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The Budget

The right hon. Gentleman’s remarks on that issue are fine, but he should know that there has been support from the Conservatives already. Indeed, I was not aware that, as Secretary of State, I could not write to the Backbench Business Committee to request a debate once it had moved into its auspices. However, I wanted to bring this issue to the attention of the Committee and I am very pleased with the support that we have got across the Floor of the House, and I hope that we will be able to secure a St David’s day debate in the future. I know that many Members are keen to participate in the debate, so I will keep my remarks fairly short to allow them to contribute. Let me start by welcoming this Budget, which I think is good for families, businesses and Wales. We have listened to what businesses and people around the country say about what they think the Government should be doing, and we are moving to free up businesses so that they can provide the growth that Wales so badly needs. The Budget also delivers fairness and help for the poorest people in Wales. Another 10,000 of the lowest-paid workers in Wales will be free from the burden of paying income tax. That means that since we came to power a total of 52,000 people in Wales have been lifted out of the tax system and a further 1.13 million people in Wales will gain from the changes in personal allowances. We have also listened to people on fuel prices. We know that high fuel prices are hurting people, especially in rural areas, so we have cut fuel duty by 1p per litre and scrapped the planned increase in duty next month. That means that the owners and operators of the 1.7 million vehicles in Wales are already paying 5p less at the pump than they would have paid under the last Government. Despite that, much like last year I have read unfounded reports attributed to Opposition Members suggesting that Wales is being hit the hardest and that we are asking Wales to pay for tax breaks for the banks. Nothing could be further from the truth. In fact, we have increased Wales’s share of the pot and by increasing the bank levy we have offset any benefit from reductions in corporation tax that might otherwise have gone to the banks. The Welsh Assembly Government have £65 million more to spend—money that they received despite the economic situation, calculated using the same formula and in the same way as in Budgets put forward by the Labour party for over 13 years. While last year's emergency Budget was a rescue mission for the country’s economy, this year’s budget moves us from rescue to reform and sets us firmly on the road from reform to recovery. Returning Wales to sustainable, balanced economic growth is our first priority. With the structural deficit remaining as forecast last November, the size of the challenge before us remains as daunting as ever. But we are up to the challenge and this Budget showed how we will achieve the growth that we need to rebalance the economy by freeing up our businesses. That is particularly important in Wales, where there is so much scope for the private sector to grow. That is also a challenge for the Welsh Assembly Government: the recent recession has been the worst in living memory and certainly the biggest challenge we have faced since powers were devolved. I hope the Welsh Assembly Government will rise to that challenge and listen to business in the same way as we have–– and we really have listened to business. Last week’s announcements were merely the first phase of the growth review but they followed more than 1,000 meetings with business across the country. That is shown in the level of ambition of the measures that we are taking. My right hon. Friend the Chief Secretary to the Treasury has already set out our plans for growth across the UK. Much of this will benefit Wales, such as the 2% cut in corporation tax, scrapping proposals for new regulations that would have cost businesses £350 million a year, increasing the small and medium-sized enterprise rate of R and D credit, and extending the changes to the support for mortgage interest scheme for a further year. That is to name but a few of our commitments. But I want to see Wales derive all the same benefits as England will from this Budget, and we cannot do it alone. Many of the growth policies being put in place relate to devolved matters. The Budget is an opportunity for the Assembly Government to show that, with the areas under their responsibility, such as economic development and planning, they can direct policy making to what businesses need to grow and thrive, even if that means the state taking a step back.