Budget Resolutions and Economic Situation

Paul Beresford Excerpts

Monday 8th March 2021 Commons Chamber

[Sir Paul Beresford (Mole Valley) (Con) [V]]

Listening to some Opposition Members in this particular debate, I am reminded of when my daughter was a teenager and one of her telling phrases was, “Get real.” This is a “get real” Budget. The fact that the Government have been spending approximately 17% of GDP to protect lives and livelihoods at the same time as the biggest economic contraction since the early 1700s brings home the phrase, “Get real.”

This Budget recognises that we need to continue to protect lives and livelihoods for some time to come. In my constituency, it is particularly welcomed by the hospitality, leisure and events industry. For them, it is in addition to the most welcome news that they are going to be able to open their doors.

The other side of the “get real” approach is the need to face the debt. The two tax changes about which I anticipate my constituents could be negative are the freezing of tax thresholds from next year and the large but delayed increase in corporation tax. I have talked about this to many of my constituents, big businesses and the man in the street. Their reaction has generally been positive, with an understanding of the Chancellor’s difficult situation, and a pleased acceptance of the continuing help, but a reluctant acceptance that debt payment must commence.

In the debate over the past few days, there has been little mention of the new 95% mortgage guarantee scheme, which will enable lenders to provide mortgages to buyers with a deposit of just 5% to purchase properties worth up to £600,000. I believe that this is a new opportunity, parochially, to rebalance the age spectrum of my constituency. Some 22% of the population are under 20, and 60% are aged 40 and over, which leaves about 18% who are in the 20 to 40-year-old bracket. Quite simply, many people in that bracket who have left and would like to come back cannot do so. Commonly, they are young, single, young couples or young families, but they cannot afford to move to Mole Valley.

The two main towns of Leatherhead and Dorking need boosting: they need shops; shops need shoppers; and shoppers need homes. Those two towns have suitable brownfield sites that could be developed to provide homes costing less than £600,000. Unfortunately, Mole Valley has the dead hand of an incompetent Liberal Democrat group in power. They are doing nothing to help, but I am hopeful that after May there will be a new Conservative council that can move on the brownfield sites, sort out the planning, bring investment and homes, and enable the 20 to 40-year-old age group to use the mortgage opportunity and revive the two towns of Leatherhead and Dorking.