Budget Resolutions

Debate between Edward Leigh and Jonathan Edwards

Tuesday 2nd November 2021 Commons Chamber

[Sir Edward Leigh (Gainsborough) (Con)]

I hope the House will forgive me if I do not follow the hon. Member for Bootle (Peter Dowd) in being relentlessly partisan. We are dealing with enormously complex issues.

I listened to the Chancellor’s peroration—his hymn of praise to a low-tax, deregulated economy—and it brought a tear to the eye of a weary Thatcherite. But having sat through 50 Budgets, because there are sometimes two a year, and having listened to so many Labour and Conservative Chancellors, I know that, when one reads the small print the next day, one tends to find that the Chancellor has taken by stealth what he has given publicly.

I know that we face one of the greatest challenges in our history, with the pandemic, but the truth is that we are now taxing people higher than at any level since the Attlee Government. As we pursue levelling up, are we going to bring in ration cards on eggs and meat, as the Attlee Government did? I am looking now at the Chief Secretary to the Treasury, who I hope is listening to every word I am saying. We are—to quote the Prime Minister in another context—at “one minute to midnight” in terms of our future as a tax-cutting Government. With mortgages going up, inflation going up, and a £3,000 increase per household to fund £150 billion of spending, soon we will be paying £1 trillion in tax. Who will pay for this? It will be the people who elect us Conservative MPs and middle earners in middle Britain. Even beer will go up. Inflation may be up to 5% next year, putting at risk the forecasts of the Chancellor. We are breaking the triple lock on pensions, which I think is probably necessary, which might result in another £30 billion being taken out of the hands of pensioners over the next two decades.

On inheritance tax, we are freezing the band, so more and more people with modest homes are being brought into inheritance tax. On the health and social care levy, we might be taking up to £85 billion off older people. With the fiscal drag on income tax, we are bringing another million people into the higher tax level—and this is a Conservative Government. This is what the Chief Secretary to the Treasury must do: every time his colleagues beg him for more money for this and more money for that, he has to say no.

We should bear in mind what happened in 1945. The coalition Government during the war were the highest-taxing Government in history and the most regulating Government in history—we regulated people’s private lives more than we have ever done in the past 70 years, including during the pandemic. What was the result? It was a Labour Government. People looked at the coalition Government and they turned to what they thought would be the real McCoy, namely, a Labour Government. So get a grip. I know that we have these challenges. I probably could not do any better, but we have to get a grip now.

[Jonathan Edwards (Carmarthen East and Dinefwr) (Ind)]

Will the right hon. Gentleman give way?

[Sir Edward Leigh]

No, because I am only allowed six minutes.

I use the NHS. I do not have private health insurance. I do not use private health. I rely totally on the NHS. Fantastic care has been given to me by nurses and doctors, but it is a bottomless pit. The more we increase funding of the NHS above inflation, the lower the productivity. We saw that in the Labour Government under Blair and Brown and it is happening now. We are even seeing it now with GPs quite disgracefully refusing to see people. So we must grip the NHS. We heard the Education Secretary half an hour ago. His own budget now is being squeezed because of the huge increases in health spending. If we are to match the Chancellor’s wonderful peroration to create a low-tax, deregulated economy, the most important Minister from now on is the procurement Minister—the Minister who has the courage to say no.

I do not wish to sound relentlessly critical. I do not pretend that any of us could do any better, but we have to be honest and true to our Conservative instincts and tell people that they should not always rely on the state. We should help them to get out of the clutches of the state. To tackle health spending and to relieve pressure on the NHS, the Major Government allowed people of pensionable age to claim tax relief on private health insurance. That was fiercely opposed by the Labour Government. Mr Major is hardly a right-wing extremist. He was prepared to do it. He was prepared to take millions out of relying on the NHS by giving tax relief. It was a bold Conservative idea to wean people off the state.

Why are we a property-owning democracy? It is because, for many years, we gave tax relief on people’s mortgages. Families who before could only leave a few sticks of furniture to their children became property owners. As they became property owners, they became Conservatives. That is why these planning reforms are so important. That is why it is important for my children, who are in their 20s and 30s, to be allowed to get on the property ladder. By easing planning controls, we can build more and get people on the property ladder. That is a true Conservative idea. We have to have the courage to propel that view forward, whatever people might argue from a nimby point of view. I am probably as good a nimby as anyone else. We are all nimbys when it comes to our personal lives and people who want to build around us, but we have to build more. We have to help our young people—a strong Conservative idea.

Look at our tax system. We have the longest tax code in the world after India. Look at the poisoned chalice that Gordon Brown left us in the 45% tax increase. We have never had the courage to get rid of that. People are driving themselves up companies and creating wealth, but instead of flattening out taxes, which is what Nigel Lawson did, we have not yet had the courage to get rid of that higher tax burden.

When it comes to levelling up, Gainsborough South West ward is the 27th most deprived ward in the country. I am very proud of the fact that we have achieved some levelling-up funds, but the process was directed not at endless schemes or at consultants, but just at infrastructure —on repairing the historic houses in the marketplace, which is something that we could control.

As I end my speech and obey your summons, Mr Deputy Speaker, to speak for fewer than six minutes, let me say to the Chief Secretary to the Treasury: be bold, be Conservative and get people out of the clutches of the state.