The Autumn Budget and Spending Review outlined by the Chancellor delivers support across East Devon to not only help with the cost of living, but also aid the recovery of local businesses, drive economic growth, and continue to strengthen public services.
Exeter Airport is a business which is vital to our local economic prosperity. It creates jobs and brings visitors to the area who spend money. I have been campaigning hard to highlight this and secure bespoke support for the aviation sector.
Prior to this Budget I met with the Chancellor to raise many issues, including the unfair application of Air Passenger Duty (APD) on domestic flights. This is currently paid by passengers on both parts of the trip (outward and return). This differs from APD on long-haul international flights which is only paid on one part of the trip. The Chancellor’s announcement that APD will be cut by half on domestic flights is a great boost for regional airports in the UK. It rights a wrong that contributed to Flybe’s woes and now those who travel on long-haul flights will pay a higher rate of APD instead.
Additional support for this sector is provided by an extension of business rates relief for Exeter Airport. I am pleased that my campaigning has paid off, especially as Exeter Airport is leading the way on cleaner and greener aviation after hosting the first electric flight between commercial airports back in August. Such an event shows how we can head towards Net Zero, but also protect a sector that contributes significantly to our local economy.
As the new Chair of the All Party Parliamentary Group for Hospitality and Tourism, the news of a 50% cut to business rates for up to a year for the hospitality, retail and leisure sectors was excellent.
Halving business rates for a year will continue to help these operators and give them a bit more breathing space as they return to normal. There have also been some decent cuts to alcohol duty, including the biggest cut to cider duty since 1923. In our part of the country this can only be welcomed!
The cost of living continues to rise, and the Budget contained measures to ease this. As pump prices make filling up our vehicles increasingly costly, freezing fuel duty for the twelfth year in a row will help many people and businesses in East Devon. The Chancellor also announced a significant tax cut for low-income families by reducing the Universal Credit taper rate from 63 per cent to 55 per cent and increasing the National Living Wage to £9.50. The government realises that times are challenging, and I was glad to hear these announcements in the Budget.
I have expressed my disappointment about not being successful on this occasion in a bid for funds from the government’s Levelling Up Fund. I backed a bid submitted by Devon County Council and East Devon District Council for an extension to Dinan Way in Exmouth and improving the area surrounding the railway station. There will be other opportunities to apply for future funding and I will be meeting with council leaders to discuss their intentions.
However, East Devon will be getting one of the 100 new Community Diagnostic Treatment Centres that were announced, with services available at the Nightingale Hospital in Sowton which will help tackle NHS waiting lists locally.
I believe this was a balanced Budget that will help ease the cost of living. It has given further support to hospitality, leisure, retail, and aviation businesses – vital sectors that provide jobs in East Devon and boost the local economy. We have also gained a first-class NHS facility with the Nightingale Hospital helping to ease the pressure on local health services. All these things improve our quality of life and as your MP I will continue to speak up for East Devon at every opportunity.
This column first appeared in the Exmouth Journal on Wednesday 3rd November 2021 and in the Sidmouth Herald and Midweek Herald later in the week.