Budget Resolutions and Economic Situation
Will the right hon. Gentleman give way?
Conservative and Unionist Party MP for South Shropshire since (elected).
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Will the right hon. Gentleman give way?
I agree with the right hon. Member that it would be great to grow the economy to achieve the 3.5% spend, but the Chancellor has today set out multibillion pound in-year cuts this year—we see that in particular in the resource departmental expenditure limit budget at about 0.5% next year—so as it stands there will be far less for training and operations. That is before we even look at whether, in three-plus years’ time, the Chancellor has achieved that growth or not.
I welcome the approach to move forward on defence, but since I have been elected I have even called my own Government out for not providing enough defence funding. Does the hon. Gentleman realise that today’s announcement on defence means that we are making in-year cuts for the next two years on defence because we cannot afford what we currently have in place?
It is interesting to follow the hon. Member for Lancaster and Wyre (Cat Smith), who started by talking about not having a mayor, and then how getting a mayor will open routes to funding. In South Shropshire, we do not have a mayor, and we are not looking to get one; most of what was said today excludes areas like mine that do not have local mayors. That is a big issue. I would categorise this Budget as one that fails rural communities and does not protect our nation, and I will back that up by outlining why. I will start with the gambling tax. Ludlow racecourse is in my constituency, which Members will obviously all agree is the best in the country; along with the point-to-points, like Bitterley and Eyton races, Ludlow is really going to suffer from the gambling tax. It will have a massive impact, and there is a whole ecosystem around racecourses. Let me turn to heating oil. As 53% of my constituents are not on mains gas, over half over my constituents will not benefit from those announcements in the Budget.
The price of heating oil is more than double what it was six months ago. I understand that that is because of international headwinds, and I believe that prices will probably go up significantly again because of what will happen over the next few weeks. However, 53% of my constituents do not feel that the support they are getting is comparable to what residents on gas are getting. Let us look at pubs. The 166 pubs and four great breweries in South Shropshire tell me that the various rate rises they have seen over the past few years are having a massive impact on them. The minimum wage makes it very hard for them to employ young people, whether to give them their first step on the jobs ladder or because they want to earn extra money while at university. It is getting very hard.
My hon. Friend raises a valid point. There is definitely a link; it is getting harder to employ people because businesses are not making a profit. In my high street survey, to which 4,500 residents contributed, businesses said that it is harder to make a profit on the high street. We have seen the rise of the <span id="383" class="column-number" data-column-number="383"></span>internet alongside increases in taxes and the cost of employing people. Businesses are not investing—they are not taking the risk. Look at how hard the Government have made it for high streets. The Lib Dem council in South Shropshire decided to bring in what look to be catastrophic parking charges for Ludlow and Bridgnorth, and across the whole area. I stand firmly against those charges, because they are just another tax on my constituents.
I do not think the minimum wage should have gone up by 3.9% or 3.4%—whatever was announced today. I believe it should have been frozen for many years, or for several years. I definitely think we should have left it; I do not believe it should rise, because businesses cannot take it at the moment. We have to make firm decisions. Fewer young people will have work because of these rate rises. I will turn to farming. The Chancellor spoke for an hour and a half, and there was not one thing about agriculture. Some 25% of my constituents work in agriculture, and the failed SFI26 window was a serious issue. Rural communities really do feel left behind. We have seen an attack on our rural communities, from the shotgun consultation to trail hunting—all those issues are vital to my constituency. This is huge. I think my constituency has the second highest number of shotgun licences in the country. It is a serious sport that is undertaken widely. There is just a continual drip, drip, drip of these policies. I will finish on defence. The Chancellor resigned when he believed that defence was not funded well enough. In this year, there is a £3.5 billion cut, with a £1 billion cut in each of the next two years—that is in the RDEL figures on page 145 of the Red Book. That means that defence is now getting less funding than when the Chancellor resigned. The target to get to 3% by 2030—<em>[</em><em>Interruption.</em><em>]</em> It is! It is on page 145. Look at the in-year cuts. Look at the defence industry’s response to the Budget.
I will not take any more interventions— I have already taken two. Look at what the industry, from ADS across, is saying about these cuts. Last week, the House found out that two or three Boxer projects were cut. We found out that DragonFire might not be on the Type 45s next year, as planned. We found out that there are training cuts that happen to have an impact on operational capability. We found out that there is a cut to single living accommodation. Does anybody seriously think that we are funding defence? We are nowhere near doing so. When we were in government, I had many conversations saying, “This does not work,” and I publicly put it on record with the rest of the Defence Committee. We were facing serious issues, and we were not funding defence <span id="384" class="column-number" data-column-number="384"></span>enough. I am very happy to say that. The strategic defence review set out almost 18 months ago that we face the most serious times since the cold war—though I believe it is since the second world war. Out of the NATO countries, only Iceland is rearming more slowly than us and it does not have a military. I travel a lot within NATO countries, and I have been called out to speak on behalf of the UK by other countries’ Defence Ministers. I fed that back to the now Chancellor and he said, “I know; it is embarrassing.” On the international stage, we are nowhere near where we should be. Our approach to defence is seriously failing. This Budget fails rural communities and it fails defence.
I regularly meet South Shropshire farmers, who work night and day to put food on the table, and hear about the challenges that they face. Does the hon. Member agree that everything should be done to unlock all the red tape that the farmers have to deal with to produce food? Food production should be considered part of national security and resilience, because we need to ensure that we are self-sufficient.
In rural South Shropshire we face flooding and power cuts every year, so I welcome this campaign. However, I do not believe it has landed as the Government intended, because the strategic defence review set out a whole-of-society approach and a national conversation about the threats we face to our resilience. We have talked about the Finnish model. The Finns clearly know the threats through proximity. I believe that to get the public on side, we have to clearly set out the threats to critical national infrastructure that could close the internet down for several weeks or lead to power outages and so on. Does the Minister agree that taking that approach will help the country to prepare better?