Amendment of the Law

Ian Mearns Excerpts

Monday 26th March 2012 Commons Chamber

[Esther McVey (Wirral West) (Con)]

I would like to use my time in this debate to talk about how Wirral and the wider Liverpool city region can benefit from the Budget and how the rest of the UK in turn can benefit from Wirral’s advances and successes.

The Budget is a Budget of growth. It is concerned with repositioning the UK as a place to do business, to set up in business and to relocate big business. It sets out policies offering help to new start-ups, with the simplification of regulations and taxes, a Government loan guarantee scheme and the promotion of self-employment opportunities for all. It offers guidance and support to those businesses going through the new enterprise allowance.

The Budget also set about reducing corporation tax, going further and faster to make it the lowest in the G7. Members do not need to listen to me on this; they can just look at the actions of industry. GlaxoSmithKline has announced 1,000 new jobs for Cumbria, Nissan is creating 2,000 new jobs in Sunderland, and Jaguar, with 1,000 new jobs in Halewood on Merseyside, has increased its number of jobs to 4,500, trebling the number of employees in the past three years. That is because it is a good place for business. We have the “Open for business” sign up, as my hon. Friend the Member for Dudley South (Chris Kelly) said.

[Ian Mearns (Gateshead) (Lab)]

Will the hon. Lady give way?

[Esther McVey]

I am sorry, but I will not.

The Budget also offers clear support and incentives for firms taking on apprentices and young employees as well as support for key infrastructure projects, including roads, rail, ports and broadband. It is also supporting the construction industry, with housing development getting Britain building. As the debate was opened by the Under-Secretary of State for Culture, Olympics, Media and Sport, my hon. Friend the Member for Wantage (Mr Vaizey), I would like to quote from the Liverpool Daily Post, which this week carried the following headline: “Merseyside video game companies welcome Budget tax credits”. That was Sony, Evolution Studios, Rebel Play and Lucid Games referring to not only the tax credits, but the research and development tax credits and changes to enterprise investment schemes. The Budget is the beginning of a shift from the downward slide in enterprise, manufacturing and exports to an expansive vision and the aspirational upward mobility of UK plc, from which everybody in the UK should benefit. It is a seismic shift saying that we are open for business, and now we have the tools, infrastructure and tax system to enable it.

On Wirral specifically, Wirral Waters is one of the biggest and most visionary regeneration projects in the UK, and it has been enabled only because it became an enterprise zone at the last Budget. The scheme will create over 20,000 permanent new jobs in Wirral, help to create skills and apprenticeships for young people, giving them a future on their doorstep, and help to encourage new housing projects and international trade and investment. Last week I was with some of the Chinese developers hoping to come to the UK, including Stella Shiu, chair of the Sam Wa group, which will produce a 50% investment on the site, starting with the £175 million investment. None of that would have been possible had we not had an enterprise zone, the reduction in corporation tax or the new enhanced UK Trade and Investment—my hon. Friend the Member for Stourbridge (Margot James) is helping with its rejuvenation—and the localism agenda and planning, because had this been called in to the Secretary of State, the private company, Peel Holdings, would not have been able to pursue it. All in all, this was a catalyst for regeneration and jobs on the Wirral.

There is much to applaud in what has gone on, because we know that we have to strive, to move forward and to reposition the UK as a place to do business. We are starting here, we are starting now, and with further support from Ministers we hope we will be starting in Wirral, too.

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[Ian Mearns (Gateshead) (Lab)]

It is clear from today’s contributions that the Budget impacts in very different ways in different parts of the country. Members in the south, who mainly represent the Conservative party and the Liberal Democrats, tell us about the benefits of the Budget, but those benefits are few and far between in my neck of the woods.

On behalf of my constituents, I congratulate the Leader of the Opposition, who last week hit the nail on the head, when, in response to the Chancellor’s Budget statement, he said, “Same old Tories”. He was absolutely right, and that point has been magnified by what we have seen this weekend. It is absolutely the same old Tories. But now there is an added dimension. It is the same old Tories but aided and abetted by their accomplices, their partners in crime, the Liberal Democrats.

In the Chancellor’s millionaires’ Budget, it is clear who will suffer the most—the people of the north, the poorest, and those looking for work. With few jobs available, it will be pensioners, families, the hard-working, the squeezed middle and the working poor who will suffer the most. It was notable that the Chancellor consigned to the dustbin of history the phrase, “We’re all in this together.” He is not saying it any more. Owing to the imbalance in the Budget, it is clear that most of us are in this together, but that the few at the top of society will be exempt from it all.

The regional disparity is all too plain to see. In the three south-east regions— London, the south-east and the eastern region—nearly 195,000 people will benefit from the cut in the top rate of tax. In the north-east, that figure is 5,000, and in Wales, it is 4,000. That is a massive disparity.

The people of the north-east will be forgiven for thinking that the Government have developed exactly the same approach as William the Conqueror—a 21st-century scorched-earth, slash-and-burn policy for the north. In just two years, they have abolished our Minister for the north, our local authorities have taken massively disproportionate cuts and the regional development agency has been abolished. My own authority of Gateshead has lost 1,500 jobs, and 67,000 public sector jobs have gone in my region while only 5,000 new jobs have come in the private sector.

We are clearly not in this together. There is no plan, no investment, not a sausage—not even a Greggs sausage roll. The Government’s plan to add VAT to warmed-up pasties could jeopardise Greggs breakfast club scheme for 65 primary schools in my region, four of which are in my constituency—not to mention knocking £35 million off Greggs’ share value last week. It is obvious that we are not all in this together.

Let us consider regional pay. We do not have a credible policy for growth, and now the Government are offering us regional pay.

[Nick Smith (Blaenau Gwent) (Lab)]

Does my hon. Friend agree that it will be people such as police officers, nurses, and fire and other emergency staff who will be most affected by this attack on them in the form of the introduction of regional pay?

[Ian Mearns]

I could not agree more, and of course there will also be a depressing effect in the private sector. Last weekend, private sector bosses in the north-east came out clearly against regional pay.

If we are to look at regional pay, can we also look at regionalised utility bills for gas, electricity, telephone, water and vehicle fuel—and, while we are at it, council tax and grocery bills? If the Chancellor or the Prime Minister fancy paying £250,000—shall we say?—to have dinner with the chief executives of Asda, Morrisons, Tesco and Sainsbury’s, perhaps they could ask them to reduce the cost of grocery bills in the regions. Or they could ask the east coast main line to implement regional level funding for fares for people travelling up and down the country to get to work from far-flung fields. And why not go the whole hog and establish regional Parliaments and re-establish our RDA? Let us do things on a regional basis properly and fundamentally, but I really do not think that will happen. The people of the north-east will never forgive the coalition. In particular, they will never forgive the Liberal Democrats for their hand in it. Quite frankly, the Budget is shocking.

There is one last thing. As One North East, our RDA, winds up and prepares to close its doors for the very last time, may I formally, in the House, record the thanks of the people of the north-east for the work of our RDA and, in particular, Alan Clark, the chief executive, Paul Callaghan, the chairman, and his predecessor, Margaret Fay? They did a great job for the north-east.