Now is not time for tax rises if British business to build back better – Sir John Redwood

Now is the time to promote a vigorous recovery as soon as it is safe to do so.

Yes, the deficit is far too large, but it is affordable as long as it is a one-off.

The deficit is the product of sensible support for individuals and businesses when they were locked out or closed down, and it was sensible support for the economy as a whole at a time when tax revenues had fallen sharply because people were not allowed to go to work and businesses were not allowed to trade.

The way out of all that is not tax rises that would sap confidence and undermine business cash flows even more.

The way out is a vigorous recovery that will replace lost revenues, and reduce the need for the support that the Government have rightly produced for small businesses and individuals.

What businesses and individuals will need is turnover, orders and work.

I ask all Government departments – led, probably, by the Department for Business, Energy and Industrial Strategy (BEIS) – to look at how the UK Government can make more work available.

The Government has mighty procurement programmes, so when we are building great new railway lines, let us ensure that it is UK steel for the tracks and that it is UK-produced trains with plenty of components and value added, as well as the assembly work taking place in the United Kingdom.

As the Department for Environment, Food and Rural Affairs designs new grants and loans schemes, it should be promoting British food and agriculture at the same time as taking care of environmental concerns.

There is a great opportunity to reduce the amount of imported food and to substitute Great British food from our farms and fishing grounds.

BEIS itself leads on energy. Why are we importing so much energy through interconnectors?

Can we not have another round of capacity procurement so that we have future electricity generation here in Britain?

We have plenty of means of generating power; surely we can harness that?

The Government should want to greatly expand the electricity output of this country because they want to unleash on us a great electric revolution in transport, space heating and powering our factories, so let us make the provision early.

Let us invest now for the future so that we have that electric power when it comes to be needed.

A number of businesses have been very badly damaged by lockdown and shut-out, and I am glad that the Government are making some money available to them.

I urge them to be generous. It was not those businesses’ fault and we need them to be there when we have recovery.

Small businesses and the self-employed are mightily flexible, but they cannot survive on thin air, and they will need to repay their debts, so give them some turnover and some tax cuts.

Sir John Redwood is a Tory MP and former Cabinet Minister. He spoke in a Commons debate on Covid support.

Anne-Marie Trevelyan, the Minister for Business, Energy and Clean Growth, said in response: “The depth of support and continuing commitment from the £280bn that the Treasury has found has been extraordinary.

It is the largest package of emergency support in post-war history, of which 
the loan guarantee schemes are an important and successful part because they have protected, created and supported jobs.

We are committed to protecting those jobs, and we have extended the coronavirus job retention scheme until the end of April.

The Chancellor will set out the next phase of the plan to tackle the virus 
and protect jobs at the Budget next 
week.

Retailers have a history of responding to change. They are continually innovating and adapting to market pressures. That is what they do. That is the art of the retailer, and much of that dynamism has had to play out under the pressures of the last year, but we absolutely recognise the challenging environment that this sector has been operating in.

Retail will always be a vital part of our local communities, and I want it to be at the heart of our high streets where our constituents live, shop, use those services and spend their leisure time as we return to normal.”

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