John Baron MP presents Budget proposals to Chancellor

John with the Chancellor, Rt Hon Rishi Sunak MP

MP opposes National Insurance increase

Ahead of the Autumn Budget on 27th October, the Chancellor and Treasury Ministers have been asking MPs for their suggestions. This week John Baron MP met the Chancellor and his team to put forward his proposals. These include scrapping HS2; cutting the costs of quangos; cancelling the rise in National Insurance; making the NHS more efficient; reducing corporation tax; raising the National Living Wage and reversing the damaging cuts to the British Council.

John said,

“I was pleased to meet the Chancellor and his team to put forward my suggestions for a better and fairer economy.”

“In the first instance we should scrap HS2 – costs continue to escalate and advances in mobile communications have trumped many of the arguments in its favour. Last year’s Oakervee Review found that £2-3 billion of the £9 billion so far spent should be recoverable through land and property sales, with overall savings of up to £80 billion.”

“Further sums could be saved by cutting the costs of quangos. The Taxpayers’ Alliance estimates that tackling the myriad of quangos and other public bodies could save a significant proportion of the £206 billion these currently cost in total.”

“I also strongly believe that the Government is wrong to raise National Insurance, which is why I voted against it last week. Raising taxes just as businesses are trying to rebound from the pandemic shock risks choking off our recovery and, as Conservatives well know, NI is a tax on jobs.”

“Money could also be saved by making the NHS more efficient. The enormous growth of process targets in recent decades has spawned a large bureaucracy, whilst outcomes – which are really what matter to patients and their families – have not improved as much as they should. In addition, the NHS is currently advertising for 42 new managers on salaries of up to £270,000, and nearly half of its workforce is not medically trained.”

“Evidence shows that reducing corporation tax raises revenues over time, as shown by the Laffer Curve. The Government should abandon its planned increases to corporation tax and should instead reduce it, especially for SMEs.”

“In order to further the Conservatives’ ‘One Nation’ agenda, the Government should raise both the National Living Wage and the National Minimum Wage above inflation, whilst controlling immigration, in order to assist the transition towards a high-tech and well-paid economy.”

“Finally, the Government should reverse the damaging cuts to the British Council’s overseas network, which will see offices close in key countries such as the United States, Canada, Australia and New Zealand. £10 million is not a large sum to preserve our soft power in these important countries, and a little initial investment in soft power can go a long way.”