Contribution
I thank the right hon. Gentleman for his intervention, but I remind him that there was a support package in the Budget, which I will talk about a little later.
I welcome the Government’s focus on fiscal prudence and economic competence, and their determination to crowd in private investment in order to rebuild our economy. Since 2024 the Government have doubled the fire power of our financial institutions to more than £200 billion. Cornwall has seen the value of anchor investment in our tin, lithium and tungsten industries. Additional capital for the national wealth fund sends a signal of confidence in Cornwall’s critical minerals and their contribution to Britain’s economic security and energy resilience.
Cornwall has vast untapped economic potential through our internationally renowned resources of critical minerals. The Conservatives ignored those resources and abandoned Cornwall, but this Government are taking welcome action to bring back Cornish tin mining and bring back fresh hope to our communities. However, the Government must go further and faster to ensure that these vast resources are not offshored by competitive nations, to the detriment of UK plc.
There is also a risk that Cornwall will be disadvantaged precisely because we have chosen a model of devolution that reflects our national minority status. A key offer for foundational strategic authorities has been business rates retention, but Cornwall council has had that since 2017. Mayoral strategic authorities can also access a £1.5 billion borrowing facility and negotiate strategic place partnerships with Homes England, but Cornwall cannot currently do that either. With 25,000 homes on the social housing register, getting the deal and its associated funding would be transformative for Cornish house building and we will not stop demanding that.
In Camborne, Redruth and Hayle, house prices have risen almost 18% in five years, compared with 6.4% across England and Wales. Young people increasingly feel that owning a home where they grew up is beyond their reach, so the first-time buyer ISA and the £4.7 billion Your First Home scheme offer fresh hope. Alongside the 100% council tax premium on empty homes, they could make home ownership possible again for a new generation of Cornish families.
On energy, this Budget fully demonstrates how this Government are on the side of remote communities such as ours in Cornwall. One in seven households in Camborne, Redruth and Hayle rely on heating oil, compared with one in 29 nationally. With heating oil prices up 82% since the start of the Iran war, the two-year suspension of tariffs on kerosene is welcome, but I hope that is a first step and not a final destination. The same is true for the £100 household energy payment for over 43,000 households in my constituency, the additional £100 million for targeted energy support, the commitment to abolish domestic gas standing charges and the extension of zero VAT on electricity to July.
However, in my capacity as chair of the APPG on electric vehicles, I have some concerns about the signals we are sending to the automotive sector. The continued uncertainty over the zero emission vehicle mandate risks weakening investment in Britain’s position in export markets. Charging 20% VAT on public charge points penalises drivers without a driveway or a home charger. Although an eventual road tax for EVs is understandable, introducing it in 2028 through an unwieldy scheme risks discouraging adoption when demand needs to accelerate.
All things considered, this Budget is welcome for Cornwall. Each of the wins, from heating oil to energy bills, and from housing to devolution, comes alongside a vast improvement in the fundamentals of the British economy since the last election, despite strong global headwinds. The Government are restoring credibility and competence to the British economy, we are creating breathing space for our constituents, and we are rebuilding our reputation with our closest neighbours, our allies and our friends in the European Union. It is in the British national interest to do so. Rather than the withering disdain and distrust of the Conservative Government, this Government are engaging proactively, and I thoroughly welcome that.