(2 weeks, 6 days ago)
Commons ChamberThe right hon. Gentleman brings many years of experience to the bilateral relationship between the United Kingdom and China, and he will find no disagreement on this side of the House when he calls out the disastrous foreign policy mistakes of the former Member for Witney. We seem to have ended up with the worst of both worlds in relation to China. First, there was a credulous naivety during the so-called golden era, when the then Chancellor and Prime Minister did not recognise the appropriate national interests of the United Kingdom. This was followed by a period when the United Kingdom, almost uniquely, seemed to be in the deep freeze. The last time a Prime Minister of this country met President Xi Jinping was, I understand, under the former Member for Maidenhead. Our approach was neither clear-eyed nor capable of communicating influence; nor did it allow us to raise human rights issues in the way that we wanted to.
The responsible course for a British Government is to recognise the complexity of the bilateral relationship, and the fact that there are significant trade dependencies and geopolitical challenges. The right and responsible course is the approach that has been taken since 4 July. The Prime Minister had a meeting with Xi Jinping a couple of weeks back, but clearly said that engagement will be pragmatic, and based on a clear-eyed sense of where Britain’s national interest lies. Alas, we have not seen that clarity or that steady stewarding of the British national interest over the past 14 years, but I am relieved that, through the Foreign Secretary and the Prime Minister, we have brought a different dimension to the relationship in the last five months.
My constituents are angry that this Government want to cover Lincolnshire’s beautiful countryside with solar panels, ruining the landscape and damaging food security, but they are particularly horrified to hear that many of those solar panels could be produced using slave labour. The Minister has talked about increased import controls as a way of preventing that. When does he plan to introduce them, and what are the further measures that he alluded to?
I am not sure that I am in agreement, notwithstanding the high degree of consensus in the House, with the hon. Lady’s opposition to solar farms. We believe that the essential transition to a net zero economy requires not only onshore wind but, as my right hon. Friend the Secretary of State for Business and Trade has made clear, offshore wind, on which the United Kingdom is rightly a leader, as well as onshore solar. We are simply in disagreement if the hon. Lady’s argument is that we should oppose solar farm development. That being said, she is entirely right to recognise that the net zero transition should not be at the cost of any latitude on the clear provisions of the Modern Slavery Act. It is mandatory rather than voluntary. That legislation was introduced by our predecessors, and we are considering it carefully in the light of change in other jurisdictions, but it none the less places clear obligations on those seeking to import to the United Kingdom.
(1 month, 2 weeks ago)
Commons ChamberIndeed, there will be an impact on charities and the third sector—those who care for us at the most difficult points in life. On Friday, I met representatives from a charity in my constituency that cares for those with dementia. Its income is fixed, its needs are ever present, and as a result of this Labour Budget, it simply does not know how it will balance its books.
Is the reality not that the Labour Government also do not know how they will balance the books? I asked the Secretary of State for Health and Social Care in a written parliamentary question how much the rise in employer national insurance contributions will cost the Department. The Government said that they did not know.
Either the Government do not know but should know, or they do know and should say.
The Budget also included the highest-ever increase in capital gains tax, and a reduction in business property relief. Just as with the family farm tax, that reduction is an attack on the family-owned businesses that dominate our high streets and industrial parks. The incentive to take risk, and to create and grow a family business with the objective of passing it on, will be fundamentally undermined. Some 75% of UK businesses are family run, and in aggregate they employ 50% of all workers in the economy. We are talking about decades of hard work, dedicated to building a legacy, and people creating an insurance policy for their passing. The so-called “loopholes” in inheritance tax that Government Front-Benchers talk about are legitimate tax policies, introduced by a Labour Government in 1976 to ensure that businesses were not broken up and devastated on the death of an owner, to the detriment of the remaining employees, workers, suppliers, customers, the wider economy, and even the Treasury, which would lose future tax take. This measure could be devastating for our communities and our high streets up and down the country.
It is not just Conservative Members who are sounding the alarm, though we may be doing it with a greater degree of passion. The chief executive officer of UKHospitality said that the increase in national insurance will undermine businesses operating at the margins and
“be a brake on growth”.
Family Business UK, which represents family-owned enterprises, has said that the Budget
“removes entirely any incentive for starting or running a family business.”
Given the raid on family firms, it is worth pointing out that the art of a good Budget and smart taxation is plucking the goose to get the maximum number of feathers with the minimum amount of hissing. On that basis, I am afraid this Budget fails lamentably, and it certainly does in my constituency.
The Secretary of State for Business and Trade, in his opening remarks, said that 500 farms a year will be affected by the Budget’s changes to agricultural property relief. He said it casually, as if it is acceptable. Well, that is approximately one for every constituency, and very much more in rural constituencies. The prospect of this affecting, and potentially closing, two farms a year in my constituency is, frankly, horrendous. I urge the Government to think again.
I agree with the Government that it is legitimate to look at those who are land-banking to avoid inheritance tax. If that is their intention, they will have support across the House, but attacking family farms is not on, and I hope the Government will think again.
The Government say that growth is their No. 1 priority. How so? In my constituency, as we have heard, the long-awaited A303 improvements have been canned, and I suspect that the A350 improvements will follow, as the north-south strategic study that was to be the prelude to a Westbury bypass looks like it has been indefinitely delayed.
My right hon. Friend is making a characteristically excellent speech, and he mentions the transport projects that have been scrapped. We have not heard about what is happening to the North Hykeham relief road in my constituency. Does he agree that investing in roads in this way creates growth?
My hon. Friend is absolutely right. A Government who are going for growth do not can big infrastructure projects.
As the mercury drops, the removal of the winter fuel allowance is becoming a real worry to many of our rural constituents who live in old, cold homes, many of which have no access to gas.
As we approach Remembrance Sunday, the Department for Education, in its wisdom, has decided to remove funding for combined cadet forces. CCFs have tripled since 2012, and they are a powerful engine for social mobility, as are our armed forces overall. They give kids the confidence they need, for a small amount of money. The withdrawal of funding is appalling. As we all stand around our war memorials this Sunday, we will, of course, be admiring our cadets. It seems spiteful and vindictive that the Government are removing their support.
The Government need to go for growth, but damaging our farmers and our infrastructure, particularly in rural areas, is not the way ahead. I urge them to think again.
Yes. And with respect to the hon. Gentleman’s point, I think that the former Prime Minister and Member for Uxbridge and South Ruislip was true to himself, true to his heart and true in his expressions—although, like all of us, he probably had his moments. What he never did was set out on a deliberate path to mislead people. He set out his honest view of the way the world should be.
Unfortunately, 9.7 million people, including 15,000 of my constituents, believed the promises of the now Labour Government, and even 410 Members of Parliament thought that they were being honest.
I thank my right hon. Friend for the speech that he is making. Does he agree that many of those people will now feel betrayed?
I think people do feel betrayed. We need to conduct our politics as honestly as we can. The Labour Government broke their promise not to raise taxes on working people, because, as the OBR has made clear, the NICs raise will overwhelmingly fall on working people. In fact, if we go through the numbers, as I did, it turns out that there is a bigger reduction in wages than there is net receipt to the Exchequer. That is quite a remarkable achievement—probably only a Labour Government could do that.
Of course, the Government have also put up the cost of getting on the bus. If ever there was a symbol of working people, travelling from my constituency to a low-paid job in Hull, that is it. It will cost them £500 a year extra out of taxed income. I do not know why the hon. Member for Hitchin (Alistair Strathern) is grinning—I know he grins a lot, but it should not be funny to him that someone in a low-wage job who travels into Hull every day will pay £500 a year more because of the decisions his Government are making. For a couple, it is £1,000 a year. That cost is real, and it should not be glossed over.
There is just one train station in my constituency, and people who live in Withernsea have no choice but to travel 26 miles to get there. The Prime Minister’s constituents are blessed with a pick and mix of ways to get to the office: the tube, the overground, trains, Ubers, Bolts, and even Boris bikes. That is not the case in rural and coastal East Yorkshire: my constituents get the bus at 7 o’clock in the morning, and they get another bus at 6 o’clock at night. That is their lived reality, and the serious impact of this Budget should be recognised.
Another broken promise was to pensioners, who were told that they would have security in retirement—that their benefits would not be touched. Taking £300 from the very poorest pensioners is not keeping that promise. [Interruption.] The very poorest pensioners are those eligible for pension credit.
I declare that I have a financial interest in some of the Budget measures.
The Budget is one of broken promises and poorly thought out measures for every generation. For children who attend private schools, their schools will face VAT. Quite apart from the disruption that will cause, it is unlikely to raise the money the Government suggest, because the wealthier parents have already paid, more students will need to be looked after in the state sector, there will be greater demand on SEND services and there will be a reduction in employment among staff who previously worked at such schools.
The Prime Minister told those who go to university that he wanted to abolish tuition fees. I wonder whether they are surprised that he has put them up. Young people wanting to buy their first home will see stamp duty thresholds fall, and many more will pay stamp duty on their first home.
What of those working people the Labour party has found it so difficult to define? First, they have to get to work. Those who use the bus will find that the fare has increased by 50%. Those who have commercial pick-up trucks will see that the tax on them has gone up too. What about the national insurance rise? It is a tax on every single working person and it has not been thought through, as public sector workers will also need to pay the national insurance.
The Government said to The Times that they were going to provide mitigation, but the Department of Health and Social Care does not seem to know how much it is going to cost to start with. I asked a written parliamentary question and was told it will take longer to prepare an answer. The Department does not seem to know how much it will cost directly or indirectly. Many right hon. and hon. Members have talked today about the indirect costs that will face air ambulances, hospices, general practices, opticians, care homes, mental health services and outsourced laundry, catering and human resources.
What about the private hospitals delivering waiting list initiative work for the NHS? They will also need to put up prices. Will the nurse who works at a private hospital doing a proportion of her or his work for the NHS and a proportion for private enterprise be partly recompensed, or not? It has not been properly thought through. We will need the NHS for all those old people, cold and vulnerable in their homes, who have had the winter fuel allowance snatched from them—people the Labour Government have let down. If they die, they have the prospect of further taxation on their pensions, business assets and family farms.
My hon. Friend raised the issue of family farms; does she agree that it has been hugely disingenuous of the Government to repeatedly say they have farmers’ backs, only to abandon agricultural property relief at the first opportunity?
I do. As a farmer’s wife, I particularly recognise the effort of families to work together on farms. It is not the most profitable work, but is a labour of true love.
Those who need a pint after listening to all the increases in taxation across the generations may be pleased to hear that pints are going to be a penny cheaper—woo-hoo—but with business rates relief for pubs and other hospitality having gone from 75% to 40%, and the rise in the minimum wage and in national insurance contributions, the likelihood is that prices will not go down at all, leading to further disappointment.
The Budget is bad for business, bad for growth, bad for the young and bad for the old. But most of all it is a break of trust. It is a litany of broken promises from the Labour Government to the public. Labour voters, like the Prime Minister’s favourite singer, may be saying to themselves, “Did you have to do this? I was thinking that you could be trusted.”