Proceeding contribution from Nicholas Dakin (Labour) in the House of Commons on Monday, 28 March 2011. It occurred during Budget debate on Budget Resolutions and Economic Situation.
Budget Resolutions and Economic Situation
I am not giving way, as other Members want to speak. Let me welcome the decision to defer the fuel duty rise in line with what Labour called for. It is disappointing, however, that the rise in VAT on fuel means that even allowing for a 1p reduction, people still have to pay 2p more a litre. There is potential merit in the incentives for further charitable giving, but these are limited in their scope. I hope that the Government will examine carefully the proposals brought forward, with strong cross-party support, in my recent ten-minute rule Bill. It is designed to ensure that charities taking over the delivery of services from the NHS—for hospice care, for example—are treated in the same way as the NHS in respect of the application of VAT to non-business supplies. The Budget's proposals to increase support for technical innovation and research and development are movements in the right direction, as are the faltering steps forward for the green investment bank. However, I am disappointed not to see greater emphasis placed on ensuring that future investment in energy infrastructure will be carried out and supplied by UK-based companies. Such an approach would support the sort of renaissance that is needed in steel-based manufacturing supply chains. I am further concerned about the introduction of the carbon floor pricing. It is not only steel manufacturers such as Tata in my Scunthorpe county constituency that are sceptical, but organisations like Greenpeace, which said:"““The carbon floor price will put up bills, deliver a windfall profit for existing nuclear power stations and yet it won't drive investment into clean energy and improved efficiency. It's not so much a green tax as a stealth tax and it's exactly the kind of measure that gives green levies a bad name.””" The proposals on planning law are confusing when set alongside the direction outlined in the Localism Bill. At first glance, these are Janus-like policies, pointing in two directions. As the hon. Member for Mid Dorset and North Poole (Annette Brooke) pointed out, they present mixed messages to an already confused world. Finally, there is nothing in this Budget to support getting young people into work and much to create greater worklessness. The investment in apprenticeships is to be welcomed, but the key issue around apprentices is not student demand—there is plenty of student demand out there—but employer supply. As the Federation of Small Businesses says, small businesses"““are willing to take on apprenticeships given the right incentives.””" This remains sadly unclear. There was also disappointment that the Government had chosen not to extend the graduate internship scheme. To conclude, this is a Budget that disappoints rather than inspires. It leaves the UK economy charging pell-mell in the wrong direction. It is a helter-skelter ride of falling demand, rising joblessness and falling living standards. I hope the Government will listen to the people, take stock and pause—before it is too late.
Secondary information
- Type
- Proceeding contribution
- Reference
- 526 c128-9
- Session
- 2010-12
- Chamber / Committee
- House of Commons chamber
- Subjects
- Business Construction Council tax Budgets Housing Environment protection Economic planning Inflation Planning permission Local government finance Public expenditure Social security benefits Small businesses Regional planning and development Taxation VAT Enterprise zones Budget March 2011
- Link
- View this Proceeding contribution on www.publications.parliament.uk
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