire—although I am sure the pubs in Yorkshire are not bad.

I would love the Minister to stand at the Dispatch Box and announce to the whole Chamber that the beer duty escalator will be frozen or reversed. I know that she carries many burdens on her shoulders and may not be able to give us that promise, so I ask her to meet me and other colleagues who have such concerns in order to listen to the arguments put forward by the industry and by people who feel passionately not just about our pubs but about our beer and our great breweries—a part of our industrial heritage that is living and breathing today.

I am quite sure that if the Minister can take the arguments to the Chancellor and to all those in the Treasury and convince them that we need either to freeze beer duty or to let it rise only in line with inflation rather than at inflation plus 2%, she will be able to provide an enormous boost not just to British breweries and British beer but to the great British pub. I am quite sure that, if my hon. Friend can achieve that, when she next enters the pub every punter will be raising their glass to the Boadicea of British beer.

Amendment of the Law

Gavin Williamson Excerpts

Wednesday 21st March 2012 Commons Chamber

[Gavin Williamson (South Staffordshire) (Con)]

It is a privilege to speak in today’s Budget debate. There has been an interesting contrast in the two speeches made from the Dispatch Box today. One, made by the Chancellor, set out his vision and ideas about bringing growth to our economy, supporting business and families and making things happen in this country. The other speech, by the Leader of the Opposition, had one interest solely—making sure that he stayed the leader of the Labour party. It was not about the national interest or trying to help the country to go forward, but about remaining leader.

Those on the Government side of the House, Conservatives and Liberal Democrats, are here to try to do what is best for our nation. Those on the Opposition side cannot say the same about themselves. If they can—and I hope that they are of that mind—they will march through the Lobbies with us when the Budget vote comes, supporting us and making sure that the country is growing once more.

The Budget helps two principal areas—business and families. Already, this Government have done more for my constituents in our almost two years in power than the previous Government did in 13 years. This Government are already delivering jobs for South Staffordshire, with the £350 million investment by Jaguar Land Rover on the i54 business park, bringing 750 jobs directly into the constituency. I remember Labour Members deriding enterprise zones and saying that they would not work. Well, I am rather proud to have an enterprise zone in my constituency, because it helped to bring in those 750 jobs. I am sure that many Labour Members will now want enterprise zones right across the country, even in the devolved regions.

[Mr Marcus Jones (Nuneaton) (Con)]

Does my hon. Friend agree that the current situation, with enterprise zones, the regional growth fund and the support that is being given to industry, particularly motor manufacturers in the west midlands, is a complete contrast with what happened with the failed regional development agencies during the period of the Labour Government, when private sector employment in the west midlands fell?

[Gavin Williamson]

My hon. Friend makes a pertinent point. Although there has been recovery in the automotive sector, unfortunately the supply chain that supports those manufacturing companies was hollowed out over the course of 13 years. I hope that Members on both sides of the House recognise that that is a serious problem. I pay tribute to the previous Government for taking some action at the tail end of their period in office in setting up Automotive Council UK, which has been carried on and strengthened by this Government. That is a positive move, but we need to be doing so much more to support not only manufacturing companies, which I am most passionate about, but many more service companies and other companies across the length and breadth of the country.

The Budget included an announcement on reducing corporation tax. A lot of people say, “That does not matter; it will not make a difference to business.” If that were the case, one might ask why the Republic of Ireland is so determined always to make sure that it keeps its low corporation taxes, but we know that it does that because it knows that it makes a difference in bringing in inward investment. Companies that want to invest in Europe are trying to make sure that they invest in the right place, which, in my view, is the United Kingdom. The moves to reduce corporation tax will have an enormous effect on bringing jobs to the UK—not only to my constituency or the constituencies of Government Members, but to every single constituency in the country.

We must also welcome the moves to simplify our tax system. We see so many people setting up small businesses, giving it a go, and trying to make a difference and do well for themselves, but then being faced with a barrage of bureaucracy and complex regulations that they have to master. It is a shame that anyone could not welcome the moves to make sure that all businesses with a turnover of under £77,000 will be free of many of those regulations. I hope that Labour Members will join us in the Lobby in support of that measure, because it will have an enormous impact on every business.

Another development that we must welcome is enterprise loans for young people. Far too often, young people with great ideas and great ambition do not have the finance to build their own businesses. I think of a constituent of mine, Louis Barnett, who decided against all the odds to set up a business, to go out there and to make a success of it. Finance is not always easy to find, but despite everything being against him, he did it. He has set up an incredibly successful chocolate company, which exports to Mexico, Ireland, China and Korea. He is making a success of it. We need to encourage many more young people to set up businesses across Britain. That is what the Chancellor has done and we should all support it. We need to give our businesses every possible chance.

Some Opposition Members are pouring scorn on somebody who wants to make a successful business by making and selling chocolate and exporting it around the world. Perhaps that is why the previous Government made such a dreadful mess of our manufacturing base and brought this country to its knees.

[Mr Marcus Jones]

My hon. Friend’s argument is being given a bit of harsh treatment from Opposition Members, who seem to think that all was rosy in manufacturing under the Labour Government. Is it not the case that 1.7 million jobs were lost in manufacturing during the period of the Labour Government?

[Gavin Williamson]

My hon. Friend makes a valid point. Manufacturing was destroyed under the Labour Government. When the Conservatives were last in power during the 1990s, there was growth in manufacturing. We saw the same amount of gross value added in manufacturing and the industrial sector in the United Kingdom—

[Mr Bailey]

Will the hon. Gentleman give way?

[Gavin Williamson]

No I will not. In the 1990s, there was the same amount of gross value added in manufacturing and the industrial sector in the UK as in Germany. That has now been halved. That is down to the incompetence and neglect of the last Labour Government. I happily give way to the hon. Gentleman.

[Mr Bailey]

I thank the hon. Gentleman for giving way belatedly. As a fellow west midlands MP, I am slightly surprised by his comments about the record of the previous Conservative Government on manufacturing in the west midlands. Will he list the major employers—employers of thousands of people—that failed during the period of the previous Conservative Government in the black country and the west midlands?

[Gavin Williamson]

I will happily talk about what happened under the previous Conservative Government, although it is going a little way back. Between 1992 and 1997, exports from the manufacturing base in this country grew and gross value added grew, because we created an environment in which manufacturers could grow. That did not happen under the last Labour Government, when jobs and businesses were destroyed. The Chancellor is committed to reversing that. I can give many examples of businesses that failed under the Labour Administration. This Government are committed to helping businesses grow, which is to be welcomed.

[Geraint Davies (Swansea West) (Lab/Co-op)]

The hon. Gentleman is being gracious in giving way. I should say that my background is in multi-national companies and in starting my own businesses successfully. Does he accept that after his Government came to office, the growth forecasts reduced massively between the first and the second year? According to the Office for Budget Responsibility, the size of the economy will be down by £50 billion a year for ever because of his Government’s policies.

[Gavin Williamson]

I thank the hon. Gentleman for making those comments. It is fascinating that the International Monetary Fund has predicted that Britain will grow faster than Germany and France. It is true that the eurozone has had a negative impact on this country, but people see us as a country that is well run, with a Chancellor who is committed to making business growth happen. That is why we will grow faster than Germany and France. I am sure that the hon. Gentleman will welcome that.

I will move on briefly to families. It is often said that raising the personal allowance is a Liberal Democrat idea. Members will be shocked to hear that the matter was raised with me many times during the general election campaign. I told people that if I was elected as their Member of Parliament, I would do all that I could to ensure that personal allowances increased so that the lowest-paid—

[Stephen Lloyd (Eastbourne) (LD)]

Will the hon. Gentleman give way?

[Gavin Williamson]

I will make some progress, thank you. I told people that I would try to ensure that we made progress on raising the personal allowances for everyone in this country, including the lowest-paid. I am particularly proud to see that the Chancellor has done that, and I am quite sure that every coalition Member will warmly welcome it.

I wish briefly to touch on one thing I would very much have liked the Chancellor to do, which is to tackle the issue of the beer duty escalator. In the Strangers Bar, one of the finest ales, Enville ale, is currently on sale as one of the guest ales. I encourage everyone to ensure that they have a pint of Enville ale, a fine beer but one from which I am quite sure we would raise just as much duty if we got rid of the beer duty escalator. I put in a plea for that, and it would be very much appreciated.

I welcome the news that we are going to have a national centre for aerodynamics. Again, that will support manufacturing, but let us ensure that it is in South Staffordshire. We have an aerospace industry that is highly dynamic and—

[Madam Deputy Speaker (Dawn Primarolo)]

Order.

Oral Answers to Questions

Gavin Williamson Excerpts

Tuesday 6th March 2012 Commons Chamber

[Gavin Williamson (South Staffordshire) (Con)]

11. What fiscal steps he is taking to encourage job creation in the private sector.

[The Chancellor of the Exchequer (Mr George Osborne)]

We are making businesses more competitive by cutting business taxes, helping work pay by increasing the personal allowance and introducing universal credit, and helping unemployed people into work through our Work programme and work experience.

[Mr Osborne]

I will not pre-empt any Budget announcements, but I will say that we have extended small business rate relief to 2013. We announced that in November, and it will help more than half a million small businesses, and we have also introduced a deferral scheme to help larger businesses with their cash flow, so we are doing other things as well as reducing corporation tax—a further reduction in corporation tax is planned for April, of course—and cutting the small companies tax rate, which was due to go up under the previous Labour Government.

[Gavin Williamson]

The recent changes in research and development tax credits will provide a major boost for hi-tech manufacturing businesses based in my constituency and near it, such as Moog and Goodrich. What more can my right hon. Friend do to help generate more high-skilled, well-paid jobs in the manufacturing sector?

[Mr Osborne]

I have been very encouraged to hear about the success of companies in my hon. Friend’s constituency, including the two that he mentioned. We will provide further details later this year on the R and D “above the line” tax credit, on which we have listened to representations from industry and Members of Parliament. In the vicinity of my hon. Friend’s constituency, we also have the enterprise zone i54, which will start up in April. More generally, this is a week when 20,000 new jobs have been announced by Tesco and we have heard the great news that Nissan will produce a new car in the UK. There are some encouraging developments in the British economy.