Budget Resolutions

John Stevenson Excerpts

Wednesday 6th March 2024 Commons Chamber

[John Stevenson (Carlisle) (Con)]

A single Budget rarely, in itself, makes a substantial difference or is remembered. However, a Budget that is part of a story and a sense of direction is important and can help to continue a narrative and build a vision. In my view, this Budget is one such occasion: a clear vision of where we want to go, particularly with regard to tax and growth. Last autumn, the Chancellor started this sense of purpose and set out a direction: first, supporting business with full expensing; and secondly, supporting those in work with a 2% reduction in national insurance.

This Budget continues that direction of travel and I fully support it. A further 2p reduction in national insurance will be welcomed, including by all those in work. It is the equivalent, as has been said, of £900 per annum, and there is the help for the self-employed. If I was to make one suggestion to my party as it continues this narrative, looking to its manifesto and a commitment at the next election, it would be to reduce national insurance further, and ultimately to abolish it. I fully agree with the Chancellor that simplifying the tax system, especially for those who are in work, should be a priority.

Some of the other Budget measures include the freeze on fuel duty, helping all motorists; the alcohol tax freeze; the expansion of childcare; and further support for business, with the VAT threshold rising and full expensing extended to leasing. Of course, there is also public sector support, with 40,000 new doctors, 71,000 additional nurses and 20,000 new police officers, which demonstrates our commitment to public services.

However, Budgets cannot be seen isolation, and there are plenty of other things going on. Unemployment remains historically low, which benefits families and individuals up and down the country. The living wage will rise by 11%—in real terms, 25% higher than it was in 2010. Inflation is at 4% and will fall further. It will probably be well below 2% by the summer, which will allow interest rates to start to fall. It is not all about work; pensions will rise by around 8%. That is a benefit of the triple lock, which has taken more than 200,000 pensioners out of poverty.

However, the ultimate goal is growth in the economy. We have fared better than many of our European partners, but clearly we want to see growth right across all regions of the United Kingdom. To achieve that, we need the correct ingredients at both the national and local levels. Investment, skills, lower taxes and less regulation all lead to higher productivity and, therefore, a wealthier society.

I give the local example of my constituency of Carlisle, which is extremely well placed to grow significantly through national and local support. There is more than half a billion pounds-worth of investment in place, progressing now or about to be undertaken. That is transformational investment: digital investment for a modern economy; a £220 million improvement to the link road, which will improve connectivity locally and right across the region; a railway station undergoing refurbishment, which will bring it into the modern age and make it the region’s gateway to everywhere; a university that will be located in the city centre, helping to regenerate the city centre and grow the local economy, as well as creating the skills of tomorrow; and a medical school, opening in 2025, which will improve the health economy. As for the talk about housing, I always tell people to remember that we do not have a national housing market. The market is regional, and we still have affordable housing in Carlisle, which is an attractive place in which to live and work. On the back of that, we have a garden village with 10,000 new homes, which will allow the city to expand in an appropriate way.

In my view, Carlisle demonstrates success at the local level: investment, skills development, better connectivity, low unemployment and room for growth. That is levelling up in action. The Budget is part of the equation that can help to achieve and support growth in Carlisle and across the country. I support it because it sets out that we are going in the right direction for both our country and, of course, my city of Carlisle.