The message from the Chancellor’s first Spring Statement today was clear. There is light at the end of the tunnel as far as austerity is concerned and Philp Hammond hinted that he will increase public spending if public finances continue to grow. The signs are very promising indeed as Mr Hammond told the House that the economy is growing faster than expected. Borrowing is down; £108 billion lower than in 2010. There is the first sustained fall in debt/GDP for 17 years. The Office for Budget Responsibility (OBS) has revised its growth forecasts from 1.4 per cent to 1.5 per cent for 2018. Unemployment has increased by three million since 2010, which is the equivalent of 1,000 people finding work every day. The unemployment rate is now close to a 40-year low.
There is good news for broadband connectivity in North Yorkshire too as the Chancellor announced that £15 million from the Fibre Wave 2 Challenge Fund has been allocated to help roll out full-fibre broadband across the county. This is really welcome as I have been pushing hard for more funds to develop broadband in North Yorkshire since I was elected in 2015. Tomorrow, I shall be meeting the Broadband Minister, Matt Hancock, to discuss this further. I shall also be following up on today’s announcement that cities across England can bid to share £840 million to deliver local transport priorities to ensure that we, in the North, receive our fair share.
The Chancellor also prioritised the many businesses who create jobs and wealth by announcing that he would bring forward the revaluation of business rates currently due in 2022 to 2021. A further £80 million of funding will be released to support small business to engage with apprentices. I was pleased to have the opportunity in the debate which followed to raise the issue of VAT for small businesses and ask the Chancellor whether it is time to review the whole system of VAT. I also was pleased to hear details about the Government’s consultation on plastic litter as a way of changing behaviour, particularly for single-use plastic containers.
Altogether I welcome today’s Spring Statement as it shows how far the economy has come over the last eight years as it continues to grow strongly, with unemployment at a near record low, the deficit down and more investment in public services like the NHS.