Newspaper column 28 October 2015 - Tax Credits

The past few weeks have seen intense debate on the subject of tax credits, and many of you have contacted me on this topic. I would like to take this opportunity to talk in some detail on the issues.

Firstly, as a country we are still spending far more than we raise in taxes – in fact around £1.5billion a week more. We cannot carry on doing this and leave our children and grandchildren with the consequences.

The welfare budget is the biggest single element of government spending.  If we don’t make some savings in this area, all the cuts will fall on public services like the NHS, schools and the police.  I don’t believe that would be right.

The three largest elements of the welfare budget are the pensioners, disability benefits and tax credits.  I don’t believe it would be right to cut the pensions or disability benefits, which is why we have focused on tax credits.

Tax credits were introduced to help people in low paid work, but by the time Labour left office 90% of working families were eligible for them. But it is not solving the problem it was set up to address; at the same time in-work poverty rose by 20 per cent.

Second, tax credits allow employers to pay their staff less than they need to make ends meet, safe in the knowledge that the taxpayer will top salaries up.  This isn’t right.  

So there is a strong case for reducing spending on tax credits if at the same time we take action to ensure people are paid a living wage and pay less tax on what they earn.  That is exactly what the Government is doing.

We are introducing a new National Living Wage, which is forecast to rise to over £9 an hour by 2020. We continue to increase the personal allowance, the amount of money you can earn before you start paying income tax which will be £11,000 next year and £12,500 by 2020.  

When you take into account all of the welfare and tax changes announced in the Budget, most families will be better off by the end of this Parliament.

However, whilst I support the principle of these changes, there is no denying that some families will be worse off as a result. I am particularly concerned at the short term impact of people who work part time, the lowest paid and the self-employed, amongst others.

Last week I met with the Chancellor and made my views known that I believe some measures need to be taken to minimize the impact of these changes on the lowest paid. I will continue to press the case for some measures to be taken to address these concerns.

On Tuesday evening the Chancellor made the following statement with regards to the Tax Credit reforms -

'I said I would listen, and that's precisely what I intend to do. I believe we can achieve the same goal of reforming tax credits, saving the money we need to save to secure our economy, while at the same time helping in the transition.

"That's what I intend to do at the Autumn Statement. I am determined to deliver that lower welfare, higher wage economy that we were elected to deliver and the British people want to see.'

I am delighted that he has listened to the many voices within our party and from the Lords and will bring forward measures to assist the low paid with the transition.

If you believe you are going to be significantly impacted by these changes please to get in touch with me so that I can make sure I can represent you in Parliament - office@stevedouble.org.uk

My thoughts on the reform of Tax Credits

The Chancellor outlined a package of reforms in the Summer Budget to help working people. This package included the new National Living Wage, a higher tax-free personal allowance and lower taxes for all. His Budget also included changes to the Working Tax Credit Scheme.

I remain firmly behind the principle of tax credit reform.  Tax credits were introduced by Gordon Brown and have ballooned to an unsustainable level since. Tax Credits currently cost the taxpayer £34bn per annum. This figure is difficult to take in but it is almost half of our total spending on Education, a third of our NHS budget and more than the country’s total Transport budget.

Whilst tax credits should provide an important safety net for families on low pay, the level at which they were granted extended beyond people on average earnings. It is reported that even MPs have at times qualified to claim tax credits! It is also clear that the way the system operated acted as a cap on aspiration and allowed businesses to keep wages low knowing that the taxpayer would make up the difference.

The Tax Credit system is not only unsustainable, it is out of date, doesn’t work and needs reforming. Despite increasing year on year under Labour the number of people described as ‘working poor’ also rose and more people were out of work in 2010 than when they came into office.

The package of measures introduced by the Chancellor need to be taken as a whole. They form an important step in us moving away from a high welfare, high tax, low wage economy to a higher wage, low tax, low welfare country. The introduction of the living wage, replacing the minimum wage, which will be £7.20 in April 2016 will give full time workers on the current minimum wage a rise of £1,000 per year. Added to the rise in the personal tax allowance to £11,000 and doubling the amount of free child care to 30 hours per week, the overall package provides significant measures to support many households who will face a reduction in their tax credits.

When everything is taken into account four out of five families will actually be better off as a result of these changes. Taken together with all the welfare savings and tax cuts, a typical family where someone is currently working full time on the minimum wage will be over £2,400 a year better off by the end of the parliament. I believe these changes are necessary and in time will be very positive.

However, I do share the concerns of many at the impact these changes will have on some households. Whilst we do need to exercise some caution in just accepting some of the headline figures being bandied about, it is clear that some people will lose significant amounts of money as a result of these measures. Much of this is down to timing. The cuts in Tax Credits will be brought in ahead of the further rises in the Living Wage and Tax Allowance.

In the last few weeks many constituents have contacted me about the reforms to tax credits.  Wages and salaries in Cornwall are below the national average and so any change to tax credits are likely to disproportionately impact working people in Cornwall.

I understand the impact and hardships that these changes may cause.  I want to assure people that I have been working behind the scenes to ask the Government to do something to ease the impact of these cuts. I have met with the Chancellor George Osborne and have written to the Prime Minister.

Some people have contacted me asking why I did not speak out in the debate this week. Although speaking in the chamber is one way of addressing these issues, actually it is the work behind the scenes that is often far more effective in getting something changed.

The motion this week was a Labour Party Motion that proposed to completely reverse the changes to Tax Credits. This is something I could not support.

I want to make clear that I support the principle of reducing Tax Credits but believe the severity of what is proposed needs to be addressed. I will continue to work towards a different solution, a solution that softens the blow that has come relatively swiftly.

Newspaper column 21 October 2015 - Debate on school attendance rule changes

Parliament to debate the impact of the school attendance rule changes

I am delighted to report to you that the recently introduced rules, restricting parents from taking their children on holiday during school term times, are to be debated by Parliament, and that I will lead this debate.

The Department for Education implemented the changes on 1 September 2013 under the then Secretary of State, Michael Gove.  The negative financial impacts on the tourist industry have since been termed “the Gove effect”.  The rules have stopped many children from taking holidays in term time and this has caused a drop in tourist revenues across Cornwall, especially in the shoulder months of June and September.

As many of you are aware this is an issue that I have been lobbying on, both before, and since, the election. It is something I pledged to address if I was elected and I have been working on this issue since May – asking questions in Parliament and meeting ministers to raise my concerns. I have taken such a personal interest for a number of reasons. 

Firstly, so many of you have made your feelings clear that as MP I simply could not ignore the force of feeling in mid-Cornwall.  These rules are unfair to Cornwall. So many people here work in the tourist industry and therefore are unable to take a family holiday during school holidays. Additionally many families are simply unable to afford a holiday during the peak season. My job is to represent you and so I have worked to do just that.

Secondly, I believe that parents should have the right to decide what is right and best for their child. Every child is unique. Some children benefit hugely from the experience they gain from traveling and experiencing new cultures – whether in this country or abroad. It is not for the state to dictate to parents in this way.

Thirdly, I believe time away as a family is important and valuable for families, especially these days when we are all so busy. I would argue a strong and stable family and positive relations with parents are just as important in the upbringing of any child as time in the classroom. If the choice is no family holiday or time away together during term time, a holiday should be allowed.

Finally, I believe that the Department for Education made the changes in 2013 without sufficient consideration for all of the consequences, and as a result Cornwall has suffered. Visit Cornwall reported that last they estimate the Cornish economy lost over £40million as a result of families not coming here on holiday during term time.   

While my efforts have been instrumental in highlighting this issue, it was the more than 100,000 people who signed the online petition that ensured that the issue would be debated in Parliament.  While signatories to the petition come from across the UK, the voice of Cornwall was strong – in fact this constituency provided more signatures than any other. 

The debate will be held in Westminster Hall on Monday 26^th October. If you feel strongly about this issue and wish to make sure your views are heard then I would welcome hearing from you before the debate. You can email me at office@stevedouble.org.uk  

Newspaper column 14th October 2015 - The Prime Minister's recent speech

Last Wednesday I was at the Conservative Party Conference in Manchester when the Prime Minister delivered his keynote speech.  As one of the new intake of Conservative MPs I was given a front row seat so I was able to soak up the atmosphere and be close to the action. 

The Prime Minister’s speech reminded me why I became a Conservative and why I am so honoured to be representing our constituency.  He spoke of One Nation Conservatism, of a belief that everyone should have equality of opportunity and the chance to fulfil their ambitions and aspirations whatever their background.  For too long the people of Cornwall have not enjoyed that equality of opportunity, it is time for this to change and this is one of the main reasons I got involved in politics.

I attended Poltair School in St Austell, not Eton.  From there I went to work for Barclays Bank in Newquay and St Austell. I didn’t go to university, let alone the spires of Oxford. I went on to work for a church then started my own business before getting involved in politics just a few years ago. This county has given me opportunities and I have taken them.  This is what I want this Government to offer to all the people of mid-Cornwall, and what I will fight for in the next 5 years.

One of the key drivers of social mobility and opportunity is education.  The Conservative Party is working to change the education system for the better, by creating more Free Schools and academies.  There is already a successful shift so that more children are studying maths and science, more are learning computer coding and engineering, and more are doing the extra-curricular activities that teach confidence and build character.  We have exciting developments across our schools in mid-Cornwall and I will continue to support this change. 

The Prime Minister announced a change to housing policy; more affordable homes will now be made available to buy rather than rent.  He talked of a generation of 20 and 30 year olds living in their childhood bedrooms and I know that this is true for many people in our constituency, including my own family.  The level of wages and salaries in Cornwall, accompanied by the high prices driven by second homeowners, makes the affordability of housing more of a challenge for our young people than it is in other areas of the UK.  I welcome any policy shift that will help to address this issue.

The unemployment rate in Cornwall continues to fall, but this masks a problem of under-employment.  This is our next employment challenge. We have graduates working in seasonal jobs just to get by, the type of jobs that their degrees prepared them for are rare or non-existent in Cornwall.  Our next task is to increase investment in our economy, we should be supporting existing local businesses, encouraging new businesses to start and attracting businesses from upcountry.  It is time for Cornwall to fulfil its economic potential, to raise our sights and grasp the opportunities ahead.

The building blocks of policy are in place, change is happening and we have everything to strive for.  So, let’s work together to improve the prosperity of everyone in our constituency and our county, one and all.

Newspaper column 7 October 2015 - St Austell edition - The Cornwall Expo

On Tuesday last week I was delighted to attend the first ever Cornwall Expo, hosted by Cornwall Council and the Local Enterprise Partnership (the LEP).   Held over two days in one of the hangars at the Aerohub at Newquay Airport, the Expo launched the next round of European funding for Cornwall and the Isles of Scilly.

I was particularly struck by the energy and optimism at the event, there was a real buzz of expectation and a feeling that Cornwall is at last being given the attention that it deserves from central government.

The exhibits covered everything from rail, road and air expansion plans, to the Spaceport at Newquay airport and the wave hub at Hayle.  First Group took the opportunity to launch their new or rather, old, brand GWR and their new sleeper carriages.  It is exciting to see the iconic brand return to our railways alongside new and improved rolling stock. 

Patrick McLoughlin, the Secretary of State for Transport, attended the event and gave the keynote speech.  He noted the progress that Cornwall has already made in the transport sector and finished his speech; “So now, with a clear mandate from the general election, we can press forward with our long-term transport plan for Cornwall.  We have the funding, the vision and the political will to deliver the transport changes the southwest needs.  Over the next 5 years we will work with you to make sure Cornish businesses play a full part in Britain’s economic recovery.” 

After he gave this speech he was shown a map of St Austell and the Clay villages and the possible routes of the A30 link to St Austell.  This important link was mentioned in the summer budget and is one of my top priorities for the next five years.  But it didn’t stop there.  The Secretary of State was then whisked to a waiting helicopter and flown from Newquay to St Austell Bay to see the logistical challenges that this road brings, first hand.  It was a beautiful day and I was told that St Austell Bay looked tremendous from the air. 

The St Austell and Clay villages stand at the Expo also mentioned the long-discussed northwestern link.  A road from Carludden across country to join the A 390 somewhere near St Mewan, has long been seen as the necessary next step to alleviate traffic volumes in St Austell.  I was heartened to see this back on the agenda and will be supporting this scheme in the coming years.

Apart from the transport developments, it is time St Austell had its fair share of European funding.  The LEP will be coming to the White Hart Hotel, St Austell at 10am, on 9^th November to discuss how to apply for funding.  I encourage you to attend if you are considering expanding your business.  Let us work together to ensure that St Austell gets all of the support and help that is available.

Newspaper column 7 October 2015 - Newquay Edition - The Cornwall Expo

On Tuesday last week I was delighted to attend the first ever Cornwall Expo, hosted by Cornwall Council and the Local Enterprise Partnership (the LEP).   Held over two days in one of the hangars at the Aerohub at Newquay Airport, the Expo launched the next round of European funding for Cornwall and the Isles of Scilly.

I was particularly struck by the energy and optimism at the event, there was a real buzz of expectation and a feeling that Cornwall is at last being given the attention that it deserves from central government.

The exhibits covered everything from rail, road and air expansion plans, to the Spaceport at Newquay airport and the wave hub at Hayle.  First Group took the opportunity to launch their new or rather, old, brand GWR and their new sleeper carriages.  It is exciting to see the iconic brand return to our railways alongside new and improved rolling stock. 

Patrick McLoughlin, the Secretary of State for Transport, attended the event and gave the keynote speech.  He noted the progress that Cornwall has already made in the transport sector and finished his speech; “So now, with a clear mandate from the general election, we can press forward with our long-term transport plan for Cornwall.  We have the funding, the vision and the political will to deliver the transport changes the southwest needs.  Over the next 5 years we will work with you to make sure Cornish businesses play a full part in Britain’s economic recovery.” 

There are exciting times ahead at Newquay Airport.  On Tuesday night I met with members of the Bloodhound Supersonic Car team.  They are very enthusiastic about the time they will be spending at Newquay next year testing the car in preparation for the world land speed record attempt in South Africa.  They are likely to be at Newquay Airport for a month and I encouraged them to make the car available to as many local people as possible during that time.

The possibility of the UK Spaceport being sited at Newquay Airport was also explored on one of the stands at the Expo.  I believe that Newquay remains the most obvious choice for the UK Spaceport.  Newquay has one of the longest runways in the UK, appropriate airport infrastructure and is located in a county that would offer many other attractions to space tourists.  I will continue to lobby for Newquay as the obvious choice as the Government moves into the next stage of decision making.

Apart from the airport developments, it is time Newquay had its fair share of European funding.  The LEP will be coming to the Town Council Committee Room, Newquay at 2pm, on 9^th November to discuss how to apply for funding.  I encourage you to attend if you are considering expanding your business.  Let us work together to ensure that Newquay gets all of the support and help that is available.