Growth, fuel, water and tax

The Chamber was so packed for the budget last week that I and several other MPs sat in the member's gallery to watch it.

Next but one to me was Nigel Lawson, casting a seasoned eye over proceedings. He muttered his approval as he left — my own view is similar. This was a budget where there was little money to play with but one that had to deliver on growth, living costs and fairness.

On growth, corporation tax was cut by an additional per cent, meaning that we will have the lowest tax in the G7. This will attract businesses to invest in Britain.

Sir Martin Sorrell, the chief executive of WPP (the world's largest advertising agency) has already announced that, as a consequence of this budget, WPP will expect to relocate from Ireland to the UK. We will see more of this and it matters as it means investment and jobs.

On living costs, fuel duty was immediately reduced by 1p per litre; Labour's planned increase was halted and a Fair Fuel Stabiliser introduced. For rural communities like ours this will be especially important.

At long last the Government will also be reducing water charges in the South West through central government funding. That action is being taken after just ten months of Government is heartening.

On fairness, the lower rate tax threshold is to be raised by £630 for 2012, this being on top of the £1,000 rise this year. This will take further thousands of the lowest paid out of tax altogether — around 1.1-million have already been removed from tax so far.

To pay for these changes there will be higher taxes on oil companies and the banks.

Given he had little room for manoeuvre I believe that the Chancellor delivered.