Budget Resolutions and Economic Situation

James Grundy Excerpts

Tuesday 9th March 2021 Commons Chamber

[James Grundy (Leigh) (Con) [V]]

I welcome this Budget, not least because of the Chancellor’s extension of the support packages to assist businesses as we begin the transition out of lockdown. The extended furlough scheme and self-employment income support scheme will continue to be a vital crutch for businesses in my constituency, and the restart grant and recovery loans will ensure that businesses are supported well beyond the current road map timetable, helping to smooth the shift back to normal trading.

Another measure that my constituents and I were pleased to hear will continue was the extension of the freeze in fuel duty. Many of my Back-Bench colleagues and I stressed the importance of that to the Chancellor earlier this year. It will prevent increased costs for struggling commuters and businesses in Leigh during this crucial time.

Ahead of the Budget, local businesses in the hospitality sector contacted me to express the need for further financial support. While there are many existing schemes in place for them, I know that they were concerned about the potential rise in beer duty. Working alongside the Long Live The Local campaign and local pubs in my constituency, I heard at first hand just how important it is for pubs and the wider hospitality sector to be able to offer a cheaper pint and get customers back through the door. That is why I know the Chancellor’s decision to extend the beer duty freeze will be strongly welcomed.

While I welcome the extension of the business rates holiday until June and the fact that the vast majority of local businesses will see a temporary 75% cut in their business rates, my constituents are concerned that those measures will provide only a temporary fix to a more deeply rooted problem. In some of the more deprived communities in the north, business rates are so high as a proportion of earnings that businesses pay an effective tax rate of up to 70%, compared with 20% for those in the south. Businesses in Leigh are some of the worst affected in the whole of England, paying twice the national average. If we are going to keep our promise to level up those areas most affected by the pandemic and in need of financial support to thrive, we must reform business rates and create a system fit for the future.

As we move out of this crisis, we have an opportunity to ensure that, through our national recovery programme, we build back better. Again, I welcome this Budget. Although there is more to do, it will benefit businesses, families and the high street in communities such as Leigh as we exit this crisis.