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7.36 pm
Gillian Merron (Lincoln): The Budget encapsulates the essence of the Labour Government. It is a breath of fresh air for the whole nation, touching the places and people whose well-being had long been forgotten by the last Government. It is a privilege to make my maiden speech in a debate on a Budget that gives hope to the 671 young people in my Lincoln constituency who have been out of work for six months or more.
As tradition holds, I pay tribute to my predecessor, Sir Kenneth Carlisle, who carried out his duties with a deep affection for the city of Lincoln and its people. I am honoured to follow in the footsteps of the last Labour Member for Lincoln, the President of the Board of Trade and Secretary of State for Trade and Industry, my right hon. Friend the Member for Derby, South (Mrs. Beckett), who continues to serve our people with great dignity and skill. The House will be aware that Lincoln has had a chequered political past, but I hope that we shall have a distinguished political future.
I have met many people in Lincoln over the years, but perhaps the one whose experience of life has touched me most is a young man of 20 who came to see me. His mother had sent him because she said that I would understand. He had never had the chance to work and he wanted to. I am sure that he will remember our conversation as I have done. He will join me, the 670 other young unemployed people in Lincoln and their friends and family in warmly welcoming the opportunity to work or train.
How interesting it is to make my maiden speech in the same debate as the contribution of the right hon. and learned Member for Rushcliffe (Mr. Clarke), the shadow shadow Chancellor, who has confirmed that he--and perhaps also his party--has a commitment to the welfare-to-work policies commended to the House by the Labour Government. I want to acknowledge their long and regrettable experience of work-to-welfare policies, which has damaged the lives of many millions in this country.
Many of my hon. Friends will have visited Lincoln and enjoyed the beauty of the fine cathedral and castle which form the historic heart of the city. The cathedral, which has suffered fire and earthquake, stands partly on the site of a 1st-century Roman fortress. It is a vision to behold and was commended by John Ruskin, who wrote:
Despite its wealth of attractions, both historic and current, Lincoln frequently finds itself in splendid isolation because of poor transport links which have worsened over recent years. There is now no direct rail link to London and there are inadequate connections to other places. The A46, one of the major link roads to the city, is aptly described by the local paper as "agony corridor". The difficulty of travelling to and from my constituency makes life difficult for people trying to go about their everyday lives while business opportunities continue to be lost to Lincoln. I look forward to making representations in the review of road building and transport.
I consider Lincoln to be a city of partnership. It is the partnership between this Government and the people that will make this Budget one that equips Britain for a positive and bright future. On the banks of Lincoln's Brayford pool is living proof of how a dream can become a reality. The first purpose-built university for decades, the university of Lincolnshire and Humberside, welcomed its first intake of students last year. We were delighted to welcome Her Majesty the Queen and Prince Philip, who did the honour to the city of formally opening the university, as befits such an important project. Local authorities, businesses and ordinary people freely gave their financial and practical support to make the university happen. It is just the kind of university we need to work with the Government to deliver the education opportunities that can truly open doors. It is through opening doors by education that we can give equality and opportunity to all.
For hundreds of young people in Lincoln and for many local good causes, the football in the community initiative has been a lifeline. That is down to the good work of Lincoln City football club, where the team are affectionately known as the Imps. I must explain that that is due to the influence of the infamous Lincoln imp which can be found in the stonework of Lincoln cathedral, and is no comment or reflection on the stature of the players.
The football club has gone one step further in developing partnership. I have been pleased to support Lincoln City 2000, a venture that fosters wider community support and involvement. Sincil Bank, the football ground, is open to us all in Lincoln to enjoy, not only for football matches, but in terms of fine fitness and social facilities. That is just the kind of community organisation that we need to work with this Government to enhance the quality of people's everyday lives.
Lincoln has the distinction of being the birthplace of the tank as well as having been home to top engineering companies, many of which, sadly, have suffered the ravages of Conservative economic policies. I suspect that, if previous Budgets had worked in favour of investment and industry, as this Labour Budget surely does, Lincoln would not have seen the round of factory and other closures and the resultant blight of people's lives as they live daily with the threat or reality of losing their jobs.
I am pleased to tell the House, however, that engineering excellence is still alive and well in a number of companies, including Lincoln's largest private employer, European Gas Turbines. The success of this world-class company demonstrates the value of partnership between the company and its work force, working together to set ambitious targets and sharing aims, worries and a vision. That is just the kind of business that we need to work with the Government to
boost local economies and to create jobs. We have made our intentions clear by cutting corporation tax and increasing capital allowances. This Government are serious about investment and jobs.
This is a Budget that plans ahead; it is not a Budget just for today or for yesterday, but one that looks to a stable future. This is a Budget that sets out what is decent and what is not. This is a Budget to be proud of.
I passionately believe that a one-off windfall tax on excess profits to fund a new deal for young and long-term unemployed people, lone parents and schools is right and proper and will be regarded as the decent thing to do in my constituency and across the country. The nonsense of the privatised utilities has gone on for long enough. East Midlands Electricity can boast to its board of a sixfold increase in annual board pay since privatisation, while the work force has been halved and those remaining carry heavier work loads and worries for their future and the future of their service.
Mr. Keith Simpson (Mid-Norfolk):
I congratulate the hon. Member for Lincoln (Gillian Merron) on her maiden speech. I do so on the ground that I made my maiden speech only a month ago and I know that it is stressful to wait to catch Mr. Deputy Speaker's eye. Although I represent a constituency in another part of East Anglia where I should defend the interests of Norwich cathedral, I fully recognise the hon. Lady's comments about Lincoln cathedral, which is also our national memorial to the 30,000 British aircrew in Bomber Command who died during the second world war.
My right hon. Friend the Member for Hitchin and Harpenden (Mr. Lilley) pointed out that this Budget is, above all else, a political Budget. It is not determined by a Labour Government who are keen to demonstrate that they can deliver their promises, but by a Labour Government who are unclear on how they will deliver their contradictory promise of not raising personal taxes while keeping to the previous Government's departmental spending ceilings.
Over the past two months, since the new Parliament first met, hon. Members have seen those promises beginning to come apart at the seams. One can hear great stretch in all directions. Over the past two months, many Conservative Members and one or two Labour Members who have not yet been sufficiently ideologically turned have been greatly amused by the Government's attempts to rummage through the historical lumber room of cliches to breathe new life into what is a rather vacuous political party.
In what is, I believe, referred to in a slightly different context as cross-dressing, new Labour borrows much from the Liberals who formed the Government in 1905. Indeed, I understand that the present Chancellor greatly admires the Liberal Chancellor of the period just before
the first world war--David Lloyd George. He is in many respects David Lloyd George without the sex. He has modelled his Budget on David Lloyd George's people's Budget--another historical cliche--of 1909. That Budget is not necessarily a fortunate example, as it raised massive expectations but failed to deliver on public expenditure, but then, perhaps, as that great Conservative Prime Minister Arthur Balfour said:
I an genuinely surprised that we have not heard about the new woman. It is alleged that the length of ladies' skirts reflects economic prosperity and recession. At times of economic prosperity, skirt lengths rise and when we are about to go into recession skirt lengths fall. [Interruption.] Listening to the mutterings among Labour Members, I realise that I may be making a politically incorrect statement. Perhaps I should say that under new Labour, in every possible sense, it is a matter of trousers going up and coming down. I take the advice of my wife who says that at the moment skirt lengths are beginning to come down, so I suspect that we are heading for a recession.
Yesterday, we heard what could best be described as a hangover Budget. It felt good yesterday, but by God there are some bloodshot eyes among Labour Members today.
I want briefly to consider one aspect of the Government's economic policy and then turn to a specific issue that relates to my constituency. In less than a year's time, the Government will realise that the basic issue of public expenditure, which will not be debated this autumn, is crucial. Some of the more astute Labour Members have woken up to the fact that their Government's public expenditure plans do not add up.
Lord Healey, the former Labour Chancellor, once said that the Treasury knows the cost of everything and the value of nothing. The Treasury has produced a series of instruments to contain public expenditure. At the strategic level we have the comprehensive spending review, at the operational level we have the cross-departmental reviews and at the tactical level we have a whole series of departmental reviews that are taking place at the moment. The declared aim of the reviews is to assess how to use resources better while rooting out waste and inefficiency in public spending. I have never heard that from anyone in the Labour party. Many Conservative councillors would find it absolutely amazing, in view of the excess spending of many Labour local authorities.
The "Oxford English Dictionary" defines a review as
The serious point about the series of reviews is that in a year's time there will be winners and losers. I suspect that there will be more losers than winners. The Treasury is looking for savings and I can highlight one Department which is a sitting duck for making savings.
Before the election, the Conservatives costed every Labour departmental election promise and found a minimum of £10 billion in promises. In only one Government Department were there no spending promises--the Ministry of Defence. To be fair to the Labour party, it has never considered defence a priority and it is not a priority in terms of Government spending.
Putting aside the security implications of taking considerable sums of money out of the defence budget to fund some of the Government's election promises, it should be remembered that the Ministry of Defence is still the biggest single customer of United Kingdom industry. There is probably not one hon. Member present who does not have small and large companies in his or her constituency dependent on that. Defence cuts will have a major impact on employment and business, not least in my constituency.
I now turn from the general impact of the Government's economic policy to the specific impact of the Budget. The Budget resembles an Arthur Daley deal; we must look beyond the Chancellor's extra-large print and read the small print. Many people are beginning to realise that the Budget is a time-bomb.
More than 20 per cent. of my constituents in Mid-Norfolk are pensioners. The Budget will be a tax on them. Labour has made much of the reduction in VAT on fuel from 8 per cent. to 5 per cent., but most pensioner households will save at most 31p a week.
This Labour Budget will tax all our pensioners in four specific ways. First, the windfall tax will hit pension funds and many utilities will pass the costs directly to consumers. Those least able to afford that will be pensioners. Secondly, reducing the rate of advance corporation tax credit will mean that pension funds will have less income and pensions will be lower. Some councils have already indicated that increases in council tax will pay for the impact on their pension funds--another blow for our pensioners.
Thirdly, abolishing tax relief on private medical insurance--a rather nasty little measure--will hit the over-60s, affecting some 600,000 pensioners and overloading the national health service. It also contradicts the policies outlined by the Minister of State, Department of Health.
Fourthly, the increase in tax on petrol and the intention to make insurance companies bear the cost of hospital treatment for those injured in accidents will doubly hit pensioners, particularly in my large rural constituency.
It is a time-bomb Budget that will dramatically affect pensioners and it will not achieve the honest objectives of many Labour Members. Lady Violet Asquith once said of Lloyd George that
"I have always held and am prepared against all comers to maintain that the cathedral of Lincoln is out and out the most precious piece of architecture in the British Isles, and, roughly speaking, worth any two other cathedrals we have."
I give the House those words without wishing to offend anyone else who represents a cathedral city.
"History doesn't repeat itself, rather historians repeat each other."
New Labour's attempt to give cliches a fresh look has led to so many absurdities that it is getting almost beyond a joke, and those absurdities have been very much mirrored in the present Budget. We have heard, for example, of that wonderful, original phrase, "a new deal". I have a suspicion that someone called Franklin Delano Roosevelt once talked about a new deal. We are saved from hearing the phrase "a new Europe" because someone obviously had the sense to look it up and found that Hitler had used it first.
"a general survey or assessment of a subject or a revision or reconsideration".
The French word, revue, is defined as
"a theatrical entertainment of a series of short usually satirical sketches and songs".
On every occasion in the past two months when Ministers have been faced with a difficult decision, they have hidden behind the usual phrase, "We are reviewing it".
That has caused at the very least a degree of scepticism among the Opposition and some hilarity on the Labour Benches below the Gangway. Every time the hon. Member for Bolsover (Mr. Skinner) hears a Minister mention a review, he sings the song from "Oliver" that begins, "I am reviewing the situation". I understand that the awkward squad below the Gangway are to cut a disc but that they have turned down the offer by the Minister without Portfolio to act as their manager because he was asking for far too high a cut of the profits.
"he could never see a belt without hitting below it".
The present Chancellor can never see a tax relief for private enterprise without reducing it or abolishing it.
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