Budget Resolutions
The Government have labelled today’s debate “fresh hope for the future”, but I regret that the Budget failed to meet the hopes of my constituents. My constituency contains a number of leading spin-out, innovation and engineering companies, from Oxford Ionics to Zero fuels and from the Jaguar and McLaren Formula E teams to Siemens Healthineers. They want to put the area on the map as one of the fastest-growing tech hubs in the country, yet too many face one major constraint: energy. The queue for grid connections faced by many new businesses and developments in my constituency goes far into the 2030s. Many households in the area are also used to power outages. The Cooper school in Bicester recently had to close for a day because of a lack of power. North West Bicester, a site for 6,000 homes, was delayed by more than two years purely because of a lack of grid connectivity. We now have two proposed mega data centres. Exeter college proposes a new centre south of Kidlington, while a large centre south-east of Bicester will require electricity equivalent to that needed for 1.4 million homes. That is a huge amount for an area already facing energy scarcity. My constituents are worried that the Chancellor’s commitment to pushing data centres to the front of the queue will overload local networks or delay connections for essential new services. The Government must commit to publishing an assessment of capacity before allowing data centres to jump the queue. I agree with the Prime Minister and Chancellor that we need to give more power back to the people and to end the UK’s excessive centralisation in London. In principle, I support the creation of a Thames valley mayor and regional devolution, but devolution must give local communities a stronger voice when it comes to the cumulative impact of development in our areas. New housing, data centres and major infrastructure projects cannot be considered in isolation. They make demands on the same roads, public services and electricity networks, and residents experience the combined impact. The pressure on roads, GP surgeries, schools and utilities must therefore be assessed across the whole area. Buried in the Budget document is another announcement of real interest to my constituents. There is £150 million of additional funds to support large asylum centres, such as that proposed for site A of MOD Bicester. My constituents and I oppose this scheme for many reasons, but in this Budget debate I will limit myself to the eye-watering costs of converting this derelict storage depot, which has never had accommodation for people, into a village for 1,256 asylum seekers. The best estimate is some £280 million in capital costs and £80 million in annual operating costs, which sums to more than £1 billion over 10 years. That raises serious questions about how far the additional £150 million will stretch. I urge the Chancellor, the Chief Secretary to the Treasury and their officials to take a close look at Home Office spending. I fear that they will find once again that the asylum programme is out of control. They will certainly find that building new accommodation at MOD Bicester is a bad deal for the taxpayer. Turning to hospitality, pubs, cafés and restaurants are key to the health of the high streets of Bicester, Kidlington and Woodstock. In the rural villages of my constituency, the local pub, alongside the church and the primary school, is the key local institution. Too many such businesses, including the much-loved Fat Zebra café in Bicester’s Market Square, have been forced to close. Too many others tell me that they are facing mounting and unrelenting cost rises. The changes on business rates relief are welcome, but businesses tell me that they may not be enough to keep them afloat. I urge the Treasury to look again at the Liberal Democrat proposal to cut VAT for hospitality businesses. This Budget was a missed opportunity for my constituents. It failed to assure them that infrastructure would come first, before major developments. It backed a failing Home Office programme for large asylum centres. It failed to deliver a stronger local voice, despite promises of devolution, and it failed to support the pubs, cafés and restaurants at the heart of our communities. I urge the Government to give my constituents more hope in the future.