Commons Chamber

Wednesday 26th November 2025

(began 2 weeks, 6 days ago)

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None Portrait Q1. What discussions he has had with the Secretary of State for Energy Security and Net Zero on the potential for new nuclear power sites in Scotland. (906510)
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So Geoffrey Clifton-Brown.

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Yeah, yeah. Thank you, Mr. Speaker. Would the Secretary of State not agree that actually State not agree that actually renewables require a considerable expense connecting to the grid? And
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Douglas Alexander Portrait Rt Hon Douglas Alexander MP, The Secretary of State for Scotland (Lothian East, Labour )
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Mr. Logan. Thank you, Mr. Speaker. It's just over 500 days since this government came to power, and the Chancellor's and the government's policies have been a disaster for the north east of Scotland for the cost of living problems, whether that's the impact of our National Insurance hikes on jobs and investment, the family jobs and investment, the family farm tax on agricultural sector, the energy profits levy which is killing jobs in the offshore sector, killing jobs in the offshore sector, or the raw deal offered to our fishing industry with the Coastal Growth Fund.

Can the Secretary of Growth Fund. Can the Secretary of State tell me and the House, should we expect the Chancellor to fix we expect the Chancellor to fix this mess that she has made, or will this Budget be another failure for the people of the North East who stay too long? who stay too long? Thank you, Mr. Speaker. It won't surprise you that I'm not going to prejudge the announcements the Chancellor will be making from this Dispatch Box in just a few minutes time, but I certainly do not recognise the characterisation that he has offered of the first 15 or so months of this Labour government.

It was always going to take more than 18 months to undo the damage of the last 18 years. What we have seen is 200,000 Scots already seen is 200,000 Scots already lifted out of poverty record rises in the national minimum wage, and that work will continue. that work will continue.
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None Portrait Q7. What steps he is taking with Cabinet colleagues to support regeneration in Scotland through the Pride in Place programme. (906516)
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Mr. Speaker. 40% of children in Stenhouse in my constituency Edinburgh West. Live.
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Keir Starmer Portrait Rt Hon Sir Keir Starmer MP, The Prime Minister (Holborn and St Pancras, Labour)
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Mr. Speaker. occurred in England in the first wave of the pandemic that could have been prevented due to the UK response being too little, too late. These were not just 23,000 deaths, These were not just 23,000 deaths, Mr. Speaker. These were 23,000 people who had family and friends who loved them, and valuable lives who loved them, and valuable lives that were cut short due to an abysmal failure of leadership by Boris Johnson and his government. Boris Johnson and his government.

They were categorically failed by Prime Minister, who prevaricated Prime Minister, who prevaricated delayed and prioritised political expediency over making the tough decisions that could have averted decisions that could have averted tragedy if the Prime Minister were to lead us through the next to lead us through the next pandemic, will he value saving lives above all else? Well, she's right, the report is a sombre moment, and it's important to remember the scale of suffering and the scale of the loss of life, which is made clear in the testimonies of the families in the report.

And to remember the report. And to remember the incredible contribution of frontline workers and everyone who focussed on protecting others. Mr. speaker, we're committed to learning the lessons needed from the Covid inquiry to protect and prepare us for the future, and the prepare us for the future, and the pandemic does still weigh heavily on our public finances and our NHS. That's why we've already conducted That's why we've already conducted a pandemic exercise to test preparedness, and agreed a historic global pandemic agreement to global pandemic agreement to improve our ability to prevent global disease threats.

Alongside our partners.
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Rachel Reeves Portrait Rt Hon Rachel Reeves MP, The Chancellor of the Exchequer (Leeds West and Pudsey, Labour)
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as called for by the British Chamber of Commerce and the Confederation of British Industry. It is this Labour government that It is this Labour government that has invested in nuclear power in Sizewell C and in Culham. We are Sizewell C and in Culham. We are taking forward our commitment to slash electricity prices for thousands of manufacturing thousands of manufacturing businesses, as make UK and many others have called for. And today, I'm pleased to welcome John I'm pleased to welcome John Fingleton's report, an ambitious plan to cut the red tape that has tied our nuclear industry, and not tied our nuclear industry, and not for decades.

And within three months, we will set out our plan months, we will set out our plan for delivering his recommendations. We are proud of our industrial We are proud of our industrial heritage, and we are determined to build the industry of the future so build the industry of the future so that we buy, make and sell more here in Britain. That's why as we here in Britain. That's why as we increase defence spending, we are investing in Portsmouth, in Barrow investing in Portsmouth, in Barrow and in Plymouth.

And I'm pleased to be supporting Team Derby, an initiative to drive growth in one initiative to drive growth in one of our defence industry hubs. It's why we stepped in to save British Steel in Scunthorpe and invested in Steel in Scunthorpe and invested in Sheffield Forgemasters. And it's why we've changed government procurement so we can buy British when it is crucial to our national security for steel, for shipbuilding and today for AI driving innovation and building that great industry here in Britain.

But it's not just what we invest that matters, it's how we invest. Putting money and power back in the hands of local and regional leaders. Today, we are devolving £13 billion of flexible funding for seven mayors to invest in skills, business support and infrastructure. I'm extending the business rates retention pilots in the West of England, Liverpool City Region and Cornwall until 2029 and providing £30 million for the Industrial Growth Fund for sectors like critical minerals and marine innovation.

I am establishing the Lead City Fund, a long term agreement to retain business rates to fund local regeneration projects like the development of Leeds Southbank, and I'm allocating £20 million for the new Peterborough Sports Quarter and £16 million for a science centre in Darlington from the Growth Fund. The benefits of investment the the benefits of investment and growth must be built and felt in every part of our United Kingdom, so we are providing an additional £370 million for the Northern Ireland Executive, £505 million for the Welsh Government and £820 million for the Scottish Government over the Spending review period through the Barnett formula.

And I am making. Sorry I didn't quite catch that from the SNP. Perhaps Madam Deputy Speaker they didn't hear. £820 million for the Scottish Government over the
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Rachel Reeves Portrait Rt Hon Rachel Reeves MP, The Chancellor of the Exchequer (Leeds West and Pudsey, Labour)
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advanced manufacturing through the Northern Ireland Enhanced Investment Zone. Wales will be the host for two AI growth zones, host for two AI growth zones, creating more than 8000 jobs, supported by a £10 million supported by a £10 million investment in the semiconductors critical for that industry. And we critical for that industry. And we are building the UK's first small modular nuclear reactors with modular nuclear reactors with Rolls-Royce at Wylfa in Anglesey. Two Labour governments working Two Labour governments working together in Wales to deliver for the people of Wales.

And in the people of Wales. And in Scotland. I'm committing over £14 million for low carbon technologies million for low carbon technologies in Grangemouth, £20 million to renew infrastructure at Inch Green in Inverclyde and £20 million to redevelop Kirkcaldy town centre and seafront, with construction starting next year. And that's on top of the UK's biggest ever warship export deal with the Norwegian government to build frigates in Glasgow, supporting 4000 jobs. Investment opposed by the SNP. Jobs opposed by the SNP.

Defence opposed by the SNP but secured by this Labour government. A growing economy needs strong A growing economy needs strong foundations of economic stability, with borrowing inflation down and with borrowing inflation down and investment up. That is good for business and it is good for working people, so they have more money in people, so they have more money in their pockets. Economic stability safeguarded by ironclad fiscal safeguarded by ironclad fiscal rules is our best defence against rising prices, and the best way to improve living standards.

We have improve living standards. We have all seen the alternative three years ago, in their clamour to cut years ago, in their clamour to cut taxes for the richest, the Tories under Liz Truss crashed the economy and sent mortgage rates spiralling and brought pensions to the brink. Right now.

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They've been so loud Madam Deputy Speaker and yet I can't even Deputy Speaker and yet I can't even hear them now. Now I know that I know that the leader of the Green know that the leader of the Green Party is a keen hypnotherapist, and he believes that he can achieve
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Rachel Reeves Portrait Rt Hon Rachel Reeves MP, The Chancellor of the Exchequer (Leeds West and Pudsey, Labour)
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And for all the damage that the conservative cuts did to our schools and our hospitals, they also doubled the national debt. Our net financial debt this year will net financial debt this year will be £2.6 trillion, 83% of GDP, meaning that today, one in every £10 meaning that today, one in every £10 that government spends is on debt interest, not on paying down that interest, not on paying down that debt, but just on paying the interest on the debt that we inherited from the Conservatives.

My fiscal rules will get borrowing down while supporting investments. down while supporting investments. The stability rule that day to day expenditure must be met through tax expenditure must be met through tax receipts and the investment rule, which allows me to increase investment whilst getting debt on a investment whilst getting debt on a downward path. Those fiscal rules are non-negotiable. I met them at are non-negotiable. I met them at the Budget last year. I met them in the spring and I have met them the spring and I have met them today.

While the current Budget balance is in deficit by £28.8 billion in 2627 and £4.6 billion in 2728, it moves into a surplus of £3.9 billion in 2829, £21.7 billion in 2930 and £24.6 billion in 2030 31 More than doubling our headroom against the stability rule and

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meeting that rule a year early to. Yeah.

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And our next financial debt is

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And our next financial debt is 83.3% in 20 2627, 83.6% in 2728, 83.3% in 20 2627, 83.6% in 2728, 83.7% in 2829, falling to 83.0% in 83.7% in 2829, falling to 83.0% in 2930 and 82.2% in 2030 31. Madam Deputy Speaker, I said we would cut Deputy Speaker, I said we would cut the debt and we are with debt down by the end of the forecast and by the end of the forecast and going forwards to support our commitment to a single fiscal event and further strengthen our economic and further strengthen our economic stability.

I will follow the recommendations of the International Monetary Fund by International Monetary Fund by assessing the fiscal rules just once a year at the Budget. Despite once a year at the Budget. Despite the challenges we face on productivity, the path of our deficit reduction remains broadly deficit reduction remains broadly the same as in spring. Public sector net borrowing is due to be
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Rachel Reeves Portrait Rt Hon Rachel Reeves MP, The Chancellor of the Exchequer (Leeds West and Pudsey, Labour)
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2627, 3% in 2728, 2.6% in 2829, 2627, 3% in 2728, 2.6% in 2829, 1.9% in 2930 and 1.9% in 2030 31, 1.9% in 2930 and 1.9% in 2030 31, ending at £67.2 billion, translating into an increase in the net cash into an increase in the net cash requirement next year of £4.2 billion, taking the total to £133.3 billion, taking the total to £133.3 billion, according to the IMF. We are due to reduce borrowing more over the rest of this parliament than any other G7 economy.

The Conservatives crashed the economy. We are protecting it. The Conservatives lost control of debt. Conservatives lost control of debt. We are getting debt down. The Conservatives let inflation and Conservatives let inflation and interest rates go through the roof. But Madam Deputy Speaker, since Labour took office, the office the Bank of England have cut interest rates five times. I've made my rates five times. I've made my choices. Not reckless borrowing, not dangerous cuts, but stability for our economy, security for our for our economy, security for our public finances and security for public finances and security for family finances too.

Those are the choices. Madam Deputy Speaker, Tory austerity left classrooms crumbling and waiting lists sky high, weakens our productivity and choked our economic growth. And now they propose a further £47 billion of cuts to our public services. Well, that is equivalent to cutting every police officer in our country twice over. And then. And then there is reform, who promise more than £100 billion of cuts, with no details of where those cuts will come from or who will pay for them.

A recipe for devastating damage to our public services. People voted for Labour because they wanted roads that aren't full of potholes. They want police on our streets, and when they want an NHS that is there, when they need it. And we're delivering that waiting lists down by 230,000, and not just the 2 million additional appointments we promised, but an additional 5.2 million appointments already delivered since the general election. I joined the Labour Party almost 30 years ago because I could see that the conservative government that I grew up under didn't care much about schools like mine.

Textbooks were rationed. I

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know that many of you like mine. There is far too much noise, far too much excitement. People need to

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too much excitement. People need to calm down a little, Chancellor. Yes.

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Yes. They don't want to hear what the Tories did to schools like mine. But I will tell them. Text books, But I will tell them. Text books, rations, libraries, clothes, kids herded into portacabins in the playground. And I came into playground. And I came into politics to change that. The money that I allocated at the spending that I allocated at the spending review will fix the crumbling classrooms that the Conservatives left behind, and build the schools that they promised but never delivered.

And today, thanks to delivered. And today, thanks to representations from my hon. Friends, the members of Wolverhampton North East and Leeds Wolverhampton North East and Leeds South West and Morley, I will provide £5 million for libraries in provide £5 million for libraries in secondary schools, building on the 10 million commitment to ensure that every primary school has a that every primary school has a school library within this Parliament. And thanks to Parliament. And thanks to representations from my hon. Friend, the Member for Bournemouth East and the Member for Bournemouth East and from Luton North, I am providing £18 million to improve and upgrade playgrounds across England.

Madam Deputy Speaker, let there be no doubt that this is a government that is on the side of our kids and who will back their potential. I will not allow the legacies of conservative neglect to sustain our society. Last year, I made changes to the Mineworkers Pension Scheme to ensure that its members receive the fair pensions that they are owed. This year, with thanks to the Minister for pensions, for all his work in this subject, I can go further.

I have heard representations from Labour coalfield MPs, including my hon. Friend. Friends, the members for Bassetlaw, Blyth and Ashington, Barnsley South, Mansfield and Llanelli. And today I can announce that I will transfer the investment Reserve fund of the British Coal Staff Superannuation Scheme to its

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members. Hear, hear. So that the men and the women

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So that the men and the women who worked in our coal industry get a fair deal in their retirement too. a fair deal in their retirement too. And more. Having heard representations from my hon. Friend representations from my hon. Friend the Member for Banbury and the Member for Edinburgh South West, I will index for inflation on will index for inflation on pensions accrued before 1997, in the Pension Protection Fund and the Financial Assurance Scheme, so that Financial Assurance Scheme, so that people whose pension schemes became insolvent, no fault of their own, insolvent, no fault of their own, no longer lose out as the result of inflation.

Last year, I also provided funding to compensate the provided funding to compensate the victims of the infected blood scandal, after the previous government failed to Budget for the government failed to Budget for the costs of compensation. This year, I have listened to representations have listened to representations from my hon. Friend the Member for Eltham and Chislehurst and my hon. Friend the Member for Edinburgh South West. I would like to thank South West. I would like to thank the Minister for employment for her representations over many years on representations over many years on this subject.

As a result, I will exempt all payments from the infected blood scheme from infected blood scheme from inheritance tax, regardless of the circumstances in which those payments are passed down. Madam Deputy Speaker, that is how we should be spending taxpayers money on dealing with injustices and building strong public services, not on waste and inefficiency at the Spending review. I set an ambitious target of £14 billion of efficiencies per year by 2029, and I am grateful to the Chief Secretary to the Treasury for driving that work forward, realising savings through AI and automation, and by scrapping NHS England and reducing back office staff by 18,000 at this Budget.

I will find a further £4.9 billion of efficiencies by 2031. Getting rid of police and crime commissioners, cutting the cost of politics and local government and selling government assets that we no longer have any use for. These savings will be required across government, but for our National Health Service, I will reinvest all of those savings back into the care that people rely on. More nurses, more GPS, more appointments. Restoring the services that faltered under years of conservative decline and investing in the future of our National Health Service.

And today I am announcing £300 million of investment in technology to improve patient service and 250 new neighbourhood health centres, expanding more services into communities so that people can receive treatment outside of hospitals and get better, faster care where they live. Over 100 of these will be delivered by 2030, including in Birmingham, Truro and Southall. The Labour Party founded our National Health Service and we will renew our National Health Service. I will take the same approach for defence spending that I take to NHS spending, reinvesting savings back into our national security.

In our age of insecurity, in our age of insecurity, Britain will continue to stand with our allies working in collaboration to secure a sustainable ceasefire for Ukraine and maintaining our commitment to NATO. With the UK set to spend 2.6% of GDP on defence by April 2027. Madam Deputy Speaker, the public rightly expects that we stamp out fraud, error and waste and put that money to good use in our schools and our hospitals and other frontline services. My right hon.

Friend, the Home Secretary has already announced that she will claw back excess profits from the use of hotels to house asylum seekers. As we phase out the use of those hotels entirely, and we will consult on reforms to indefinite leave to remain, and access to taxpayer funded benefits. The introduction of digital ID will break the link between illegal migration and illegal working, and the HMRC and the Fair Work Agency will crack down on illicit businesses that blight our high streets and undercut legitimate firms.

Enforcing the minimum wage, investigating dodgy businesses and increasing scrutiny of the gig
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Rachel Reeves Portrait Rt Hon Rachel Reeves MP, The Chancellor of the Exchequer (Leeds West and Pudsey, Labour)
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vanish without paying their taxes. And I'd like to thank my hon. Friend, the Member for Great Grimsby and Cleethorpes, Leigh and Grimsby and Cleethorpes, Leigh and Atherton and Kensington and Bayswater for their representations on this subject, and I'll take on this subject, and I'll take further steps to prevent and track down unpaid tax, which will. down unpaid tax, which will. Together, these reforms will raise nearly £10 billion a year by 2030, nearly £10 billion a year by 2030, including through new powers for HMRC to pursue the promoters of tax HMRC to pursue the promoters of tax avoidance schemes.

I am building on our successful use of targeted checks on welfare claims to root checks on welfare claims to root out fraud and error, and prevent public money being paid to people who are not entitled to it. And I who are not entitled to it. And I would like to thank Tom Hayhoe, the Covid Corruption Commissioner, for Covid Corruption Commissioner, for his work in helping to chase down nearly £400 million from dodgy nearly £400 million from dodgy pandemic spending and contracts.

Tory contracts handed out to by Tory contracts handed out to by Tory Ministers to Tory peers and Tory friends. Well, that money

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belongs in our schools. And in our hospitals, and it is.

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And in our hospitals, and it is. Why it is so noisy. We can barely hear the chance that everybody

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hear the chance that everybody needs to calm down. Chancellor. Well, I wouldn't want any hon. Member to miss this. So we are Member to miss this. So we are chasing down that money and we've got almost £400 million back from dodgy pandemic spending and contracts. Tory contracts handed contracts. Tory contracts handed out by Tory Ministers to Tory peers and Tory donors. Well, that money belongs in our schools and in our belongs in our schools and in our hospitals and we are getting that hospitals and we are getting that money back.

And finally, Madam Deputy Speaker, we are ramping up Deputy Speaker, we are ramping up sanctions on Russia and we are freezing known Russian assets. But
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Rachel Reeves Portrait Rt Hon Rachel Reeves MP, The Chancellor of the Exchequer (Leeds West and Pudsey, Labour)
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You don't need commentary from the back benches. And, Mr. Dewhurst, you are so loud. It's remarkable how far your voice carries. Chancellor.

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Under the Conservatives, the cost of our welfare system increased by nearly one percentage increased by nearly one percentage point of GDP, equivalent to £88 point of GDP, equivalent to £88 billion in just five years. The broken welfare system that we inherited wrote off millions of inherited wrote off millions of people as too sick to work, and we will reform that, so that it is a will reform that, so that it is a system that does not count the cost of failure, but one that protects people who cannot work and empowers people who cannot work and empowers those who can.

We have brought back face to face assessments for face to face assessments for disability benefits. Those are the face to face assessments that the shadow Chancellor got rid of when shadow Chancellor got rid of when he was Work and Pensions Secretary. And our changes to Universal Credit will get 15,000 people back into work. A figure confirmed today. The former health secretary, Alan Milburn, will review the causes of Milburn, will review the causes of rising youth inactivity, and we are already taking action.

I am grateful to the Federation of Small grateful to the Federation of Small Businesses and Small Business Britain for their representations Britain for their representations on apprenticeships, and today I am announcing funding to make the training for under 25 apprenticeships completely free for small and medium sized enterprises. And funding our new Youth Guarantee, providing £820 million over the next three years to give young people who are let down by the Conservatives the support and the opportunity that they deserve.

Guaranteeing every young person a place in college, an apprenticeship or personalised job support. And after 18 months, 18 to 21 year olds will be offered paid work, not benefits. The Motability Scheme was set up to protect the most vulnerable, not to subsidise the lease on a Mercedes Benz. And so I am making reforms that will reduce generous taxpayer subsidies, and Motability have confirmed that they will remove luxury vehicles from their scheme, getting the scheme back to its original purpose of offering cost effective leases to disabled people and taxpayers.

Money should not be spent on pensions for people abroad who only lived here for a couple of years and may never even have paid a penny in tax, the Conservatives allowed thousands of people living abroad to buy their way into the state pension for as little as £3.50 a week, debasing the purpose of our pension system. And so I will abolish access to class two voluntary National Insurance contributions for people living abroad, increasing the time that someone has to live or work in Britain to ten years, and increasing the contributions that
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Rachel Reeves Portrait Rt Hon Rachel Reeves MP, The Chancellor of the Exchequer (Leeds West and Pudsey, Labour)
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improve our welfare system. They support our young people, protect those who need it most and put an those who need it most and put an end to conservative waste and unfairness. Madam Deputy Speaker, unfairness. Madam Deputy Speaker, to break the cycle of austerity, we need a fair and sustainable tax system, one that generates revenues system, one that generates revenues to fund the public services that we all use, and supports investment to all use, and supports investment to grow our economy. That does mean that today I am asking everyone to that today I am asking everyone to make a contribution.

The previous make a contribution. The previous conservative government. The previous conservative government, froze personal tax thresholds from 2021 to 2028. And today I will 2021 to 2028. And today I will maintain all income tax and equivalent national insurance thresholds at their current level thresholds at their current level for a further three years from 2028. for a further three years from 2028. While ensuring that people. While ensuring that people.

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Order. The noise is far too high. Chancellor. The Right.

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Chancellor. The Right. hon. Lady supported these freezes when her party made them. She might want to forget about it, She might want to forget about it, but the British people never will. At the same time, we are ensuring that people only in receipt of the basic or new state pension do not basic or new state pension do not have to pay small amounts of tax through simple assessment from through simple assessment from April 2027. I will also keep the plan to student loan repayments plan to student loan repayments threshold at its 20 2627 level for three years.

Madam Deputy Speaker, three years. Madam Deputy Speaker, I know that maintaining these thresholds is a decision that will affect working people. I said that affect working people. I said that last year and I won't pretend otherwise. Now, Madam Deputy otherwise. Now, Madam Deputy Speaker, I am asking everyone to make a contribution, but I can keep that contribution as low as that contribution as low as possible because I will make further reforms to our tax system today, to make it fairer and to ensure that the wealthiest contribute the most.

The Conservatives knew that our tax Conservatives knew that our tax system didn't work. Time and time again, they ducked the necessary reforms, leaving a system unfit for a changing economy with unfairness that they refused to address. Currently, a landlord with an income of £25,000 will pay nearly £1,200 less in tax than their tenants with the same salary. Because no National insurance is charged on property, dividend or savings income. It's not fair that the tax system treats different types of income so differently, and so I will increase the basic and higher rate of tax on property.

Savings and dividend income by two percentage points. And the additional rate of tax on property and savings income by two percentage points. Even after these. Even after these reforms, 90% of taxpayers will still pay no tax at all on their savings. As well as narrowing the gap between the tax on income from assets and income from work. I also believe that a fair society is one where the wealthiest pay their fair share. The reforms I made last year will raise an additional £8 billion a year by 20 2030 from wealth.

I increased taxes last year on private equity, private schools and private jets. I abolished the non-dom tax regime and this year I will make two changes to cap charges and prevent avoidance. I reformed inheritance tax on

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agricultural and business. Assets.

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And this year and this year, I am aligning those reforms with wider inheritance tax rules by wider inheritance tax rules by allowing the transfer of the 100% relief allowance between spouses. Balancing the taxation of these Balancing the taxation of these valuable assets with the realities of family life in this Budget, I will take further steps to deal will take further steps to deal with a long standing source of wealth inequality in our country. A wealth inequality in our country.

A band D home in Darlington or Blackpool pays just under £2,400 in Blackpool pays just under £2,400 in council tax, nearly £300 more than a council tax, nearly £300 more than a £10 million mansion in Mayfair. And £10 million mansion in Mayfair. And so, from 2028, I am introducing the high value Council Tax surcharge in high value Council Tax surcharge in England, an annual £2,500 charge for properties worth more than £2 properties worth more than £2 million, rising to 7500 pounds for properties worth more than £5
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Rachel Reeves Portrait Rt Hon Rachel Reeves MP, The Chancellor of the Exchequer (Leeds West and Pudsey, Labour)
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retaining a strong incentive for employee owned companies. And as we work towards doubling the size of the co-operative economy, the the co-operative economy, the Department for Business and Trade will launch a call for evidence on how we can better support co-ops to how we can better support co-ops to grow. Because of the changes that I have made to capital gains tax this year and last year. Receipts are forecast to increase from £14 forecast to increase from £14 billion this year to £30 billion by billion this year to £30 billion by 2030.

To support our high streets, I am announcing a package of regulatory changes as called for by UK hospitality and the British Retail Consortium, and I will support the great British public support the great British public through our new national licensing framework, encouraging councils to framework, encouraging councils to back our pubs and to back late night venues with greater freedoms. night venues with greater freedoms. For business rates. I will introduce permanently lower tax introduce permanently lower tax rates for over 750,000 retail, hospitality and leisure properties, the lowest rates since 1991, paid for through higher rates on properties worth more than £500,000.

Like the warehouses used by online giants. Alongside this, I will introduce a package of support worth over £4.3 billion over the next three years for a property of any size, seeking a large increase in their bill and to support a level playing field in retail. I will stop online firms from undercutting our high street businesses by ensuring customs duty applies on parcels of any value. I will reform our motoring taxes, exempting search and rescue vehicles from vehicle excise duty, as called for by my hon.

Friend the Member for the Western Isles and for Whitehaven and Workington. And because all cars contribute to the wear and tear on our roads. I will ensure that drivers are taxed according to how much they drive, and not just by the type of car they own. By introducing the electric vehicle excise duty on electric cars. This will be payable each year alongside vehicle excise duty at £0.03 per mile for electric cars and 1.5 P for plug in hybrids, helping us to double road maintenance funding in England.

Over the course of this parliament. And alongside this, I am providing support to boost our British car industry, increasing the threshold for the expensive car supplement on electric vehicles to £50,000, saving over a million motorists, £440 a year, providing £1.3 billion additional funding for the electric car grant, extending it to 2030 and taking total funding to £2 billion, as well as delaying changes to the employee car ownership scheme. In addition, we are investing a further £200 million to accelerate the rollout of EV charging as well as 100% business rates relief for EV charge points for the next decade.

With thanks to my hon. Friend, the Member for Camborne and Redruth, for his representations on this policy, and I will improve competition in our taxi industry by ending ride hailing companies use of a discount scheme intended for coach tours, as called for by Steve McNamara, the General secretary of the Licensed Taxi Drivers Association. Legislating to restrict access so that everyone

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pays fairly, and protecting £700 million of tax revenue each year. No one is.

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No one is. I am responding to our consultation on land tax, landfill tax and listening to representations, particularly from our house building industry. I will not converge towards a single rate, not converge towards a single rate, but I will prevent the gap between the two rates from widening to balance the need to address tax balance the need to address tax avoidance in the current structure. I will today publish a report into I will today publish a report into the loan charge along with the government's response, setting out a new settlement opportunity that a new settlement opportunity that will finally allow people to finalise their position and draw a line under this long standing issue.

And I'd like to thank my hon. Friend the Member for Milton Keynes Central for her representations on this subject. I will continue with the planned uprating for tobacco the planned uprating for tobacco duties as I set out last year, and uprate alcohol duties by inflation, uprate alcohol duties by inflation, along with our plans to introduce a vaping products duty in 2026 and changes to the soft drinks industry levy announced by my right hon. Friend, the Health Secretary, yesterday, and I'd like to thank yesterday, and I'd like to thank the Exchequer Secretary to the Treasury for his work on all the tax measures in this Budget.

I will also reform gambling taxes in response to the rise in online gambling, remote gambling. Remote gaming is associated with the highest levels of harm. And so I am increasing remote gaming duty from 21% to 40%, with duty on online betting increasing from 15% to 25%. I am making no change to the taxes on in-person gambling or on horse racing, and I am abolishing bingo duty entirely from April next year. Taken together, my reforms to gambling tax will raise over £1 billion per year by 2031.

As a result of the tax reforms I have made today. I can confirm that I will not be increasing National Insurance. The basic, higher or additional rates of income tax or VAT. And I have kept everyone's contribution as low as possible through reforms to make our tax system stronger, closing loopholes, ensuring that the wealthiest pay their share, and building a tax system that is fairer for the future as our economy changes. On the day I became Chancellor, I said that I would judge my time in office as a success if I knew that ordinary children from working class backgrounds were living more fulfilling lives.

Their horizons expanded, their potential realised. I joined the Labour Party. I came into politics because I believe that every child has equal worth and deserves an equal chance to achieve their goals. The biggest barrier to equal opportunity is child poverty, because for every child that grows up in poverty, our society pays a triple cost. The first and the heaviest is to the child going to school hungry, waking up in a cold home or in another B&B. While other children enjoy the advantages of parents with time to help with homework, the quiet space at home to work in.

Too many go without. And there is also the cost of supporting a family in poverty, which ends up in the lap of overstretched councils who can do no more than shunt them, shunt them into temporary accommodation at huge cost to local taxpayers. Then there is the future cost to our economy and to our society of wasted talent and a welfare system that bears the cost of failure for decades to come. Young people with so much to contribute, but whose potential is suffocated early by limited life chances and missed opportunities, struggling to make their way in a society that did not look out for them.

I don't intend to preside over a status quo that punishes children for the circumstances of their birth, and demands that we all pay three times over for it. Since last July, we've rolled out free breakfast clubs in schools. We're expanding free school meals to half a million more kids, lifting 100,000 children out of poverty. As we do it. We've passed the Renters Rights Act, and we have extended the childcare offer. And I'm proud of all of that. But it's not enough because there is one policy that pushes kids into poverty more than any other.

It was introduced by the party opposite. They said it would save money and that it would bring about behavioural change. Disincentivizing poorer families from having more children. Well, even on its own terms, it failed. The welfare bill has continued to rise and there's been no difference in the size of families. But what it has done is to push hundreds of thousands of children into poverty since it was introduced. They said they were punishing parents choices, but it's the kids who have paid the price.

They paid the price for the policies of a party which opted for cynical gimmicks over real savings in our welfare system. I understand that many families are finding times hard, and that many kids have had to make difficult choices when it comes to having kids, and there are many reasons why people choose to have children and then find themselves in difficult times. The death of a partner. Separation. Ill

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health. A lost job. I don't believe that children should have to bear the brunt. Of this.

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And neither can I in good conscience, leave in place the vile policy known as the rape clause, policy known as the rape clause, requiring women to prove if their child has been conceived child has been conceived non-consensually to receive support. I'm proud to be Britain's first I'm proud to be Britain's first female Chancellor of the Exchequer. I take the responsibilities that come with that seriously. I will come with that seriously. I will not tolerate the grotesque indignity of women of the rape indignity of women of the rape clause any longer.

It is dehumanising, it is cruel. And I dehumanising, it is cruel. And I will remove it from the statute will remove it from the statute book. And so, because I am tackling fraud and error in our welfare system, because I am cracking down system, because I am cracking down on tax avoidance, because I am reforming gambling taxation, I can reforming gambling taxation, I can announce today fully costed and fully funded, the removal of the two child limit in full from April.

We on this side of the House. It's amazing what people get so angry

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about. And we've seen their. True colours today. The thing. They get angry about is lifting

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They get angry about is lifting children out of poverty.

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Order! Order! Constituents will want to hear the Chancellor. Chancellor. I think our constituents have

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I think our constituents have heard all they need to from the party opposite today. We on this party opposite today. We on this side of the House do not believe that the solution to a broken welfare system is to punish the most vulnerable. We are lifting 450,000 children out of poverty with the end of the two child limit. And Madam Deputy Speaker combined with other actions, we are taking with other actions, we are taking this Labour government is achieving the biggest reduction in child poverty over a parliament since records began.

That is the difference that this Labour difference that this Labour government is making. Madam Deputy Speaker, I know how worried Speaker, I know how worried families are about the cost of everything. Worried that their money won't stretch to the end of money won't stretch to the end of the month, worried that price. I think if you've got a house that's worth £5 million a year, you can worth £5 million a year, you can probably afford it, but you get more exercise about that, more exercise about reducing, about reducing child poverty than you do about the richest.

Paying more. Under this government. Wages have risen by more since we were elected than in ten years under the last government, with lower interest rates already saving families £1,200 a year off a typical new mortgage compared to that. So when Liz Truss was Prime Minister. But I know, I know that people still face pressure on their budgets day to day and week to week, and where there is more to do where we can provide relief, we are doing it. Extending the bus fare cap.

Cracking down on rip off. Price hikes. Freezing prescription charges and freezing rail fares for the first time in 30 years. I am increasing the basic and new state pension by 4.8%, an increase of £440 per year for the basic state pension and an increase of £575 per year for the new state pension. In line with our commitment to the triple lock. At the election, we promised a genuine living wage and we are delivering it at the Budget. Last year, I increased the national minimum wage and the National Living Wage, and I am doing the same this year to accepting the recommendations of the Low Pay Commission in full and increasing the minimum wage for 18 to 20 year olds from £10 to £10.85 an hour, and increasing the living wage from £12.21 to £12.71 an hour.

Under current plans, the temporary £0.05 cut to fuel duty that was introduced during the pandemic will come to an end in April, and fuel duty will be uprated in line with inflation. But I know that the cost of travelling to and from work is still too expensive, and so I am extending the £0.05 cut until September 2026. And because I know that changes in wholesale prices are not always passed on to motorists, I am bringing in new rules to mandate petrol forecourts to share real time price rises through a new fuel finder, empowering drivers to find the cheapest fuel.

Calling out rip offs and strengthening competition. Saving the average household £40 a year. Madam Deputy Speaker, one of the greatest drivers of the rising cost of living is the cost of energy prices. Because of high energy bills must be tackled at source. And so we are investing in energy security in nuclear and renewable energy, and in insulation through our Warm Homes plan. But that's not enough. When people are struggling with energy bills. Today, the Conservatives eco scheme was presented as a plan to tackle fuel poverty.

It costs households £1.7 billion a year on their bills, and for 97% of families in fuel poverty. The scheme get this has cost them more than it saved. It is a failed scheme and so I am scrapping it, along with taking other legacy costs of bills. And as a result, I can tell you today that for every family. We are keeping our promise to get energy bills down and cut the cost of living. With £150 cut from the average household bill from April next year.

Money off bills and in the pockets of working people. That is my choice not to neglect Britain's energy security like the Tories did. Not to leave working families to bear the brunt of high prices like the Tories did, but to get energy costs down now and in the future. That is the Labour choice. And Madam Deputy Speaker, one more thing. Because of our action on bills and on prices as a direct result of this Budget, the office for Budget Responsibility confirmed today that inflation is coming down faster and will be a full 0.4 percentage points lower next year.

That's the benefit of a Labour government cutting the cost of living. Madam Deputy Speaker, this Labour government is changing our country in the face of challenges on our productivity. I will grow our economy through stability, investment and reform. I've met my fiscal rules and built our economic resilience for the future. I have asked everyone to contribute. Yes, for the security of our country and the brightness of its future. But I have kept that contribution as low as possible by reforming our tax system, making it fairer and stronger for the future.

I have protected our NHS, maintaining public investment and driving efficiency in government spending. I have taken action on our broken welfare system, rooting out waste and lifting children out of poverty. And I have cut the cost of living with money off, bills and prices frozen, all while keeping every single one of our manifesto single one of our manifesto commitments. Those are my choices.

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Order, order Mr. Rankin, Miss Morton, your voice carries right across the chamber. Right across across the chamber. Right across the chamber. Try and take a breath

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every so often, Chancellor. Those are my choices. Not

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Those are my choices. Not austerity, not reckless borrowing, but cutting the debt, cutting but cutting the debt, cutting waiting lists and cutting the cost of living. Those are labour choices promised and delivered by this promised and delivered by this Budget, promised and delivered by this Labour government. And Madam this Labour government. And Madam Deputy Speaker, I commend this

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Order. Order. Under

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Order. Under Order. Under Standing Order. Under Standing Order Number 51, the first motion entitled Provisional Collection of entitled Provisional Collection of Taxes, must be decided without debate. Will the Chancellor of the

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Exchequer please move formally? Chancellor, please move formally. Formally.

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The question is that. Pursuant order. The question is that pursuant to section five of the pursuant to section five of the Provisional Collection of Taxes Act, 1968, provisional statutory effect shall be given to the following shall be given to the following motions. Stamp duty. Reserve tax UK Listing Relief motion number 60. Rates of tobacco products. Duty motion number 65. As many of their motion number 65. As many of their opinions say, I. Of the contrary. No. The ayes have it.

The ayes have No. The ayes have it. The ayes have it. We now come to the motion entitled Income Tax charge. It is entitled Income Tax charge. It is on this motion that the debate will take place today and on the succeeding days, the questions on
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Nusrat Ghani Portrait Deuputy Speaker Ms Nusrat Ghani MP (Sussex Weald, Conservative)
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succeeding days, the questions on this motion and on the remaining motions will be put at the end of the Budget debate on Tuesday, the

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2nd of December. I call the Chancellor of the Exchequer to move the motion formally. Formally.

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Formally. The question is that income tax is charged. The tax year 20 2627 and is declared that this and is expedient in the public interest that this resolution should have statutory effect under the statutory effect under the provisions of the Provisional Collection of Taxes Act, 1968. I now call the Leader of the Opposition. Leader of the Opposition.

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Thank you, Madam Deputy Speaker, and may I congratulate the right and may I congratulate the right hon. Lady on delivering her second Budget? I hope she enjoyed it because it really should be her because it really should be her

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last. What a total humiliation, a total humiliation last. Can colleagues who are exiting

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Can colleagues who are exiting the chamber do so swiftly so we can focus on the Leader of the

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focus on the Leader of the Opposition, swiftly. Exit quietly. Right. Leader of the Opposition. Yes.

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Yes. It's a total humiliation, Madam Deputy Speaker. Last year she put up taxes by £40 billion, the biggest tax rate in British history. She promised that she wouldn't be back for more. She swore it was a one off. She told everyone that from now on it would be stability and she would pay for everything with growth. Today she has broken every growth. Today she has broken every single one of those promises. If she had any decency, she would she had any decency, she would resign at the last Budget.

At the last Budget, she said she was proud last Budget, she said she was proud to be the country's first ever female Chancellor. After this Budget, she will go down as the Budget, she will go down as the country's worst ever Chancellor. Today.
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Kemi Badenoch Portrait Rt Hon Kemi Badenoch MP (North West Essex, Conservative)
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Whip in particular knows that we don't allow clapping in the chamber. Leader of the Opposition.

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Resign. Today. Today she has announced a

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Today. Today she has announced a new tax rate of £26 billion. They're all cheering. Household income is all cheering. Household income is down. Spending policies in this Budget increase borrowing in every year. That's smorgasbord of misery. year. That's smorgasbord of misery. We've just heard from her. Can be summed up in one sentence. Labour are hiking taxes to pay for welfare.

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are hiking taxes to pay for welfare. Yes. This is a Budget for benefit street Madam Deputy Speaker paid street Madam Deputy Speaker paid for by working people. This Budget increases benefits for 560,000 families by an average of £5,000. They are hiking taxes on workers, They are hiking taxes on workers, pensioners and savers to pay for handouts to keep their backbenchers handouts to keep their backbenchers quiet. These these are the same. Yes, they continue to rule their Yes, they continue to rule their life.

These are the same backbenchers. Madam Deputy Speaker, who cheered last year when she who cheered last year when she taxed jobs and left more than 100,000 people without an income. They cheered because they didn't They cheered because they didn't understand the consequences of what they were doing, and they still don't. Madam Deputy Speaker, it's don't. Madam Deputy Speaker, it's not been an easy time for the Chancellor. No one liked seeing her sitting on those benches as it dawned on her that her own backbenchers were going to do to her political career what she's done to our economy.

But she could have chosen today to bring down welfare spending and get more people into work. Instead, she has chosen to put up tax after tax after tax. Taxes on workers. Taxes on savers. Taxes on pensioners. Taxes on investors. Taxes on homes. Holidays, cars. I think even milkshakes. Taxes on anyone doing the right thing. She and this government have lost what little credibility they had left, and no one will ever trust her again. What's amazing, Madam Deputy Speaker, is that she has the nerve to come to this House and claim this is all someone else's fault.

A laundry list of excuses. Yeah. Yes. Yes, yes. Madam Deputy speaker, they blame the Conservatives as if we've been sneaking into the Treasury under the cover of darkness to give pay rises to the unions. She inherited an economy with inflation at 2% and record high employment. She has tanked it

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in just over a year. Endless excuses. She blames Brexit. She blames Donald Trump. She needs to blame herself. Yes.

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Yes. And I've got some news for her. The Chancellor didn't seem to understand what the OBR was saying. Inflation is up, not down. And that inflation was stoked by her tax and inflation was stoked by her tax and spending decisions. The economic fiscal outlook says that they expect inflation to stay higher for longer. Everybody else has read it. She still hasn't read the OBR She still hasn't read the OBR analysis. She blames higher than expected borrowing costs. Where does she think they came from? Those borrowing costs are driven by her lack of grip.

She is paying more. You're saying us? She's more. You're saying us? She's paying more to borrow than Greece. She is paying more to borrow than She is paying more to borrow than at any point under the 14 years of conservative government. Perhaps, perhaps if Labour MPs read a book, perhaps if Labour MPs read a book, sometimes they would know something that includes an energy crisis. Madam Deputy Speaker, under us we Madam Deputy Speaker, under us we had an energy crisis sparked by a war in Ukraine and a global pandemic.

What is her excuse? What pandemic. What is her excuse? What is her excuse? She is taking the public for fools. But they are public for fools. But they are under no illusions whose fault this is. The fact is, the bad choices she is making today. Choices to break promises. Choices to put up taxes. Choices to spend more of other people's money are because of the bad choices she made at the last disastrous Budget. If you want growth, you need to start with knowing what kind of country you want to be and make a plan to get there.

Create certainty for the people and businesses who will drive growth. There is no growth and no plan because Labour focussed on settling scores and scratching

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the itches they had in opposition. She promised stability. She delivered chaos. Yes. Just look at the circus around

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Just look at the circus around this Budget. First the leaks, then more leaks to try to undo the damage. Calling panicky press conferences u-turning on her U-turns, rolling the pitch one day U-turns, rolling the pitch one day only to plough through it the next. She had the cheek to talk about stability. Madam Deputy Speaker, she has become the first Chancellor she has become the first Chancellor in history to release the whole Budget ahead of time. This is extraordinary. It tells you extraordinary.

It tells you everything you need to know about her grip on the Treasury. She's making the UK a shambolic, laughing making the UK a shambolic, laughing stock to international investors. And if she doesn't resign for breaking her promises, she should sure as hell go for this.

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sure as hell go for this. Yes.

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Yes. Madam Deputy Speaker. What have we got for all this chaos and disorder? There are a million more disorder? There are a million more people claiming Universal Credit than there were at the time of the than there were at the time of the last Budget. Government spending up. Welfare spending up. Universal credit claimants up. Unemployment up. Debt. Interest up. Inflation up. up. Debt. Interest up. Inflation up. And what about the things that you want to go up? What about the things you want to go up.

Growth down. Investment down. Business confidence down. The credibility of the Chancellor and not just down through the floor. These figures are shocking. Does she really think that anyone will be confused by the sleight of hand that she had in her speech? Her speech today was an exercise in self-delusion. Today she had an opportunity to apologise and show some humility. Instead, we've been fed puff pieces in the times and the F.T. showing a woman wallowing in self-pity, whining about mansplaining and misogyny.

Madam Deputy Speaker, let me explain to you. The Chancellor woman.

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Order. Colleagues need to simmer down. Most definitely. And just down. Most definitely. And just breathe a little and allow the opposition to be heard. Needle positions.

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All we've had is wallowing in self-pity and whining about misogyny and mansplaining. So, misogyny and mansplaining. So, Madam Deputy Speaker, let me explain to the Chancellor. Woman to explain to the Chancellor. Woman to woman. People out. People out there aren't complaining because she's female. They're complaining because female. They're complaining because she is utterly incompetent. Real she is utterly incompetent. Real equality. Real equality means being held to the same standard as everyone else. It means being judged on results.

Take her bright judged on results. Take her bright idea. The office for value for money. It's been closed down because it didn't save a penny. In because it didn't save a penny. In fact, it cost the taxpayer £1.6 million. You couldn't make this stuff up. Madam Deputy Speaker, stuff up. Madam Deputy Speaker, I've identified a way to save taxpayers huge amounts of money by taxpayers huge amounts of money by sacking just one person. The woman sitting opposite. The ex-chief economist of the Bank of England, economist of the Bank of England, was not mansplaining.

He wasn't mansplaining when he said the uncertainty around today's Budget is the single biggest reason growth has flatlined. What did the Chancellor think would happen when she went on breakfast telly to do an emergency public service announcement? I interrupt your Cheerios to bring you this frightening message about income tax. And then, unbelievably, she changed her mind three days later. No wonder people are in despair. She says she wants people to respect her.

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Order. MP Paula Barker drowning

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Order. MP Paula Barker drowning out the Leader of the Opposition speech. So just be mindful. Nobody will be able to hear her at home. Leader of the Opposition.

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Leader of the Opposition. Madam Deputy Speaker, she says she wants people to respect her.

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Respect is earned. Yes. She apparently told Labour MPs

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She apparently told Labour MPs this week. She told Labour MPs this week I'll show the media, I'll show the Tories. I will not let them the Tories. I will not let them beat me. Show us what? Making stuff up at the Dispatch Box incompetent chaos and the highest tax burden in chaos and the highest tax burden in history. She said to them, she said to them, Madam Deputy Speaker, I'll be there on Wednesday. I'll be be there on Wednesday. I'll be there next year, and I'll be back the year after that.

God help us. She is spineless, shameless and completely aimless. Talk to any business. Talk to any business. business. Talk to any business. Talk to someone looking for a job. Talk to someone looking for a job. Unemployment is up every single month since Labour have been in office. They don't want to hear it, office. They don't want to hear it, but it's true. They're shouting and complaining. They cannot create jobs. It is the worst year for graduate recruitment on record. Are they proud of this? Companies like

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Merck and Ineos slashing investment plan. Order! If you're on the front bench, I can obviously see you, Mr. Kyle. And it's. There's no need for you to be chuntering this loud.

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you to be chuntering this loud. They can see and hear you as well. Leader of the Opposition. Yes. Thank you, Madam Deputy Speaker.

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Thank you, Madam Deputy Speaker. They don't want to hear the truth, but I'm speaking for all of those people out there who are sick of this government. Companies, companies like Merck and Ineos are slashing investment plans. The construction sector has shrunk. How is that house building target going, is that house building target going, by the way? I'll tell you, Madam Deputy Speaker, they are miles behind and won't even come close to what we achieved. Business what we achieved. Business confidence is at record lows.

No wonder today future growth has been wonder today future growth has been revised down in every year of the scorecard. The papers are reporting that 1 in 8 business leaders is that 1 in 8 business leaders is planning to leave Britain. Even one of Labour's biggest ever donors, country.

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country. Yeah. The passport. What we have in front of us is a

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What we have in front of us is a Budget. Budget littered with broken promises. She stood on a manifesto which promised better returns for which promised better returns for UK savers. Today she's putting up taxes on savings, on salary sacrifice. Even she promised to give pensioners the security and retirement they deserve. Today she slapped higher taxes on people saving for their pension. She promised to make Britain the best place in the world to invest and do business. Today, she has raised the dividend tax rates.

She and the Prime Minister had already broken their promise to freeze council tax. But today she's decided to go even further, introducing a new property tax clobbering family homes that will only raise small amounts. This. This is Labour's Britain. This is Labour's Britain. People who work hard Madam Deputy Speaker. People who work hard and save hard to buy their homes get taxed more, while those who don't work, who in some cases refuse to work, get their accommodation paid for by taxpayers.

And then to top it all off, because taxing your home, your car, your savings and your pension wasn't enough. She has, by her own admission, broken her manifesto promise on income tax. Because in the last Budget, she said, and I quote, I am keeping every single promise on tax that I made in our manifesto. So there will be no extension of the freeze in income tax threshold, she said. In that Budget, that extending the threshold freeze would hurt working people and take money out of their payslips.

But today, she has done exactly that. Why should anyone believe anything she's promised in this Budget? And so where is the money going? Small changes to rail fares and prescriptions. These are distractions while she steals your wallet. The real story here, Madam Deputy Speaker. The real story is that Labour have lost control of welfare spending. Not only will working people have their tax thresholds frozen while benefits go up in line with inflation, not only have Labour abandoned reforms that would have saved the taxpayer £5 billion, after pressure from these backbenchers, today they have added another £3 billion to the bill by scrapping the two child benefit cap.

Yes, we introduced that cap, Madam Deputy Speaker, because it means people on benefits have to make the same decisions about having children as everyone else. Even Labour voters know that it strikes the right balance between supporting people who are struggling, and protecting taxpayers who are struggling themselves. Just this summer, the Chancellor admitted that lifting the two child benefit cap was not affordable. But that was before the Prime Minister accidentally fired the starting gun on the race to replace him.

So now he and the Chancellor are buying the votes of their own MPs with taxpayers money. If she wants to reduce child poverty, she should stop taxing their parents and stop destroying their jobs. She congratulated herself on the news on a new tax on landlords. Let me tell her this hiking tax on landlords will only push up rents. It will push landlords out of the market. The people who will suffer are the tenants. And then she talks about taxes on electric vehicles.

These changes will hit rural drivers the hardest. But we know that Labour don't care about rural people. All this Budget delivers is higher taxes and out of control spending. Nobody voted for this. The Chancellor must take responsibility. She chose to impose the jobs tax, driving unemployment higher month after month. She chose to abandon welfare reform, meaning the benefits bill is spiralling. She chose to spend more and more money she didn't have. Leaving taxpayers to foot the bill. She is out of money, out of ideas, out of her depth.

And she has run out of road. The country simply cannot afford a Chancellor who can't keep her own promises. Her position is untenable and she knows it. She's talking to the Chancellor. Is he mansplaining to you, by the way? Is he mansplaining? She wants some help. Would you like some help? Well, the Prime Minister should do is grow a backbone and sack her. But he won't because he knows if she goes down, he goes down with her. So we're stuck with them both, Laurel and foolhardy.

Does she have any any sympathy for the people facing Christmas without a salary because of her jobs? Tax for the retailers who are suffering sleepless nights because of their plummeting Christmas sales? People out there are crying. Last year we had the horrors of the Halloween Budget. This year it's the nightmare before Christmas. And as for her, she's the unwelcome Christmas guest. Ten minutes through the door and she's eaten all the Quality Street Madam Deputy Speaker. But let me tell the Chancellor.

Let me tell the Chancellor something she has forgotten. Behind every line in today's Red book is a family, a home, a lifetime of work and sacrifice. People are frightened and they have every reason to be. The Chancellor has spent the last year terrifying them. Every decision that she and the Prime Minister make puts more pressure on the people who keep this country going. If Labour are the party of working people, why is it that every day under them, thousands more people are signing off work and onto benefits? It's conservatives who are the party of work.

The Labour Party should be renamed the Welfare Party and they are making a mistake. The British public don't want higher welfare spending. They want people in work providing for themselves. They want to live in a country where hard work pays, where what you put in reflects what you get out. And we agree with them. There is an alternative. We conservatives have set it out. This Budget could have saved £47 billion, including £23 billion from welfare. She could have applied our golden economic rule, allocating half of those savings to cutting the deficit and using the rest to cut taxes.

Oh, they're all pretending. They're not listening. It's the shame of the mess they've made. It's the shame

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of the mess they've made. Order! Order! Mr. Vince, Mr.

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Order! Order! Mr. Vince, Mr. Thompson, you're so enthusiastic. I was worried you're going to knock Mr. War off his chair. A moment ago, Mr. War off his chair. A moment ago, so we need to calm down and breathe. And we need to ensure that we can hear the Leader of the Opposition.

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Kemi Badenoch. Yeah, yeah. Even the dog is laughing at the Chancellor. Madam Deputy speaker, Chancellor. Madam Deputy speaker, she could have applied. She could have applied a golden economic rule, allocating half of those savings to cutting the deficit, using the rest to cut taxes. She could have abolished stamp duty on homes to abolished stamp duty on homes to get the housing market moving, abolish business rates on shops to breathe life into our high streets. She could have introduced our power plan.

It saves a lot more money than what she announced would bring down energy costs for homes and down energy costs for homes and businesses. That's what she should have done. She should be on the side of people who get up and go to side of people who get up and go to work, people who take a risk to start a company, people working all hours to keep their business afloat. She should be on the side of the farmer, trying to hand something farmer, trying to hand something over to the next generation, the investor deciding whether to spend their money in the UK or elsewhere.

their money in the UK or elsewhere. She should be on the side of the young person looking for their first job. They say they're doing the right thing and putting money away for a rainy day. The pensioner trying to enjoy a decent retirement. This country works when you make the country work for them. Only the Conservatives are on their side. Madam Deputy Speaker, and our plan, our plan for them is simple bring down energy costs, cut spending, cut tax back business and get Britain working again.



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Colleagues are exiting and they do so quietly and quickly before we do so quietly and quickly before we come to our first backbench come to our first backbench contribution. Quietly and quickly. contribution. Quietly and quickly. Other colleagues will try to catch my eye. Should return to their seats. I have noticed they're seats. I have noticed they're bobbing and we come to the chair of the select committee. We come to the select committee. We come to Dame Meg Hillier.

Thank you, Madam.

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Dame Meg Hillier. Thank you, Madam. Deputy Speaker. Madam Deputy. Speaker, it seems like. In some ways a. Very long time since 2022.

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Very long time since 2022. Remember that when we had a Prime Minister and a Chancellor who put this country in. Hock to the.

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Hock to the. Bond markets, rose, made mortgages rise and put the British public through a living hell. What public through a living hell. What a contrast with my right hon.
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14:03
Meg Hillier Portrait Dame Meg Hillier MP (Hackney South and Shoreditch, Labour )
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shambolic. Madam Deputy Speaker, then under them mortgages went up and we saw children entering in poverty in greater numbers. So who is the party that created child poverty? Them not. And who is the party that has consistently talked down this. Country since the election? Being negative on every stage and downgrading people's confidence in our country. Who is the party of zero hours contracts, the party opposite, and who is the party that failed consistently to invest in our schools, the party opposite, and the NHS and our prisons and our justice system under them? The country spiralled and I spent a decade under the under the last government looking at public spending in the privileged role of chair of the Public Accounts Committee.

I saw those mistakes close up. I saw the big nasties left. Whichever government was elected in July last year. And I commend my right hon. Friend for tackling those challenges and the productivity that we have seen challenges on as a result of the Obr's decisions has been low since 2010, and who was in government since 2010, the party opposite. So they left the legacy, they left the big nasties, and it's now this government's job to clear it up.

But amid all the noise, Madam Deputy Speaker, we must remember that the markets are listening and we need to all be responsible government, opposition, every member of this House. And whilst speculation always swirls around a Budget, and that is inevitable because we are all lobbying on behalf of our constituents, our local businesses and every other group that we represent, quite rightly, to persuade our government to do the things that we want to see. And we're all impatient to see those things happen yesterday. That's why we got elected to make change.

But the leaks that have happened around this Budget have been very unfortunate. And I do hope my right hon. Friend will grapple with this and make sure that it doesn't happen again. And the most recent leak of the OBR data moments before her Budget is undermining for us all. So we will be raising that with the office for Budget Responsibility when they appear in front of the select committee next week. But the the Treasury Select Committee looked at a number of the issues that were being speculated around the Budget child poverty, gambling tax, cash ISAs and and others.

And I'm grateful that the right hon. My right hon. Friend has tackled some of these. I wanted to touch first on cash ISAs. We in a report, recommended that the Chancellor didn't reduce the limit on cash ISAs from £20,000, and she has reduced it, not from the ten that was being mooted, but to 12. The concern is that for short term savers, there can be a real issue there and with targeted support coming next year and work on the advice guidance boundary, there is an opportunity to bring the British public into a more investing environment and to make them invest or encourage them to invest more.

But after so many years when we've all been warned that your capital is at risk, like on the cigarette packets, that you might die if you smoke, it takes a long time to turn that culture around. I do want to pay tribute to the Financial Inclusion and literacy and literacy campaign that the Financial Times backs, which is running a programme in Shoreditch Park City Academy in my constituency over three years with years seven, eight and nine, to encourage them to to teach them about financial literacy.

They will be the investors of the future, but it will take some time for those young people to get to the point where they invest. So I am pleased that the Chancellor did exempt over 65 from this limit, because that short term saving is important, and particularly for that age group that is planning for retirement or indeed in retirement. I will welcome her support for start ups in my constituency. This is a huge issue and widening enterprise support, something that I know my sister committee, the Business and Trade Committee, will no doubt be looking at and encouraging companies to list in London.

Absolutely right. The three year stamp duty relief will hopefully be enough to encourage that. We've seen too many companies listing elsewhere, and we need them here in the UK to grow our economy and create those jobs. There's a lot of technical issues around reviews of business tax, which I'm sure we will be looking over. We're putting our slide rule across all of the measures in the Budget today. I note that the Chancellor is talking about 4.9 billion of efficiencies by government departments by 2031.

That is going to be a potential challenge. And so I think the Public Accounts Committee, another sister committee, will no doubt be looking at that alongside the Treasury Select committee. But I'm really pleased that she's pursuing giving HMRC more powers to pursue promoters of tax avoidance schemes. We know what the problems have been there and the Treasury Select Committee has the privilege and responsibility of challenging His His Majesty's Revenue and Customs regularly, and they will be in front of us in January and we'll be able to ask them more about that then.

But for me, one of the central planks for me as a constituency MP of why we needed a Labour government because of what the other party did to children living in poverty, there are 4.5 million children in poverty in this country. That's gone up by almost a million since 2012. 2 million of them are in deep poverty, and that's 1 in 3 children living below the poverty line in 2025. In the United Kingdom, children are sharing beds with their siblings or parents turning up to school tired.

And every weekend I visit people in my constituency and I see. This challenge. Just last weekend, a woman showed me the bedroom she shares with her disabled husband because he had a stroke three years ago, and she had a curtain between their double bed and a narrow space so her daughter can share their room while in their case, luckily, they have a second bedroom where her two sons sleep in a bunk bed. That is the reality for so many children, and the poverty impacts their learning and their ability to perform in the world, and it is a shameful stain on this country that when this government entered power, the UK ranked 37th out of 39 advanced economies on child poverty.



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Certainly when. Grateful to it, I agree with what everything she just said about child poverty and welcome the child poverty and welcome the lifting of the cap. But is there a little bit of a blind spot for this government on rural poverty? government on rural poverty? Government figures themselves showed by the end of next year, the average hill farmer will earn average hill farmer will earn barely just above half the national minimum wage. Is she as disappointed as I am that the disappointed as I am that the government has not tackled this in the Budget and indeed got rid of the family farm tax, which is going

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the family farm tax, which is going to tax many of them out of existence altogether. Meg Hillier, the hon. Gentleman

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Meg Hillier, the hon. Gentleman is a veritable champion for his constituency and for rural issues. I think there are very important I think there are very important changes here in the minimum wage and the living wage, which will have an impact. And there's lots that can be welcomed for rural that can be welcomed for rural areas too. But I recognise that his constituency and mine sometimes have very different challenges, and I welcome the fact that he does champion that here. Obviously, I haven't had a chance to look through the Red book and the Blue through the Red book and the Blue book at this point, but we will bear that in mind on the committee.

But 70% of children in poverty are But 70% of children in poverty are in working families. So the idea that the chutzpah of the Leader of the Opposition to stand up and say, the Opposition to stand up and say, this is a lifestyle choice for people really makes my blood boil. 60% of households hit by the limit are in work, and 15% of affected families are mothers with babies too young for work. And then. And my hon. My hon. Friend said it better than any of us could.

The Victorian rape clause, the humiliation that women face that affects Knowsley 3600 women. But we heard evidence in the Treasury Select Committee of women who will not put themselves or their children through that humiliation, and any policy that required a workaround like that is outdated and long needed to be gone. And I commend my right hon. Friend, and

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there's been further investment in young people. I thank her for a forensic analysis of. Our Budget.

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Our Budget. But will she take an intervention from the Leader of the Opposition so that she can

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Opposition so that she can apologise for this awful policy and its impact? Thank you. Well, it is interesting that they're doubling down. The opposition is doubling down. The opposition is doubling down on this policy, which is humiliating. But let's be clear. The birth rate in this country has The birth rate in this country has fallen year on year for the last three years. It is well below where it needs to be. I think only in the it needs to be. I think only in the in Luton is it actually at two, 2.1%, which is about where it needs to be actually a bit lower than to be actually a bit lower than where it needs to be.

This is a real crisis for this country in the long term. So it's absolutely right that my right hon. Friend is investing in the future of Britain. These young people may be poor in my constituency. They're poor, but my constituency. They're poor, but they are not. No poverty of ambition. They're children. I met when I was elected 20 years ago, and our doctors, our barristers, and our doctors, our barristers, our enterprising business people, in spite of the challenges they face, just think about the ones who face, just think about the ones who didn't get there, because they did have to overcome the challenges of deep seated poverty.

So we should deep seated poverty. So we should invest in our young people. And that is what this government is doing, including with apprenticeships and the Youth apprenticeships and the Youth Guarantee and the nine youth hubs in London, and one of which is in my constituency. And I really welcome that. The right hon. My right hon. Friend listened to the Treasury Select Committee on the Gambling Taxation Regime. We're a cross-party committee, but we had a unanimous report saying that there was a real issue about the lower tax on online gaming and because of the relative harm that that caused compared to going to the races or popping along to your local betting shop.

So I very much welcome my right hon. Friend's decision to do that, which is contributing to that. The payment to pay, take out those children out of poverty. The I do on the the lifetime the Isa changes. I just wonder I caution to my right hon. Friend, that I hope that the Treasury is watching very closely the impact on mortgage lending by building societies, because in the evidence we heard, that was a concern. And if we want to get people into their own homes with the building that's going to be going on, we need to make sure that those mortgages are available to them.

So I hope that the Treasury is in ongoing dialogue on that issue. Despite this change having been made, but we now need to recognise some of the challenges as well about green taxes. And I haven't had a chance to go through the Red book in the time since the Chancellor sat down, but I very much welcome my hon. Right hon. Friend's bold and necessary decision to take on the challenge of the reduction in fuel duty as as people move to electric vehicles. This has been a point of debate for at least the last decade or so, certainly on the time that on the Public Accounts Committee, we kept challenging the Treasury about how they're going to fill that gap.

And my right hon. Friend has been bold and and right to challenge that. It's a difficult one to grapple with, but she's good. Great that she's done that. And I think we need to be we look forward to hearing more about that. And in terms of supporting people, because of the cost of living, the freeze on rail fares, keeping the bus fare cap, these are things that help people get to work. And the ongoing freeze on fuel duty will help with that too. And the increase in the low in the minimum wage and the and the living wage are vital trial in my constituency.

People. Some people work four jobs over seven days just to make ends meet. If they're lucky to have a council tenancy, even on those salaries, it's hard to make ends meet if you try to go into the private sector completely unaffordable if you're on that kind of income. And yet contrast that with people who earn enough to work four days a week because they can afford to do so. I'm not criticising them for that life choice. But that is the challenge and the difference that's faced.

So the challenge on there's been a lot of discussion, of course, about a high property value, a high value property tax. And in my constituency, on a rough calculation, around 1% of properties are worth over 2 million in central London. So when the opposition screamed foul on this, I think in in zone one and two in central London, right on the edge of the city, ten minutes from Liverpool Street, around 1% of people will face that surcharge. That is a small price to pay when next door.

They are living there. Living families are living in the deepest poverty that I have described, and it's great to see some movement on energy bills, which is having a really, really big impact. But there is a lot more detail in this Budget which the Treasury Select Committee will be looking at over the next couple of weeks, and we look forward to welcoming the Chancellor to the committee on the 10th of December, where we will both ask her to explain. But we will also challenge her, as is our proper constitutional responsibility, about the detail of her Budget arm.



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I call the leader of the Liberal Democrats, Sir Ed Davey. Thank you, Madam Deputy Speaker,

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Thank you, Madam Deputy Speaker, and we're looking forward to the Treasury Select Committee challenging the government on the details. But, Madam Deputy Speaker, this government was elected on a promise of tackling the cost of promise of tackling the cost of living and growing the economy. And this is the second Budget where this is the second Budget where it's failed to do either for millions of people struggling with higher bills. All this Budget higher bills. All this Budget really offers is higher taxes.

The OBR sets it out in black and white disposable income. Living standards are down thanks to this Budget. Surely the Chancellor should have learned from her first failed Budget that you can't tax your way to growth under the Conservatives. to growth under the Conservatives. The UK's tax burden reached its highest level since 1948 and it hit
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Ed Davey Portrait Rt Hon Ed Davey MP (Kingston and Surbiton, Liberal Democrat)
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highest level since 1948 and it hit the economy. Yet under this Budget, the tax burden will hit an all time high. Madam Deputy Speaker, there is an alternative to all these conservative and Labour taxes, and the shocking reality is the government knows it and that's a new trade deal with Europe, a major new deal to cut the cost of living and grow our economy. The truth is, Madam Deputy Speaker, Boris Johnson's Brexit deal has cost the Treasury £9,090 billion a year in lower tax revenue.

Imagine if the Chancellor had adopted our plan to reverse those Brexit costs. Imagine how much more we could be helping families and pensioners across our country with the cost of living. Imagine how we could be ending the cost of living crisis today. Order,

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order! I made it very clear earlier on. And you're a senior member of the

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And you're a senior member of the House. No intervention should be made, nor will be taken. Ed Davey. Thank you, Madam Speaker. I'm

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Thank you, Madam Speaker. I'm happy to talk to him. The tea room afterwards. Madam speaker, the government know the damage. The government know the damage. The conservative reform Brexit deal has done to every family and every business across our country. And business across our country. And yet they choose to reject the single biggest policy for ending single biggest policy for ending the cost of living crisis, turbocharging economic growth and boosting tax revenues without boosting tax revenues without raising tax.

A new trade deal with Europe properly fixing our broken Europe properly fixing our broken relationship with Europe with a new customs union, growing our economy customs union, growing our economy by freeing British businesses from the cost barriers and red tape the cost barriers and red tape favoured by the Conservatives and Reform, rather than trying to tax Reform, rather than trying to tax their way out of debt as Labour is choosing Liberal Democrats would choosing Liberal Democrats would grow our way out of debt.

Now, Madam Speaker, to be fair to the Chancellor, she has recently spoken Chancellor, she has recently spoken about the terrible damage that the Conservatives Brexit deal has done to our economy, the deal that promised to save us £350 million a week, but ended up costing the taxpayer £1.7 billion every week. But where is the Chancellor's urgency and ambition to fix the problem she rightly identifies today? She didn't even mention the huge hit to the Treasury from Brexit. She is like a doctor who has diagnosed the disease but the disease, but refuses to administer the cure, refusing to take up our plan for a brand new deal with the EU.

A much better deal for Britain than anything the government has pursued so far, with a new customs union at its heart. Madam speaker, everyone but the most extreme Brexiteers now realise what a costly economic disaster the Brexit deal has been. Whether you're a young family struggling with ever higher food prices or a high street business just trying to survive the Chancellor's latest new cost or tax, people are understandably looking for a credible economic policy to change their futures for the better, and it's crystal clear now only the Liberal Democrats are providing the leadership on our economy people are crying out for yeah.

Now, Madam Deputy Speaker, there are some measures the Chancellor has announced today that we do welcome. At last, she's decided to tax the big online gambling firms by raising remote gaming duty, as the Liberal Democrats have been calling for. Problem gambling is related to hundreds of suicides every year. So of course, online casinos and the like should absolutely pay more tax on their huge profits. Her decision to scrap the rape clause is an excellent one, and I may not have heard the Leader of the Opposition, but I wasn't sure if she welcomed that.

I hope the Conservative Party will welcome that, and the Chancellor's decision to scrap the two child limit is excellent. It was in our general election manifesto and I'm glad that she is now enacting Liberal Democrat policy. Madam Deputy Speaker, it's clearly the most effective way of lifting children out of poverty, and it will save taxpayers money in the long term. And the biggest relief today for millions of families and pensioners is the action the Chancellor is taking to reduce energy bills, and we welcome it.

But even after the Chancellor's changes, it will still leave the typical household paying hundreds of pounds a year more on their energy bills than five years ago. So more action will be needed. But we need action on energy bills. That works. Reform and the Conservative Party pretend that the answer to rising energy bills is to scrap our climate commitments and stop investing in renewables. They couldn't be more wrong. The conservative reform energy policy would put up bills and just make the UK even more reliant on imported fossil fuels, with their volatile and high prices.

That would be a disaster for our economy, a disaster for our environment, and a disaster for jobs and a disaster for people struggling with energy bills. Madam Deputy Speaker, a major winner from reforms energy policies would be Vladimir Putin. And that might explain why the hon. Member for Clacton is so keen on it. So I urge the government don't listen to the Conservatives or reform. Be more ambitious in cutting people's energy bills. Take up our plan to cut energy bills even more right now and to cut them in half within a decade.

Finally giving families and pensioners the relief they need from this cost of living crisis. Madam speaker, while there are some things to welcome, which I've just done, there are quite a lot of measures in this Budget that will cause a lot of pain and unfairness, all of which could have been avoided if the chance had gone for growth with Europe. Instead, her plans to tax salary sacrifice will be hugely damaging to savings and pensions, and it looks like it's another knee hit on workers.

Madam Deputy Speaker and why? Why when the electricity vehicle market still needs a boost to get going, is she taxing electric vehicles? And if she wasn't spending £1.8 billion on digital ID, many of these tax rises would not have been needed in the first place. And her failure to U-turn on the family farm tax is a huge error. Madam Speaker if the Chancellor was really looking to tax those with the broadest shoulders, then why not put a windfall tax on the big banks who are literally making billions at the taxpayer's expense due to side effects of quantitative easing? But the worst tax hike of this Budget, by far the biggest tax rise of this Budget, is the Chancellor's decision to repeat the conservative policy of freezing income tax thresholds.

Freezing these thresholds reduces the amount people can earn tax free and hits the lowest paid the hardest. But I have to say, Madam Deputy Speaker, hearing the conservative leader criticising it now rings incredibly hollow. And I think the Member for Berkshire was objecting to her comments. The leader of opposition cheered conservative budgets after conservative budgets that did exactly the same thing as the Chancellor did, raising taxes on the low paid. The Conservatives dragged an extra 4 million people on very low incomes into paying income tax and an extra 3.5 million people into paying the £0.40 rate.

And the OBR says this government is now planning to drag a further three quarters of a million low paid workers into tax and nearly 1 million people into the £0.40 rate. So someone on the average salary is paying an extra £582 this year because of the Conservatives policy. And under the Chancellor's plans, they will pay an extra £300 a year by 2031. Now, Madam Speaker, contrast that with our record on income tax. We raise the personal allowance by £4,000.

We cut income tax by £825 for millions of people, and took 3.4 million of the lowest paid out of paying income tax altogether, it is clear. Madam Deputy Speaker, the Liberal Democrats are the only party that believes in cutting income tax for ordinary people. Labour and the Conservatives make them pay more, as well as adding income tax pain to families struggling with the cost of living crisis. This Budget will also add to the cost of doing business crisis facing Britain's hospitality sector, where she went nowhere near far enough.

Our high streets are suffering. Pubs, restaurants, cafes, caravan parks, zoos, even our beloved theme parks. They are struggling against higher business rates and the government's misguided jobs tax. The Liberal Democrats called on the Chancellor to help them with an emergency 5% VAT cut for hospitality for the next 18 months. That would have been a lifeline for some of our most beloved local businesses and for people's jobs. Boosting local economies across Britain. And it is very disappointing that the Chancellor hasn't listened to our calls.

Finally, Madam Deputy Speaker, can I say how disappointed I am with how little there was for carers in this Budget? As a carer myself for much of my life, I'm determined to speak up for the millions of carers less fortunate than I am. Millions of family carers and care workers who make enormous sacrifices looking after loved ones, carers who keep our NHS going, carers who keep our society going. They deserve far more support from the government and I will keep pressing their case here.

Now I do welcome the Carers Allowance review, but it confirms our argument that Carers Allowance system is out of date and in need of urgent change, and we're yet to hear commitments to those changes. I welcome the decision to reassess cases where overpayment has caused huge hardship, but the changes not coming into force for another year. The government must instruct and instruct the DWP to immediately suspend repayments during that delay and swiftly deliver compensation. More needs to be done to help family carers juggle their jobs with their caring responsibilities and Madam Deputy Speaker.

We urgently need the Social Care Commission to actually start fixing the system on a cross-party basis and make sure our loved ones get the care they need. The Chancellor cannot claim to be supporting our NHS properly, however much money she puts in while she and Treasury officials keep blocking the social care reforms. That alone can transform the health service across the country and boost our economy. Hey Madam Deputy Speaker, a caring society, a growing economy, a plan to drive down household bills, boost high streets and go for growth with Europe.

That is the vision the Chancellor should have set out today. Yeah. Instead we got a low growth, high tax Budget from a government that I fear just isn't listening.

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Pay. Catherine West. Thank you very much, Madam Deputy Speaker. And it's an honour to follow the leader of the Liberal Democrats in this debate, the Member for Kingston.

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debate, the Member for Kingston. And Surbiton. family.

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family. Friendly Budget. Every family up and down the UK will be welcoming and down the UK will be welcoming this. Gone is the vile rape clause this. Gone is the vile rape clause and an increase in family income is very, very welcome. We've been through many traumatic times through many traumatic times together in this House. We've been through the global financial crisis and its long tail. We've been through Brexit. And the right hon. Member who has spoke before me is Member who has spoke before me is quite right to emphasise the vast difference between our economy while we were in the European Union while we were in the European Union and now that we're not, and I welcome the work being done at Cabinet level, and ask Cabinet to Cabinet level, and ask Cabinet to redouble their efforts to work on good trade arrangements under the
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Catherine West Portrait Catherine West MP (Hornsey and Friern Barnet, Labour)
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good trade arrangements under the UK security pact to improve our economy and enlarge our economy. And of course, Covid. We heard of Covid this week with the report, and we all remember not just the impact on the economy, but the terrible impact, particularly on younger people and the impact that Long Tail is having on so many of our young people who are still feeling too unwell to work, or whose work opportunities have been severely reduced through anxiety, depression and all the other things which not just Covid, but that context of fiscal austerity brought down upon them.

Madam Deputy Speaker, I represent a multi-faith, multi-ethnic constituency which works really hard on community cohesion. When all is said and done, we rub along well together in Hornsey and Friern Barnet from recent rhetoric, it could be assumed that there is deep unhappiness and division. In fact, I want to put on record the opposite. I would like to put on record the contribution to our local economy from all parts of my constituency, regardless of skin colour, faith or school qualifications.

Of course, my community also faces challenges. We have unacceptably high numbers of children living in households where incomes don't cover the basics heating, eating and rent. And I really welcome today's statement on heating help for households on eating school meals, more breakfast clubs and helping in particular secondary school children with their nutrition and rent. Quite rightly, introducing a little more tax on some of the landlords who, in a wealthy place like London, will be making quite a lot and can afford to pay a little more.

It's my first Budget as a member of the Treasury Committee, and this Budget has rewarded those who fought to restore hope, stop the chaos of the 14 years of conservative governments and deliver change. Remember the election we promised change today. We saw change. Yeah, that change is an end to poverty line family budgets. And the hope

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is that we finally see food banks close for good. Yes. I thank.

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I thank. The hon. Member for giving way especially. She is a colleague of mine on the Treasury Select Committee. In terms of the Committee. In terms of the government delivering hope, a key part of the government's economic forecasting is, of course, the OBR. forecasting is, of course, the OBR. And what has driven a lot of what has driven the Budget today is a 16 billion productivity downgrade by the OBR. We heard on the Treasury Select Committee that there was actually very little basis behind actually very little basis behind that productivity forecast in the first place, basically based on purely what the UK productivity was pre 2008, with not much little debt beyond that.

So does does the hon. beyond that. So does does the hon. Member agree with me that the OBR has serious work to do to look at

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the robustness of its forecasts? My colleague. On the Treasury Select Committee for that, and I think there was for that, and I think there was quite a lot in today's Budget on skills, on nutrition for children so that they can get their educational qualifications and quite a lot that will help us to solve the productivity puzzle. But solve the productivity puzzle. But I do look forward to questioning with him the OBR on on their data, how they got to that position and how they got to that position and how we can be helpful in pushing the government towards even more investment in skills apprenticeships and in deepening our investment in young people so that our productivity can improve over time.

I know that so many of us here in the House are in politics, because we want every child and every family to have the chance to thrive in school, in work, and in life. And let's look back at past Labour governments. In 1945, despair and hunger stalked many communities. London was flattened in the Blitz, and yet rationing would continue for nine more years. Keynes famously said. Anything we can actually do, we can afford. We are immeasurably richer than our predecessors. And then what did Labour do? Went on to build the NHS, built the country, built a welfare

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state. We can do this. We will make the UK fairer and today is a really good start on that journey. Here, here.

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Here, here. Very briefly, Madam Deputy Speaker, because I know so many people wish to speak today. As a people wish to speak today. As a former borough leader, I introduced school meals for all primary school children. It was a great equaliser and social leveller. Children were more focussed, made better progress. Families who were just about Families who were just about managing saved money and there was no stigma. Everyone sat together and talked with each other. Free school meals for all primary schools were subsequently rolled out across London, and we know from today that more secondary school today that more secondary school children will benefit under the government's proposals.

We need to continue to restore hope and continue to restore hope and deliver change. The two child cap on universal credit, of course, another pro-family measure, the most cost effective quick measure to bring up up to half a million to bring up up to half a million children out of poverty and paid for by the most addictive forms of for by the most addictive forms of gambling, which has been increased. My personal view is we could have gone even further on the gambling, gone even further on the gambling, and I hope that it raises between 1 and 3 billion, because I think that that remote gambling in your

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that remote gambling in your bedroom on your phone is deeply damaging to society. Yes.

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The Trussell's September 2025. Hunger in the UK makes for sobering reading. In 2024, 16% of UK reading. In 2024, 16% of UK households were food insecure, which of course we know is not a food problem. It's an income food problem. It's an income problem. And this is an issue we must must continue to interrogate. I'm very pleased to have secured a backbench debate on food inflation backbench debate on food inflation and poverty. So in conclusion, Madam Deputy Speaker, together with Madam Deputy Speaker, together with school meals, more breakfast club provision, a higher living wage since the general election, slowly since the general election, slowly the living standards of families will turn around.

It's particularly positive to see the first woman Chancellor recognise the impact which the difficult financial which the difficult financial climate has had on families. I hope that by this time next year, once these measures are really embedded, these measures are really embedded, we'll begin to see the closure of food banks. I've heard a lot about what we want to see by the end of this Parliament. Let's aim for a closure of food banks in this country by 2029, and we hope to feel that every child and every thrive.



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Here. permitted. To. backbencher.

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backbencher. May wish to. Accept or decline that. And I call Sir Jeremy Hunt. Budgets aren't.

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Easy for Chancellors because there are so many things beyond your control. But being forced to your control. But being forced to make trade. Offs reveals priorities, and I'm afraid today's priority was and I'm afraid today's priority was not economic growth, but political survival. That's because there was survival. That's because there was one central call the Chancellor had to make today do we reform welfare to make today do we reform welfare or do we raise tax, getting our welfare bill down to pre-pandemic levels would save about £47 billion a year.

Within five years. It wouldn't have been easy, but it wouldn't have been easy, but it would have meant no tax rises and plenty of headroom in public finances. Instead, welfare spend is finances. Instead, welfare spend is going up and jobs and growth are going up and jobs and growth are going down in every single day of the government's first year, around the government's first year, around 2200 people have been signed off, not just working, but even having to look for work. That's a million
14:37
Jeremy Hunt Portrait Rt Hon Sir Jeremy Hunt MP (Godalming and Ash, Conservative)
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to look for work. That's a million more people on Universal Credit just in the last year. Most of those claimants cite mental health, but every doctor I ever spoke to has Health Secretary said that people with anxiety and depression need social contact. That means being at work, not being at home. So this could I would very happy to Committee.

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On Mental Health. He's absolutely right to point out that that is one of the drivers of that is one of the drivers of people going on Universal Credit that does need tackling. So does he share my alarm that today in the share my alarm that today in the House has been reported that this government's planning to water down the mental health investment the mental health investment standard, which starts to reverse the trend that we saw over many years of achieving parity of esteem

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years of achieving parity of esteem between physical and mental health. I absolutely share the hon.

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I absolutely share the hon. Lady's concern about that. That was introduced when I was health secretary, and this could have been secretary, and this could have been the Budget in which the Chancellor announced that we will speed up treatment for people with mental treatment for people with mental anxiety, mental illness and not park them on welfare. This could have been the Budget that said that have been the Budget that said that we will eliminate fraud by stopping completely benefit applications by phone.

It could have been the phone. It could have been the Budget that said that instead of relying on migration to help firms expand, we will make sure that expand, we will make sure that people at home are fit to join the workforce. Instead, the welfare workforce. Instead, the welfare bill is going up by around £14 billion, not least because of the billion, not least because of the totally unfair abolition of the two child cap, which I fear will see more children, not less living in the structural poverty caused when there are no adults in the household at work.

And I will happily give way to he. He surely,

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given. His background. Must recognise that there is a direct link between social policy and economic policy that this and economic policy that this country needs a working age population to fund future pensions and welfare bills for generations and welfare bills for generations in the future. How on earth can you do that if you're not encouraging children to be brought up and raised in a household that can afford to feed them?

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afford to feed them? Order. How on earth can you do that? You can't start off this four days of Budget debate with the word

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days of Budget debate with the word you and your so quickly come to language. Well, I think she brought me to

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Well, I think she brought me to order just at the right time. I recognise that the hon. Gentleman's concern about child poverty is sincere. I just have a totally different view as to how to reduce child poverty in this country. I think financing people country. I think financing people to have ever larger families means more children growing up in poverty, more children growing up in poverty, not less. And I think the evidence, well, the evidence for that is that under the previous conservative under the previous conservative government, we had a million fewer children growing up in workless

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children growing up in workless households. And child poverty in absolute terms fell. And he needs to look at. That evidence.

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That evidence. And the taxes and the price we are paying for this mushrooming welfare bill is that taxes are welfare bill is that taxes are growing up and they are already starting to destroy growth, 180,000 fewer payroll jobs in the last year. Unemployment up, inflation up, interest rates higher than they would have been. And the tragedy is that absolute poverty, which, as I said, fell under the previous conservative government, is now likely to rise under Labour as jobs vanish and welfare rolls soar.

Yeah,

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I'll give way to the hon. Gentleman Tom Hayes. I thank the. right hon. Member for giving way. I grew up in poverty, 1 in 4 I grew up in poverty, 1 in 4 children in Bournemouth, a town that I represent here, grew up in poverty. I can tell the hon. Member. It's It's an It's an awful It's an awful It's an awful thing It's an awful thing for the life chances of the child.

It's an awful thing for the family that care for them. It's an awful thing care for them. It's an awful thing for the community that wraps their arms around the child. But would he agree with me too, that he is agree with me too, that he is ignoring the future costs of child poverty? I used to run mental health and domestic abuse services. I can certainly tell him that when I can certainly tell him that when children grow up in poverty and then in later life, can't find the education, training and support that they need because of their that they need because of their trauma as a child, they cause extra costs for the public services that we then have to meet.

Does he not agree with me that we should be preventing those future costs?

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Absolutely agree with him. But I profoundly disagree why the government is choosing to do that. Because by expanding the welfare bill, expanding the number of large families living in poverty, you are making the root causes of poverty worse and not better. And and let worse and not better. And and let me say this, the Chancellor says that there is a growth plan, but it was very difficult to discern anything at all in today's Budget. We know, for example, that raising public sector productivity to public sector productivity to private sector levels would add 0.4% to annual GDP growth.

We know that proper planning reforms would add 0.4%. We know that proper add 0.4%. We know that proper welfare reform would add 0.3%. We know that getting energy bills down properly adds 0.3%. We know that AI could dwarf all of that. According could dwarf all of that. According to Microsoft and Accenture, potentially adding 1% a year. But we got none of that today. Instead, we got none of that today. Instead, we had a government arriving in office saying they wanted growth, growth, growth without knowing how growth, growth without knowing how they're going to get there.

And growth needs a plan, not a soundbite. And it's that lack of a plan or even a guiding philosophy, which is why today we've ended up which is why today we've ended up with a Budget that damages, growth, damages, investment, damages, jobs, and most tragically, of all, damages opportunities for young people of whom there will shortly people of whom there will shortly be a million not in employment, education or training. I give way to the hon. Member.

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to the hon. Member. Respected member of the House. But I think it's really important that we reflect on the facts the Chancellor announced facts the Chancellor announced today, as did the OBR. That growth is up from 1% to 1.5% this year. And he talks about he talks about having a plan on planning reform, a subject I'm very interested in. Why

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then, did his party abstain and not knock back our planning reforms? I think he's absolutely right. We should look at the facts. And We should look at the facts. And the facts are very clear that the OBR upgraded growth for this year, and then they downgraded it for and then they downgraded it for every single year of the forecast thereafter. And that is why the overall size of the economy is shrinking as a result of the measures taken by the Chancellor in the last Budget, and, I'm afraid, the last Budget, and, I'm afraid, made much worse in this Budget.

And I agree with him that we do need to go further on planning reform, but go further on planning reform, but I don't think we have any plan for the government for the really substantive changes that would align incentives between local communities and national government when it gets to, for example, planning approval for big infrastructure projects. And I would cheer from the rafters if we heard that from the Chancellor, heard that from the Chancellor, because it is urgently needed. And please, please, this is something which I think is most disappointing which I think is most disappointing of all.

Please can the government not tell us that everything is just going to be fine, because they're going to be fine, because they're not the evil Tories, those those terrible Tories got inflation down. terrible Tories got inflation down. They got inflation down from 11% to 2%. They saw 4 million new jobs in the economy, 4 million new jobs, as opposed to nearly 200,000 fewer. They grew the economy faster than France, Germany, Italy or Japan. And they attracted more foreign greenfield direct investment than anywhere in the world apart from

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China and the United States. I give way to the hon. Lady. I thank. The hon. Gentleman for giving way. Could he remind us which government led to 11% inflation? Could you remind us which Could you remind us which government crashed the economy? And could he also could he also speak could he also could he also speak to the 1970 children estimated in to the 1970 children estimated in Morecambe and Lunesdale, who will benefit from the lifting of the two child benefit cap and tell them

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child benefit cap and tell them what they are, why they should continue to live in poverty. Interventions must be

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Interventions must be interventions, must be short and to the point and an actual question or a statement. So Jeremy Hunt.

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a statement. So Jeremy Hunt. Thank you. Yes, I'm very happy to tell her which government was responsible for 11% inflation. The responsible for 11% inflation. The Russian government was responsible for 11% inflation. And I will for 11% inflation. And I will happily I will happily look in the eye. The 200,000 fewer children in absolute poverty after a succession absolute poverty after a succession of conservative governments because of those 4 million jobs created on of those 4 million jobs created on our watch.

And let me say this, these are these dreadful Tories increase the number of doctors and nurses in the NHS by a third. Those posh Tories increased standards in state schools to have the highest reading standards in the Western world. And that is because Madam Deputy Speaker progressive instincts don't pay the bill for good public services. A strong economy does. I will give way to my.

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I'm very grateful to my right hon. Gentleman for giving way during that period. Can you remind the House what happened to the deficit, which was inherited at over 10%? And yeah, maybe we'll absolutely.

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absolutely. Right. Because the Chancellor makes a great play of fiscal responsibility. Incidentally, I responsibility. Incidentally, I hope she will correct the record when she said that she was reducing debt when the OBR Economic and Financial Outlook says that it's Financial Outlook says that it's going up from 95% of GDP to 96% of GDP. But yes, when the previous conservative government came to office, the government was office, the government was borrowing nearly £1 in every four that it was spending on public services, we reduced that deficit services, we reduced that deficit from 10% to 2%.

And the party opposite opposed us every single

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step of the way. I will give you Friend. I thank him for giving me. I

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I thank him for giving me. I couldn't resist as we're going down memory lane to remind him when we memory lane to remind him when we came to power in 2010, we had a youth unemployment crisis. Youth unemployment plunged when we were unemployment plunged when we were in office. Now Labour are back in office. They've imposed a national insurance contribution tax. Youth unemployment is soaring again. Is that not a damning indictment of the party.

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Labour legacy. Yeah. And they might find that difficult to hear from a former conservative deputy Prime Minister. conservative deputy Prime Minister. But they might want to listen to the Resolution Foundation, which has been saying exactly the same thing on the airwaves today. It has been. And no one disputes the progressive credentials of the Resolution Foundation, but they have been warning against this rise in the minimum wage and all the extra workers rights, because they extra workers rights, because they say it will lead to a crisis, or it could lead to a crisis in youth unemployment.

I don't want to leave the hon. Lady out, but I promise

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the hon. Lady out, but I promise that will be my last intervention. Thank you very much for giving way. Is the Right Honourable.

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Gentleman proud, and does he find. It fiscally. Responsible that he and his two budgets left us with the lowest

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budgets left us with the lowest OBR. Was created. At 8.9 billion in 2024, leaving the current Chancellor and the present Labour government a

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present Labour government a mountain to climb in order to get us back to 22 billion of headroom. Amen.

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Amen. I am proud that I dealt with a real black hole of 72 billion, not a fake, one of. 22 billion. In my fiscal events that I met the fiscal rules every time. And if she's really concerned about that low really concerned about that low headroom, why did the shadow Chancellor at the time not? And now the current Chancellor not object the current Chancellor not object once to the fact that headroom was reduced to that level? I'll tell you why she didn't object, because if I had left headroom any higher, I would have had to cut spending more or increase taxes higher.

And that would have made the recession that we were heading into deeper and worse, with more unemployment, fewer jobs and more poverty. And that's why I'm proud that I took the right decision. But I want to finish with this, if I may, Madam Deputy Speaker, because even now, it may not be too late. A government that tries to do the right thing with the time that it has left is more likely to earn the trust of the British people than one that has given up.

Please do not treat government as an exercise in survival. That would be a betrayal. That would be a betrayal of the government's mandate. People with the broadest shoulders, as the Chancellor described them, will be rightly angry today. But the people who depend on public services, people looking for a job, people on the poverty line, they are the ones who need a strong economy more than anyone else. And they will finish today feeling more scared than ever about their prospects.

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Yes. Deputy speaker, I welcome the Chancellor's Budget and its message

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Chancellor's Budget and its message of strong foundations. And secure future. It delivers on the priorities

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It delivers on the priorities that matter most to my constituency. Of Erith and Thamesmead. Economic growth.

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Lower cost of living, investment in families and a stronger NHS. I also fully welcome the Chancellor's commitment of the DLR extension to Thamesmead, which is on page 65 of Thamesmead, which is on page 65 of the Budget. On that point, yep, in a moment. It's a game changing a moment. It's a game changing moment for residents have waited decades for proper transport links. I give way to my hon. Friend.

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I give way to my hon. Friend. Thank you, Mr. Speaker. And I thank my constituency. Neighbour for giving way. Page

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Neighbour for giving way. Page 104 of the Budget book confirms that capital investment to fix potholes for the lower Thames crossing to the east of my crossing to the east of my constituency and for the Thames need for the West constituency. So will she welcome me in and for
14:51
Abena Oppong-Asare Portrait Ms Abena Oppong-Asare MP (Erith and Thamesmead, Labour)
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will she welcome me in and for thanking the Chancellor for that locally. For. Our constituencies.

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Our constituencies. Thank my hon. Friend to Bexleyheath and Crayford. We share a similar council, Bexley Council, a similar council, Bexley Council, and I know how important it is to have that those potholes. And I also want to thank him for supporting the DLR to Thames Mead. The. This project unlocks 25,000 to 30,000 homes and also around 10,000 new jobs. About 11.6 billion economic economic impact estimated by TfL as well as the crowd in nearly 18 billion of private investment over 30 years.

Transformation of one of London's most under-served communities and cut commutes by nearly half, benefiting over half a million people that live in the area and wider London. This is not just a transport upgrade, it is key to unlocking opportunity and prosperity. For generations. It's been a community led campaign which has had cross community efforts, and I'm proud of the role that my residents have played in getting us here. It's also been a personal priority since I was first elected in December 2019, which I referenced in my maiden speech.

On the opposite side. It was also part of my 2019 general election election pledge. Peter, my resident, told me last week that he has lived in Thames Mead for over 45 years with promise after promise of a transport hub to London's only postcode without a tube and train station. He and I know that so many thousands more are going to be thrilled that this Labour government is putting investment behind their community so they can thrive, madam Deputy Speaker, I want to pay tribute to the key supporters whose work has been vital.

My Greenwich Council leader Antonio Correa, the Mayor of London, Sadiq Khan, my hon. Friend for West Ham and my town councillors, plus TfL councils, assembly members and members. In this place, developers Peabody and Lendlease and of course my senior parliamentary researcher Patrick Brown. But most of all local people and their brilliant campaigning, they never lost faith in this project. This is a collective achievement and this constituency should be proud of the role it has had in towards this Budget.

I also welcome the Labour government's announcement in September that tells me, as one of the 12 areas selected by the New Towns Taskforce, further proof of the area's potential and importance. So once the DLR is secured, schools, NHS services, jobs and communities and facilities must grow alongside new homes. This is a start of a new chapter in Thamesmead and I'm proud to have played a part and I'm proud of my community who have championed this project from the start.

I also strongly support the Chancellor's mission to reduce child poverty, including the nationwide rollout of free school breakfast clubs. I've seen first hand the benefits in my constituency of Willow Bank and Jubilee Primary School better start for pupils and a real financial relief for families and schools. So I was delighted to see in page 31 of the Budget that from September 2026, there'll be about 12,000 more primary schools, which will offer free breakfast clubs, helping 200,000 more children.

And I believe that saves about saves working families around 450 a year and ensures over half a million more children do not start their school day hungry. I also welcome the confirmation of further investment to cut NHS waiting times, a vital issue for my constituents, and also welcome that today's announcement of the 250 new Neighbourhood Health, the one stop shops bringing together GPS, nurses, dentists and pharmacists under one roof, starting in areas that need it the most. Madam Deputy Speaker,

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we're delighted to give way. I'm extremely grateful to the lady for. Giving way on health.

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lady for. Giving way on health. Facilities, which. You share my concern. That the only. Thing with more leaks than the. Budget run up leaks than the. Budget run up period is the roof of Musgrove Park Hospital in my Taunton constituency. Hospital in my Taunton constituency. And does she agree? Would she agree that those hospitals in the second

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wave and third wave programme for rebuild needs interim funding to keep them going? In the meantime. Across the country.

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Across the country. Including in Taunton, Wellington? The hon. Member for his

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The hon. Member for his intervention has to remind him that this government is delivering more than previous governments. You may than previous governments. You may remember that. You may remember that he was his government was his party was previously in coalition

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party was previously in coalition with the government, that previous government that caused a lot of damage to this country. Yes.

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Yes. Madam Deputy Speaker, I want to begin by conclude by conclude by begin by conclude by conclude by saying this Budget delivers for the country and it delivers for my constituency of Erith and constituency of Erith and Thamesmead. So after decades of waiting, residents will finally have their transport links they have their transport links they deserve and the opportunities that will come with them. And a new chapter begins today. And I will continue to fight for the investment services and opportunity for my community because they

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deserve it. Hey Father of the House Edward Leigh.

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Leigh. The benefit bill is now unsustainable in this country. And

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unsustainable in this country. And really, the main purpose of. What I. Want to say. Today is that I hope that we could try and create some.

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could try and create some. Sort of. Consensus in the House to try

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Consensus in the House to try and deal with this problem, which is imposing a massive level. Of debt debt With sensible proposals to try and get people off benefit. Her Majesty's Loyal Opposition would support the government in that endeavour. The government ducked endeavour. The government ducked the challenge earlier in the year to cut benefits and to try and thereby encourage more people into work. We said at the time that we were prepared to support the
14:58
Edward Leigh Portrait Rt Hon Sir Edward Leigh MP (Gainsborough, Conservative)
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government to try and deliver these cuts, and I'm sure that the opposition frontbench would repeat that promise. Naturally.

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I thank the hon. Gentleman for giving way. I just want to clarify that he's perfectly happy for children to continue to live in children to continue to live in child poverty while we try to reform the welfare benefit system. Is that right?

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Is that right? It's actually making that point, because what we were discussing earlier in the year were people who earlier in the year were people who were seeking work, and we were trying to encourage people to get back into work. I think the problem back into work. I think the problem that the. I can understand the political imperative of what the Chancellor has done today to Chancellor has done today to sustain her own position with her own backbenchers. But the problem is that you're going to create a is that you're going to create a perverse incentive for people on benefit with larger families to stay out of work, and I'm not sure stay out of work, and I'm not sure that's good for their morale, good for the economy, good for anybody.

So I think it's a very easy it So I think it's a very easy it seems a very easy hit for the Chancellor today, but I think there are going to be perverse results. I are going to be perverse results. I just want to also say a word about representing a rural constituency representing a rural constituency of the family farm tax. The budget's extension of inheritance tax for businesses, as it's over 1 tax for businesses, as it's over 1 million is imposed. As we know, a major new burden on long established family farms in my constituency and elsewhere.

Now, I can quite understand if the government was seeking to target larger estates, target people who were acquiring estates to avoid inheritance tax. But this new family farm tax affects not just large landed estates, but ordinary farms worked by generations of the same families. And I was actually visiting quite recently, a tenant farmer in my own constituency. And this actually affects him because his tenancy, he doesn't own the land, it's only a tenancy, but the tenancy is a capital asset and he will be taxed on it maybe as much as £300,000, which affects the ability of the family to stay in.

In farming, many family farmers, as we know, lack liquid assets. They are forcing them to hold cash back, restructure, borrow or consider selling part of the business because the dividends used to pay inheritance tax are themselves taxed. These firms family farms face an effective tax rate of about 33%. Now, the measure affects a significant share of medium sized, long standing firms, even though it raises less than £500 million annually. This achieves maximum social and economic destruction for minimal financial reward.

The policy discourages business growth because expanding a family firm increases future tax liabilities on heirs. Now, some advisers are recommending owners sell businesses outright to avoid future tax complications. A climate of unpredictable tax changes creates fear amongst owners and undermines long term planning. The uncertainty over succession planning is freezing investment and expansion across effective businesses. So the arguments can be repeated, but I do appeal to the government to try and listen to the National Farmers Union, which has come up with some very sensible compromises which would keep family farms in business and would achieve the government's objective.

Let me say a bit about the benefits bill. 4 million Universal Credit claimants are now excused from even looking for a job. 4 million. I repeat, Universal Credit claimants are now excused from even looking for a job. This is a disaster in terms of self-reliance, in terms of the economy and much else. Now, numbers we know have grown sharply since the pandemic, a surge in reported illnesses, particularly mental health conditions, is a main driver. Two thirds of recent work capability assessment cite mental or behavioural disorders.

My right hon. Friend, the Member for Chingford, has blamed the collapse in the assessment process for the rise in successful claims. Remote and paper based assessments introduced during Covid have weakened checks on eligibility. This, again, is something that we could co-operate across the House. It's not just a question of cutting benefits, it's also a question of summoning people in helping them, giving them confidence to try and get back into the workplace. And unless we do that and also tackle perverse incentives in the whole benefit system, which discourage people from working, then we are

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going to fail as a nation. Yes. I'm grateful because I like drilling into the data and getting drilling into the data and getting into the facts. And if you see the correlation between the rise in people who are claiming Social Security and the rise in waiting lists in the NHS, they map lists in the NHS, they map identically through all, all parliaments, Tory and Labour, and therefore will you look at the data therefore will you look at the data before making assumptions and getting the waiting list down has got to be our objective.

Yeah.

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got to be our objective. Yeah. Order, order, order! The member used the term you twice, maybe used the term you twice, maybe focusing and looking at the chair will stop colleagues referring to you twice, sir. Edward Leigh.

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you twice, sir. Edward Leigh. I'm very I'm very, very careful actually to look at the data and actually to look at the data and constantly refer to facts which are accepted by the OBR and by the government. These these facts are government. These these facts are not challenged. At 300,000 people are currently waiting to undergo a work capability assessment. We need emergency measures to clear this backlog. The lack of in-person assessments, and I am surprised assessments, and I am surprised that anybody could disagree with what I'm saying has created a feedback loop where dependency feedback loop where dependency growth grows, where dependency grows, and work expectations diminish.

The longer this is allowed to continue, the harder it becomes for people to reintegrate into society. This is a system that writes people off rather than helping them back into employment. And I would have thought we could all agree on that. We must not abandon these people. This is about human dignity. Getting people off long term benefits and into employment brings significant mental health benefits. It also helps our straitened finances. The cost of sickness and disability benefits is projected to reach £100 billion annually by the end of the decade.

Now, some households receive more than £30,000 a year in Universal Credit alone, with disability benefits payments pushing support well above that. The current system is financially incentivised individuals to demonstrate incapacity rather than engage with work. The government has redeployed. I agree work coaches to re-engage long term inactive claimants, but systematic incentives remain unchanged. Failure to tackle long term benefit dependency impoverishes the nation by increasing fiscal burdens and reducing labour force participation. Now the office for Budget Responsibility reports the working age Incapacity Benefit caseload reached 7% in 20 2324 and is forecast to hit 7.9% by 20 2829.

We must stop paying full benefits to young people who are neither working nor studying. These young people should be working or studying. I'll make some progress, if I may. The centre for Policy Social Justice estimates that by 2026, there will be a gap of over £2,500 between earnings and combined benefit income for under 25. So I could go on making these arguments, but I'll just proceed to the next part of my speech on immigration. I accept that the greatest failure of our last government was immigration.

The 21 to 2024 Boris wave. And I admit it, and I apologise on behalf of my government allowed. I don't know why. Why shouldn't I apologise? Why shouldn't I be honest? Allowed well over 4 million non-UK migrants into the country. Many of these will soon qualify for indefinite leave to remain in our grants, access to benefits and public services on the same basis as citizens is destroying financial incentives. The scale of this is financially significant. Now, the Home Secretary, I agree, has announced some sensible moves and I supported her when she came to the House, for example, extending the standard qualifying period for ILR from I from five years to ten years.

As Carl Williams of the centre for Policy Studies notes, policymakers cannot say with confidence how many migrants currently hold ILR or their economic circumstances. Experimental DWP data shows around 211,000. I holders receive universal credit. This is completely unsustainable. If Migration observatory estimates are correct, between 27% and 37% of ILR holders receive Universal Credit. So this is a worrying problem and needs resolution. Next increasing tax. I've long argued for a much simpler tax system.

Close loopholes that keep taxes low, especially for married families. Corporate tax complexity creates an inherent bias towards huge multinationals. They can harm departments of accountants to reduce their liabilities. A free market relies on everyone paying their fair share. We need creative ways of ensuring companies like Amazon Starbucks can operate freely. We all use them while paying a fair contribution. Then we can help lighten the burden on family farms, working people and small firms. Increasing taxes on working people risks undermining growth by reducing take home pay and incentives.

ONS figures show direct taxes reduced income inequality by only 4.4 percentage points. Limited redistribution for heavy burden. Higher taxes on the wealthy simply encourage them to leave. Data from the Henley and Partners 2025 Migration Report suggests the UK may lose 16,500 millionaires this year. What's the point of it? Why are we driving these wealth creators out of the country? So I'll just finish on with your. There's so much to say, Madam Deputy Speaker, but. But I know that I'll wear in the house if I if I go on too long.

Can I just end by one point? It's quite controversial, and it's quite difficult to say this. The triple lock. And I know I'm going to get into trouble for saying this, but I've got to I've got to say the truth as I as I believe it, we all know that the triple lock is unsustainable. Yes it is. You cannot have a situation where people of my generation are consuming an ever greater proportion of national wealth through the state pension.

Frankly, our government never dared tackle it. Having it brought it in because they knew that the Labour Party would crucify them in the ballot box. Now the Labour Party is caught in the same bind. The fact is, it is completely unfair on younger people if the burden of older people through the triple lock increases year by year. We laugh at the French because of their failure to actually achieve sensible pension reform, but we ourselves have got to have the courage, frankly, to end the triple lock.

And I think this will only be done with consensus between the two parties. And I am absolutely sure that if the government was to come to the Leader of the Opposition and say that this is unsustainable, and will you share this burden with you, which may seem to be very unpopular, but actually know many older people of my generation? We all have children, we all have grandchildren. We all see our own children struggling to get on the housing market. So, so many.

I think that actually, if government and opposition were prepared to have the courage to deal with the triple lock, I'm not sure it would be as unpopular with older people as is sometimes maintained. And after all, we could always relieve the burden on those on Pension Credit. We could find ways of helping people who really couldn't afford to live. But the triple lock must go. It's not a popular policy, but I think

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in our hearts we know it's the right policy. We have shy of 60 members trying to contribute, so there is a limit

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to contribute, so there is a limit of ten minutes to begin with. Daniel Zeichner. Thank you very much, speaker,

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Thank you very much, speaker, and it's a pleasure to follow the Father of the House in his wide ranging contribution. I think he's perhaps slightly more optimistic perhaps slightly more optimistic about the ability to achieve consensus across the front benches than, sadly, I might be. But I than, sadly, I might be. But I think his point about intergenerational unfairness is absolutely right. Let me start by absolutely right. Let me start by recognising the hard work of the Treasury team. That and the work they've put in to this Budget they've put in to this Budget against what I think is a very challenging international backdrop, particularly around trade issues.

And can I particularly welcome what And can I particularly welcome what I think is the long overdue measures on council tax for more valuable properties? Of course, no valuable properties? Of course, no one wants to pay more tax, of course, but there are some of us who appreciate the public services and the public realm need to be properly funded. Frankly, what is extraordinary to me is the number of years that those invaluable properties have escaped proper taxation. And I'm old enough to remember how this all came about.

remember how this all came about. The council tax being introduced as a quick fix after the debacle of
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Daniel Zeichner Portrait Daniel Zeichner MP (Cambridge, Labour)
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a quick fix after the debacle of the Tory poll tax. Frankly, I'm afraid some people on the opposition benches never changed. They're always hankering to find a way to escape paying their dues. They hanker after things like flat taxes or whatever. But after 30 years of not making their contribution, I'm absolutely delighted that it's this government that's finally cracking down on this unfairness. And there are many other aspects to this Budget that I strongly welcome. Many of my Cambridge constituents commute into London, and the freeze on regulated rail fares, including season tickets, will be widely welcomed.

But I also wish to say a few things about what the money raised in the Budget is spent on because in my experience, both as an MP and a former Minister, as it wasn't just the council tax system the Tories broke in the 1990s, it went much wider. The fragmentation and privatisation of so much of our public realm has turned out, in my view, not only to cost us financially but contributes to the gloom that has descended on what is still a rich and successful country.

Private affluence, alongside public decay, does not make for a happy society, and in a limited time, I have cite a few examples I've come across over the previous few weeks. The chaos in our prison and justice systems goes back in no small part to disastrous policies pursued by Chris Grayling in his misguided attempts to privatise the probation service, which in my view it has never fully recovered. And the and the fragmentation. And the fragmentation, the fragmentation of services was made particularly clear to me recently when residents in a very modern development near Cambridge railway station complained to me about the problems they were facing with both criminal behaviour and poor building standards.

Now the housing associations turned out in force to meet me. It's amazing what a visit from the MP will do, and they told me about the labyrinth of organisations involved in these issues. At least two councils, the police, those responsible for developing the building, those responsible separately for maintaining the building, those responsible for fire safety. How could anyone come to a sensible solution? With all that? I came away very clear on one thing. No one seemed to take responsibility overall, and as a consequence, the residents have got a very poor deal.

And another example, the right for national outcry over the abuse of too many neighbourhood shops selling vapes and smuggled cigarettes exposed so well by BBC investigative reporters. And I can't be the only one who wondered why it seems so hard to enforce the law when it's being flouted in plain sight. So I asked the House of Commons Library for some statistics on what's happened to trading Standards officers over the years. And guess what? In 2010, local authorities spent just under £172 million per annum.

By 2020, that had fallen to just over £103 million and only recovered a little to £117 million by 2024. Now, they're not the only agencies involved, I understand that, but no wonder they struggle to respond. And it's certainly not a criticism of Trading Standards Office officers. They do a remarkable job, given how they've been starved of resources. So Madam Deputy Speaker my conclusion this is that this Budget is a really good start in difficult circumstances, but we have got a huge way to go in rebuilding the public realm so that we have a country which feels safe and secure for everyone, putting back together what has been broken apart is not easy nor quick.

It's much easier to break things than to put them back together again. We've had decades of disruption from the party opposite. That, frankly, would only be made worse by the party that goes by the name reform. But they too ought to go to trading standards. It's a false prospectus. They're not about reforming the country, they're about breaking it. I'm confident that people will increasingly recognise that. So I urge my colleagues to stand firm, rebuild not just our economy, but the communities in which we all

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live, whatever our circumstances. Oliver Dowden. Thank you, Madam Speaker. And may I begin by referring members to may I begin by referring members to my register of Members interests, including my position as chair of the APPG for the UAE. Madam Deputy Speaker, it didn't have to be this way. The roots of this Budget and way. The roots of this Budget and its failure began with the last one. It began with the unnecessary delay and scaremongering before that Budget, which in turn frightened Budget, which in turn frightened consumers and scared businesses off of investment.

And then, in turn, of investment. And then, in turn, when the Budget was announced, the Chancellor made three key errors. The first thing she did was to The first thing she did was to choose to tax probably the worst thing in terms of jobs and growth by putting up National Insurance by putting up National Insurance contributions. She chose to drive human capital and financial capital human capital and financial capital away from the United Kingdom. With the abolition of the non-dom tax the abolition of the non-dom tax status, and she chose a totally unrealistically low level of fiscal headroom, which meant that by the headroom, which meant that by the time the Chancellor sat down, markets were already preparing for
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Oliver Dowden Portrait Rt Hon Sir Oliver Dowden MP (Hertsmere, Conservative)
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markets were already preparing for the next round of tax rises, and this sense only grew with the U-turn on welfare reforms. And the problem is the government is making exactly the same mistake all over again, with the litany of leaks culminating in the extraordinary position of the OBR publishing the entire content of the Chancellor's Budget before she even stood up, rendering the entire speech meaningless. And now, in turn, this Budget demonstrates a simple and clear choice higher welfare paid for by higher taxes.

And for my constituents, that means higher income tax. It means higher taxes on their savings. It means higher taxes on their dividends. And in a constituency like mine, which has seen house prices soar over the past 30 odd years now to astronomical levels, there is a real risk that older people in their family homes that they bought at very low prices are now going to have by scrimping and scraping to do so, I should say, and now going to have to find several thousand pounds every year just to stay in their family home that they so love.

And I think that is a real problem that is going to emerge from this Budget. And I would urge the Chancellor to look at the very least, at ameliorating measures to stop older people having to sell their homes in order to pay their council tax bills. But beyond this, the lies, this strategic choice, and we all know exactly what has happened. The Labour leadership has watched in fear as its vote haemorrhages to the left. This Budget is all about shore up.

Labour's tax base. The residents of Bushey, the residents of Radlett, the residents of Potters Bar, the residents of Borehamwood, their taxes are being hiked to pay for higher welfare. To appease Labour's backbenchers. I'll happily give way. I thank the right hon.

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Gentleman for giving way. Would he not accept that, in addition to the taxpayers that he is talking the taxpayers that he is talking about in those communities which I've visited and know in Bushey and Borehamwood and other parts of Borehamwood and other parts of Hertsmere constituency, there will be families who, amongst his own be families who, amongst his own constituents, who have more than one child and received benefit, sorry more than two children and sorry more than two children and received benefits, who will be positively impacted by today's Budget.

And he could at least nod in the direction of those of his constituents who will benefit from

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the measures that the Chancellor has set out. Oliver Dowden I think that the problem with that analysis is that problem with that analysis is that many people on the same street will think to themselves, I chose not to have another child because I have another child because I couldn't afford to do so, and yet now my neighbour is able to have now my neighbour is able to have more children paid for by the taxman through welfare. And that is the fundamental, fundamental the fundamental, fundamental unfairness at the heart of this Budget announcement.

But worse than that, I will give way in a moment. that, I will give way in a moment. But worse than that, this failure to grasp welfare reform risks neglecting a whole generation. We neglecting a whole generation. We already see young workers prospects under threat from AI. We see the prospects of employment being hit by Labour's jobs tax and the labour market regulation, which is discouraging hiring. And now the message seems to emerge from the government don't worry, abandon ambition that is ever higher welfare under Labour.

That's the reason why you should vote for us.

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I will happily give way. I'm grateful to my right hon. Friend. He's making a characteristically excellent speech. Would he agree with me that we are Would he agree with me that we are at the tipping point where the welfare state is ceasing to be what we've always wanted it to be, which we've always wanted it to be, which is a safety net below which nobody can fall, but instead is becoming a cocoon, which is going to trap a whole generation in dependency and absolutely kill off aspiration and

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social mobility. As ever, my hon. Friend is totally correct. Of course, the totally correct. Of course, the welfare state should be there for those people in temporary difficulty, but it cannot be a lifestyle, which is what ends up happening. I will give I will give way to the chairman of the Treasury

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way to the chairman of the Treasury Select Committee. Then I must make some progress. So I do thank the right hon. Gentleman for giving way. Look, we we've had evidence at the committee. It is absolutely a fallacy which we need to nail, that people choose to have more children to get more have more children to get more benefits. That is not the case. People fall on hard times. That safety net is there. And the ambition of my young families in ambition of my young families in Hackney is immense, but they are held back.

There are a lot more systemic issues about poverty, but

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systemic issues about poverty, but this will tackle it for that it. Oliver Dowden well, of course there will be the occasional person that falls on hard times, but I think she she should try saying that to many, many of my constituents who are unable to have more children. They take the choice not to have it. And that option is now there's an imbalance between that and the approach taken on welfare. And so we have a situation where at the same time as the United Kingdom is embracing higher taxes and an ever greater role for the state beyond Europe, lower tax dynamism abounds.

We can see the US surging with freer markets and a tech and energy bonanza. You only need to look to the Gulf, to states like the UAE and Saudi Arabia that are embracing tech, finance and alternative energy. Now, a generation ago, this would have mattered less, but now we're in the position where labour and capital are highly mobile and we are seeing more and more people voting with their feet, leaving the United Kingdom by the tens of thousands. And this tide is washing out our very brightest and best away from our shores.

And I fear that once those people leave, it is very hard to get them to come back. And the sadness of all of this is that the United Kingdom remains a wonderful country. It is actually a beacon of stability with the rule of law, the English language, the time zone, great research universities and a highly talented workforce. And indeed, having criticised the government a lot, I pay tribute to them for successfully concluding a number of free trade agreements, including with India and the United States, and I hope that others will follow, including with the GCC.

So at a time when other countries present challenges, whether it's the security situation in relation to China, whether it's the unpredictability of the United States or stagnation in Europe, the United Kingdom actually has a golden opportunity to be a magnet for investment from businesses and entrepreneurs around the world. But the risk is that we are consigning ourselves to a situation which a Scottish entrepreneur described to me a couple of days ago as being the why bother economy. And what he meant by that was that of course people aren't going to disinvest, but they will.

They won't choose to actively invest in the United Kingdom because we are not creating the environment where we are rewarding risk taking and entrepreneurship. So if we are to seize this moment, there are a few simple steps that we could take, and I would urge the Chancellor to do so in order to light the fire of competitiveness. First of all, instead of trying to drive away the wealthiest, wealthiest, and biggest global investors, as we have done with the abolition of the non-dom status, we should be welcoming them and gaining more revenue.

At the same time. One only needs to look at the Italian model where they have imposed a relatively high fee, but in return to that have exempted wealthy mobile people from paying further taxation. As a result of that, investment in Italy is surging, and the number of wealthy people choosing to locate in Italy is surging. With all the opportunities that brings for growth and investment. Instead of obsessing with policing social media, we should be aggressively policing the sort of small, low level crime that drives people away from locating in this country, whether it's the phone snatching, the shoplifting or the general sense that the streets of this country have become less safe than they were a few years ago.

And instead of clobbering entrepreneurs, wealth creators and hard working Brits with ever higher marginal rates, we should have the confidence to believe that lower marginal rates generate higher revenues in the long run and benefit absolutely everyone. And most importantly of all, in relation to this Budget, instead of consigning a generation to welfare, we should be aggressively reforming the welfare state to create opportunities for all. It really isn't too late for the government to seize this opportunity, but sadly, I fear that only a change of government and of course, a change

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of government to the Conservative Party will be able to deliver those things. Liam Byrne.

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Liam Byrne. Thank you very. Much, Madam Deputy Speaker. Well, I don't know what Budget the right hon. Gentleman was. Reading.

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Reading. But it wasn't the Budget. It was put on the table this afternoon. Madam Deputy Speaker I think the Chancellor got the think the Chancellor got the judgement exactly right today. She had a difficult inheritance. She had a difficult hand. She had difficult decisions to take. And difficult decisions to take. And she got the calls absolutely right. We have a situation now, the Budget We have a situation now, the Budget now being delivered where we have growth this year that has been forecast to rise.

We have business forecast to rise. We have business investment over the course of this Parliament, which is forecast to rise. We have inflation which is coming down. We have forecast coming down. We have forecast interest rates which are coming down. We have energy bills for our constituents which are coming down, constituents which are coming down, and we have child poverty, which is actually set to collapse. That is actually set to collapse. That is 8900 people in my constituency who will be better off because of this Budget, a Labour Budget which delivered by a Labour Chancellor delivered by a Labour Chancellor this afternoon.

Now, Madam Deputy Speaker, as you know, I've been in this House for 21 years. I have sat this House for 21 years. I have sat on both front benches. I have sat on both sets of backbenches and so on both sets of backbenches and so I have come to see over the years the selective amnesia which somehow bedevils debate in this place, and the problem of unreliable narrators. But I have to say, I have never seen amnesia on as epic a scale as I heard from the Leader of the Opposition today.

Now, I think it is quite well established Madam Deputy Speaker that back in 2010 I thought the numbers were a little bit tight. I thought difficult decisions were going to be needed, which is why we left a judiciously balanced Budget. Two thirds spending cuts, one third tax rises that would have halved the deficit in four years and brought debt borrowing down by 2016. That, of course, was not the strategy that was pursued by the last government. And what is the difference that that made? Well, the party opposite saddled this country with an extraordinary £1 trillion of debt higher than the situation that we left.

That's why we're paying £1 in ten in interest rates today, because they more than doubled the national debt. And before we hear before we hear any nonsense about Covid, let us just remember that 80 to 90% of the increase in debt that the Conservatives saddles us with was before the Covid lockdowns Gentleman. Gentleman.
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Liam Byrne Portrait Rt Hon Liam Byrne MP (Birmingham Hodge Hill and Solihull North, Labour)
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Oh, nothing as contemporary as Covid. Don't worry about that. I just wondered how much money he

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left in the coffers when he was chief secretary in 1997. Well, I can tell you, I don't

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Well, I can tell you, I don't know what his faculty of maths is like. I don't know if he realises that a trillion has 12 noughts, but we left the national debt £1 trillion lower than it is today, £2.7 trillion. That is how much this £2.7 trillion. That is how much this country is now borrowing. Now, the great tragedy, of course, of all of this is, is that if they had borrowed money at low interest costs and actually invested it in something that enhanced productivity, we would be in a productivity, we would be in a better position today.

The Chancellor would have had to deliver the Budget that she had to deliver today. Don't take my word deliver today. Don't take my word for it. Take my word for it. Look at the International Monetary Fund, 25th of July. The report is very 25th of July. The report is very clear. The fact is that our productivity growth under the party opposite collapsed by a third compared to the good old New Labour compared to the good old New Labour years. Our growth productivity divergence now with the United States is so serious.

Approximately States is so serious. Approximately growth has been half what it has been in the United States. And OBR is really clear today, the is really clear today, the downgrade on growth that they have baked into their numbers is entirely because of the productivity collapse, because they wasted the money during their 14 years in office. And of course, I years in office. And of course, I should just say by the by, because conservatives are conservatives, they manage to put £1 trillion on the debt, they managed to collapse the productivity numbers, and they still manage to put inequality up through the roof.

That is why we had all had in our constituencies food bank queues that we will never forget. I will never forget for as long as I live, the phenomenon of collecting food in inner city Birmingham, because our food banks had run out of food. I will never forget the children at school who were literally helping restock our food banks by taking penguin bars out of their lunch boxes to put them in food collection crates so that their classmates didn't go hungry at lunchtime.

That's the reality of the child poverty legacy that this party left us with. And that is the legacy that the Chancellor got to grips with today. So, Madam Deputy Speaker, we look forward on our committee to scrutinising the proposals that have been laid out today. We have been travelling the country over the last couple of weeks, talking to business about what they wanted out of this Budget, and there were three things that were very clear. What is extraordinary about this country? These are isles of wonder.

We now stand on the threshold of an extraordinary new era of innovation. This is an extraordinary country. We are an inventive country. We have been since the Industrial revolution started in Birmingham back in 1761. But that is going to be as of nothing compared to what is about to unfold in this country. And we are at the front of the grid in the race for the 21st century. But we need to mobilise capital on a completely new scale. And that is why certainty, certainty, certainty for business was so important.

So I welcome the fact that the headroom has been put up to £22 billion a day I welcome the Chancellor is ending this biannual circus of fiscal speculation by having one forecast a year. I have to say to the House that I seriously think that Mr. Hughes needs to consider his position. The fact that we have had a leak of the OBR forecast before this House got to debate the Budget, I think is appalling and it has been and it has bedevilled us this uncertainty.

Now, alongside that, we have got to step up the mobilisation of capital on a completely different scale. I will in a moment. That is why I absolutely welcome the package that the Chancellor has set out today to mobilise investment capital in a completely, radically new way. The expanding of EMI, the boosting of Vcts, the UK listing relief that is almost £3 billion worth of extra incentives for our entrepreneurs in this country. That is a game changer, not just for start ups, but for scale ups who are trying to make sure that we end this, this craziness of brilliant people in this country, brilliant inventors in this country, starting new businesses, growing it nicely and then getting snapped up and shifted out to the United States.

We have to make sure that we are growing and fostering more big, global dominating companies here in this country. Do I welcome the way the Chancellor lent in behind those firms today? But the third thing, Madam Deputy Speaker, that we have got to do is to improve the return on investment of investments made in this country. So that means a couple of things. It means bringing down energy costs radically. We didn't have a business energy cost scheme scored in the Budget today, but that is because I know the government is now out to consultation.

Every single member of our committee would implore the government to do whatever it takes to make sure business energy costs in our country are internationally competitive. It is wrong that firms like Nissan say to us that their energy costs up in Sunderland are the most expensive energy costs of any Nissan plant in the world. We have got to bring business energy costs down. But the message alongside that that we hear from small business in particular, is that we have also got to bring down business rates.

So looking at the policy decisions in the scorecard, that looks like about a £4.2 billion subsidy to help bring business rates down, that should mean that we have the lowest business rates that we have seen in this country. That is a very good thing. But where I would urge the Chancellor to go further is in making sure that we actually cut the costs of red tape in a really bold and radical way as we travelled around the country. Madam Deputy Speaker, business after business told us not just that they want less red tape, they want better regulation.

And crucially, they want departments to coordinate with each other and regulators to coordinate with each other. So we don't have one department over here making one decision and another department over here making another. And so ensuring that we have a Whitehall machine that actually moves at the speed of business in this new age of AI, is going to be more and more important as a competitive advantage. So, look, I think this is one of the best places in the world to be an inventor.

I think it's one of the best places in the world to build a start up business. We now need to make sure that we are one of the best places in the world to scale up a business, and that will be the nature of the decisions that we will be putting to Ministers over the course of the weeks to come from our community. Let me just finish, Madam Deputy Speaker, with this point, the thing that shone through from the statement from the Chancellor today was one thing above all, and it was ambition, ambition for the future of this country, a confidence in the future of this country.

That is why one of the most important numbers that we will read in the OBR forecast today is the fact that business investment is not flat, it's not falling, it's soaring. It is set to soar by £6 billion over the course of the forecast period. That ambition for this country is a sharp contrast to the amnesia of the party opposite, and that is because we on this side of the

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House know how futures are really built. Speaking limits are now eight minutes and I call Dave Doogan.

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minutes and I call Dave Doogan. Thank you, Madam Deputy Speaker, and thank you to the right hon. Member for Birmingham Hodge Hill Member for Birmingham Hodge Hill and Solihull North a fascinating lecture on amnesia dripping with irony, given the last role he had irony, given the last role he had in government, I wish to congratulate the Chancellor on delivering what is almost certainly a final Budget. There is no a final Budget. There is no conceivable way that she can remain in post, either politically and certainly not economically, for a certainly not economically, for a further year.

Businesses, workers, bill payers, farmers, hospices, industry and the public sector cannot endure another cycle of this Chancellor. It is just over a year since she stood at that despatch box delivering her first Budget, and boasted that she had made the right choices. Well, if only anyone right choices. Well, if only anyone outside the real economy believed that we would be in a situation right now, she promised to restore right now, she promised to restore stability to the public finances, and she promised to drive down growth right across the country.

She told us that growth would be our central Budget mission. But last month, the IMF forecast that the UK will have the lowest per the UK will have the lowest per capita growth in the G7 next year at just 0.5%, compared to an
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Dave Doogan Portrait Dave Doogan MP (Angus and Perthshire Glens, Scottish National Party)
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at just 0.5%, compared to an average of 1.4% for advanced economies. Labour promised to turn the page on high food prices, but households see food inflation running out of control and hitting 4.9% last month. The Chancellor promised more jobs to tackle poverty, but this month unemployment hit 5%, the highest level since the pandemic. While poverty is now at record levels, government borrowing stands at five year high 17.4 billion in October alone, with Labour spending double the defence Budget every year.

Just servicing the UK's chronic national debt. And the OECD have downgraded the UK's economic prospects, singling out the Chancellor's policies as exposing the economy to significant downside risk. This gloomy prognosis is not borne just from the SNP's analysis as well. However. Just listen to the Chancellor. She spent the last 18 months insisting that the economy is in a terrible state, while blaming everyone and everything except herself and misunderstanding what negativity her musings signal to investor confidence. It is as though she forgets she is the Chancellor as yet another stream of consciousness resonates invariably negatively around the economy.

She has blamed the black hole. Yes, the one the SNP told Labour about before the election and which she pretended to only discover upon entering number ten. She blamed the markets for their focus on her fiscal rules. Couldn't make that up, and she blamed Brexit despite herself voting to trigger article 50. But it is not just about the fundamental economic incompetence of the Chancellor. It is not even just about Labour's inheritance, which, whilst bad, was not the cause of this malaise. This crisis remains a product of the Chancellor's catastrophic decision, and she will own it, just as she will own Labour's compound fiscal bonfire.

She is in the frame for one of the most chaotic preludes to any Budget in living memory. Andy Haldane, former chief economist of the Bank of England, called this a circus of speculation around the Budget, with endless leaps, U-turns and media trails that created panic in the economy, and which, Mr. Haldane also added, has without doubt a shadow of a doubt contributed to weaker than expected economic growth within the UK. There was nothing meaningful in here on energy. The measures on energy bills are a start, but they do not fulfil Labour's election promise to reduce bills by £300 and bills are set to rise in January and again in April.

£150 off energy bills. Madam Deputy Speaker will still leave the Labour Party in debt of £87 per year on their commitment at the at the election, and Labour's eight in a second. The SNP did Labour's job for them, with a Budget proposal that involved a surcharge on banks that would have created that £300 discount for bill payers, just like Labour promised. I am very happy to give way to the hon. Member if he can tell me when Labour is going to come.

Good on the promise.

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Thank you, thank you. I do thank him for. Giving way. But of course. If he takes the time to read our

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If he takes the time to read our manifesto, which we were elected on in Scotland, that promise was to be met at the end of this Parliament. met at the end of this Parliament. So we are actually ahead of schedule and I am sure, I'm sure he welcomes that, just like he welcomes the extra £500 million cash welcomes the extra £500 million cash terms, extra £500 million cash, extra 500 million, £300 million in capital going to Scotland and a capital going to Scotland and a commitment to above inflation Budget rises up to 2029.

Fantastic.

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Madam Deputy Speaker, isn't it? Well. I'm sure the public will be delighted to hear Labour's never, never promise on energy bills and unlike him, I don't exist on my knees waiting to get patted on the knees waiting to get patted on the head by Labour Ministers on the front bench. I'm off my knees and I'm this the consequentials that we I'm this the consequentials that we get, the consequentials we get in Scotland are a consequence, not of largesse by the Labour Party, but largesse by the Labour Party, but of the taxes that Scottish Enterprise creates within the so-called United Kingdom.

Nothing so-called United Kingdom. Nothing here, Madam Deputy Speaker, on the energy profits levy, which is putting North Sea oil and gas into putting North Sea oil and gas into an early grave. As things stand, 42% of firms in the North Sea oil and gas sector forecast revenues and gas sector forecast revenues for 2026 expected to come from outside the UK's continental shelf. An analysis earlier this month from the Fraser of Allander Institute showed that the industry is undergoing an accelerated decline.

In my view, Madam Deputy Speaker a direct result of this Labour government who do not understand energy or the economy. This is Scotland's reality within the so-called Union. Our future and our natural endowments decided upon by Westminster Ministers rather than the people of Scotland. I must really stick in the cross, especially of Scottish MPs, when they come down here to toe the party line and see the difference that Scotland has had under the SNP since 2007. SNP GDP in Scotland per person has grown by 10.2% compared to 6.8 in the UK.

Productivity has grown in Scotland at a rate of oh point 9% per year, compared to 0.3% per year in the UK, and Scotland attracted 135 foreign direct investment projects in 2024, maintaining our position as the top performing part of the UK in that regard. They're not so keen on the facts and Scottish Labour MPs jump up and down about the new minimum wage, despite the fact that their constituents and mine are already on more than that, as a result of the Scottish Living Wage at £13.13 £0.45, and there was little today to suggest that Labour grasped the severity of the cost of living crisis, which for many people feels endless.

Inflation has almost doubled under under labour and food prices are up a staggering 37% over the last five years. People are rightly asking what is going to sort this? Well, I can assure them it's not labour. And on the two child cap, I'm very pleased to see that it's gone and taken with it the appalling rape clause. It's just a shame that all the Labour MPs that were cheering the Chancellor when she announced that today didn't vote with the SNP in September 2024, when we tried to get that removed in our motion.

Rank hypocrisy. Businesses in the past year have all are now in the position of surviving trying to survive this Labour government rather than trying to thrive and invest. Businesses know that this Chancellor does not understand business. Family owned businesses feel this most acutely, and farm businesses know that the Labour Party is out to get them. Today's announcements will not appear. The damage to the reality that exists for many businesses, and it is already too late for some whisky duty going up again.

Madam Deputy Speaker, the SWA said hiking duty today for the third time in two years, limits Scotch whiskies ability to generate growth and will have a direct consequence for investment and for jobs. This Chancellor has run out of road with businesses across these isles. Last year after 40 billion of tax rises, most of that on jobs. She promised that she is not coming back with more borrowing or more taxes. This government has taken the hard decisions as a result, and we will not have to do a Budget like this again.

12 months later, here we are again. Another round of tax rises. And let me make a prediction. 12 months from now we will be back here once more, albeit with a different Chancellor. Today's Budget supports the view. Taxes are up, borrowing is up, cost of living is up, cost of energy is up and spending is up. But growth is down. The central. Let me remind the House aim of the Chancellor. Scotland deserves better than this Westminster version of Groundhog Day. Unfortunately, the people of Scotland will be in a position to choose that in May's elections.

Thank you.

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Catherine McKinnell Madam Deputy Speaker I would normally extend the. Courtesy of saying it's.

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Courtesy of saying it's. An honour to follow the hon. Gentleman, but I have to say that speech was all a bit weak and I speech was all a bit weak and I reflected hard on this Budget as it's the first since I left my role it's the first since I left my role in the government as Minister for School Standards and as the first Labour Minister for 14 years, Labour Minister for 14 years, focusing relentlessly on more teachers in classrooms, more support for struggling schools, pay support for struggling schools, pay rises that teachers deserve and inclusive school system and inclusive school system and curriculum reform to transform the life chances of every child.

And believe me, I would have given anything to have found a few million, or indeed a few billion million, or indeed a few billion behind the government Sofa. If there were the chance to making some of those decisions, and I suspect the Chancellor knows exactly how that feels over the last few weeks. But that is one of last few weeks. But that is one of the reasons why I've now joined the Public Accounts Committee scrutinising public spending, scrutinising public spending, drawing on those experiences of making those tough decisions in government about how we spend the
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Catherine McKinnell Portrait Catherine McKinnell MP (Newcastle upon Tyne North, Labour)
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government about how we spend the public's money. And I've really enjoyed the deep dives we've done, examining how public services are delivered, where schemes fail, making sure lessons are learned, and making sure we spend every pound the best way possible. And just last week we looked at clinical negligence, an area with a staggering £60 billion of public accumulated liabilities. And we have a golden opportunity to cut those costs and deliver better care at the same time. So I would encourage the Chancellor to read our report when it lands, because it might come in handy for next year's Budget.

And in the meantime, I also wanted to thank the Chancellor for her comments on the I will give way.

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I thank my. hon. Friend for taking an intervention. I wonder whether she intervention. I wonder whether she would agree with me that the cost of clinical negligence claims in

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of clinical negligence claims in maternity services is now greater than the cost of maternity services. Wow.

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Wow. I absolutely share those concerns and I know the right hon. Member for Godalming and Ash is Member for Godalming and Ash is also very keen, so I think we have cross-party interest across the House in making better use of these House in making better use of these resources, and I also wanted to thank the Chancellor for her comments in relation to the comments in relation to the infected blood contamination scheme, which has proudly delivered from my constituency in Newcastle North, constituency in Newcastle North, and I know the team there are incredibly proud of the work that they are doing and they will be proud of the announcement the proud of the announcement the Chancellor made today.

But Madam Deputy Speaker, working people in Newcastle are really feeling worn Newcastle are really feeling worn down by the cost of living. We know everybody is feeling the squeeze, it's relentless and it's grinding it's relentless and it's grinding and I know the Chancellor knows that too, and has sought to deliver in this Budget on that promise of a better life for a hard day's work. And I see there are many measures And I see there are many measures in this Budget that will deliver on that.

The freezing rail fares, the extending of the bus fare cap, the measures on fuel duty, frozen prescription charges and household energy bills cut. And I also know that the Chancellor cares deeply about children trapped in poverty, and too often in families that are working hard and doing their best. And I saw those stories firsthand on the government's Child Poverty Task force. The driving force behind the crisis is the two child limit. In the North East alone, we see tens of thousands of children living in poverty that will be lifted out of that by the announcement today.

It is both economically foolish and morally wrong. It's why charities and businesses in the North East have been calling for it to be scrapped, because poverty, poverty comes at a price. It comes at a price in NHS bills, in educational failure and in wasted potential. So I strongly welcome the Chancellor's decision church in Knightsbridge. Seven bedrooms, 12,000 square foot and a swimming pool and selling for £35 million. And if I ask my constituents who should pay more council tax, it's pretty obvious what the answer would be.

Yet, incredibly, my constituents will pay £75 more in council tax than those that household in Knightsbridge. So I do welcome the announcement the Chancellor made today. But I would also urge the Exchequer Secretary to go further and review council, council tax bands and especially how new properties in all the new estates we have growing around the country are assessed. And I also want to turn briefly to the new powers for mayors on overnight stay levies. Of course, people flock to the North East for very good reason history, culture, stunning coastlines and the friendliest people you will ever meet.

And it's only fair that tourists help fund that infrastructure that they use and enjoy when they stay. So I understand why mayors welcome this power and want to decide that at a local level. So it's not just set in London, but in every region according to what works, but that levy has to be proportionate and not unfairly hit knock on small businesses because if they go under, we lose jobs, we lose vibrancy, we lose what makes the North-East special? The hospitality sector is under incredible pressure and I know they are busting a gut to turn a profit, and every cost could be the one that breaks them.

So while I really welcome the higher wages in this Budget, we do have to also listen to some of the concerns raised by the Resolution Foundation that we don't want to discourage businesses from hiring, and especially not those young people that want to get that first job on the ladder and finally on electric vehicles. I do appreciate the changes that have been announced on pay per mile, but the affordability of electric vehicles remains a barrier to some who do want to buy one, and they do want to do the right thing.

And many workers do have access to salary sacrifice schemes to help make that switch. However, teachers in academy schools are still unable to access the scheme because it was put on pause by the Treasury. So I wanted to take this opportunity to make a plea whether the Treasury can sort this impasse out once and for all, because it really is a win win for teachers and for the electric car scheme itself. So to conclude, Madam Deputy Speaker, the goal is clear a country where hard work pays, where the cost of living is brought back under control, where public services thrive and child poverty is history.

Every pound of public money matters because we know that has the potential to transform lives. And that's what people rightly expect of this government. And I know that is the future that the Chancellor is working to deliver and why she has

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announced this Budget today. Desmond Swayne Deputy Speaker, I

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Desmond Swayne Deputy Speaker, I congratulate the hon. Lady, the Member for Newcastle on Tyne. She caught my eye earlier. She was cheering the Chancellor with such enthusiasm, even more so than her enthusiasm, even more so than her colleagues who are making a pretty good fist of it. I recall. I recall good fist of it. I recall. I recall cheering a Chancellor during a Budget speech and then, notwithstanding, notwithstanding. Your job, notwithstanding the misgivings that I had, nevertheless I, I cheered with gusto.

And then I, I cheered with gusto. And then somewhat later, I found myself on a train to Oxford to defend the train to Oxford to defend the government in the annual union debate of no confidence, and debate of no confidence, and received the news on the train that the Chancellor I had been cheering
15:53
Desmond Swayne Portrait Rt Hon Sir Desmond Swayne MP (New Forest West, Conservative)
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had been sacked. Not not a particularly good wicket to go out to bat on. But I'm I'm confident that those hon. Members who cheered today will fare no better, because the economy is still reeling from the last Budget that the Chancellor delivered with her wholesale assault on enterprise, on family undertakings, on initiative and on every employer in the land. But in fact, business confidence had collapsed significantly before that Budget. It had collapsed in the summer when the government warned everyone that things were so bad that they were going to have to get very, very much worse.

And as a consequence, we discovered later when the Budget was delivered, that things were even, even even worse than we had imagined. But then the government announced after that, after that Budget that they've stabilised the economy, it was over. They weren't coming back for any more. And they trumpeted throughout the last year the fact that we had the highest growth rate in the G7. Madam Deputy Speaker, that's what they inherited. Yeah. But as their monstrous regiment has proceeded, the reality is that that growth rate has become more and more anaemic.

There's no getting away from the fact that last month, the economy shrank, and then this summer they repeated the same mistake. All we got throughout the summer was horror story after horror story of kites being flown of. Yeah, ghastly taxes that might be imposed upon us. Most unwelcome, most unwelcome for businesses planning investment and for anyone planning to take on workers. These these interventions move some markets and make others absolutely sclerotic. It's a disaster. And when I challenged the chief Secretary last week with the example of Hugh Dalton, who who properly resigned over a Budget leak, I was astounded that the chief Secretary admitted at the despatch box that he had no idea what I was talking about.

Yeah, it's extraordinary. And against this and against this background, there's always that chilling presence of the huge increase in trade union power that is part of the bill that is currently before Parliament, but they're anti-growth agenda. The anti-growth agenda is only half the story. The other half of the problem, I thought, was excellently expounded by the the Father of the House. The reality is that the government's bloated expenditure, expenditure plans, plans have overshot by 4% and we have this enormous growing benefits bill.

The disaster was that the government withdrew from its attempts to provide some mild, some modest restraint in the growth of that bill. And as my right hon. Friend says, we now face a bill running annually at £300 billion, £212 billion of which is for economic activity for people who are under no obligation to work for 2.3 million people, growing at a rate of 130,000 per month, it is completely unsustainable and it's to be paid for.

It's to be paid for by increasing taxes, taxes that that disproportionately attack those people who are already contributing the most, the entrepreneurs, the investors, the very people who can take their investment, their vision, their skills, their employment elsewhere to where the business environment is rather more friendly, and they're doing it in droves and doing it to such an extent that even the business secretary has remarked on it and spotted it. We are facing a situation increasingly where there will be fewer and fewer people able to pay for the bills of this increasing burden of people who are economically inactive.

So as I reflect, as I reflect on the fact that as we approach this, I do wish the hon. Gentleman would be quiet, he's insufferable. As we approach for government activity, accounting for 45% of the economy. I always thought that I know I'm not going to give way. I've reached my peroration. I always thought. That. The result would be not would be the. The totalitarian hand. The totalitarian hand clenched in anger. Yeah, yeah, actually.

And you know, I read, you know, the The Road to Serfdom, actually, it's turned out very, very different. It's not it's not the totalitarian hand clenched in anger. It's his hand open, dishing out largesse. It's turned out not to be so much the road to serfdom as the road to penury. Yeah.

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Cat Smith Madam Deputy Speaker. Well, follow that, I suppose. I Well, follow that, I suppose. I can't promise the same level of enthusiasm, but I rise to speak on enthusiasm, but I rise to speak on on today's debate, I wanted to start by talking about the cost of living, because for my constituents, that's their major concern. When I've been speaking to constituents ahead of this Budget, the thing that they wanted me to raise the that they wanted me to raise the most was cost of living.

And it's really good. And I welcome the measures which cut the cost of measures which cut the cost of living in the Budget. The £150 off energy bills, the freezing of the NHS, prescription charges and of NHS, prescription charges and of course, for the first time in 30 years, freeze on rail fares and the cap on bus fares, which will make a cap on bus fares, which will make a huge difference to people's commutes to work. And I welcome the fact that the national minimum wage fact that the national minimum wage and the National Living Wage will rise, which gives full time workers the gross annual earnings increase of £900.

One of the biggest asks that I had in this Budget was the alleviation of the two child limit. And basically I've been involved in politics because I want to eradicate child poverty. So measures in the Budget to lift these children out of poverty is these children out of poverty is hugely welcome. The decisions by the last government, which pushed more than half a million children into poverty, were a disgrace. And I'm pleased this Labour government is reversing those damage. I can is reversing those damage.

I can see my friend. Thank you.
16:01
Cat Smith Portrait Cat Smith MP (Lancaster and Wyre, Labour)
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Thank you, Madam Deputy. is aware of the report from North Lancashire Citizens Advice about child poverty in our area and their top recommendation to combat child poverty was to scrap this two child limit. Will she join me in thanking North Lancashire Citizens Advice for the work they do in our area, which is just so fantastic, helping local people, and will she continue to work with me as she often so generously does, to help continue

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help tackling child poverty in our area? Cat Smith I thank my friend for that intervention. It gives me the that intervention. It gives me the opportunity to put on record my thanks to North Lancashire Citizens Advice, who as a constituency MP, Advice, who as a constituency MP, you frequently end up referring constituents to and I thank them for and their volunteers for all for and their volunteers for all their work that supports both my constituents and my constituents. And I don't buy into the idea that And I don't buy into the idea that those that are in need of state support are in any way irresponsible or on the take.

I think the real scandal in our think the real scandal in our country is the number of parents who are both in work and in poverty, and I don't believe it is ever and I don't believe it is ever morally right to punish a child for the decision and choices of their parents, because that was the parents, because that was the reality of the two child benefit cap and its subsequent rape clause, which was absolutely abhorrent. And I'm pleased that in my constituency of Lancaster and Wyre, this is expected to benefit around 1550 expected to benefit around 1550 children who will be lifted out of poverty because of the measures in this Budget and this alongside the this Budget and this alongside the expansion of breakfast clubs like that at Grosvenor Park Primary School in Lancaster, will go a long way to transforming the life chances of children in my constituency.

One thing which was a very small part of the Budget, but very small part of the Budget, but something which is very close to my heart, was actually about playgrounds. And no one's mentioned this yet in the debate. But I think it's incredibly important, and I really welcome this £18 million we have for playgrounds, because I think that the public space that we give to our children really shows children how much we value them. And if we value our youngest citizens, we would invest in playgrounds.

And I'm very much hoping that the Lancaster City Council is receiving some of this money. And if they are, I'll be certainly putting in a good pitch for the Ridge Estates playground, which is in desperate need of a refurbishment. And I've also been contacted ahead of the Budget by pensioners in my constituency who are understandably, frankly, like everybody concerned about rising bills. And I hope that they hear today's announcement of the 4.8% increase in the state pension and

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welcome it. And I'll give way to my friend Chris Vince. I thank. My hon. Friend for giving way.

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Members across the House will be disappointed that my mother. Hasn't been mentioned in the Budget debate yet. I've just. She has just.

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She has just. Been on the phone to champion the 4.8% increase in the state

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the 4.8% increase in the state pension, which she claims will mean. That she will have an. Extra £39 extra a month. Well, my. Friend. Agree with me. This is.

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Agree with me. This is. Good news for our pensioners. Karin Smyth and I'm absolutely delighted my hon. Friend's mother delighted my hon. Friend's mother and please pass on my best regards. But it's not just about the pension, it's also about the decision to restore the winter fuel allowance, which ensures that pensioners get the support that they need. But can the support that they need. But can I ask our Treasury frontbench if they could look at other measures to support particularly low income pensioners, such as the National pensioners, such as the National Social Tariff for water or enhancing the Warm Home Discount scheme? I represent a constituency scheme? I represent a constituency with many farmers and I was listening carefully to the announcements today and I really do welcome the agricultural property relief, allowing 100% of that rate relief now to be transferable between spouses.

That is welcome. between spouses. That is welcome. I'm very keen to continue working with the Treasury frontbench to ensure that we can protect local ensure that we can protect local family farms, because I do feel that the thresholds aren't quite in the right place yet. So whilst I welcome the announcements today, I'm sure that myself and many of our rural MPs will continue to be in dialogue with our party frontbench on this issue, and I ask the government to commit to look into the tax proposals, which would place the burden back on the broadest shoulders, which is very much in line with our labour values.

Those are the last large passive investors and the non-farming landowners, rather than our small family farms in Lancaster and Wyre. As the as an MP who's been very active on the issue of sodium valporate Madam Deputy Speaker, as I know you are too, I was really pleased to hear the announcements around infected blood, but I urge the government not to forget those who have been harmed by sodium valproate, which is another medical scandal. And it's nearly two years since the Patient Safety Commissioner presented her report on this issue around redress.

And the families are continuing to wait. And I would it would be remiss of me, Madam Deputy Speaker not to mention those families in today's debate. And I hope that the next Budget, we can have some really welcome news for those families who have campaigned for justice alongside supporting their disabled children for decades and decades, a scandal dating back to the 1970s. And I hope it's this government that can put that one right. And I declare my interest as someone who is quite partial to a milkshake.

And but I acknowledge that it's also packed full of sugar. And so I'm absolutely fine with extending the sugar tax to my much loved milkshake. But I want to ask a question about a drink that kills tens of thousands of people every year, because in 2023, there were 22,644 alcohol related deaths in England alone. And those rates are going up year on year. And that has been spiking since Covid. And the government could, of course, tax the industry in a way that then the money could be put back into supporting those with addiction and reducing alcohol harms, which is not just alcohol harms in terms of health, but the societal impacts as well.

The government could generate £3.4 billion over five years by introducing an alcohol duty escalator. That's research that's been published in the last few months by the Alcohol Health Alliance. This mechanism would automatically raise non-draft alcohol by 2% above inflation every year. Now, actually, that helps to narrow the gap between the price gap between pubs and hospitality and the supermarket. And with more alcohol being bought now in supermarkets. By narrowing that price gap, we can also help reduce alcohol harms, as there is widespread evidence to suggest that supermarket bought alcohol is the primary cause of alcohol harms, and on wealth taxes, I understand that the government has had to put our public finances on a more sustainable footing due to the global uncertainty and the irresponsible decisions made by the previous government, but I've had many emails and conversations with my constituents about this wealth tax issue, and measures that my constituents are advocating for include a wealth tax of 2% on assets, over £10 million, reforms to existing taxes such as capital gains tax and closing the tax gap by properly funding and resourcing HMRC to tackle tax abuse.

But, in conclusion, and to allow time for other speakers, I just want to say that I got active in politics because I wanted to fight poverty, I wanted to fight poverty in my community and in my country, and I'm really pleased to be able to support this Budget, because by lifting this two child tax and the subsequent rape clause, this is going to make a huge difference to my constituents and to all of our constituents. And this is a Budget which is anti-poverty and it's pro

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children. And I think that's surely behind. Thank you. Richard, twice. Thank you, Madam Deputy Speaker,

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Thank you, Madam Deputy Speaker, and this Budget, madam Deputy Speaker, has been a car crash, the third car crash that this Chancellor has presided over. The first was at the Budget last year, first was at the Budget last year, which was so damaging to business confidence and to jobs and to the farmers who provide the food for farmers who provide the food for this great nation. And then the second car crash, madam Deputy Speaker, was in the run up to this Speaker, was in the run up to this Budget with so many leaks, the hokey cokey Budget in out, shake it hokey cokey Budget in out, shake it all about, which was again damaging to business confidence.

And then the third car crash, I fear, has the third car crash, I fear, has written off the engine of the British economy, madam Deputy Speaker, because once again, all of Speaker, because once again, all of the data, all of the incentives are bad. Let's just look at the simple
16:09
Richard Tice Portrait Richard Tice MP (Boston and Skegness, Reform UK)
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bad. Let's just look at the simple data, shall we? Growth down. It is flatlining over the last quarter. And the OBR numbers here show that over the next four years, the growth forecasts have all been reduced jobs down by almost 200,000 people since the last Budget. And speaking to recruitment agents earlier this week from up and down the country, they tell me that essentially businesses have stopped hiring particularly and most damagingly for young workers. And I fear this Budget will do even worse for that.

And then we look at the other data taxes up, madam Deputy Speaker, over the next few years to the highest since the Second World War, and this Chancellor has achieved the extraordinary achievement, the unbelievable feat after just two budgets of being the second highest tax raising Chancellor ever, raising taxes in just two budgets by some £70 billion

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And then we look, I'll take the hon. Gentleman, of course. I think. That. hon. Gentleman, for giving way

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hon. Gentleman, for giving way in terms of putting up taxes currently a band, a property in Sunderland, £50,000, pays less tax, Sunderland, £50,000, pays less tax, pays more council tax than a £50 million property in Westminster. So does he and his reform UK does he and his reform UK colleagues agree that by reforming the council tax system to increase the council tax system to increase higher bands, that is a good change. Tax change to make, to create, to take money off Sunderland's energy bills and take 2000 kids from

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bills and take 2000 kids from in. Thank you gentlemen for the intervention. And the good news is intervention. And the good news is when reform win more and more elections next May, we will be able to get better value across council to get better value across council taxes across the whole country. But I keep going. Madam Deputy Speaker, welfare, welfare numbers. Over the welfare, welfare numbers. Over the next few years, welfare spending will increase by in the next five will increase by in the next five years by £70 billion per annum.

Madam Deputy Speaker, that shows that this is not a Budget for that this is not a Budget for workers. This is a Budget for those on welfare. It reduces the incentive to work. It reduces the incentive to work. It reduces the incentive to be an entrepreneur, to be a small business owner. And when

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you look at this, I will give way to the hon. Gentleman. I'm interested to hear him using the figures £70,000,070 billion.

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Forgive me and I and I agree with him. He knows that 30 billion of that is the rise in the triple

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of that is the rise in the triple lock. So does he agree with me that affordable? Twice I thank the hon. Gentleman.

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Twice I thank the hon. Gentleman. The truth is, Madam Deputy Speaker, if we carry on going this way, that nothing will be affordable because this Chancellor is heading us towards bankruptcy as a nation. And the reality is nothing becomes the reality is nothing becomes affordable if we go bust under your under the Ministers and the Chancellors mismanagement of this Chancellors mismanagement of this economy. Madam Deputy Speaker. So we need to change course because all of this data is bad.

And the borrowing. Madam Deputy Speaker, you can't believe the borrowing numbers. The OBR is forecasting numbers. The OBR is forecasting that borrowing just in this year alone will be some 21 billion alone will be some 21 billion higher. The Minister clearly doesn't know the facts of the Budget that he is presiding as part of. Because because the OBR, the numbers are here, Minister, show that it will be 21 billion more that it will be 21 billion more than the OBR forecast just back in March.

And that means and over the next four years, the borrowing will next four years, the borrowing will increase by over £60 billion for the Ministers help. Mathematically that's up Minister. So all of the data, all of the numbers, Madam Deputy Speaker, is going in the wrong direction. It didn't need to be this way. The government could have followed our fine reform recommendations. The Chancellor could have she could have said to the governor of the Bank of England, stop paying voluntary interest on the quantitative easing, voluntary voluntary reserves.

She didn't need to do that. She could have also said we should stop quantitative tightening, which is why we've got the highest QE programme in the Western world. Those are the changes. She could have said, actually, that we should reduce the foreign aid Budget. She could have said she could have said that we should stop paying. We should stop paying welfare to overseas nationals in order to protect British citizens. But she failed to make these choices. And that is why, Madam Deputy Speaker, we have had to increase taxes to these highest levels.

I'm aware I've been very generous, but but there are many others wishing to speak. And therefore, Madam Deputy Speaker, it is time for change, because what this Budget does, it disincentivizes work, it disincentivizes risk taking and some of the finest and brightest of our nation are seriously considering leaving the country. There is, however, to conclude, Madam Deputy Speaker, some good news. The good news is that this is the last Budget that this Chancellor has given. Why? Because she's proven herself to be a learner driver with her multiple car crashes.

It is probably also based on the Parliamentary Labour Party's antics. The last Budget that the Prime Minister will preside over. And the final good news, Madam Deputy Speaker, is that after the next general election, reform will redesign, re-engineer this economy to make work, pay, to make risk taking pay, and to get

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our economy growing again, I thank you for Bill Esterson. Thank you. Very much.

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Madam Deputy Speaker. Context is everything, and the context for this Budget can be.

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this Budget can be. Summed up in three letters A, B, T stands for anyone but Tories, which is why the Parliament, in which is why the Parliament, in this Parliament, this House of Commons, is represented the way it Commons, is represented the way it is. It also stands for austerity, Brexit and Truss. And that also explains why this House of Commons has the composition that it does because of the damage done by each because of the damage done by each of those, the combined impact of which is that households in this which is that households in this country are £11,000 worse off every country are £11,000 worse off every year than they would have been had the trajectory continued from 2010
16:15
Bill Esterson Portrait Bill Esterson MP (Sefton Central, Labour)
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the trajectory continued from 2010 that we were then on. When Labour last left office. It includes policy mistakes by Liz Truss, which led to a £1,200 interest hike. Interestingly, the market reaction when the Chancellor was speaking was very positive. The only spike against it was when the Leader of the Opposition stood up, which speaks volumes to what the market's made of, what is happening today, and the contrast between those at and now is really quite stark and completely different to what the deputy leader of reform just tried to tell us, because, of course, he supports all three of what the Tories did with the disaster as a result that I have just outlined.

The contrast is we have business investment up over the period of the parliament. We have public and private investment jointly increased through the partnership, through the industrial Strategy. Sizewell C, £14 billion of public money to secure its success. We've had five successes of interest rates. We've had wage rises, the highest G7 growth forecast upgraded by the OBR and of course, borrowing down not what the previous speaker claimed. Now my constituency stands to benefit enormously and I will put in a bid to be one of the pioneers for a neighbourhood health centre.

Pleased to see that Southport is mentioned. But I want one in my constituency, but I want more than one in my constituency. But I'll start with the one which is the Maghull Health Centre. We already have £1.3 million pledged from developer contributions. Maghull stands ready Chancellor to be a pioneer for the NHS, with the neighbourhood NHS schemes to get the ICB to play ball please. High pastures, which is my own GP surgery, has already taken advantage of the Modernisation Fund. Very much welcome there too.

And in the Liverpool City Region we have £1.6 billion announced for a new fleet of buses for the newly franchised network. Members will be familiar with the Manchester Bee network. Well, of course the Liverpool network will be coming along shortly. Well, that's what Steve Rotherham says anyway. It will have links to John Lennon Airport and to Everton and Football and Liverpool football clubs as well. But I want to turn to energy and the select committee asked the government to consider moving the surplus in the investment reserve fund to the BC triple S to its members in a recommendation we made.

So we are very I am very, very pleased that the Chancellor has listened. Friend of mine messaged me today who is A11 of the pensioners. He and his wife are both pensioners to pass on their thanks to the Chancellor and to the Treasury team, and I know that will be replicated by members on behalf of their constituents across these benches and some opposite hopefully as well. The very welcome decision to cut energy bills by £150, recognising the eco failure of the last government, where 97% of those recipients were worse off.

As a result, the price cap should fall in April significantly as a result of what the government has announced today on energy bills, and we have an extra £1.5 billion, taking the total for the Warm Homes plan to £14.7 billion. And I would strongly recommend to the Treasury and to DESNZ that they use that as widely as possible to ensure we have proper insulation and reduced usage as a result, to make the most

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of the money I will do. I thank my friend for. Giving way and he makes a really valid point about the importance of

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valid point about the importance of insulating homes. As you will be aware, my constituent. Harlow is a. New town.

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So many of the challenges that houses face, they all face them at the same time, but it's actually those people that are in most those people that are in most poverty that are most able to insulate their homes. So this is really important to them. So another example of how this government is supporting those

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government is supporting those people most vulnerable. Yeah he's absolutely right. And

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Yeah he's absolutely right. And the Warm Homes plan will help the mo £500, with a combination of insulation installations as well, and by closing the gap between electricity and gas prices, which electricity and gas prices, which is money off bills will partly do. It will make it more attractive for people to switch to electric heating, whether heat pumps or other forms of electric heating. These are all going to help with our climate commitments at the same our climate commitments at the same time and bring down bills.

Now, the Budget books contain a section on energy security. There's a energy security. There's a recognition in the Budget of that secure, clean, cheaper energy is central to sustain sustainable economic growth. But it is also true that it is absolutely essential for our energy security. Increasingly, it is clear that the threat from Putin, when it becomes greater than we are seeing at the moment in Ukraine, really can target the delivery of oil and LNG in tankers with their submarine drones.

That is a very, very significant threat. And we've already seen the threat to pipelines. The best way of addressing this energy security issue, because those tankers are coming from all over the world, very, very vulnerable. And you can see in the Straits of Hormuz what the Houthis are able to do. Just imagine how much bigger the threat is from Russia. So the answer to this has to be diversifying as far as far as possible. It's why Ukraine is moving away from oil and

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gas as much as it can towards low carbon alternatives. Certainly. Lizzi Collinge thank you, Madam

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Lizzi Collinge thank you, Madam Speaker. I thank my hon. Friend for giving way on the point of energy security and making sure we have a security and making sure we have a diverse range of clean energy. Does he agree with me? Does he welcome alongside me the government's alongside me the government's commitment to respond to the nuclear regulatory review within three months to make sure we can three months to make sure we can change the way that nuclear is regulated, to ensure it is kept safe? It is up to date and we can get building new nuclear.



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get building new nuclear. Well, she's absolutely right. I mean, the committee very much look mean, the committee very much look forward to looking at what John Singleton has to say and what the government's response to it to him government's response to it to him is. But the regulatory reform is absolutely key. We've got to speed up planning. We've got to speed up grid connections, which again, is referred to in the Budget to referred to in the Budget to address the very serious shortfall we have in grid capacity and the delays we have in in grid connection.

We've got to do the same about generating capacity too. And we face in this country 60 years of a lack of investment in our grid networks, which were our grid networks, which were exacerbated when the grid was privatised in 1989, despite the warnings of the then shadow energy secretary, Tony Blair, who predicted entirely accurately that it being of strategic national importance and a natural monopoly, it really wouldn't attract the levels of private investment that the then conservative government claimed for it.

Sadly, he was right and we are left now trying to catch up, which is one of the reasons, along with delays in renewing our gas fleet, let alone moving to new to nuclear and renewables. Why we have to spend so much money on our energy system and why it's under why price bill payers are under so much pressure. And by the way, whether we did it through fossil fuels or renewables, we would still have these cost pressures. Important to say very much welcome.

The recommitment to the £14.2 billion for Sizewell C from the public sector, which will ensure its success. Something the committee wants to see is a fleet approach to large scale nuclear. Alongside the very welcome news on SMR at Wylfa. With the 3000 jobs that it will deliver. And by the way, Sizewell C 6 million homes powered by cheap, clean electricity. Ultimately, Madam Deputy Speaker, the ongoing investment in the North Sea, which is referred to in the Budget, has been confirmed by today's future of the North Sea Plan, published by DESNZ this afternoon.

There is a strong commitment, there is a strong recognition that we have to support North Sea oil and gas production. It's crucial to our energy supply for decades to come, but it's also crucial to the energy transition because the same companies who drill for and produce oil and gas also provide the the engineering expertise in the North Sea for offshore wind. And I was pleased to see the call for evidence on the fuel sector and on refineries, refineries as well.

So look, this Budget is no return to Abt. Instead we have trade deals with the EU, with India, with the US. We've rejected the Truss approach, which is so fondly supported by reform. And the Conservatives now. And instead we want to support the reductions in the cost of living, investment in infrastructure, skills, investment in business and rebuilding the public sector. As the Chancellor said, strong

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foundations and a secure future. She did really well today. Tom Tugendhat. Thank.

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Thank. You, Madam Deputy Speaker. It's somewhat. Depressing to. Be speaking after

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Depressing to. Be speaking after this Budget, which has basically picked the pocket of anybody who's trying to earn any money in this trying to earn any money in this country and has really sent a very clear message to everybody in our clear message to everybody in our country, which, sadly, is one that many people are hearing, which is many people are hearing, which is that this government is not on your side. This government will do everything it can to make sure that everything it can to make sure that it keeps you in the place where you are, and this government will encourage you to leave the country encourage you to leave the country rather than to invest in it.

And I'm afraid we can see that in the I'm afraid we can see that in the numbers. There's 26 billion in extra taxes, there's 800,000 people extra taxes, there's 800,000 people paying more. And all of this is a welfare, not work Budget. Sadly,
16:26
Tom Tugendhat Portrait Rt Hon Tom Tugendhat MP (Tonbridge, Conservative)
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welfare, not work Budget. Sadly, though, it's not just about those numbers. It's not just about those bald figures. It's actually also about what it does to so many citizens in our country. One of the most tragic bits of this Budget is not just the 7.5 billion extra tax on those young people who have gone out and got themselves a university degree, which is hidden nicely and quietly in the OBR report. But actually the 1 million young people who will not end up in work.

Because let's just think about that. Madam Deputy Speaker, 1 million young people who won't end up in work today for another year, for another year. What does that actually mean? That means a million young people who in a few years time won't have a choice because businesses won't hire them, they won't have a choice because the world will not be one that they're adapted to. And worse than that, they will have become, quite literally, slaves of the state, waiting for the man in Whitehall or the woman in Whitehall to decide what they get each month, each year they will have become totally dependent.

And that is a crime to leave our fellow citizens dependent on the state. Forgive me. I'm going to make a little progress. The reality is, though, that that isn't all of it. That isn't all of it. Because actually, what this Budget also did was look very hard today, very hard at fixing. Admittedly, the Chancellor's and the Prime Minister's very real political problems today, but also look very hard at how do they simply inflate the balloon today, but nothing about tomorrow. Now you can see this.

You can see this by the way, in which the farmers are being taxed in a way that is deliberately punishing investment. You can see this, by the way, that despite the hon. Member for Sefton Central claiming that there has been investment in this country, just simply look at the investment figures, the investment figures in the UK per capita see a 4% increase. Okay. It's an increase 22% in Canada, 79% in the United States. This isn't real growth. This is not serious investment.

And sadly, we're seeing the reality of it feed through. And we're seeing the reality of it feed through because we are seeing the knock on effects. Now. We heard the hon. Member, one of the committee chairs, the Birmingham member who spoke earlier, talking about the fact that there's investment in start ups. Well, I wish there was I wish there was serious investment in start ups. But actually all of the decisions made by this government have convinced anybody who has got any entrepreneurial spirit to either go to Abu Dhabi, where there's some new version of Auf Wiedersehen, pet being filmed, of British workers who fled or to go to the United States, which at least has capital to invest in start ups.

And all that we're seeing is we're seeing a continuation of the Blair-brown model of increasing nationalisation, of savings, that creeping control that we've seen spreading over pensions, over the insurance market that has left our savings 60% in bonds and only about 40% in equities. Now, that contrast remarkably with Australia, Canada and the United States, who are 20% in bonds and 80% in equities. And I will give.

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Way Sarah Pochin me. But the the member said when he was backing Liz member said when he was backing Liz Truss to be leader of the Tory party, I have no doubt that we will move with determination to make move with determination to make this country safe and more secure. Doesn't that rather undermine his claim for any credibility?

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claim for any credibility? No, I'll tell you. I'll tell the hon. Member an honest truth on that. She was wrong. honest truth on that. She was wrong. I made a mistake. The reality is that's what happened. Now here's the difference. Here's the the difference. Here's the difference. What she did. It's true. Put pressure on the economy. What Put pressure on the economy. What this Chancellor has done, what this Chancellor has done is increased debt levels to the highest ever. debt levels to the highest ever.

And the cost of borrowing to the highest in the G7. There is no debate about that. So I'm not going to give way on that. Let me, let me to give way on that. Let me, let me just let me just keep going on this because the reality is what we're looking at at the moment is we're looking at the politics of today looking at the politics of today and forgetting about tomorrow. We are seeing people being left on welfare and not helped into work. welfare and not helped into work.

We're seeing pretence at kindness, but long term cruelty because we're but long term cruelty because we're failing to recognise that it isn't the state, it's not the government, it's not the civil servant. And it's certainly not the Minister who employs or creates any work. It's free individuals freely associating, freely structuring their lives in order to create opportunity for themselves, their family and their community. But guess what? This government doesn't believe in it. Which is why we're now seeing tax levels at their highest ever 38%, the highest since the Second World War.

This is a remarkable theft of liberty from the British people. Forget about the digital ID, which is insane in its own right, but this is genuine steel theft of the liberty of free citizens to choose what to do with their resources. And that is an appalling decision. What we need to do is we need to look very hard at what the choices are, because actually we already see where this cost is going. Despite the Home Office estimates a few years ago that asylum seekers would cost 4.5 billion, this OBR tells us it's going to be 15.3 billion.

That's a multiple of over three. We're seeing any number of different areas where these costs are rising. And all this would be bad enough, all this would be bad enough. It would be bad enough. In any normal situation where actually the reality was a bit of adjustment and you can get back to normal. But the truth is, this isn't a normal situation. This is a situation that demands some frank honesty. And let me just lay it on the line. The honesty is the demographics of this country are going against us.

We do not have enough young people for an ageing population. That means, I'm afraid we do need to look at the triple lock. I have already been clear. Now I know my frontbench does not agree with me, but I have been clear on this that we simply cannot afford the level of welfare payments that we are making. We need to be clear that health and pensions are now costing too much. We need to be clear that the security situation has changed. And I've heard, gosh, I've heard the fact that we're now raising more on defence.

But the reality is it's all in the never, never. I know the Army are now, even now, talking about cutting the number of soldiers in our army. The Navy are talking about cutting the number of ships and the Air force talking about cutting the number of airports. I've heard that from friends who are serving today. So I look forward to seeing what he gets out of the Budget round when he gets to it. Because the reality is, while our enemies are arming, we are talking.

It is simply not serious. And my last point, if I may, is about technology. Because the reality is, for all that I've been talking about, there is one thing that is going so far against us that we're not even on the same field, and that's technology. Just look at the rise of AI across this world. Look at the only two countries that are serious players in it, the United States and China, the United States heading for the exquisite China, heading for the quotidian.

What you're seeing is you're seeing a radical change in the way that the economy is working. And here what are we doing here? We're defending old jobs. We're punishing ideas, we're keeping back growth, and we've got a government that simply doesn't understand that we have only a few years, only a few years before we can actually get back into the game. And if we miss it, then, frankly, we like that old Chinese empire where we have just completely missed the boat.

We've burnt our ships. And the European expansion to the Americas replaced us.

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Gurinder Josan. Thank you, Madam

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Gurinder Josan. Thank you, Madam Deputy Speaker. First of all, can I thank the Chancellor of the Exchequer for her excellent Budget Exchequer for her excellent Budget statement? And before I carry on, just just in response to the previous speaker, the right hon. previous speaker, the right hon. Member for Tonbridge, I would take him more seriously if on defence spending there hadn't wasted 14 spending there hadn't wasted 14 years in cutting back our defence services to the bare minimum to where we are now, I would take him where we are now, I would take him and his colleagues more seriously on that.

I'll make I'll make my on that. I'll make I'll make my point. So in my remarks, I do want to focus on the benefit to people in my constituency of this Budget in my constituency of this Budget and the choices made by the Chancellor. But first, it is worth reminding ourselves the disgraceful situation. The party opposite left the economy in July last year and the scale of the mess this Labour the scale of the mess this Labour government is having to deal with an economy that was broken, high interest rates, high unemployment, interest rates, high unemployment, borrowing and debt beyond our means, growth, stagnating, strikes across our public services and various sectors and NHS on its knees.

Record waiting list. Crisis in Record waiting list. Crisis in midwife services in mental health services. And I could go on. And a
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Gurinder Singh Josan Portrait Gurinder Singh Josan MP (Smethwick, Labour)
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debilitating cost of living crisis with no plan to make things better for ordinary families in my for ordinary families in my constituency. And this Labour government has already done so much to fix this mess, and the change is to fix this mess, and the change is beginning to be felt in my constituency. And I just want to go through some of those things which are actually making a change are actually making a change already in my constituency. So my constituency benefited from £20 million plan for neighbourhood million plan for neighbourhood funding in Selby.

We've seen wage increases, we've seen growth upgraded to 1.5%, rail fares have upgraded to 1.5%, rail fares have been frozen, prescription frozen, fuel duty freeze extended pensions fuel duty freeze extended pensions are increasing, breakfast clubs and free school meals. More GPS and free school meals. More GPS and nurses, ten year NHS plan railways coming back into public ownership, said people said it could never be done. It's happening. Local control over bus services, new protection for renters, homes for heroes. for renters, homes for heroes.

We've launched a border security command, over £100 million in government funding for five new research hubs, including one in Birmingham, which scrapped a ban on onshore wind and en bloc solar schemes. We've had new solar schemes. We've had new solar schemes on schools in Smethwick. We've got we're having low, lower business rates. The national wealth fund Warm Home plan to deliver lower energy bills with £150 off bills announced today. We, the Child Poverty Task Force, was established and 5350 children in Smethwick will benefit from lifting the two child limit.

So change is happening and my constituents are benefiting from it. But all this is happening in the face of a world that's changing around us. And over the last year, global challenges have impacted the UK in an unprecedented way. And we've seen the impact of President Trump's tariffs, the Ukraine war, Russia, China and the mess that the Tories made of the of Brexit. And many of us on this side of the House have understood that the old way of doing things, of leaving everything to free market and global trade isn't working for families and workers in the UK.

And this, this essentially means we all want to buy things cheap, so they end up being made abroad, where labour costs and conditions are much lower. And that in turn meant that whole industries in the in the UK shut down and that led to loss of good quality jobs. So as well as the choices being made by the Chancellor, this Labour government to cut NHS waiting lists, cut the deck and cut the cost of living. This Labour government is also working to make sure that the UK becomes less reliant on other countries and more self-sufficient in areas such as defence, energy security and many others.

The recall of Parliament in February Scunthorpe steelworks is actually a defining moment. The realisation that we can't be reliant on the US or China for for steel and we need to maintain our own capacity. That's it. So I see this and the change that we're talking about, the change that is being delivered in last year's Budget and this year's Budget is is about it's about a necessary reindustrialization of our country to ensure that we are more self-sufficient. And if we do that, and if we get that right, we bring back good quality jobs to our community, jobs in which you can buy a house, on which you can buy a car, on which you can support your kids through university.

You know everything that people are a decent standard of living that people aspire to. And if we get it right, it also means that we remove the dog whistle scaremongering by the naked populist opportunity reform and others who want to take advantage of economic uncertainty to peddle their division. But the choice has been made by the Chancellor and this Labour government. The commitment to increase defence spending and the understanding that that doesn't mean that we just buy everything from America.

It means we make it here. The investment in green energy, the investment in nuclear energy, the industrial strategy, the investment into semiconductors, AI, all these things will support and will deliver growth into our economy. And it's interesting. Hon. Members opposite have talked a lot about growth and business confidence. Well, you know, the venture capitalists, the Venture Capital Trust Association organised a an open letter signed by 250 people. Signatories I signed it included some members of this House and some members of the other House as well, and founders, and also signed.

The signatories were from from various start ups and businesses, including the founders of Context and Matillion, which are both billion dollar valued tech firms. Yeah, and they asked for changes to those to the scheme and the scheme schemes, which have not been updated in over ten years. So this government and I say again, I would take them more seriously if they weren't asleep on the watch when, when, when they were in power, they were asleep. You know, the, the British Private Equity and Venture Capital Association had just said, we are delighted to see the government signalling that the important eyes and VCT incentive will be reformed to support businesses as they scale, as well as early stage investment.

Business confidence is there. People want to see this change. People want to see the change that we're making and the change we're making will support growth in our economy, and that's the future. And if we get that right, that's the future that that will deliver for my constituents and for the UK. And it's a future. I'm proud to stand

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with this government. Sammy Wilson Madam Deputy Speaker. First of all, can I, on behalf of the whole nation, thank the Chancellor for the advance the Chancellor for the advance sight of her statement, which over the last few weeks, I don't know what she hoped to gain by it, what she hoped to gain by it, whether she hoped to make it more palatable, but I'm afraid that this palatable, but I'm afraid that this the leaks have not made it any more attractive today than what the leaks were during the time when leaks were during the time when they were coming out from the Treasury.

In fact, we're seeing a Treasury. In fact, we're seeing a repeat of last year. Last year we were told that there was a black hole in the Budget, and it was all down to the Tories, and that we would have to have all the tax would have to have all the tax increases that we had over the last year to fill that black hole. Well, year to fill that black hole. Well, like some kind of fiscal JCB, the Chancellor seems to have dug another one and now she's back
16:42
Sammy Wilson Portrait Rt Hon Sammy Wilson MP (East Antrim, Democratic Unionist Party)
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another one and now she's back again looking for more tax increases. And whilst whilst the members opposite may say yes, there is pain to be taken, but at least we are now getting the target right and we're going after the wealthy. And I've heard that so many times today. But let's look at the facts that real tax increase here is the freezing of the thresholds. And what does the OBR say? That as a result of the freezing the thresholds, we're not going to drag dead rich people into the tax brackets.

We're going to drag a quarter, three quarters of a million people who are currently not paying tax because their income is so low, they're going to be dragged in to the tax bands, and people who are on modest incomes are going to be dragged into the top tax bands. So let's not fool ourselves that this is going to be financed by rich people only. In fact, if we look, the only evidence we've been given about rich people is the increase in or the council tax and on on the big mansions, but that's only going to generate £400 million of the extra tax required.

And that's not until 2031. So this Budget still hits those who are working, those who I will give way. Yes.

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I thank the hon. Gentleman. For giving way. If he was to look at the Budget book, he would look at the Budget book, he would see that the graph that shows the progressiveness of this Budget progressiveness of this Budget shows that in every detail it it's redistributive that the specific measures that he's spoken about, measures that he's spoken about, that he might be correct about their impact. But the overall their impact. But the overall impact of the Budget is that the poorer you are, the better makes you, and the richer you are, the

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you, and the richer you are, the less well off it makes you. Yes, some of that. Impact is a result of taxes

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Impact is a result of taxes being taken off. People who are on modest incomes to give for, well, welfare increases, welfare increases, including people. I mean, this is a figure which the Chancellor. Chancellor's has quoted in the House many time again, time in the House many time again, time and time again, that 1 in 7 under 25 are now fully reliant on benefit. 25 are now fully reliant on benefit. They're not in work. And where's that coming from? It's coming from people who are working on a daily people who are working on a daily basis and in many cases not working for a great deal of money either, but are going to be dragged into but are going to be dragged into the tax system.

And that's the first point I want to make, that this is an unfair Budget, because it still relies on taking money from people who are working, people who are not mega rich to pay for some of the grandiose schemes that they have. Now, some people may argue, of course. Well, if it works, it's worth doing. But let's look at the record of the previous year. And the OBR have told us when the Chancellor tried the same tactic last year, the outcome has been that investment is now predicted to fall as a percentage of GDP output growth is going to fall by a sixth, productivity is going to fall from 0.4 to -0.4.

Consumer expenditure is down by 0.5%, and people are receiving less. And profits for companies are are going to fall from 12.5% to 10.75%, all of which will in fact affect investment, affect economic growth, and undermine the very objective that the Chancellor is saying she's seeking to achieve. Now, of course, many people will argue, well, you know, that's fine, but how do we we have we have got levels of expenditure. We have to finance. How do you pay for it? Let's look at some of the decisions that the government has made over the last year.

I mean, for example, on welfare payments, they're going to go up. They're going to go up quite substantially to 58 or 58 billion over the period of this, this parliament, net zero environmental taxes are going up by 60%, affecting the profitability of of companies. And the renewables obligation next year is going to cost us 3 billion. So net zero. The the impact of which we're all experiencing on jobs is going to lead to further costs. And whether or not those are the kinds of things that we should be spending money on at a time when we've got an abundance of fossil energy in this country.

I think many people would would question tax avoidance has not been dealt with. I hear tax avoidance being mentioned every time that we have a Budget, including under the last government. It's never dealt with. The Googles and Amazons of this world still sell goods here and don't pay taxes in this country. Immigration, the the Budget for welfare and immigration is is now predicted to be going up to 15 billion. And of course, we have had a debate in this House time and time again about the bases we have and the Indian Ocean, which we had possession of.

We gave them back to Mauritius. We're paying Mauritius for it. And what are they going to do with the billions that we give them from taxpayers here? They're going to cut their own taxes. So we put up our taxes in order to allow taxes to be reduced in another country when we didn't even need to do it. So there are ways in which the money could have been achieved. Can I just lastly then turn to Northern Ireland before I do that kind of welcome the announcement about the loan charge.

As a vice chairman of the loan charge all party parliamentary group, I trust that we will see the government now treating the ordinary people who are affected by the loan charge in the way in which they they treated big business, where they were given a concession repayment of 5,015%, while some of those who ordinary people who were affected by it were nearly being charged 100%. And I hope that the the McCann review leads to this and being sorted out. As far as Northern Ireland concerned, I welcome the Barnett consequentials, and I hope that the Northern Ireland Assembly and the Sinn Fein Finance Minister in Northern Ireland Assembly spends wisely the £370 million which is going to get.

But it may well be very unlikely, but I I'm only expressing the wish that he does that. Secondly, there's some money which has been set aside for the cost of the protocol. 17 million. The protocol and the Windsor framework is costing the Northern Ireland economy dearly. And the money which has been allocated today does not replace the cuts in the trailer support system and also in the Movement Assistance scheme. And without that support, Northern Ireland suppliers are increasingly finding themselves cut off from their main market of supplies here in Great Britain, and it's something that the government needs to address.

And I don't think the £17 million is going to address it. It's token, it's an acceptance that there's a problem, but the problem has to be properly dealt with. And only then only when we're in the same law making arrangements with the rest of the United Kingdom to which we belong, is that going to be dealt with? The other issue, and I know that the the wording when it comes to welfare changes, they'll be funded by the government at Westminster because annual managed expenditure is funded from here.

But when it comes to the concessions about reducing electricity bills, it simply says that the government will work with the executive. And I think the Chancellor does need a clarification. Or is the Northern Ireland Executive going to have to be expected to fund the reductions in electricity bills while it's funded through Great British Energy and the rest of the United Kingdom? Can I just say one last thing, that we have no vested interest in seeing the government fail because we're not going to be an alternative government.

But I don't believe that this Budget is going to deal with the issues that need to be dealt with, and that we're going to find the counter back to the same problems next year.

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Speaker. Here we are, three years on from.

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Here we are, three years on from. The Tory Truss kamikaze Budget. Worth recalling just how. Bad that was. Absolute carnage. Interest rates

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Absolute carnage. Interest rates rocketed, there was mortgage. Market mayhem, and people and businesses were, of course, left to pay for the conservative chaos.

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pay for the conservative chaos. That 49 day contract. that. Will scar this country.

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Will scar this country. For many years to come. And it's worth remembering, Madam Deputy Speaker, that their catastrophic failure was hailed by the Member

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failure was hailed by the Member for Clacton, who insisted. And I. Quote. It was the best. Conservative Budget since.

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Conservative Budget since. The 1980s. So much. For economic illiteracy. There's much to be done in our schools, clearly.

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schools, clearly. So it remains with this Labour government to clean up the mess of the last conservative government.

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And it wasn't just the Truss Budget. Successive conservative governments failed the public, be it the lowest investment levels in. The.

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The. G7 despite having. or. productivity.

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productivity. I'll give. Way, my hon. Friend, very much for giving way. On that subject of
16:51
Matt Western Portrait Matt Western MP (Warwick and Leamington, Labour)
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for giving way. On that subject of investment, one of the things the Chancellor was really clear about in her speech is the way we need to continue to build capital investment in order to improve the long term growth rate of the economy. Would you agree with me that projects like the Lower Thames Crossing, which will hugely reduce congestion and poor air quality in my constituency and create thousands of jobs and new opportunities for business are a great thing for our economy?

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I absolutely agree with him, and I think this was one. Of the great failings.

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Of this last 15, 14 years was that with interest rates at record lows, that was the time to invest. Any business.

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Any business. Would have done that. And as. A nation. That was the time for us to invest in our infrastructure at. invest in our infrastructure at. Super record low interest rates. Unfortunately, that. Didn't happen. But returning to productivity, if But returning to productivity, if we had continued at the rate of under the last. Labour government under the last. Labour government as it came out of office, then the. Average worker would have been

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Average worker would have been making £5,000 extra per year. But that is. The loss in productivity that we face this past 15 years. In fact, we've seen national debt rockets from 2010 to 24. It increased by a from 2010 to 24. It increased by a third, leaving us now with more paying, more on debt interest than

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paying, more on debt interest than on defence. That's the reality. So I recognise what the Chancellor is doing. I want to congratulate. Her for.

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Her for. Her determination in delivering for the British people. As she said, it's a Budget that addresses the most important and pressing issues for people up and down our country. So I'm encouraged by the proposed changes in business rates, whether it be for the hospitality sector, pubs, cafes and so on, or small retail, but also taxation on dividends. It can't be right that unearned income pays. Considerably

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lower tax than earned income. The Budget. Today has made some difficult choices, but we can tackle these problems and address the concerns of our constituents and the problems facing businesses. And we need to recognise the deep, structural problems that undermine our economy. And without a doubt, the biggest worry for my the biggest worry for my constituents is the cost of living. Despite inflation. Having fallen, the price of goods is 28% higher the price of goods is 28% higher now than in 2020.

But take the weekly food shop. It is now 37% higher than just five years ago, so given this, I'm pleased to see the announcements on the cost of living

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announcements on the cost of living set out today. The £150 saving. On energy. Bills, the train fares freeze, the freezing of fuel taxation, support for childcare and the increases in the living wage. It builds on the progress we've builds on the progress we've already made, with wages having risen more in ten months under this Labour government than in the ten Labour government than in the ten years of the Conservatives. Let me turn to the automotive sector, which is really important. Madam Deputy Speaker, to my constituents Deputy Speaker, to my constituents in Warwick and Leamington, where thousands are employed either in companies such as Jaguar Land Rover, companies such as Jaguar Land Rover, Aston Martin or in the supply chain, I'm proud of the support the government has already.

Set out. government has already. Set out. They've delivered. We've delivered 2.5 billion under drive 35, a bold industrial strategy that provides

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clarity and long term direction to industry, and 1.5 billion loan to protect the Jaguar Land Rover supply chain. But in.

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But in. Addition, the US trade deal huge for this country and the India for this country and the India trade deal and today the 1.3 billion. Additional Budget in the billion. Additional Budget in the electric car grant is very welcome, as is the additional £200 million into EV infrastructure. As chair of

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into EV infrastructure. As chair of the all party motor group Madam Deputy Speaker, I've. Heard. Concerns from the industry. For

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Concerns from the industry. For example, around the mileage tax on EVs. However, I hope that the EVs. However, I hope that the additional support for vehicle purchase will help offset that along with the infrastructure along with the infrastructure grants. But we must not allow a repeat of what happened in New Zealand, where they saw a significant reduction in take up in significant reduction in take up in demand. I welcome the fact that the government's plans to change the government's plans to change the employee car ownership schemes have been put on hold.

They would have cost the industry £1.5 billion and cost the industry £1.5 billion and would have risked 5000 jobs. I thank the Treasury team for listening to members. Given the listening to members. Given the importance these programmes play not just in in the vehicle manufacturer, but they are absolutely essential over these coming years to help meet the

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manufacturers targets. Under the Zev mandate. Perhaps unusually. In this place, I want to focus

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In this place, I want to focus on the. Productivity problems facing the UK. Since 2009, productivity has flatlined. The productivity has flatlined. The last government did fail people and businesses. How can it be that the businesses. How can it be that the UK productivity has fell so far? It is now 20% lower than in the United is now 20% lower than in the United States or Germany. It's in fact 12% below France. I've never believed below France. I've never believed productivity is a puzzle.

For me. It's about fair employment rights, addressing casualisation of the workforce, but incentivising investment and improving on the skills delivery. So I really skills delivery. So I really welcome the measures aimed at young people. The free apprenticeship training for SMEs, the Youth Guarantee Scheme, but also if we are to improve productivity, we are to improve productivity, we need people to be fit to work. And that's why sorting the NHS workforce, ending the strikes and workforce, ending the strikes and getting people back into work has been so important.

The 30 hours free. Childcare initiative releasing young parents back into releasing young parents back into the workplace again, improving productivity. All this along with restored stability and restored stability and international credibility, investment is flowing back into the British economy. Madam Deputy Speaker, Since July of this year, the government has secured over £250 billion of investment into high growth sectors, supporting 45,000 high quality jobs. This is in

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addition to the increased capital spending of £107 billion laid out by the Chancellor in. The previous.

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Budget, and with the national wealth fund equipped with £28 billion to catalyse investment. This is all incredibly significant and our exports. As a trade envoy, I am very aware of the I am very aware of the opportunities that we have abroad and the confidence that other countries have in this country and countries have in this country and want to invest in this country. In fact, we know that British Britain was the fastest growing economy in the G7 in the first half of this year and recorded the second highest growth year on year.

And now that's allowing us to rebuild our public services. The NHS has already delivered 5 million additional appointments, including additional appointments, including an extra 23,000 in my local NHS trust, madam Deputy Speaker, in the time I remain, there is one area we talked. The Chancellor talked about talked. The Chancellor talked about money for defence. I really would like to see more clarity, not just like to see more clarity, not just on defence but on security. And as. Chair of the Joint Committee on National Security, National Security Strategy, it is really incumbent now to for us to give incumbent now to for us to give more focus, more resource into the areas of resilience and the wider security, not just of our shores, but as we saw with Jaguar Land Rover and the cyber attack there, or Marks and Spencer's with JLR, £1.7 billion hit to that company.

This is what we're facing and we really need to wake up to that reality and to put more resource into that. So a plea, perhaps, to those listening from the Treasury. Madam Deputy Speaker, I've heard and listened very closely clearly to the members opposite. I do fear there's a degree of naysay. We have got growth back into this economy. I think there's so much to to be positive about in this Budget. We are making good progress. But, you know, we have to be patient when you're rebuilding.

It takes time to

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clear up the mess and that's what we'll do. Sir Bernard Jenkin. Thank you, Madam.

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Thank you, Madam. Deputy Speaker. And I. It gives me a certain pleasure. To share some agreement.

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To share some agreement. With the hon. Member who's just spoken for Warrington and Leamington, about the need for more resource in defence and resilience, and for all the government's talk of increasing spending on defence. of increasing spending on defence. In fact, the vast bulk of the promise that they have made is promise that they have made is after this spending period and the the small, the small increase that's been allowed for in the that's been allowed for in the spending plans that we have is not even sufficient to make up for the even sufficient to make up for the problems that the Ministry of Defence has managing its own programmes.

And there's now a huge row going on the Ministry of row going on the Ministry of Defence about what they're going to have to cut in order to stay within the spending envelope that has been the spending envelope that has been set by the Treasury. This is not a new problem. It's a very significant problem, but also
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Bernard Jenkin Portrait Sir Bernard Jenkin MP (Harwich and North Essex, Conservative)
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significant problem, but also underlines, I have to say, the need for the Ministry of Defence to adapt to a very different climate, a much more warlike, a much more adaptive system for acquiring military kit. Of course, the great theme of this Budget and the last Budget to which the hon. Gentleman referred is growth. I think we need to be realistic that the growth rate really was flattened by the global financial crisis of 2000 and 809, and our productivity rate never, never recovered from that period.

And it is a puzzle. It's partly, I think, because our economy is more and more a service orientated economy, which is labour intensive. But I think it's also in recent years because we've expanded the the public sector so dramatically, the public sector, public sector productivity is way below what it was before Covid and has not recovered. The National Health Service productivity is lamentable and these are about leadership, organisation efficiency. And I really think that the government needs to be looking at getting much better value for money for what we are spending, given that we are now spending in this country the highest peacetime levels of public expenditure that

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we've ever had. I thank the honourable. Member for giving way. Will he accept that some of the blossoming

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accept that some of the blossoming of the public sector in this which. He advocated.

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He advocated. For over very many years? I'm I'm tempted not to be drawn

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I'm I'm tempted not to be drawn into the rather silly Brexit debate into the rather silly Brexit debate that seems to go on it was it? It was notable. It was notable that was notable. It was notable that the government spoofed towards this idea that they were going to make Brexit the scapegoat for the economy, but actually very little economy, but actually very little has come out of the government on that. And we know, for example, that. And we know, for example, that the, I have to say, the Liberal Democrats thinking, oh, if only we had a customs union deal only we had a customs union deal with the European Union, we'd be £90 billion better off.

I mean, this is fantasy economics. Why don't why doesn't he think the Treasury is doesn't he think the Treasury is saying that? Because it's not true. It's complete rubbish. And the idea It's complete rubbish. And the idea that we've lost 4% of GDP as a result of Brexit is based on a very, very flimsy piece of evidence. It very flimsy piece of evidence. It was a report put together from 13 other forecasts, all before the other forecasts, all before the Brexit deal was completed, before we had a free trade agreement based on forecasts that people were making in 2016, 2017.

It has never come to pass. And in fact, a respected commentator like Wolfgang Mancini has said we were approximating along at growth rates with France and Germany before we left the European Union. And in his own words, leaving the European Union was the economic non-event of the century. We've been approximating along about the same growth rates and in fact, these very dire forecasts are based on the idea that there was going to be a 25%, a 25% decline in our trade.

That hasn't happened. There's been a marginal decline in our trade with the EU, our manufacturers.

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The Treasury front bench might be more interested in having its private conversations. It's making very difficult to hear. The hon.

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very difficult to hear. The hon. Member for Harwich and North Essex, Sir Bernard Jenkin. I'm very sorry. They don't like hearing this, but but I mean, there hearing this, but but I mean, there isn't a get out of jail free by realigning with the European Union, the Brexit reset. It looks as the Brexit reset. It looks as though the European Union wants to to wants to charge us money for joining the Brexit reset. And in fact, if you look at the fact, if you look at the expenditure line of what we make in electron contributions to the EU, since we left, that has absolutely since we left, that has absolutely crashed.

We're now contributing very little and that money is available to the Exchequer. If we rejoin the European Union, we'd have to find another £20 billion for the contributions to the European Budget. No, thank you very much. Budget. No, thank you very much. But the real point about a Budget, it is when the country hears from the government about its judgement, not about lots of little schemes and the 400 million extra being raised from council tax, it doesn't even cover the margin for error on even cover the margin for error on the annual public spending each year.

It is almost irrelevant. It's year. It is almost irrelevant. It's it's a window dressing about about about punishing the rich. And incidentally, if we go on every incidentally, if we go on every Budget, making sure that the top deciles contribute far more than the bottom deciles, we'll finish up with a more and more punitive tax and benefit system that will be more and more alien, will be more and more damaging for economic growth. The question is, did the government get this judgement right last time? And the answer was obviously no, because they said those tax increases would be a one off and they've had to come back for much more because of the effect of their measures, has damaged economic growth.

And what we are missing from this conversation is a real discussion about the long term growth of public expenditure and what we can afford and the fiscal, Fiscal Risks and Sustainability report produced by the OBR in the summer was the sort of two day wonder in the public debate. Then we went back to discussing this very narrow question of how much headroom we should have in one year, in one year, as though just aiming for that little hole is the answer for the long term economic viability of this country.

What a ludicrous way to run a country. It's about as unstrategic as you can get. And the consequence of of that is we are living in a fool's Paradise at the moment. The government has repeated its errors. This time it's punishing wealth creators. It's it's padding out the welfare system, which is decreasing incentives for work. The tragedy of the nearly million young people not in education, employment or training is getting bigger. The national minimum wage will reduce opportunities for young people because it's no longer worth pubs and hotels.

Recruiting young people because there isn't a cost advantage to recruiting students, as opposed to putting recruiting full time, as maybe that's what the government wants. But that's not going to be good for employment for young people, and it's not going to be good for growth and enterprise. Now, what we need is what we need certainly.

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I just want to speak up for as the mother of somebody in that age bracket who works in a pub and on

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bracket who works in a pub and on his behalf, say thank you to the Chancellor. Well, I'm. I won't be thanking

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Well, I'm. I won't be thanking her and her government on behalf of all the young people who thought they were going to be able to get they were going to be able to get jobs in the hospitality sector and now won't get them, now won't get them, they won't get the students, won't get the part time jobs to help to pay off their student loans. So these, these, these issues have to be balanced. I'm not going to to be balanced. I'm not going to give away again.

But the point is, this Budget is going to once again prove that higher spending, higher borrowing and the debt still going up, by the way, and higher taxes up, by the way, and higher taxes are not a route to growth and prosperity and employment and happiness and security. This is a happiness and security. This is a government once again proving that socialism doesn't work. And we're heading for a terrible reckoning on heading for a terrible reckoning on the basis of the long term fiscal forecasts produced by the OBR.

forecasts produced by the OBR. There is going to be a crunch. Last year, the government sent the gilt edge raise rates rising. This year edge raise rates rising. This year the gilt rates are way above the level that was provoked by the Liz level that was provoked by the Liz Truss Budget. This Budget, these two budgets are much worse than the Liz Truss episode. And they are they have raised, they have the they, the Liz Truss. The Liz Truss episode was short lived.

This is permanent. This is government policy to inflict these higher borrowing costs, higher debt and higher taxation and lower growth on our country. And it would be I'd be grateful if the frontbench could contain themselves. But this government has made permanent a fiscal and growth crisis, and we are going to rue the day that we elected this government, because once again, it will prove that

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Labour governments always trash the economy permanently. Yeah. Claire Anderson. Thank you, Madam.

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Madam. Deputy Speaker, and thank you to the Chancellor for her Budget today and to the whole Treasury team and for the conversations that I've for the conversations that I've been having with them about aid, about our high streets and about child poverty. It's a pleasure to follow the member before me. Although we absolutely do not agree with the significance of Brexit or with the significance of Brexit or the fact that the Truss fiasco was just a short lived ish little incident was actually, the effects have been very long term on my constituents, on the country, and constituents, on the country, and have made this Budget a far harder one to agree by the Chancellor.

But she has risen to the challenge, and she has risen to the challenge, and I look forward in my role on the Foreign Affairs Committee to looking at the aid and defence looking at the aid and defence budgets as well and the changes that are in them. But I do welcome the mention in the Budget of the the mention in the Budget of the commitment to return overseas assistance to 0.7 of GNI in the
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Fleur Anderson Portrait Fleur Anderson MP (Putney, Labour)
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assistance to 0.7 of GNI in the future, but this Budget is good news for my constituents in Putney, Southfields, Roehampton and Wandsworth Town. It has fair taxes, investment in families, strong public services, growing the economy. There's the increase in the minimum wage and the state pension, supporting businesses with innovation, free apprenticeships for under 25 to be supported for small and medium enterprises, and the commitment the the transforming of business rate system. And I was really looking into this for, for my high street and high streets up and down the country, the protecting the high street by introducing permanently lower tax rates for retail, hospitality and leisure properties.

This will benefit 3790 properties in Wandsworth and is very good news. I really welcome getting back £400 million from the dodgy Covid contracts and cutting the cost of living with £150 off energy bills. I really welcome £818 million being spent on playgrounds. They're a place where so many children spend so much time. It's so vital, and the increase in plastic packaging tax, which is good for the environment and good for reducing our reliance on plastic, which is made from fossil fuels and uses fossil fuels.

And the £29 million taken from fines on water companies to be spent on cleaning up rivers, lakes and seas. All really good news. I note the lower Thames crossing is being paid for and my constituents will ask when will Hammersmith Bridge reopening be paid for? It's a major London crossing, closed for six years now and we look forward to having more conversations across my constituency with the Secretary of State for transport and with the Chancellor on that, but I'm going to focus my remarks on welcoming the change to the two child benefit cap.

This change will lift 450,000 children out of severe hardship across the UK, including thousands in my own constituency and Putney. It will directly benefit 2310 children in my constituency, but many beyond that. The cost is to the child, as the Chancellor said earlier. But the cost is also to the services that they use to the public services and to our wider community. And the cost is the future cost to the economy. It's been eight long years since this cruel and unnecessary policy was brought in, and it's punished families and increased poverty.

Ever since I've been on the Child Poverty Task Force for over a year, championing the work done by the government to really drill down into what can make the most difference. And it is this it is this cut scrapping the child poverty, the the two child benefit cap. Children must be able to thrive no matter where they're born in the UK. And this will allow this. The policy drove families into severe hardship. And I saw that for myself in my constituency, it's removal is not only a moral imperative, but it is an economic necessity.

It makes sense every way you look at it. The Trussell Trusts latest figures have exposed the scale of the crisis. In Putney alone, 5991 emergency food parcels emergency food parcels were distributed between April last year and March this year alone, and that is going up 7% a rise on the previous year. So there's a real need to bring this in. It really will make a huge difference, and it will mean that there will be the largest expected reduction in child poverty over a parliament since comparable records began in 1997.

That is the dramatic change in our country that I became a politician for. That's what I want to see. That will be welcomed not only by those families directly affected, but across our whole community. This will mean more children have a better start in life. But it also means that our whole, our whole communities will be more fairly distributed wealth distribution in this Budget across so many measures is going absolutely in the right direction. It's what our country needs. After 14 long years of austerity, we are now seeing the

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end of that. Families will see the change and benefit. Yes, I will certainly give way. I'm grateful. Just speaking

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I'm grateful. Just speaking about the measures, the hon. Lady is speaking about the measures. That she supports on this Budget.

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That she supports on this Budget. I wonder what her views are on the property Council tax surcharge. I have had a quick look on the estate have had a quick look on the estate agent's website for her constituency, and there'll be dozens and dozens of properties, if not hundreds, of properties not hundreds, of properties affected by the council tax surcharge. Does she support that? And what is her message to her

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constituents who are having to pay that extra tax? Yeah. Estimated about 4% of homes will

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Estimated about 4% of homes will be affected in my constituency. And I've really looked into this. And I think that the way that that surcharge is being added to their surcharge is being added to their bills is a fair way of redistributing our tax. This is for a very small amount of people who are able to afford this. And what do we get in return? A fairer society, better public services, society, better public services, the NHS that people will be using. We get all of those benefits in We get all of those benefits in return for a small minimum amount that will be fairly distributed and being done on council tax, instead being done on council tax, instead of other ways that were being talked about.

I think is the fairest way to bring this in across fairest way to bring this in across the whole of this many changes in the Budget. We are looking for a good things for our families, good things for businesses, good things for hardworking people to make their lives better, to bring down their bills and to increase income. And I also think the increase in skills is such a necessary part of this Budget. So in conclusion, Madam Deputy Speaker, this is a welcome Budget for Putney.

It's a welcome Budget for London, and it's

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a welcome Budget for the country. Thank you. Just to let members know that I

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Just to let members know that I will drop the time limit to seven minutes after the next. Speaker Llinos Medi.

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Llinos Medi. Madam Deputy Speaker, today should have been an opportunity to offer some hope to deliver for Wales. Unfortunately, the Chancellor has failed to do so and Chancellor has failed to do so and our communities will still feel vulnerable. We have been promised action on the cost of living, but action on the cost of living, but nothing has been said about the unfair standing charges which see unfair standing charges which see communities like mine on Ynys Mon paying £50 a year more than the UK average.

One way to offer immediate average. One way to offer immediate relief for families with the cost of energy is to cut VAT on energy bills, to provide immediate relief and review unfair standing charges. The Budget has not addressed the The Budget has not addressed the travesty that Wales is a net travesty that Wales is a net exporter of energy, yet 25% of all Welsh households are in fuel poverty. To change this, Wales poverty. To change this, Wales should have the powers over the Crown Estate equivalent to Scotland, so that the millions generated in profits from our natural resources can be returned to our communities, rather than Whitehall.

Money for the NHS in the Budget is always welcome, but this must be put into context. Wales's public services have received the lowest day to day spending increases of recent Westminster governments and the Labour. Today was another missed opportunity for this government to deliver for Wales, classifying the HS2 and Oxford Cambridge rail as an England and Wales project, is denying Wales £4 billion rail
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Llinos Medi Portrait Llinos Medi MP (Ynys Môn, Plaid Cymru)
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spending per capita in Wales stands at £307, whilst in England it's £432 at £307, whilst in England it's £432 This is a clear injustice that government has failed to address government has failed to address today. The leaking and briefing in the run up to the Budget and today's unprecedented early today's unprecedented early publication of the OBR economic and fiscal Outlook, has made a mockery fiscal Outlook, has made a mockery of the process. The speculation has caused unhelpful volatility to caused unhelpful volatility to businesses and the markets.

Uncertainty on business and government borrowing costs and government borrowing costs and delays to interest rate cuts are undermining the very growth that our public services need, and our public services need, and provide no stability for businesses to flourish. This comes at a time to flourish. This comes at a time when businesses in Wales are already suffering from the incoming hit of the inheritance tax, which hit of the inheritance tax, which is estimated to cost over 9000 jobs is estimated to cost over 9000 jobs in Wales.

Yet the Treasury has still refused to conduct its own specific Welsh impact assessment. Today's announcement doesn't take away any of the financial burden away any of the financial burden that our family farms feel. And can I just say, today I have received a message to tell me that the Welsh farmers who are facing the terrible consequences of the inheritance tax, are actually considering taking their own lives. That is the reality of this government's attack on our family farms.

Measures on the cost of living are welcome. However, despite these policies, living standards and real household disposable income are negatively impacted by this Budget. As shown by the OBR. A rise in the minimum wage is welcome for the workers who keep our public services and local economies running, but without action on national insurance, small businesses will struggle to afford this increase. This is an issue which is especially relevant for us in Wales, as the latest job figures show that Wales has the steepest increase in unemployment of the UK nations.

To avoid further losses, we needed the Budget to support both workers and our small businesses. The Chancellor's Budget

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statement today will have only yes, of course I'm grateful. I'm grateful to the hon.

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I'm grateful to the hon. Gentleman, the hon. Lady, for giving way. I'm just interested to know whether she is welcoming of the fact that the Youth Guarantee will benefit hundreds of young people in the Ynys Mon constituency. people in the Ynys Mon constituency. Precisely. And and indeed with free support for apprenticeships for the under 25 seconds, support small and medium sized businesses who want to recruit and train young people in Ynys Mon. Thank you for.

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The question, and I and I'm quite grateful for the opportunity to answer the question as well. to answer the question as well. Small businesses is, is the majority of our economy in Wales. And then the it's extremely And then the it's extremely important that we can give them the ability. But if that business can't afford to employ because apprenticeship, you need a skilled workforce to give them the training opportunities. But if you don't opportunities. But if you don't have the skilled workforce in place, the apprenticeship won't have the same training opportunity.

So you same training opportunity. So you need a whole package. And the National Insurance has had a detrimental impact on small detrimental impact on small businesses in Wales, so it needs a more strategic vision. If you are going to support small businesses. going to support small businesses. The Chancellor's Budget statement today will have only compounded the confusion of Welsh households and businesses, and was the government's plan means for them. The truth is that Labour today has not offered any hope to the people of Wales.



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Uma Kumaran. Thank you, Madam. Deputy Speaker. I commend the Chancellor for her

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I commend the Chancellor for her statement today, setting. Out how this Labour Government is committed to building a stronger, more secure economy, protecting and investing in our NHS, reducing the national debt and taking measures national debt and taking measures to drive down the cost of living. Today, my constituents in Stratford and Bow will be welcoming so many of the measures that the Chancellor of the measures that the Chancellor has announced, not least investing in our energy security, bringing bills down.

Apprentice training for free for small businesses. That's 606,500 SMEs in Stratford and Bow 606,500 SMEs in Stratford and Bow who can take this up. An increase in the minimum wage for 18 to 20 year olds, an increase in the year olds, an increase in the living wage, a renewed commitment to Ukraine and of course, where the to Ukraine and of course, where the wealthiest pay their fair share. Madam Deputy Speaker, I want to speak particularly on the important decision to abolish the Tories two decision to abolish the Tories two child benefit cap, delivering on our defining moral mission to cut our defining moral mission to cut child poverty, a mission that the Chancellor today set out in her statement with clarity and conviction, and Labour values
17:22
Uma Kumaran Portrait Uma Kumaran MP (Stratford and Bow, Labour)
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conviction, and Labour values appalling rates of child poverty in communities across our country are a moral stain, one that should shame every member of this House. The British public want us to bring down child poverty, but they also want the return of a social contract so that each of us asks what we can do for our country or our state, not what our state can do for us. It's an issue, however, that continues to blight our communities in Stratford and Bow.

From Labour's breakfast clubs to Labour mayor of London Sadiq Khan's free school meals and the Chancellor's extensive package, today it's Labour politicians leading the way, governing by our values and unpicking years of devastating Tory austerity. Madam Deputy Speaker in East London, our landscape has changed dramatically over the past two decades. The work of an Olympic legacy that has made East London the best part of the UK for social mobility and opportunities for young people, for the next generation of children growing up in Stratford and Bow.

Their background won't hinder their opportunities to succeed or excel. Indeed, as a proud East Londoner by birth, I've seen it firsthand and I know what the promise of London means to families like mine. And yet, while there are more opportunities, it doesn't negate the fact that we have some of the highest levels of children growing up in poverty. Tragically, almost half of the children in Stratford and Bow are growing up in poverty. It's an experience that all the evidence shows produces poorer educational outcomes physical and mental health challenges, shorter life expectancy, higher infant mortality and childhood illness.

The list goes on. And it's a problem that shamefully grew under the last Tory government. The last parliament was the first on record where living standards fell. The Tories opposite should be ashamed that this was their legacy. We will never forget that it was the working people in Britain who suffered the most due to the Conservatives fiscal sabotage, which put their friends and profits before the British people. My constituents are still paying the price on their bills, their mortgages, their rents all soaring while they work harder than ever to battle the cost of living.

To put a human face to this damning failure, I received an email from a constituent who said, I want to do right by my son and provide him the stability, the care and life he deserves. But right now I feel like I'm drowning. Despite trying my hardest. I've read countless emails like this and I've heard many more stories during my constituency surgeries. It bears repeating. Madam Deputy Speaker, the last Parliament was the first on record where living standards fell. This is the legacy that we inherited.

Families trying their very hardest, still floundering, still drowning. Madam Deputy Speaker, every child deserves safety and stability. It's why I'm proud to see this government act so decisively. Abolishing the two child benefit cap. It's a step that will make a huge difference to some of the most vulnerable families in my constituency, and will deliver security and stability for our very youngest citizens, no matter the shape of their family, giving them the best start in life so that they grow up in a Britain that cares for them, and in time they will contribute their talents to.

When it comes to tackling insecurity, there's so much that this government is already doing, so much that we've achieved in our first year in office on employment rights, on renters rights in our schools. It's already transforming the lives of working people. Stratford and Bow and now we're going further. We're following the evidence and introducing the single most cost effective intervention for the benefit of our country's most vulnerable children. No child should grow up in poverty. That is the resolve of this Labour government, a government that is showing serious leadership, a decisive departure from the austerity and doom of budgets past, a rebuke to the seductive sophistry of populists on the right and the left.

Those who believe that we can balance the books on blame those who ignore the financial market economists, investors and experts to their peril, their false promises of hope based on the Willy Wonka school of imagination, but not rooted in financial reality or financial literacy. Madam Deputy Speaker, we've seen this before in the disastrous Truss Budget. Left to Farage or the Greens, we'd be right back there and no amount of hypnosis can make the British public forget that.

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Order. The hon. Lady should not

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Order. The hon. Lady should not refer to colleagues by name, but by their constituency. She'll perhaps think carefully when referring to think carefully when referring to Kumaran.

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Apologise, Madam Speaker. So once more, the challenge to deliver fails once more. The challenge to fails once more. The challenge to deliver for Britain falls to the party of working people, the Labour Party. This Budget is a Labour Party. This Budget is a Labour Budget, one that will cut waiting lists, tackle the national debt and prioritise the cost of living pressures, one that puts working people first. On behalf of the 4470 people first. On behalf of the 4470 children and their families in Stratford and Bow, who will be helped by lifting the two child benefit.

I want to thank the benefit. I want to thank the Chancellor for her measures today and I'm very proud to support this Budget. Yes.

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Budget. Yes. Speaker. I'm grateful I draw attention to. My entry in. The register, not because I believe there's a conflict.

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believe there's a conflict. Because, but because it illustrates that. I am one of those sadly rare individuals in the House who spent the last 30 years owning and building a business, and hopefully to illustrate that I know of where to illustrate that I know of where I speak and I have to say sincerely, I wish on behalf of my employees and also my constituents, that I could welcome today's Budget before I am a conservative, I am a British citizen and I want the country to win.

And we, all of us, should hope that any Budget that is delivered by any chance of any party puts the country on a sound footing for a prosperous future. Sadly, I am afraid today's Budget was most relevant to me. Of the omnishambles Budget of 2012. And we have to admit, as a party where we've made mistakes in the past as well, that
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Kit Malthouse Portrait Rt Hon Kit Malthouse MP (North West Hampshire, Conservative)
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was a Budget that was attempting to be politically smart to satisfy its own backbenchers. But in the hours and days that followed quickly unravelled. And I'm afraid I have to tell Labour members, I think exactly the same is going to happen exactly the same is going to happen with this Budget, because it is filled with contradictions and incoherencies in some seemingly small areas, for example, electric vehicles, and I declare an interest vehicles, and I declare an interest as a driver of electric vehicle.

We're pumping money in to subsidise We're pumping money in to subsidise the rollout of charging and the government's pumping money into subsidise the roll out of charging, subsidise the roll out of charging, or indeed the grants for take up. But then the pence per mile is going to discriminate against particular groups that need their cars, the disabled, the elderly, against rural constituencies who against rural constituencies who will be seriously disincentivised from taking up the vehicles, and also has a psychologically damaging also has a psychologically damaging impact on people who are thinking about buying an electric vehicle.

about buying an electric vehicle. The housing market, where an attack on landlords and the higher end of the housing market somehow we think the housing market somehow we think isn't going to impact the rest of the housing market, in particular for Labour members who I'm afraid are going to hear their are going to hear their constituents squealing, given the inflated prices in the capital, I think that's going to unravel pretty quickly. The Chancellor said she wants to encourage co-operatives and employee ownership, and yet dealt a hammer blow to employee ownership by reducing by 50% the tax incentives for owners to transfer businesses to their employees, which will actually see less much in a moment.

Much was made of the apprenticeship changes and also the rollout of nurseries. Great, but hidden in the book is a £7.5 billion hit to students and an overall reduction in per pupil funding in education. All of these things, I think, will be revealed in the days to come. Yes, please.

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I'm grateful to the honourable. Member for giving way. I agree with him completely about the dichotomy, the sort of about the dichotomy, the sort of inherent contradictions. Would it be fair to characterise this Budget as a the left hand, not knowing

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as a the left hand, not knowing what the further left hand is doing? Well, I think that's a very good

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Well, I think that's a very good way of putting it. The other way of putting it is to say there's a huge attempt to gaslight the country. And indeed, I'm afraid, Labour And indeed, I'm afraid, Labour members about what's actually being proposed. Another example, we're told that we're trying to encourage told that we're trying to encourage business investment. And yet the book contains a £1.5 billion reduction on incentives for reduction on incentives for business investment. The contradictions are clear, and I would urge members to read the book because the Chancellor is relying on us not reading the leaked book, on us not reading the leaked book, and sometimes it's quite impenetrable.

Sometimes it's quite difficult to to understand. But there are some key things that I wanted to point people to, if I may. First of all, if I could ask you to First of all, if I could ask you to turn to paragraph 1.3 of the executive summary, which tells us that contrary to what the that contrary to what the Chancellor said, debt will rise over the period. Debt moves from over the period. Debt moves from being from being 95% of GDP. This year ends the decade at 96% of GDP, at 2% points higher than projected in March.

First thing she said, that was incorrect. The second thing I wanted to point people to in the book, if I may, is paragraph

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3.13. By all means. Obviously it's it's in the

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Obviously it's it's in the Labour briefing that how much the previous conservative government borrowed over its period. But given borrowed over its period. But given that we inherited a situation where one in every £4 of public spending was being borrowed, it took a was being borrowed, it took a considerable period of austerity in order to get that borrowing annual borrowing down. But during that

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borrowing down. But during that borrowing we accumulated a lot of extra debt. Well. The is exactly right, not least.

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The is exactly right, not least. Also, it's worth remembering if we haven't if we hadn't gone through a period of austerity post the financial crash and the mess that we inherited, we would not have been able to rescue the economy during Covid. We wouldn't have had during Covid. We wouldn't have had the headroom that would allow us, sadly, in emergency circumstances, to re leverage the country. I wish now we had the same foresight. Paragraph 3.13 points out that in Paragraph 3.13 points out that in the Obr's view, there is nothing in this Budget that has done anything this Budget that has done anything for growth.

They have declined to revise their previous output predictions because the Budget does predictions because the Budget does nothing for growth. And then finally, I wanted to point people please to the fifth bullet point of please to the fifth bullet point of paragraph 1.28, which points out that the tax to GDP ratio will become the highest it's ever been in the country, and will constrain business incentives for the future. Please, colleagues, read the book. The truth lies therein. And so we find ourselves in a position where we've got a Budget that is trumpeting itself as a triumph, but nevertheless is producing the highest tax rate of all time, completely flat and anaemic growth, inflation and interest rates in the book.

That will be higher for longer than they otherwise would have been. And the the outlook since March has worsened to the extent that the OBR is making a

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point of it by all means. For giving way. I too very much enjoy reading the Blue Book, and whilst we're talking about our whilst we're talking about our favourite passages, I wonder what he makes of the lines from page 2029 which describe how persistent weakness in productivity growth relative to the pre financial crisis period reflects underlying structural trends. What was going structural trends. What was going on in the 20 tens that meant the structure of the UK economy was so bad.

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bad. So so she she raises a very good point, which I'm going to come on to. I will come and address her to. I will come and address her point shortly. But all of this points to the fact that this is not points to the fact that this is not actually, let's be honest, this is not actually a Budget about growth. All the speeches that I've heard All the speeches that I've heard from the far side, the other side, all the speeches that I've heard, and I only laugh for half an hour and I only laugh for half an hour to have a cup of tea, but from the far, far left side, whatever it might be, all of them have been might be, all of them have been about redistribution.

They've all been about the advantages, the how pleased they are at the pleased they are at the redistribution that is going on. And that's fine. I just wish the frontbench would be honest about frontbench would be honest about what they're trying to do. Yeah, because they are sacrificing the prospects of future growth for this prospects of future growth for this economy to tick the box. On Labour political demands around redistribution. And that's fine. We've been there before. As the hon. Lady says, we've been through most of these scenarios before, and I was only just old enough to remember.

But it happened in the 1970s, right. This is when we last had an openly redistributive government. Forget Tony Blair. He was not about that openly redistributive government. And we saw what happened to growth as a result. Now, to me, Madam Deputy Speaker, there were there were four things broadly missing from this Budget. The first thing was that very obviously is no governing philosophy of the political economy that any of us can discern. There is no plan or strategy. There's maths, there's kind of inputs and outputs and there's political box ticking, but there's no sense of what kind of economy we are trying to build.

There was a nod towards it in the desire to review Enterprise Investment Scheme and Vcts, but really it's kind of trying to keep the lobby groups in the city happy, really. There is no plan to build a kind of energetic economy. The second thing was, and a number of members have raised this on this side of the House, there is no comprehension on how this government, and I have to say, sadly, the previous government have damaged the return on risk. A number of members have said that capital and capitalism relies on risk, on people going out there to invest, to risk their own money, to buy businesses.

And they do that calculating the return they're going to get. If we continue to tax the return, to regulate the return, to make that return less attractive than fewer and fewer people are going to take a risk. And so if we want to scale up economy, well, that's going to take advantage of the science and technological inventions that were so good at producing. We have to tail back the impositions we put on risk and make it worthwhile. The second thing is frictional taxes. We didn't have any talk about frictional taxes, but the Chancellor was trumpeting growth this year.

The only reason we had a bump in growth this year was because of the stamp duty window closing where people rushed rushed. I won't, I'm running out of time rush to fill the void and we saw a bump in the first half. Since then it's been tailing off. We have to focus on the fact that frictional taxes do enormous damage. And then finally, we are at the bottom of a list of human achievement, particularly in this country. If we don't get capitalism right in the UK to take advantage of it as we did during the Victorian era, we won't build the wealth of the centuries of the future and we won't live off that, or our children won't live off the profits of this period.



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Chris Evans Madam Deputy Speaker. The two groups in society most affected by poverty are both the affected by poverty are both the young and the old. And I think it does say something. It speaks to Labour Party values. When Harold Labour Party values. When Harold Wilson once said of our party, our movement, that we're a moral movement, that we're a moral crusade if we're nothing else, and that is what separates us from the parties opposite. The simple fact parties opposite.

The simple fact is I do not buy the Liberal Democrats reinvention as cuddly and Democrats reinvention as cuddly and and social levers and social mobility, especially when their leader sat in the same coalition leader sat in the same coalition government that overseen austerity. Equally, I do not believe that Equally, I do not believe that Tories still understand what they did to the economy, and in particular the people. They plunged particular the people. They plunged into poverty. That is the real legacy of the Tory government.

And legacy of the Tory government. And I think the important thing is when we are supporting young people. Yes, it is amazing today that we are allowed to say the 450,000 children will be lifted out of poverty. That is an achievement in itself, but we is an achievement in itself, but we also are with them on that journey, ensuring a youth placement for for
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Chris Evans Portrait Chris Evans MP (Caerphilly, Labour )
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ensuring a youth placement for for the long term unemployed between 18 and 21, ensuring that small businesses can give them apprenticeships. These are important achievements. But further to that, I would say it is amazing that we've been able to raise the state pension limit for so many pensioners who for so long froze under the Tory government, had to make the choice between heating and eating. These are not things we are talking about in the abstract, but they're actually happening in constituencies like mine.

But I think the proudest achievement, and the one thing this Chancellor should be remembered for. Last September, I chaired a meeting in Caerphilly of all those pensioners affected by the British Coal Superannuation Scheme. I wrote to the Chancellor and I asked that the 2.3 billion that was an investment fund was transferred to them immediately. I am proud today that we are standing here as a government bringing about that legacy for these people who worked on the ground, they kept the country moving.

They knew intolerable suffering as they moved through the industry, the industrial disease that they had after they come out, come out with

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work. These are the people that made Britain great, and we should honour them. Yeah.

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But the problem is, we've heard today all sorts of blames of why we're in the problems we have at we're in the problems we have at the moment. But it comes down to one thing that for 40 years we're in the grip of a failed economic in the grip of a failed economic theory. And still today we see it. We hear it all the time that we can cut taxes, keep public services at cut taxes, keep public services at the same level or and there's no consequences for that.

There's only one. There's only one outcome. More borrowing. Now that has gone on in the previous governments over and the previous governments over and over again. Eventually we have to pay the piper. The fact is we have to pay the piper. Now, I hear the to pay the piper. Now, I hear the hon. Member is chuntering from from a sedentary position. I will take the I will take the intervention.

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the I will take the intervention. I am grateful to the hon. Member for giving way. What does he say? What message? His message to the What message? His message to the people who have been made unemployed since the Labour Party came to power.

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came to power. Chris Evans. I'm trying to think. What could he. If you asked me specifically a question, I'll specifically a question, I'll probably answer it. But what does he mean by people who've been unemployed to the government? You know, that's what I'm talking about. know, that's what I'm talking about. You know, this is this is the reason we are where we are. We have we are sitting on a debt mountain, and we have to pay the piper. And the fact is, you're saying unemployment rises.

We're

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specifically. What sector? Give me a sector. Give me the sector. No hospitality.

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No hospitality. What do you want to say? You just say it. So we just talk in an abstract again. We're talking an abstract. Yeah. Yeah, that's

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an abstract. Yeah. Yeah, that's what we're talking about. You're going to give. Suggest that the number of jobs

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Suggest that the number of jobs lost in hospitality. Since last year's Budget just over a year ago, year's Budget just over a year ago, now exceeds 110,000 as a result of the Chancellor's choices for you.

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the Chancellor's choices for you. I've got to say it's a bit rich to talk about job losses, right? In the 1970s. No, let me, let me, let the 1970s. No, let me, let me, let me give the hon. Gentleman a history lesson. In 1970, they said unemployment would never reach a million under the Tories. And the million under the Tories. And the golden years of the, of the of the Thatcher years and the major years. Thatcher years and the major years. It reached 3 million unemployed, 3 million people unemployed.

And also what happened as well. Let's not forget what they did. They moved forget what they did. They moved most of those unemployed into incapacity benefits. So if we're talking about a benefit bill, it's actually rests at the door of the actually rests at the door of the party opposite. That's the truth. That is the absolute truth. More people claim incapacity benefit under the Tory government. They failed to bring about an economic plan. Those those people lost their plan. Those those people lost their jobs because of heavy industry leaving.

They didn't they didn't plan for it or bring anybody out. They just put people on the scrapheap. And that is why we have the problems we have today. But the fact is, sorry, I didn't catch the hon. Gentleman said there. Did you want to make an intervention? I don't mind, you know, taking that's the third round taking today.

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I'm grateful to the hon. Gentleman for giving way a second time. Can I mean, the Chancellor time. Can I mean, the Chancellor said on Sky news, it's on me now. Okay. But I would just be grateful Okay. But I would just be grateful if he could set a date when this government is going to take responsibility for the country, responsibility for the country, because I've got plenty of things I could be doing in Spelthorne. I'll go away and I'll come back when he's prepared to take he's prepared to take accountability and responsibility for the state of the nation under this government.



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this government. You know, you know, when I came. In in 2010, all I ever had whenever we spoke was people saying, whenever we spoke was people saying, apologise. Why doesn't the Tory government apologise for the mess they find themselves in? Now let's be fair. Let's start from there. We be fair. Let's start from there. We have had 14 months. The party opposite had 14 years. 14 years. The party opposite had. Yes, yes, The party opposite had. Yes, yes, we are in charge and we are taking.

We're taking the action we need to take. Well, I don't understand what take. Well, I don't understand what the hon. Gentleman wants to do. Does he expect us to stand there and do nothing? Walk away? Is that what he wants? You know, and I think at the end of the day, this this is going nowhere. What we need to talk about, what we need to talk about is this is the fundamental problems of this. We have heard a lot of analysis of what's wrong on lot of analysis of what's wrong on the opposite benches.

But what are we going to do? We have to take we have to grab the we have to grab the net over this. The fact is that zero is here. Now, you know, a lot of people, a lot of the opposite benches say net zero. It's causing us problems. But the simple fact of the matter is it's you. There are, there are there are countries where ahead of us, we have an opportunity to be a green superpower. We can invest in nuclear. We can invest in nuclear energy.

We can invest in tidal power. We can estimate renewables, carbon, carbon, carbon capture technology. These are the ways the future along with the AI. This is where the jobs will come from. This is where the growth will come from. We have to pick winners and but we have to have the political will about it as well. And I will also say this, I visit a number of, of a number of companies in my constituency, and the issue that they have is energy bills. Captiva is a constituency very, very successful.

Richard Reece, Jim again, very successful. Both of them have talked to me about energy bills. Now I do welcome the reduction in energy bills 150 for on average 300 for the most impoverished. But I would like to see a energy some sort of deal for energy for businesses. So they ensure their costs come down and they can carry on competing. Also, I welcome the increase in the minimum wage, but I would also ask the ask the Chancellor that would be some help for small and medium sized businesses to move on to the increase in the minimum wage so

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they can carry on employing people as well, and carry on producing apprenticeships. Sure. Thank you, Madam Speaker.

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Thank you, Madam Speaker. My hon. Friend is making an excellent speech and I wholeheartedly agree with him about the appalling damage done by the the appalling damage done by the party opposite to our economy over 14 years. I wonder if he perhaps. Wanted to. Also mention. The Wanted to. Also mention. The significant benefit to both employers and employees in terms of the freezing of rail fares.

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Which in my. Community will make an enormous difference. We actually have a net input of people commuting into input of people commuting into reading, but we also have many people commute to London and other destinations like Caerphilly as well. On the railway line, many

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well. On the railway line, many residents will benefit, but many employers will also benefit through the increased labour mobility. I absolutely.

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I absolutely. Agree with the hon. Gentleman. I wish the party opposite would apologise, but what I would say is apologise, but what I would say is it's quite simple. If you're freezing rail fares, that means people get work easier. People commute from places like reading. commute from places like reading. It will bring money into the shops and the restaurants and everywhere else as well. It's a really important move for social mobility important move for social mobility and will allow more people to travel from Reading to London as well.

But I would say this I would caution one thing. In conclusion, Madam Deputy Speaker, I still don't understand why we have a Budget in understand why we have a Budget in November. I would ask that the Treasury move the Budget to April at the end of the financial year, so the businesses can plan from there and ensure that the speculation we've seen isn't is not seen as has been in the last couple of months. But I want to say this I support the Budget, I support what we're doing, and I'm sure that in years to come, we will look back on the Budget as one of the most significant.

Thank you very.

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Much, Helen Maguire. Thank you, Madam Deputy Speaker. Having listened carefully to the. Chancellor. While the Budget contains many

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While the Budget contains many claims that offers little reassurance to my constituents in Epsom and Ewell who will continue to feel the impact of decisions to feel the impact of decisions announced today, Epsom and Ewell is home to a fantastic hospitality businesses, from independent cafes like Charlie and Ginger to charming like Charlie and Ginger to charming local pubs like the Penny Black in Leatherhead. And only last week I had the pleasure of pulling pints had the pleasure of pulling pints at the Jolly Coopers in Epsom, a fantastic community venue.

But hospitality businesses are still reeling from the increase in employer National Insurance employer National Insurance contributions announced in the last Budget, a rise that has placed real strain on already tight margins. strain on already tight margins. The Liberal Democrats are clear we want to see an emergency VAT cut of 5% for hospitality, accommodation 5% for hospitality, accommodation and attraction businesses until April 2027, funded by new windfall tax on big banks that would have raised £30 billion. A transformative measure like this would have driven measure like this would have driven a football ease pressure on prices and given our high streets the breathing space that they desperately need.

And instead,
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Helen Maguire Portrait Helen Maguire MP (Epsom and Ewell, Liberal Democrat)
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desperately need. And instead, today bankers are celebrating as there was not a single new tax on bank profits, despite bank profits having doubled in the past five years. Madam Deputy Speaker, Middle income earners in my constituency are being squeezed from every direction mounting household costs, spiralling food prices, eyewatering rail fares just to get to work. And now this government is piling on yet another burden with the freeze on income tax thresholds. Let's call it what it is a stealth tax that drags more people into paying more, even when their wages are only just catching up.

And if that wasn't enough, the government's cut to the pension salary sacrifice scheme shows no regard for the longer term consequences on people's future pensions. It's fundamentally wrong to incentivise pension saving, especially when so many have already been forced to cut back during the cost of living crisis. How does this government expect working people to save responsibly for retirement when they're effectively being taxed for planning ahead? It's hard to see how this won't affect ordinary people. And then, Madam Deputy Speaker, there's the question of household energy bills.

The government can and should be doing more to bring these down. The UK continues to pay some of the highest electricity and gas prices in Europe, and it's welcome that this government has partly implemented the Liberal Democrat proposals of removing the Renewables Obligation levy from bills. But we'd like to see this government go further and break the link between gas and electricity prices for good. Yeah. All this comes as the Chancellor herself has acknowledged the economic impact of Brexit on our public finances.

So instead of squeezing families, savers and savers even further, could this government not finally commit to growing the economy by repairing the damage of the previous conservative government's botched Brexit deal by starting with a negotiation, negotiating a new UK EU customs union? This is the responsible way forward, not continuing to squeeze those who are already struggling to make ends meet. Madam Deputy Speaker, Saint Helier Hospital is literally crumbling. Large windows are held together by masking tape. Corridor floors are sinking into the ground.

This is simply unacceptable and has been going on for years. NHS staff are left to treat patients in abysmal conditions, and today the government didn't say anything about the delayed new hospitals programme promised to patients or to pledge new investments so that we can go further and faster on tackling the patient backlog. What does this say to staff and patients who are already crying out for help? Frontline NHS services urgently need support, and taking certain appointments and treatments out of hospitals can help reduce waiting times and staff pressures.

This is why national healthcare strategy is a necessity. Not only would it take the heat off one of the busiest outpatient departments in NHS hospitals by identifying opportunities for care in the community, but it would also deliver a true partnership to qualified optometrists and ophthalmologists, while setting out a clear, long term plan for eyecare. Madam Deputy Speaker, community health services are always welcome, so I look forward to the rolling out of the 250 new neighbourhood health centres announced today. But we can't ignore that GP wait times are through the roof and for these health centres to work, we urgently need proper investment to ensure everyone can see GP within seven days and staff feel supported.

The government can't pick and choose which parts of the healthcare it invests in. When. If the Chancellor wants to get people back into work, they need to be fit and healthy to do so. So, Madam Deputy Speaker, I'm disappointed. Disappointed in the lack of support for hospitality businesses, disappointed that the Chancellor is punishing working

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people, trying to save for retirement, and disappointed that our hospitals have been left in disarray. Janet Daby.

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Janet Daby. Thank you very much, Madam Deputy Speaker, and thank you to the Chancellor and her team today the Chancellor and her team today for a very welcomed Budget. This is our government's second successive Budget and it is focussed on addressing the cost of living. It is making sure that everyone pays their fair share towards public their fair share towards public services. This Budget is invested in communities up and down the country. Now I will be focusing mainly on the cost of living, defence and overseas development defence and overseas development aid in my speech.

And as everyone in this chamber will be aware that many people across our country are many people across our country are facing great challenges to meet the cost of basic essentials. And while cost of basic essentials. And while food banks should be a thing of the past, this Budget and this government is working towards government is working towards making it a thing of the past by focusing on getting children out of
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Janet Daby Portrait Janet Daby MP (Lewisham East, Labour)
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focusing on getting children out of poverty, by getting young people into work for apprenticeships, and by bringing down energy costs. Now, Madam Deputy Speaker, I am a strong believer in prevention. I believe that prevention is far better. Thank you and members on this side of the House know that, which is why this government is investing and is focusing on early family help, early intervention. And this is why lifting the two child benefit cap is so significant. And I actually hope that the whole House will agree that no child should be hungry or go without basic necessities.

But according to what I've heard so far, from members on the opposite side on these opposite benches, I'm not so sure this is true. So I just wish to make it known to members on the opposite that actually child poverty damages the UK economy long term, and child poverty means that children are less likely to perform than their peers in education and indeed, unemployment and lived in the two child limit is therefore better for the economy, and it breaks the cycle of disadvantage and deprivation and improves the life chances of children nationwide.

This improves all of our children's

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situation nationwide, where they are experiencing child poverty. Jim Shannon just. Want to confirm.

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Want to confirm. That the. This party are very, very supportive of the two child poverty, supportive of the two child poverty, our gap in relation to the changes that government has proposed. Child poverty levels in Northern Ireland poverty levels in Northern Ireland are some of the highest in the United Kingdom. They're somewhere, I think it's between 30 and 35% of I think it's between 30 and 35% of children are in poverty. So this will bring them out of poverty and help people to to adjust to a help people to to adjust to a better lifestyle.

So our party are supportive of that. We put forward agreed with the amendment put forward by the SNP. So today, good news for those children in poverty in Northern Ireland.

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in Northern Ireland. Janet Daby I thank my hon. Friend for his comments and I thank him for his support for this him for his support for this Chancellor's Budget in lifting the two child limit, and I absolutely agree with what he said. But I also just wanted to remind members what my hon. Friend that for Hackney South and Shoreditch said that 70% South and Shoreditch said that 70% of children in poverty have parents that are in work. So it's not that that are in work.

So it's not that parents aren't working. That doesn't mean that children aren't in poverty. That's why this government is doing everything it government is doing everything it can to get children to lift children out of poverty. And I'd just like to remind people as well, of the Children's Act 1989, which talks about the welfare of the child being paramount. And, as memory serves me correctly, part of Maslow's hierarchy of needs. The first one, I believe, is food. So actually getting children out of poverty means we're able to make sure no children child goes hungry and actually has their basic necessities and means met.

This government is is very much committed to that happening, which is why I'm delighted that this is in the Chancellor's Budget.

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Thank you, Madam. Matt Rodda. My hon.

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Friend is making an excellent point. Is she perhaps ready to move on to the importance of breakfast clubs? I had the pleasure of clubs? I had the pleasure of welcoming the Prime Minister to reading last week, and the Education Secretary when they visited the Breakfast Club, which is providing excellent support to is providing excellent support to many, many children. The programme to expand them is really valuable. It's going to invest in our young It's going to invest in our young people and will make huge differences to families.

It will also help employers by helping mums and dads get to work earlier.

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and dads get to work earlier. I thank my hon. Friend for his comments and yes, I will be coming to breakfast clubs. Indeed. Absolutely. How could I miss that? Out. The Resolution Foundation estimates that scrapping the two child limit would bring 330,000 children out of poverty, and prevent a further 150,000 children prevent a further 150,000 children from falling into poverty over the course of this Parliament. This course of this Parliament. This means that children in my constituency have an improved standard of living, which is standard of living, which is exactly what I want for them, and that members of this side of the chamber also want, and I'm sure chamber also want, and I'm sure others as well for their children.

In fact, in Lewisham East it is In fact, in Lewisham East it is estimated that 3530 children. It will mean that it will reduce their ability of experiencing relative child poverty, and this builds on the vital work already that has already begun by this government, and indeed to expand access to free school meals, to open to free breakfast clubs in every primary school, and to invest in historic amounts of affordable and social housing. Alongside this is the recently announced freeze of rail and prescription prices.

Now, every child deserves to be free from poverty and from the effects of poverty. And for far too long, successive conservative governments allowed child poverty to sky rocket. This government will not. Almost a fifth of children in my constituency grow up in poverty as a result of this failure. But with the policies announced today, it is evident that this Labour government

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is tackling child poverty as the moral imperative that it is. Here.

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Here. I'm grateful to the hon. Member for giving way. Does she acknowledge that whether parents get their money from income or from benefits, that having inherited 2% inflation, this government has inflation, this government has taken it up to 3.6%, and that reduces the amount of money and the reduces the amount of money and the value of that pound in parents pockets.

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Well, listen, parents want to provide for their children and parents make choices. And this parents make choices. And this government is making choices to support parents. And the way we're doing that, and which the opposite side should also be supporting, is

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side should also be supporting, is lifting that two child limit. Yeah. We must not forget that these

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We must not forget that these announcements have been made possible through tough choices. Following on from the mismanagement Following on from the mismanagement of the previous government, the nation was faced with an appalling fiscal situation. Now I wish to fiscal situation. Now I wish to move on to defence. This government is investing in capital investment is investing in capital investment over the course of this Parliament to kick start the rebuilding of our armed forces, which is absolutely armed forces, which is absolutely necessary when we consider the unrest in Europe, which comes closer to our shores every day now.

Since 2010, economic growth in my own constituency of Lewisham East has lagged 30% behind the national average. With this trend repeated in many other regions. So the investment going to support councils and communities across the UK is desperately needed. Finally moving to international development where I am a member of the committee, the UK has been at the forefront of global efforts, in particular to prevent violence against women and girls, promote peace and cooperation and cooperation between different ethnic and religious groups, and to support the economic development of communities across the world.

So I was pleased to see that in the Red book on that section, 4.61, that the government remains committed to, to focusing on the 0.7 of gross national income as the government's fiscal forecast continues to improve and to increase. So I'm absolutely pleased that we were still focussed on that, so that we can promote the same values and

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rights that we enjoy here in the UK and overseas. Yeah.

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Ben Spencer thank you. Speaker. So normally. If you're going to do deploy

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If you're going to do deploy expectation management, it's usually because you've got something that isn't so great and you sort of set the scene that you sort of set the scene that things are going to be really bad. So when the day arrives people go, wow, actually it wasn't you know, wow, actually it wasn't you know, it's actually quite a good thing, this, this thing that isn't so good. It's actually quite a good thing. But what we've seen in expectation But what we've seen in expectation management around this Budget is six months of doom and gloom and six months of doom and gloom and terror.

My constituents, everyone I know dreading what is going to come out on the 26th of November. But out on the 26th of November. But but worse than that, we've seen crashing business confidence. We've seen taxes of all different shapes seen taxes of all different shapes and forms floated. I'm surprised that we haven't seen attacks on taxes itself been floated by the taxes itself been floated by the Chancellor or the department. In the recent Budget. We've seen U-turn on the Budget before it's
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Ben Spencer Portrait Dr Ben Spencer MP (Runnymede and Weybridge, Conservative)
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U-turn on the Budget before it's been announced, and then we've seen an announcement on the Budget half an hour before the Budget was even

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delivered. Go on. The hon. Gentleman for giving

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The hon. Gentleman for giving way. But the would he not agree that it wasn't a U-turn? It was that it wasn't a U-turn? It was that there were actually better economic statistics. That meant that that meant that the, the, the, that that meant that the, the, the, the whole that the Chancellor was trying to fill was smaller. And actually, that's something people actually, that's something people on both sides of the House should be welcoming that the economic numbers were better. I find it numbers were better.

I find it quite bizarre that anyone would attack the Chancellor for actually finding herself in a better situation. All of us are. Economy would be worse and constituents would be worse and constituents would be worse off if we'd been having to look down the barrel of a having to look down the barrel of a of any change to the headline rates of income tax. Quite aside from the

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manifesto pledges that we have made. Well, I thank the hon. Member for his intervention and suggest he for his intervention and suggest he looks at the OBR report, which, as I mentioned, was released half an hour before the Chancellor stood up, hour before the Chancellor stood up, which goes into detail about why why that that statement is entirely false. Look, in Surrey, we are one false. Look, in Surrey, we are one of the biggest contributors to taxation revenue, and it's my constituents who are going to be particularly hit by these Budget measures if not targeted by these measures.

And I hear their frustrations all the time about the amount of money that we contribute. But yet the lack of reciprocity when it comes to investment in Surrey so that we can continue to be an economic powerhouse. And my constituents, they worry about the future, but particularly they worry about what this means in terms of opportunities for their kids and the debt that we are laying on them because of decisions being made today. Sadly, this Budget and the one before it shows that Labour is totally, totally unable to rein in spending.

We have yet another Budget of higher welfare paid by tax. Now, look, there's been a lot of focus in this debate on poverty and child poverty. And I think that's absolutely right. It's a really important subject to tackle. It is important that we help all families and everyone out of poverty in the best way going forward. But you fix you work towards resolving child poverty by ensuring people have jobs, by

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focusing on the tax. Go for it. Member for. Giving way. So he. Agrees with us on the points. In his Budget of investing £16.

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his Budget of investing £16. Million into. A cutting. Edge Stem centre in my constituency to enable us to repair.

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constituency to enable us to repair. The post-post. Conservative scarring that we felt. As. A community. As we've seen the hollowing.

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As we've seen the hollowing. Out of our manufacturing sector. So should you have to forgive me? I don't know the details in terms I don't know the details in terms of the specifics in terms of her constituency, but what I can say in terms of broader macro economic details is that the reduction in details is that the reduction in employment as a consequence of National Insurance contributions mean that there's more children who

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mean that there's more children who have parents who do not have jobs. I can see she would like to intervene. Why?

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Why? I wonder if he would address the point that 6 in 10 of the children point that 6 in 10 of the children in families affected by the two child benefit limit are in families who have jobs. I wonder if he would who have jobs. I wonder if he would address himself to the situation of my constituent who lost her husband. my constituent who lost her husband. She was working. He was working. They had three kids together. They were working and still they were were working and still they were affected by the two child benefit limit.

It is facile in the extreme to talk about getting jobs as just

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to talk about getting jobs as just the route out of poverty. It is not just the route out of poverty. What I'm so pleased to join member raised the point about people who are in work but still poor, which is a point I was going to come on to in terms of tackling child poverty. So I should just wait a second. I can respond to her, to her questions in full. I just want to focus on the sort of more macro cost point to begin for.

Just for the moment, food inflation has gone up to 4.9%. That is for people, especially people who are poorer. Food costs are a big chunk of their daily spending. That is a direct result of decisions to raise national employment contributions. Turns out taxes on businesses get passed on to working people, energy costs. And we're still yeah, who knew? Indeed, energy costs which were still waiting to come down are a big chunk of everybody's outgoings and property. Property costs also are big chunk of people's outgoings.

Do you know reducing and putting more pressure on the private rented sector, particularly landlords? The measures in the Budget today in terms of increased taxation, in terms of property revenue, is only going to be passed on to the consumer vis a vis people who are renting. And yet another cost pressure. I wish the benches opposite would think through, not just step one of a Budget intervention, but what happens in step two, three and four in terms of impact on their constituents? The other way you deal with child poverty is to look at cliff edges, look at cliff edges, at all ends of the taxation system, whether that's the rapping down.

If you see when you work for 28 hours in terms of in-work poverty costs, when we looked at this on the Work and Pensions Committee and the Minister opposite was the was the chair at the time, one of the things that really came out through and through what a lot of the families in difficulty were single parent families, and they struggled to cope with 28 hours because of the issue of childcare costs and the marginal benefit. We need to look at cliff edges in terms of people, also spectrums in terms of things like housing allowance being, you know, breaking down in terms of things like counter-attacks, being wrapping down.

We need to get rid of cliff edges so that work always does truly pay. And the third one, which I think is also really important in terms of helping child poverty, is making sure the child maintenance system works. There are plenty of families who have a parent who is not supporting their

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child who should be. That is absolutely scandalous and that needs to be fixed wholeheartedly. That is child.

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That is child. Child maintenance. System needs reforming. Does he agree with me that in 2010, when the Conservative that in 2010, when the Conservative and Lib Dem coalition brought in a £50 entrance fee for people who were trying to get the money that their absent parent of their child had was refusing to pay to access that was refusing to pay to access that system. The £50 entrance fee was wrong. Was that a bad decision by his government at the time?

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Yeah. I'd invite her to the report that we released last parliament in terms of looking at reform in terms terms of looking at reform in terms of child maintenance and particularly the barriers that were set up in the system, both in terms of direct payments and indirect of direct payments and indirect payment system. I think I think all of us would agree across the House, the child maintenance system the child maintenance system absolutely needs reform. The issue with the two child benefit cap is with the two child benefit cap is most parents have not.

I think all parents would like to, you know, love their children and would like love their children and would like to have more children should money, time, things like, well, you know, time, things like, well, you know, well okay, well I stand corrected but but but people make decisions but but but people make decisions in terms of when planning their families in terms of the resources they have, whether that's personal resources, whether that's the time, whether that's the money to go forwards. It is fundamentally unfair to say to one group of people who are making difficult budgetary decisions or otherwise, in terms of having more children, you're going to be more taxed so you can pay for other people who who are not subject to those difficult budgetary decisions because they're not employed at the moment.

It's fundamentally not.

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It's fundamentally. Not. I'm sorry. It's not fair because other colleagues, colleagues won't other colleagues, colleagues won't get in this. This Budget is unfair. Fairness is about honouring Fairness is about honouring promises made and delivering on government's responsibility to government's responsibility to govern for all. Fairness is about making sure opportunities are available to everyone, not just available to everyone, not just those who work hard. So not so that those who work hard to grasp them aren't penalised for their efforts.

aren't penalised for their efforts. Taxes should be used to improve security, services, growth and prosperity, not to garner political prosperity, not to garner political support. And finally, fairness is not more mortgaging away our not more mortgaging away our children's future on an ever spiralling amount of debt.

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spiralling amount of debt. Hear, hear. Jim McMahon. Thank you, Madam Deputy Speaker. I think today.

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today. We've heard across the House where the divide in.

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where the divide in. This debate really is, in that there is a train of thought that we've seen on the other side that we've seen on the other side that says if you continue to do what we've done over the last 14 years, things will surely get better. Well, all the experience over the last 14 all the experience over the last 14 years of the previous government was that is madness. Things did not get better and for working people in this country things got materially worse.

And so a different course is needed and in the range of very difficult and competing interests that the Chancellor had to face, which has been well rehearsed. I do believe that this Budget provides balance and respite for working people in this country. When taken in the round, the two child benefit cap will help 600,000 children in my constituency. And for all the talk of well, if people would worked a bit harder, things would be better. 60% of those households have at least one person in work.

So these are people who are rolling up their sleeves. They're doing everything that's been asked of them, but they still can't get on in life because of the wage levels and the jobs that they occupy. Many of which, by the way, are foundational for our economy and important. Secondly, on the rail freeze, the bus fare cap, energy bills on prescription
18:09
Jim McMahon Portrait Jim McMahon MP (Oldham West, Chadderton and Royton, Labour )
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charges on the minimum wage and the National living wage will see National living wage will see people's respite just eased a bit more, too. But I suppose the thing I want to talk about is the thing I want to talk about is the thing that really made my heart sing as a co-operator in this house, which was that the Chancellor of the Exchequer, talking about Exchequer, talking about cooperation and cooperative businesses at the despatch box in the main Budget. And why is this the main Budget.

And why is this important? Because for so long, even when the economy has grown, many working people haven't been many working people haven't been the beneficiaries of that growth. And actually many communities have been hollowed out and become more and more removed from the economies and more removed from the economies that they're working to serve. And so we believe that co-operatives and mutuals provide that bridge. and mutuals provide that bridge. They are more sustainable, they are more productive. They treat their workers better, they have better pay differentials.

They invest in pay differentials. They invest in apprenticeships at a higher rate, etc. all the argument is there. But what we've been waiting for for quite a long time now is a government who understands it, sees the value of it, and is willing to put something behind it. And so the work that's being done now to establish a cooperative development agency so that every region of the agency so that every region of the country gets the benefit, is music to our ears. The work that's being done through the Mutuals and Cooperative Business Council, where Cooperative Business Council, where those voices and those interests around the country are being brought together under the support of the Department for Business and Trade and Treasury, is absolutely essential for doubling the size of the cooperative economy in the way that we know can make a huge difference.

And of course, community ownership of local assets through the English Devolution and Community Empowerment Bill will mean that those years are constantly fighting to at least keep what you have. Now means that commuters can begin to look to the future about what they can build together and of course, on business rates, because co-operatives and mutuals, like every other business in the economy, rely on a thriving economy and a local community that has disposable income to spend in that local economy and the business rates.

Relief for retail, hospitality and leisure will be a big boon to our high streets, our town centres, our pubs and many other parts of the economy too. And it's no surprise that today The Co-operative Group have announced £1 billion of investment in the UK because they believe in the direction of the government and the country and more importantly, they believe in the people of this country and want to get behind it. And I want to pay tribute to Shireen Chowdhury, the CEO of The Co-operative Group, for the work that she does in really driving that agenda.

If you want to meet a business leader in this country who, of course runs a tight ship financially from a business point of view, but absolutely leads with her heart when it comes to that social investment. You could do worse than looking at Shireen and her team in the headquarters in Manchester, but we do need to go further. Firstly, our building society network and our credit unions have so much potential, but we can do much more with them. And I just say to every member of this House, there are more members of building societies and credit unions than people who voted in the last general election.

So they're quite an important constituency to look after and support. And one very small change. I can see the Minister on the front bench who is working hard on this issue, would be actually to review the common bond in credit unions so credit unions can grow, expand and offer a wider range of financial services to local communities, to there's a lot in the Budget around councils and support for councils. And I would just say if I kind of perceive this Budget almost as a a Budget that gives communities the right to survive and to get through what has been a very difficult period and have respite.

The challenge next then is, well, how do communities begin to thrive? How do working families stop worrying about every single paycheque because they're just about making ends meet and begin to think about a better future where they thrive and really enjoy life and get the most from it. And actually, for many people, local neighbourhood services are the foundation of public services in a local area. But let's be honest, for most parts of England they have been eroded by pressures in adult social care and children's services.

In temporary accommodation, that has meant that neighbourhood services have been reduced as a result of that. And I would say whatever we think about our missions and our ambitions as a government, they're all important, of course, but we also need to accept that if people open their front door and walk out onto the street and it doesn't feel and look better, we just want to get a hearing. When we get to the ballot box the next time round. And for many parts of our movement, the elections are coming pretty soon down the line.

So I would urge focus on that. But let's celebrate the move to further devolution. You know, the visitor levy that our mayors have been asking for, they're finally going to get that power. We see even more capital investment going to our regions and empowered mayors to. And that should be celebrated. There's a lot in the Budget books here about investment in kind of British plc, which is to be welcomed, but I do think that we need to be better at coordinate across government. I've asked questions of a number of government departments, whether it's the Home Office in terms of police vehicles that are purchased by local police forces, or DWP in terms of vehicles that are commissioned through the Mobility Scheme or the Cabinet Office, in terms of government vehicles that are procured, and there is no check and balance to make sure that British vehicles are being bought and procured.

Well, surely that is the simplest thing that a government can do to use the lever of procurement to make sure that we're supporting British jobs in our region. And so I would urge the Chancellor, on top of the good work that has been done, to commission an urgent review across government to make sure that across all procurement lines, we are

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supporting British businesses. I'll give way. I'm grateful to the. hon. Member. For.

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For. Giving way, and no one can doubt his commitment to the people of Oldham. But he's been he's been Oldham. But he's been he's been very loyal to the Chancellor and her Budget today. Very simple question. If unemployment goes up question. If unemployment goes up in his constituency from today, before the local elections next before the local elections next year, will he resign?

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The unemployment situation worse? But if we look at the practical measures that are being taken in this Budget, I'm here to be helpful to the government, not make matters to the government, not make matters worse. Actually, for a lot of working class kids in my community, I was an apprentice. When I left school, I didn't go to university. I went straight to work and earned a technical qualification. My two sons have followed the same route sons have followed the same route and that is the route for many working class kids in this country.

But over six, only 16% of apprenticeships are actually apprenticeships are actually advertised in July and August when kids are leaving school and looking for those opportunities. 16%. The system is not geared up to help system is not geared up to help young people succeed. And so when we look at a review of NEETs and why so many people out of work are why so many people out of work are not contributing to society because the whole system is not geared up to support them in that endeavour.

And so the announcement today from the government to have free apprenticeships from the 25, if it continues, includes that review of apprenticeships could be absolutely life changing for thousands, tens of thousands or more of young people in this country. And the final plea with the seconds I've got is HMRC. Mileage rates haven't been reviewed for working people for 15 years now. For a social care worker doing those home visits, they are on the minimum wage and in truth they are subsidising HMRC for travelling in between appointments.

That isn't right. The Department for health looked at already, but can the Treasury please take that on board going forward?

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Rebecca Smith yeah. Speaker I think it's important.

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Today to make sure that we give account to the voices of hard working families who are going to be affected by Labour's economic be affected by Labour's economic mismanagement and that they're not drowned out by the political drama that we've seen surrounding today's Budget. To ensure that I heard directly from those I represent in South West Devon, I launched a survey ahead of the Budget together first hand views from as many constituents as possible. Almost 90% of those who responded told me 90% of those who responded told me they were worried about Labour's Budget, and it turns out they had good reason.

South West Devon. More good reason. South West Devon. More than 3000 small businesses are suffering under the strain of Labour's job killing policies. The Resolution Foundation has warned Resolution Foundation has warned that Labour's hike to National Insurance contributions and the minimum wage will drive up the cost of employing a part time, low paid worker by 14%, the biggest jump on record. Increasing taxes without
18:18
Rebecca Smith Portrait Rebecca Smith MP (South West Devon, Conservative)
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real spending cuts will undermine growth and having heard from many in recent weeks, it is clear the experience is that increased wages and increased national insurance, added to higher costs are choking SMEs in my constituency. And that's why 75% of those surveyed supported the conservative policy to scrap business rates for retail, hospitality and leisure. What a shame it didn't feature today. Indeed, 63.8% of my constituents want to see lower taxes, even if it means less government spending. Again, not what we have seen today.

It is almost a year to the day since the Chancellor followed. She would not come back with more borrowing or more taxes. Yet my constituency repeated constituents repeatedly express their concern that Labour would do exactly that. They did not believe the Chancellor's hollow words because they knew that Labour has never met a tax. It didn't want to rise. Today their concerns have been realised. Let me be clear, Madam Deputy Speaker. The Chancellor's fiscal mess is not because of Brexit, Covid, the Ukraine war, the fall of the Berlin Wall or any other historical event.

It stems from the Prime Minister and Chancellor's inability to stand up against their backbenchers. Spending on health and disability benefits alone is on track to hit £100 billion by 2030, and my constituents know the country cannot afford this. The government has abandoned any meaningful reforms after a humiliating climbdown from its flagship welfare bill. Now, in terms of the two child benefit cap, the Chancellor's decision to lift the two child benefit cap is not because of some new found passion to tackle child poverty.

It is plainly to throw some, some happy, you know, sweeteners to the backbenchers who tore apart that government flagship welfare bill just a few short months ago. And it's been clear from this debate this afternoon, of which I've sat through nearly the entire thing, that it's pretty much the only thing that anyone can get excited about. On the other side, my constituents do not want to lift the cap, nor does the country at large. Yet again, it is party before country for Labour and its hard working families who will pay.

The Resolution Foundation have estimated that removing the cap in full will cost up to £3.5 billion. In this parliament. The country is in a fiscal black hole and Labour is keeping on digging, and now they are expecting the hard working families to fill that hole. Now, just briefly, I want to comment on some of the statistics that are around the child and the two child benefit cap, because again, we've heard lots of of the negatives of why it being in place might be, you know, why it might be an issue.

But there's actually a lot of statistics here that I think the other side haven't mentioned. For example, the IFS found that 70% of the poorest households subject to the two child limits would see the gains from its reversal partially or fully wiped out by the household benefit cap. Now, we've heard nothing about that. So this flagship policy today isn't necessarily actually going to help the families that they seem to think it will. The introduction of the two child limit has had no significant effect on the proportion of third and subsequent children in England achieving a good level of development at age five.

The cornerstone metric of the government's opportunity mission, and something that the alternative side of that argument has been presented today. And the IFS have also said that lifting the two child limit was not a magic bullet, and other measures, such as supporting parents into quality jobs, are vital for reducing poverty in the long run. For half of those affected, the two child limit significantly improves work incentives. So to literally just remove the cap, as has been done today, I don't think actually helps those that we are seeking to support.

Now, just briefly, Madam Deputy Speaker, on 2 or 3 other things that have been mentioned in the Budget today, I want to mention defence. Now, I represent a constituency for whom defence is a really important part of our ecosystem, and it is the future of our area. If you are in, you know, in terms of what we're trying to do with Team Plymouth, however, we have still not seen the defence investment plan. It was due in the autumn. We're rapidly approaching the winter and so I'm actually waiting to see, Madam Deputy Speaker, how the big figures that have previously been announced will be distributed, because today Plymouth was mentioned in the Chancellor's speech.

But when you actually do a control F on the Budget, it's not in there except on something to do with place based development. Now, in terms of ISIS, madam Deputy Speaker, I understand why the government is seeking to push people towards stocks and shares, and there's some very compelling reasons about how much more money can be saved in that way. However, it is very clear that that needs increased financial education. Now, when we try to get the government to take financial education seriously in the Pension Schemes Bill to help people understand how to fully invest for their future, they just weren't interested in adding in those amendments.

So I just really hope that the government aren't just going to assume that it's down to banks to educate everybody on the difference between a stocks and shares Isa and a cash Isa. Now, I like to think of myself as being fairly financial literate, but even I've struggled Madam Deputy Speaker to have the time as much as anything else to put the effort into doing it. I'd love to make some more money on my savings, but if it's just down to having an advert on a bank website, I don't believe that's going to be good enough.

So I'm interested to see

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what the government will do to ensure that more people can benefit for that. Yes, of course. I don't.

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I don't. Disagree with the importance of. Financial education. I had a big long rant about whether I thought it should be within. The.

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The. Maths curriculum, but I would just say that. We have just recently had a curriculum review where it was recognised the

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where it was recognised the importance of financial education. So we should. We should agree. With me. It would be political. But actually financial education.

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But actually financial education. For school. Is really. Important and. That's one. Way that. We can ensure that that.

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Yeah, absolutely. Of course, financial education in schools is important, as is a whole lot of other education about life and budgeting and all those other things that are so important. But I'm talking more specifically about financial education for people in their professional years or in their professional years or in their 20s, and 30s and 40s who are going to be affected by the changes on the Isa rules. And I'm potentially going to need some help to make sure that they can still save effectively.

Now, the last point I want to talk about is the point I want to talk about is the electric vehicle pay per mile, which is going to have a huge impact on rural communities, which has been raised today. And actually, has been raised today. And actually, I think it's also a huge disincentive for any non inner city community. Now, I represent an urban area on the outskirts of the urban area on the outskirts of the city and then the ensuing rural area around it, and a lot of my constituents, aside from the ones constituents, aside from the ones that have a drive and perhaps a detached house, aren't able to have an electric vehicle at this point in time.

So to disincentivize people, to even aspire to an electric vehicle by this paper mile in an area where you're going to have to drive particularly long routes just to get to the supermarket, or to take your child to the swimming pool or something I feel contradicts the government's obsession with electric vehicles. So perhaps they will instead speed up alternative fuel. And another alternative. I don't understand how you can dislike fossil fuels, but at the same time disincentivize EV transition. Now, Madam Deputy Speaker, this Budget is completely out of step with the public.

They wanted to see lower personal taxes and see welfare spending cut. They wanted to see work pay. They wanted to see stamp duty scrapped, business rates abolished for retail, leisure and hospitality and a £5,000 first jobs bonus, policies that would have meant tax cuts and rewarded hard working men and women not seen. The welfare spending increase that we've seen today, and the tax increases that we've seen today to prop up some nice little pet projects for the Labour

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government. John Slinger. Thank you, Madam. Deputy Speaker. This Labour Budget safeguards

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This Labour Budget safeguards the priorities of the British. People protecting our NHS. Reducing national debt and easing the cost

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national debt and easing the cost lens. Through which. To view this than the eyes of

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To view this than the eyes of the younger generations, who will feel the greatest impact of the decisions that we make today. Of decisions that we make today. Of course, people are concerned about their material lives, but they are also emotionally and philosophically worried about the philosophically worried about the long term future of the country, particularly having the feeling, after 14 years of the Conservatives after 14 years of the Conservatives that things aren't getting better and that their children will not be as well off as they were, and a as well off as they were, and a worry that they have, that their children will not have the same, let alone more opportunities.

This let alone more opportunities. This is a primordial fear. As any parent will know, I think we all agree that we should be taking action
18:25
John Slinger Portrait John Slinger MP (Rugby, Labour)
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that we should be taking action right here, right now to build back up so that this becomes a land fit for future generations. And this Budget does that. It rebuilds this country in many ways. But I want to focus specifically on young people. So I'm delighted that my right hon. Friend the Chancellor said that this Labour government is on the side of kids and will back their potential. Madam Deputy Speaker, today I participated in an online assembly at Oakfield Primary Academy just after the Chancellor's speech, and I'm sure the children will be inspired to see this country's first female Chancellor delivering such a brilliant Budget.

She's someone who, as she said, got involved in politics because the Conservatives underestimated under-invested in schools like hers. And she is, I'm sure, someone with young people's long term interests at the forefront of her mind. So it is excellent that the Chancellor is prioritising the youth guarantee, and the measures announced today are beginning to turn the tide against entrenched intergenerational, intergenerational unfairness. This government is unleashing the talent of all our young people, 800 million over the next three years for the Youth Guarantee, guaranteeing every young person a place in college and apprenticeship or personalised job support funding to make training for 25 apprenticeships free for SMEs, increasing the minimum and national living wage.

5 million for libraries in secondary schools, on top of 10 million to ensure every primary school in England has a library, 18 million to upgrade playgrounds across the country and ending the two child benefit cap, lifting 450,000 children out of poverty. The biggest reduction in child poverty over a parliament since records began. Of course I'll

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give away. I'm grateful to the hon. Member for giving way on that point. Just for the for the record, why did the hon. Member vote against lifting the two child benefit cap when the

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the two child benefit cap when the SNP proposed it earlier? I mean, a Labour MP and I vote

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I mean, a Labour MP and I vote with the government and it's as simple as that. This will this. So simple as that. This will this. So lifting 450,000 children out of poverty, the biggest reduction in child poverty over a parliament child poverty over a parliament since records began. And this will affect 2020 children positively in affect 2020 children positively in my constituency of Rugby, an investment that is not just

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investment that is not just anti-poverty, but it's pro prosperity and life chances for all our children. Yeah.

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Yeah. And more broadly, Madam Deputy Speaker, this Budget has invested. Sorry, this this Budget has Sorry, this this Budget has investment at its core in housing, infrastructure and skills. The infrastructure and skills. The Chancellor's decisions ensure 120 billion in additional capital spending over this Parliament, with spending over this Parliament, with a ten year infrastructure strategy, an NHS back on its feet after 14 years of backside in government, a years of backside in government, a benefit system that provides support for those who need it, and help for people who can work to work.

As I saw in a recent visit to the Rugby Job Centre, a stable economy with support for entrepreneurship and and growth forecast to rise and inflation and borrowing forecast to fall. Transforming the business rate system to protect the high street permanently. Lower tax rates for eligible retail, hospitality and leisure properties and that will affect around 1090. In my constituency of Rugby alone, the Chancellor rightly asked everyone to contribute. We all share a responsibility in this house, in boardrooms, in businesses of all sizes, in organisations to invest in our young people.

And I am glad to see this government sending a clear message here today. Only on Monday, when one young person at Ashlawn School in my constituency asked me my views on the pension triple lock, I pointed out that while we must of course help pensioners and we are doing when thinking of allocating resources most fairly, our young people have a very good claim for more support. So if you'll indulge me, Madam Deputy Speaker, I'm calling for a youth triple lock. Three measures beyond the youth guarantee that will focus attention on the needs and voices of young people.

My suggestions would be free bus travel, inflation beating and maintenance loans for students, additional help for young people with housing. But that is for another day and we're going in the right direction as this excellent Budget shows. I'm also pleased that this Budget stays true to what we on this side of the House hold dear. Our labour values, values that put

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the priorities of the British people first. Of course. I'm very grateful that you've

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I'm very grateful that you've been very generous with the time. I'm a bit confused by the last answer. Why was it a bad idea to answer. Why was it a bad idea to lift the two child benefit cap when the SNP suggested it? But it's a

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the SNP suggested it? But it's a is. Why? Look, I.

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Why? Look, I. The hon. Gentleman, is a very decent man and I like him a lot. He seems a little fixated on this point. What the right hon. My right hon. Friend the Chancellor has done has taken really difficult economic has taken really difficult economic decisions and fiscal decisions so that she can do can lift the the that she can do can lift the the two child cap. And not only that, do many other things. And we are do many other things.

And we are getting child poverty down and I'm proud of that and I will always support it. So we are protecting our NHS. We are reducing the national debt and borrowing, and we national debt and borrowing, and we are improving the cost of living. And, Madam Deputy Speaker, to unleash the potential of our country, we must face the needs of young people ever higher up the political agenda. And that is something that I intend to do in this place. While some talk this great nation down, we get on with the job of building it back up, laying the foundations on which to grow in the long term, and most importantly, enabling our citizens, especially our young people and future generations, to thrive and play their part in building a

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fairer and far more prosperous country for all. Thank Mike Wood. Thank you.

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Madam Deputy Speaker, and. This Budget underlines the cost of a Labour government that's making bad. Choices that are hurting working people. Once again, the government talks about growth, the government talks about growth, but it is clear that the biggest growth that will come. Out of this

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growth that will come. Out of this Budget is in people's tax bills. This is a Budget. That takes £12 billion from

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That takes £12 billion from people. Who've worked, who work, and those who've spent most of their adult lives working hard,

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their adult lives working hard, doing the right thing, and gives it to people. On benefits.

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On benefits. It's a Budget that doubles down. On the. made. In last year's. Budget.

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That have killed. Jobs, that. Have damaged our high streets, and that have made

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our country poorer. And the proof. Is there for all to see in the
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Mike Wood Portrait Mike Wood MP (Kingswinford and South Staffordshire, Conservative)
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OBR forecasts. Which were. Helpfully published. Early, it meant. That.

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Unlike last year, when the Chancellor told this. House that the OBR. Were going.

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To back up her claims of a £22 billion. Black hole, when. Actually when you read the document.

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It said. Nothing of the sort. Today we. the. Budget, the.

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Budget, the. Gaping chasms. Between the. Chancellor's claims. And the.

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And the. Reality contained in the report for the OBR, is. Clear that it.

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for the OBR, is. Clear that it. Is downgrading growth forecasts. Not since Brexit. Not since anything. That happened under the.

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That happened under the. Yeah. These are. Downgrades under this

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These are. Downgrades under this Labour Chancellor caused.

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By this Labour Chancellor. The Chancellor boasted. That. This year's.

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Projections increase expected less. Than was being predicted. At the time of.

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At the time of. Last year's Budget. When she stood up and told us

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that 2025 would see 2% growth. But she. Was silent about growth

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forecasts. Being slashed for every subsequent year of this forecasting period. Now, the.

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Now, the. OBR says that inflation will stay higher for longer at.

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stay higher for longer at. A time when other countries. Are cost. Of. Living is. Falling and inflation.

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Is at low levels. We are the outlier. That is the result.

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Of the. Chancellor's choices. And they are clear. That. Despite the claims of the

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Despite the claims of the honourable. Gentleman for Rugby. clear. That debt.

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That debt. not. Fall, a direct result of the

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Fall, a direct result of the Chancellor's extra borrowing. Yep. And they are clear that they expect

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And they are clear that they expect higher. To cost the public.

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To cost the public. Purse more money each year. While long term borrowing rates. Have fallen.

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Have fallen. For most major economies. Since July of last year, the. Rate that we must pay on UK

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government. Bonds has risen. Costing an, of course,

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course, Will he. Then, given his interest in the bond yields, celebrate today's rally in yields, as well as the rally in yields, as well as the increase in value of sterling and the increase in the FTSE? With me and my other Labour members.

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and my other Labour members. I thank. The hon. Lady is extremely brave to.

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extremely brave to. To to come to that point so early, given the levels that bonds are still. Trading at.

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But the the. OBR report is clear that the

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OBR report is clear that the is. Not replicated in other major.

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Economies amounts to an extra. £3.8 billion a year by 2030, more £3.8 billion a year by 2030, more than the OBR expected just in March.

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So, in short, Madam Deputy Speaker, we are paying what I. Understand the markets call a. Moron premium because of the.

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Moron premium because of the. Chancellor's choices. So of course I will give way. So so.

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So so. What we're talking about bonds. Would you. Agree with. Me that given the fact that we have an unusually large amount of have an unusually large amount of index linked gilts in the market, that actually, given the fact that the inflation is running at a the inflation is running at a higher rate than it was when the party came to power, actually the cost of paying off this debt is going up at a disproportionately going up at a disproportionately fast rate, thanks to the the policies of the party opposite.



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policies of the party opposite. Absolutely right. I mean, my hon. Friend hits the. Nail on. The head. The only. Thing I.

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Thing I. Would go slightly further is, of course, it's not about. Paying off the debt. It's purely.

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About servicing additional borrowing. And this has real consequences for working families.

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And perhaps the most concerning. Part of the Obr's. Report is in. Paragraph 1.9.

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Paragraph 1.9. Where they say that. Growth in real household. Disposable income per.

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Disposable income per. Person is projected. To fall from. 3% last year, falling. From 3%

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3% last year, falling. From 3% last year, not to 2%, not. Even to. 1%.

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1%. But to one quarter of. 1% on average. For the next five

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1% on average. For the next five years, I will make a little progress. I can see the time now. The difference between.

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The difference between. 3% per year and a quarter of a percent per year in growth in percent per year in growth in disposable incomes adds up to £2,700 per family. Less disposable income. Because of the Chancellor's choices. Because of the Chancellor's choices. Now we needed a Budget for jobs, but instead this was a Budget about saving the Prime Minister's job by saving the Prime Minister's job by giving his mutinous backbenchers the welfare rises that that he had forced them to vote against just last year.



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If they. Really wanted to support. Jobs, they. Would have undone some of the

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damage that the Chancellor did last year, particularly on hospitality. And I. Know a number of members have

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Know a number of members have raised this issue of hospitality and the business rate reform. Before the election, the. Chancellor was clear that business rates were going to be reformed. It meant the pubs and restaurants and cafes would have restaurants and cafes would have lower bills. Instead. What we've pub.

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Landlords, restaurants. Owners saw their business. Rate bills more than double in April. And what.

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April. And what. We have heard today from the Chancellor, because of the effects.

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Chancellor, because of the effects. Of revaluation and the. Fact that she has decided to

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only go with that reduction of. £0.10 on. The. Multiplier instead of the £0.20 that was signalled. When.

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When. last. Year. Is that when the new regime comes in, although the business

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comes in, although the business rates bills have only just doubled. We will.

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We will. Again see the bills for those pubs and cafes increasing again. pubs and cafes increasing again. This is a bad. Deal for hospitality. It will have a. Devastating impact on on.

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on on. Our high streets, and it is. Only made worse by the decision of the Chancellor.

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To increase alcohol. Duties. Which will hit pubs again.

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Make it more difficult. For our pubs, our bars, our responsibly licensed venues to responsibly licensed venues to compete with supermarkets selling,

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compete with supermarkets selling, cheap. Of course, I'm grateful to the

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Of course, I'm grateful to the hon. Member for giving way. Does he share my concern? I believe that we have lost 90,000 jobs from the hospitality industry just since the last election, around the last last election, around the last Budget, and whilst I do my bit to try and save the British pub try and save the British pub industry on my own, does he does he worry? Does he worry like I do that that today's Budget is just going

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that today's Budget is just going to make hospitality harder and harder? Well, I. Thank the honourable. Gentleman

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Thank the honourable. Gentleman and Madam Deputy Speaker, I will briefly. I don't think there. Are any longer in my current

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Are any longer in my current register of members interests, but if members wish to look. At my historic. Register of.

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Register of. Members interests. And also I'd. Disclose to the House that I. Have received. Some hospitality. Below the.

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Below the. Threshold from UK hospitality, British Beer and Pub Association, campaign for Real Ale and the British Institute of Innkeeping.

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But my hon. Friend is is clearly. Right, although I.

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Think his figures are slightly outdated because. He's not. 90,000 jobs would be lost in hospitality. The latest lost in hospitality. The latest figures from UK hospitality suggest 111,000 jobs in hospitality lost.

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111,000 jobs in hospitality lost. Since the Budget. Now these are

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as the as the safeguarding Minister. Indicated earlier, these really are jobs that ought to be an

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are jobs that ought to be an opportunity for social mobility. But instead the. Chancellor's choices have been

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Chancellor's choices have been destroying those opportunities, just as the Budget and the measures that have been announced today, the.

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that have been announced today, the. Taxes that she's been piling. On businesses. And working people across the. Country will continue to destroy other opportunities, making our communities weaker, making our

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communities weaker, making our economy poorer, and making our families less well off. Hear, hear.

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Hear, hear. Thank you, Madam Deputy Speaker. Indifference to poverty. As we have just heard, marks out the. Political divisions.

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Political divisions. Of our time. The task to restructure our economy, to ensure those who serve economy, to ensure those who serve and work hard are not exploited by profiteers. And the powerful is our mission. And today it is clear which side Labour is on leveraging resources from accumulated wealth, not simply income, must be the economic pivot that this Parliament determines, and holding wealth accountable, not just the fruits of hard labour. And that is why I welcome such measures today, like the surcharge on council tax.

As John Maynard Keynes said, the difficulty lies not in new ideas but escaping the old ones, such as the notion that the success of growth will trickle down to provide economic security, which
18:42
Rachael Maskell Portrait Rachael Maskell MP (York Central, Labour )
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generations have failed to receive. Unlike economic engineering, as we have seen today, economic have seen today, economic neoliberalism has been a failed experiment, holding people back and holding people down in poverty. Now, 14.5 million people sitting below 14.5 million people sitting below the poverty line today, 4.5 million children sitting in poverty. And children sitting in poverty. And tonight, 180,000 children not sleeping in their own bed, a million children in destitution and dependency, not given dignity or decency, a shameful legacy we decency, a shameful legacy we inherited from those on the right.

So today is monumental. Four and a So today is monumental. Four and a half. 450,000 children lifted out half. 450,000 children lifted out of poverty, 1650 in my own constituency, scrapping the two child limit is the right thing to child limit is the right thing to do. It's a labour thing to do. But we must go further. Another 80,000 we must go further. Another 80,000 are held back by the Tory benefit cap, and I trust that the child poverty strategy will ditch the cap and the ideology behind it.

When a and the ideology behind it. When a baby came to York Hospital with hypothermia, when a mother begged me for formula because she had no milk, we must recognise the impact of pregnancy and baby poverty, low birth weight, malnutrition impeded development from cold and damp homes. We get poor lung health and therefore I urge this government to look specifically at women during their pregnancy and their babies, to say that we will prioritise them, to lift them out of poverty, because it will make a life course of difference.

And as we seek to abolish child poverty here at home, I plead with government to recommit to 0.7% of GNI for overseas development aid. Every child's life must be of equal worth no matter where they are born. Cutting aid will be catastrophic for infants, and we must not contemplate this. Instead, restore restore our commitment to 0.7%. The moral injustice of the social determinants of poverty to be addressed must be addressed. It is my conclusion, after a decade in this place, that holding power and wealth in Westminster and Whitehall fails to realise the opportunities across the towns and cities of our country, a pound spent by government has limited reach.

But when infused with the partners and people in locality, it stretches further and deeper into the solutions to transform people's lives. Government must trust our communities and invest to return better health, better education, better employment and opportunities for all. So today, I challenge government to embark on a radical devolution of the nation's resources out to our communities, making the finances work harder, reach further and restructure services with transformational local partnerships and relationships. And I urge government to review the broad rental market area.

Housing injustice is a major cause of poverty in York. The local housing allowance has fallen far below rental costs, nearly 50%. A review is essential, well, more social housing a priority. We must examine this, enabling local revenue raising is also critical, and that's why I do welcome the tourism levy at just a price of a cup of coffee in York, we will raise £7 million. After years of lobbying. Hard for this measure. I really do welcome it. Now, I also want to urge the Chancellor to look at cities like York.

We are struggling. It may have an affluent core, but much is extracted leaving York as a very high cost of living, low wage economy. Eight communities in York sit in the lowest quintile nationally. The government funding formula are failing us across the board. We get the lowest funding of any unitary authority. Yet afar from the most affluent, one of the lowest settlements for health, for schools, for Sad, for police and fire. The cumulative impact has caused significant impediment in coming to York.

School heads cannot believe the inequity. We have far less health and care. We need more police on our streets and our brilliant labour. Local authority is on its knees, mixed with decades of fiscal oversight. The cumulative impoverishment has driven a cultural change in York. Sadly, the new new fair funding formula is just not fair for our city and therefore we are experiencing disadvantage. And I want government to look at the inequity to understand the matrices, why they're not working for city like ours economically, and how Treasury can rebalance them.

And I trust we can have a meeting to discuss, because I believe Labour can build a safe and secure economy nationally and in my city, working for all, addressing poverty and the causes and effects of poverty must always be our driving force. Keeping the elderly warm, providing disabled people with dignity and ensuring children in poverty is consigned to history today resets our moral purpose of politics, powerfully showing labour on the side of families and communities in using our socialist roots to collectivise revenue, to work for the common good.

Poverty in all its forms destroys the hope we long for and the opportunities we need. Labour must always recognise how ending the injustice of poverty and inequality is our moral purpose and the route to a strong economy.

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Thank you Robbie Moore. Madam Deputy Speaker, this Budget was dead. On arrival.

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On arrival. We were promised. That the last. Autumn Budget was once in a generation event. Now.

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generation event. Now. I would suggest that the Chancellor may want to correct her record on that claim. Despite record on that claim. Despite setting out to find growth, the Chancellor has flatlined the economy and tanked employment. economy and tanked employment. Indeed, we now know that Labour will raise taxes by more than any will raise taxes by more than any parliament since the 1970s, and all sectors are being impacted, including those in the hospitality sector, but also the manufacturing engineering sectors, those engineering sectors, those organisations, those sectors, Madam Deputy Speaker that grow growth.

Our hospitality sector in our high Our hospitality sector in our high streets are the backbone of my local constituency. Yet the cost of
18:49
Robbie Moore Portrait Robbie Moore MP (Keighley and Ilkley, Conservative)
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local constituency. Yet the cost of doing business is spiralling out of control, not helped by the previous Budget. Hiking employers National insurance, significantly reducing business rate relief and an energy policy crippling everyone from manufacturers to hospitality. And yet, rather than helping businesses, for example, by axing business rates on our high streets as these conservative benches are committed to doing, the Chancellor has offered absolutely no ladder at all for those businesses to get out of the hole that she has created for our small businesses.

Now, a month or so ago, I held a round table in my constituency in Ilkley, on with new Brook Street Cafe where Ilkley Bid, Ilkley Brewery, The Little Tea House cafe. It came along with many other businesses, all to specifically raise to me the challenges around those increases and overheads that they simply cannot pass across to their customers. And this Budget does nothing at all to help them. Indeed, it was almost seems that this government looks at those businesses as if it is their is.

If they were separate from the families who work for them. But when you make it more expensive to employ someone, it is the workers who end up paying through lower wages, through fewer hours, and potentially no job at all. Madam Deputy Speaker, when you're in my area and you're subjected to council tax increasing by 10%, and then Labour run Bradford Council increasing it again by a further 5% next year, there is less disposable income for people to be spending. Madam Deputy Speaker, this Budget has ignored the pleas of businesses to let them get on with the job that they want to and the growth that they want to aspire to achieve.

The Chancellor has slashed investment allowances and pushed up fuel duty for every hard working Brit in this country, and that is not the way forward for growth. And of course, that fuel duty will negatively impact those rural areas much more so where further distances are to travel. And then, of course, Madam Deputy Speaker, there is the challenge with inheritance tax on top of all of this, which has not really been addressed by the Chancellor at all. Today, small family businesses, including family farms, got just one line of mention by the Chancellor today, despite last year, the government unleashing the most devastating tax change on these businesses in a generation.

The changes to the relief available to Agricultural Property Relief and Business Property Relief are set to wreak havoc not only on those big multinationals, but those small family businesses. Madam Deputy Speaker, including many of those farming businesses, are going to be negatively impacted. I will give way.

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I'm grateful he's making a very powerful speech about the flaws in this Labour government's Budget. this Labour government's Budget. But does he share my concerns of the many farmers who who were outside Parliament today expressing outside Parliament today expressing how strongly they're opposed to the impact the inheritance tax changes impact the inheritance tax changes to their business? It is very telling. I know he was there as well, but I did not support any Labour members out there listening Labour members out there listening to the concerns that the farmers were raising today.

And does he also share my concerns about the ban that the Met Police imposed on

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ban that the Met Police imposed on this rally that had been planned for weeks and weeks and weeks, and it. Robbie Moore.

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Robbie Moore. Madam Deputy Speaker, I absolutely agree that the fact that the Met Police at the last minute the Met Police at the last minute council, today's pre-organised protest and rally on the Budget day protest and rally on the Budget day was an absolute disgrace and I was proud to be out on the streets of proud to be out on the streets of Whitehall today with many of our farming community. As I was with many of those conservative many of those conservative colleagues sharing their levels of anxiety and concern that the changes to inheritance tax that this Labour government is imposing on not only our farming businesses, but the negative impact that will but the negative impact that will have on the wider supply chain is absolutely catastrophic.

But it's not only our farming businesses Madam Deputy Speaker that have been impacted, it is that many of those family businesses like Fiberline in Keighley, that employ about 200 people, they've already worked out that they're BPR liability will be in the hundreds of thousands, but the options that many of those businesses have is to sell plant or machinery or lose control of the business that they have worked for for generations by selling shares. That is not progressional. That is not giving any hope for our family businesses.

And that is why it is absolutely devastating to see that the Chancellor could not even be bothered to engage with those family businesses in the run up to this Budget over the last year, so that they could get their viewpoints across. And yes, I agree, it was a disgrace that not one Labour MP was out in Whitehall today, standing side by side with those farming businesses that they claim to be representing, many of whom represent rural constituencies. Now, Madam Deputy Speaker, today's Budget is heartless.

After a year of anxiety, uncertainty and desperate pleas, the Prime Minister and Chancellor have shown pure ignorance today. And Madam Deputy Speaker, this is all. Whilst the government is yet set to spend 1.8 billion on digital ID policy, that nobody, madam Deputy Speaker, that I've ever spoken to, wants. So, Madam Deputy Speaker, when it comes to aspiration, looking at this Budget, why on earth would any young young entrepreneur stay in this country and create the growth that the Chancellor is after and the local economic activity that we desperately need across areas like Keighley and Ilkley? So the message that we've heard loud and clear from this Labour government today is don't save for your future or for your pension, as Labour will tax it.

Don't bother working hard to get that pay rise because Labour will tax it. Don't take the leap of setting up your own independent business because Labour will tax it. And don't you dare die holding on to assets either, because Labour will tax it. In fact, just about the only thing that this Budget does positively is probably not incentivise anyone from working at all. And how does that deliver for the economy? So, Madam Deputy Speaker, despite these crippling tax raising Budget that's been put before us today, the how on earth is the Chancellor aiming to create growth when she can still not deal with addressing the key issues that many of our constituents have been raising to this Labour government? Last year's Budget delivered by this Labour Chancellor walked the country up.

The fiscal plank, which was cheered on by many Labour MPs, sat on the opposite benches. And I fear, Madam Deputy Speaker, that today's Budget, again cheered on by many Labour MPs, will leave the whole country sinking into the sea. Mark Tami.

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Thank you, Madam Deputy Speaker, and it's a pleasure to follow the Member for Keighley and Ilkley. I Member for Keighley and Ilkley. I thank and congratulate my right hon. Friend the Chancellor, on behalf of my fellow residents in my constituency of Watford and Bushey constituency of Watford and Bushey North, the Chancellor has made tough decisions needed to get Britain's future back, just as we promised we would at the general promised we would at the general election campaign last year. The scale of the task of dealing with the toxic legacy left to us by the the toxic legacy left to us by the Conservatives is truly enormous.

From the black hole at the heart of the nation's finances, running on the nation's finances, running on fumes to a decade and a half of failed productivity and pitiful investment in public services, last investment in public services, last year, my right hon. Friend put the country on a firmer footing by fixing the foundations and reversing our seemingly terminal reversing our seemingly terminal decline in Watford. Private enterprise and public sector employers are both significant for our local economy, with people commuting into Watford to work as well as into London and the surrounding areas.

We all know that surrounding areas. We all know that our efforts are paying off, with a succession of interest rate cuts experiencing the highest growth in
18:57
Matt Turmaine Portrait Matt Turmaine MP (Watford, Labour)
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experiencing the highest growth in the G7 earlier this year. Wages up more than ten months under her stewardship than in ten years of the Tories, as well as the massive investment in capital projects and huge investments into the NHS. This has directly benefited my constituency and therefore my fellow residents, and I are grateful for that. Watford's population skews young compared to similar towns in the UK, so to see her announcement that young people on national minimum wage will receive an 8.1% pay rise is welcome indeed, and will make a big difference to people in Watford, especially on the back of the previous increase.

All of this has been achieved against a backdrop that has been phenomenally challenging. But let us not forget that modern economic history did not begin with the conservative government in 2015. Madam Deputy Speaker, oh no, no, it was 2010 under the conservative coalition government with the Liberal Democrats that the rot truly set in austerity. The bedroom tax, public services that that we all rely on sliced and diced opportunity for almost everyone severed from hope and cast aside. I welcome the budget's commitments to stand by the government's investment in the NHS and the capital infrastructure, and it was under the conservative Liberal Democrat coalition that Labour's previous plans to build Watford Hospital were ripped up under the austerity programme, and my hometown has been waiting for it ever since.

Now, finally, we will get the change as promised. I cannot tell you, Madam Deputy Speaker, how ecstatic we are to have a proper commitment backed up by actual funding from a Labour government to finally rebuild our hospital. So I thank my right hon. Friend the Chancellor. The first female Chancellor in our nation's history. While she has once again taken the tough decisions that will right our economy and put us on the path to prosperity once more. Thank

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you. I beg to move that the debate do now be adjourned. The question is now be adjourned. The question is that the debate be now adjourned. As many as of that opinion, say As many as of that opinion, say aye. of the country. No, I think the ayes have it. The ayes have it. Debate resumed. What day? Tomorrow. Debate resumed. What day? Tomorrow. Debate resumed. What day? Tomorrow. Tomorrow? I beg to move that this House do now adjourn.

The question is that this House do now adjourn.

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is that this House do now adjourn. Janet Daby. Yes. Thank you, Madam Deputy Speaker. And thank you for allowing me to And thank you for allowing me to speak in this adjournment debate on the merits of upgrading Grove Park the merits of upgrading Grove Park train station. Grove Park station is a historic station that has served my local community for 150 served my local community for 150 years. It originally opened in 1871 to serve rural communities and to serve rural communities and local farmers.

The station helped kickstart the development of thriving neighbourhoods that we thriving neighbourhoods that we know today. At the turn of the century, the area gained fame for its connection to Edith Nesbit's beloved The Railway Children, which drew inspiration from the surrounding landscapes. Now I remember watching the film adaptation as a child again as a teenager and indeed as an adult, and I'm delighted to have this amazing link to my constituency.
19:01
Janet Daby Portrait Adjournment: Potential merits of upgrading Grove Park railway station Janet Daby MP (Lewisham East, Labour)
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Grove Park station has grown to meet the community's changing needs, meet the community's changing needs, from its origins as a small rural station, it has become a vital transport hub, with five platforms connecting local residents to central London and to the wider central London and to the wider south east. However, the station has been left to deteriorate and now requires significant investment now requires significant investment to continue serving the community that has grown and developed around it. And I'm sorry to say that the it.

And I'm sorry to say that the station feels grubby and dirty with what appears to be a makeshift roof what appears to be a makeshift roof along most of the inside walkway. Weeds have also been known to grow inside the walkway. There is no style, no pattern, and no one colour to the walls of the station. colour to the walls of the station. Frankly, it is unpleasant, but I know South Eastern can do much better. My residents and local businesses deserve better. I've spoken to many residents and spoken to many residents and businesses, including the local hairdressers, the local nail salon, the cafe next door, the Harris the cafe next door, the Harris Chemist and the caf, the Filling Station café.

And these are the people along with me. I've been driving this campaign and I thank the over 100 constituents who signed the petition I submitted to Parliament calling for an upgrade

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to the station. Happy to give away Madam Deputy Speaker. Can I commend the hon. Lady for

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Can I commend the hon. Lady for Lewisham East for bringing this forward? And she's absolutely right to to highlight the issues of the condition of it. It was great when condition of it. It was great when it was first built because it suited the the times that they were living in. But today's times are different. And my concern, I spoke different. And my concern, I spoke to Olivia Bailey beforehand, just to mention to her, is the fact that many stations across the nation require passengers to climb stairs, place unavoidable barriers in the way of disabled people, or anyone with a mobility difficulty, or with a mobility difficulty, or parents with problems.

I welcome the government's commitment to to making things better in relation to accessibility. But does he agree that the Minister and the that the Minister and the Department must commit more time to reviewing this case and bringing forward, but indeed, all of the cases across the nation where cases across the nation where accessibility may pose issues for people who just can't get into the

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centre of the station. Thank you, Madam Deputy Speaker. My hon. Friend is absolutely My hon. Friend is absolutely correct and I'm just about to go into the additional accessibility options that are needed at Grove Park station and indeed many Park station and indeed many stations. It absolutely is something that we need to keep on raising because we need raising because we need improvements for our constituents. Now, Grove Park station needs additional accessibility option. It currently has three steep ramps to each set of the platforms, making it difficult for people with mobility impairment, such as those in a mobility chair or those using an aid to walk with.

And it is also challenging for parents who have pushchairs, or even with small children, to navigate the ramps. And while there is a separate bridge connecting the platforms, it is not served by lifts and there is only one set of toilets. So imagine a parent with a child who needs to go to a toilet and you happen to be on the wrong platform. You have to go the long way up and an extremely long way down the ramp to get to the toilet, and then to make the long journey back.

I think we could all agree. And those members that are here with me and my constituents, that further options need to be considered as part of a wider consultation.

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On that particular. I'm happy to give way. Can I thank my hon. Friend from Lewisham East for securing this Lewisham East for securing this debate. Grove Park like Hither Green stations that my constituents in Crayford need to interchange at to reach Bromley North so they would welcome such improvements. And would she join with me in calling for there to be a National Rail Accessibility Act, which shows which stations are accessible, where lifts are working and whether accessible toilets.

So people, when planning their journeys, can use the app to assist them.

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the app to assist them. I thank my hon. Friend for raising that and he makes a very strong campaign argument in terms strong campaign argument in terms of making sure that this disability accessibility is accessible to all accessibility is accessible to all at stations. Now, much of the current structure in my station is current structure in my station is made of corrugated metal, which leaks and is cold when it rains, and the waiting room is often flooded because of the leaky roof.

And even worse, it's even more difficult for constituents when the door is locked. And as I've already said, I know change can happen. And said, I know change can happen. And after years and years of campaigning for the improvements that Grove Park station, I know that because of another station nearby, this station that actually campaigning absolutely works. And earlier this year, work began on upgrading Hither Green station, which is my constituency, and it is truly exciting to watch the upgrade, which includes a new footbridge connecting all six platforms, new lifts, new CCTV, a PA systems and a host of other improvements.

This is a great scheme that construction workers and railway station staffs are proud of, and rightly so. But more importantly, my constituents and even myself, because I actually use both Hither Green Station and Grove Park Station will benefit from this, and I'm looking forward to benefiting the improvements that

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will hopefully come about through Grove Park Station. I will give way. Thank you for giving way. I appreciate you giving way. In appreciate you giving way. In Doncaster East in the Isle of Axholme at stations such as Hatfield Passion. Just tell me that what would make a massive what would make a massive difference for them in feeling safe is having improved lighting, improved security and better improved security and better shelters. Does she agree with me that when we do those upgrades, we should be absolutely thinking about those things that make women and

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those things that make women and children in particular feel safe? I thank my hon. Friend for his comments and he is absolutely comments and he is absolutely correct. Better lighting. People need to feel safe using transport need to feel safe using transport and especially women and girls as well. And anybody who feels vulnerable in these situations. We vulnerable in these situations. We all need better lighting in our stations. We need improvements in stations, accessibility in our stations, accessibility in our stations so that we can use our stations.

And there is nothing that is prohibiting anybody from having is prohibiting anybody from having those equal rights and equal choices to be able to access and use their station, to be able to use their station, to be able to get to where they need to go to. Now, I need to hear about plans and timescales for improvements at timescales for improvements at Grove Park station, so I'm looking forward to the Minister responding forward to the Minister responding to me. Grove Park station is the centre of the community, and I want to ensure that it gets the upgrade that residents and my local businesses so rightly deserve.

I ask the government to get behind me on this, and to work with southeastern to upgrade this very much, very much needed station that we use and is frequently used by my constituents. This will lift the local area and these renovations are so very needed.

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Minister. Thank you very much. Madam Deputy Speaker, and I'd

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Madam Deputy Speaker, and I'd like to start by congratulating my hon. Friend, the Member for Lewisham East, for securing this Lewisham East, for securing this very important debate. She has made an incredibly powerful case for an incredibly powerful case for accessibility improvements at Grove Park railway station. But before I turn to those in detail, may I just turn to those in detail, may I just pick up briefly on two things that she mentioned as part of her speech, which I think are also worthy of which I think are also worthy of due consideration.

One is, she made a point about the aesthetic design of the station and how it isn't up to scratch for what her constituents deserve. It's not something we often get the something we often get the opportunity to speak about in this House, but the concept of beauty being built into our railways is something that's incredibly important to me, and I think needs to factor to a greater extent in how we think about how the public travelling public engage with our railways and enjoy that process as
19:09
Keir Mather Portrait Keir Mather MP, Parliamentary Under-Secretary (Department for Transport) (Selby, Labour)
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railways and enjoy that process as they do so. I also congratulate her on her campaign, and it was exciting to hear about the array of different small businesses and community organisations that have made her petition possible. It speaks to the fact that our railway stations sit at the heart of the local communities that they serve, and I think that was powerfully reflected in her speech. I know just how deeply the hon. Member cares about her community, and how tirelessly she campaigns for improved public transport, which is safer and more accessible for everyone in her local community.

This debate, and indeed her petition presented to Parliament on the 20th of October, underlined the very real concerns of passengers who rely on Grove Park station every single day because for many residents, Grove Park is not simply a station, it is a gateway to work, education, healthcare and family life. But as my hon. Friend so clearly sets out for too many users, especially those with mobility challenges, parents with buggies, older passengers or anyone travelling with heavy luggage. This gateway does not offer the accessibility and most importantly, the dignity that they expect.

And she is right to say that the travelling public's experience must be safe, comfortable and inclusive. That is central to this government's commitment to to a more accessible and passenger focussed rail network for all across Britain. Many stations were constructed long before modern accessibility standards existed, while around 56% of stations are now step free and around two thirds of journeys take place between such stations. We recognise that this is just not enough. Everyone must have dignity as they travel right across our United Kingdom.

Accessibility is not an optional extra. It is a basic expectation of modern public transport, and that is why we remain committed to delivering improvements through programmes such as access for all through our recently published Rail Accessibility Roadmap, and through our long term reforms to create Great British Railways. The Rail Accessibility Roadmap sets out clear actions that will improve disabled passengers experience, from better maintained lifts and clearer information, to the quality of assistance at stations provided on every journey.

These form an essential element of providing dignity and inclusion to all rail passengers. Today, I regret that Grove Park Station does not offer full step free access to all platforms and for wheelchair users, people with mobility needs. Parents with pushchairs, travellers with luggage. This is a real challenge and a hugely regrettable reality in 2025, a reality that I know the hon. Member for Lewisham East is working tirelessly to correct for the better on behalf of her

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constituents. I'll be very glad to give way. Thank the Minister for giving way. I've got all four station in my constituency. We try to encourage more trains, which means more passengers use those trains, which I think is massively which I think is massively important to reduce carbon and get people to work and to hospital, to hospital appointments and so on. hospital appointments and so on. But access is really important and there is no step free access there either. So I just wonder if he either.

So I just wonder if he agrees with me that by improving access as we go forward, that also will increase the number of

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passengers that use our trains and they become better for our environment too. Minister.

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Well, I thank the hon. Member for his intervention and he is a tireless champion for improved rail tireless champion for improved rail services for all in Doncaster East and the Isle of Axholme. He raises an incredibly important point that if more people can access our railways, have access to the opportunities that that provides in terms of their social lives, terms of their social lives, employment, their ability to give back to their local communities, then good creates good. And it's a virtuous circle in improving virtuous circle in improving accessibility for all to return to the work that the government has the work that the government has been undertaking in 2022.

The previous government sought nominations for stations across nominations for stations across Britain to benefit from upgrades as part of the access for all programme. A total of 310 nominations were received from train operators, strategic transport bodies and TfL for London stations. This did not include a nomination for Grove Park station, and I recognise the hon. Member's frustration with the process that we inherited from the previous government. The limitations of the current station and the benefits that step free access would bring, which she sets out so clearly today, are exactly the sort of factors which I would expect to inform bids for future rounds of funding when assessing potential projects.

We look closely at station footfall, weighted by incidents of disability in the area. Industry priorities and the availability of third party funding. Local factors, for example, proximity to hospitals or stations with especially high numbers of interchange passengers were also taken into consideration, and I know that these factors are incredibly important to the hon. Lady in making her case for why Grove Park Station needs that extra support. But I would also like to take this opportunity, Madam Deputy Speaker, to highlight the significant investment that we are making in making rail more accessible within my hon.

Friend's constituency of Lewisham East to offer more context for where we are making progress. As she knows, significant upgrades to the nearby Hither Green Station, which I know she has also campaigned on in her work to improve rail in her local area, is well into delivery and is progressing well. These upgrades are due to come into passenger use in 2027, at which point Hither Green will provide a fully accessible rail hub for her constituents and the wider south east London community.

I'd also like to turn to other issues my hon. Friend has highlighted in relation to Grove Park Station. I can reassure her that my department takes the safety and security of passengers and rail staff incredibly seriously. The British Transport Police are responsible for policing the railway, and they work closely with train operating companies, including southeastern, to create a safer network. I'm pleased to say that Grove Park will benefit from an LED lighting upgrade to the overbridge and platforms. The upgrade will improve lighting levels, security perception and improve CCTV recorded images.

We've recently announced £17 million worth of funding to improve the British Transport Police access to railway CCTV, and the department expects that train operating companies will implement crime prevention methods where required, and this includes improving lighting and CCTV where necessary. The Btp's Designing Out Crime Unit provides advice on crime prevention, including the type of CCTV technology to use and suitable placement at stations. So I want to reassure her that the safety and security of those who use our railways is a core priority of this government.

Turning to the issue of shelters and seating at train stations, these play a vital role in ensuring the comfort and wellbeing of passengers. The Department for transport expects train operating companies to manage station amenities to ensure they are safe, clean and fit for purpose. We monitor these standards through the service quality regime and this includes regular inspections of the condition and availability of assets such as seating and shelters to ensure compliance and to identify areas for improvement. Southeastern are driving forward a multi-million pound station improvement programme, which has delivered benefits to over 100 stations since March 2024.

This ambitious initiative includes deep cleaning, repairs and enhancements that will refresh and modernise station amenities across the network. I'm pleased to say that southeastern have recently completed a deep clean at Grove Park, helping to improve the overall customer experience, but I am aware from the hon. Member's comments that there is much further to go on. That point. I'd be glad to give away, yes.

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Those in Havant like my hon. Friend southeastern serve the stations in my constituency, and those enhancements do include a number of changing places toilets at southeastern stations for people at southeastern stations for people who require them with disabilities. So, to reaffirm the point I made to my hon. Friend, I would like to ask my hon. Friend, I would like to ask in the Railways Bill, changing places as a consortium have a map that shows their toilets around that shows their toilets around their country.

TfL have an accessible app which shows where lifts are working and where lifts are working and where stations are accessible. So can we bring the two together and look at how we can do that in the railways? how we can do that in the railways? Bill around how stations can be truly accessible and how there's real, real time information for passengers.

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passengers. Minister. I thank my hon. Friend for his intervention, and he makes a powerful point on behalf of his constituents to improve accessibility for all in his constituency through the Railways constituency through the Railways Bill and the creation of Great British Railways and the passenger watchdog, rail provision will have watchdog, rail provision will have to have due regard to improving accessibility through the accessibility Roadmap. The accessibility Roadmap. The government is also setting out the actions that we're taking in the round to deliver a more accessible railway in the run up to GBR becoming a reality, and this will include a range of actions which I hope he will find productive, that will improve the experience of disabled passengers on existing lines, including the assistance they receive, their access to journey information and improvements to how we maintain lifts, escalators and, as he so importantly mentioned, facilities such as toilets.

Let me close, Madam Deputy Speaker, by again thanking and congratulating my hon. Friend for securing this very important debate and for her tireless representation of her constituents needs. Upgrading Grove Park station is not just about infrastructure, it is about fairness, dignity and ensuring that every individual in Lewisham East can travel safely, independently and confidently. The concerns raised tonight of accessibility, safety, lighting, toilets, CCTV, seating and platform shelters are all fundamental to a modern and inclusive railway. This government remains committed to improving accessibility across the network, supported by major investments in crime prevention, infrastructure upgrades and industry reform.

Through the creation of Great British Railways. I would encourage my hon. Friend to continue working with southeastern, Network Rail, Transport for London and the British Transport Police to ensure that Grove Park station is equipped to serve its community now and for many years to come. Thank you.

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The question is that this House do now adjourn. As many as are of that opinion, say I. The ayes have it. Order! Order! Liam.
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