Budget Resolutions and Economic Situation

Debate between Lindsay Hoyle and Chris Leslie

Thursday 9th July 2015 Commons Chamber

[Chris Leslie]

I have not used those words. The hon. Gentleman is reporting words that have apparently been said.

I believe it is important that the Opposition today look at the spin and the headlines that the Chancellor created in his Budget yesterday. Less than 24 hours later, the Budget is beginning to unravel—[Interruption.] Have I said something wrong? The Budget is beginning to unravel and I will explain why, but in the spirit of magnanimity I want to explain that there are Budget measures that we welcome. The Budget fails to address the long-term challenges Britain faces—[Interruption.]

[Mr Deputy Speaker (Mr Lindsay Hoyle)]

Order. I am desperate to hear what Mr Leslie is going to tell us. Keep shouting and you will not even be able to ask the right questions.

[Chris Leslie]

Thank you, Mr Deputy Speaker.

Many parts of the Budget were suggested by Labour in recent months. Abolishing permanent non-dom status—that sounds very familiar to my hon. Friends. Increasing the minimum wage—again, we have repeatedly called for that. We welcome any action on low pay—by the way, the Conservatives opposed the creation of the national minimum wage in the first place—but this so-called national living wage is unravelling as it becomes clear that it is nothing of the sort. It is the rebranding of an increase in the national minimum wage—as I say, Labour created that in the first place—which, with the tax credit changes, will still leave working families worse off.

We will support steps to tackle tax avoidance—again, we have consistently pressed the Government on that—but this Chancellor has a poor record on hitting tax avoidance targets, with the amount of uncollected tax increasing to £34 billion last year and his so-called tax deals continually failing to bring in the revenues he predicted. In yesterday’s Budget, the Conservatives broke their manifesto promise to deliver £5 billion of savings by 2017-18. The Chancellor made that promise at the last general election, and he is now saying that we might perhaps get it by the end of this Parliament. We will file the supposed £5 billion of tax avoidance measures in the “believe it when we see it” category.

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[Chris Leslie]

I think the hon. Gentleman will find that we said in the election that we wanted to focus in particular on business rates. He will know from talking to small firms in his constituency that companies are concerned about the pressures on business rates, but where did the Chancellor mention business rates in yesterday’s Budget? We felt—[Interruption.]

[Mr Deputy Speaker (Mr Lindsay Hoyle)]

Order. There is far too much noise. In the end, I want to hear, I will hear, and I am sure that you agree with me. Let Mr Leslie speak. He will give way as and when. We do not need be told that he has to give way; it is his choice.

[Chris Leslie]

We felt at the election that it was more important to prioritise support for businesses through business rates than through a change in corporation tax—but we lost the election. [Hon. Members: “Hooray!”] Conservative Members feel the need to crow about these things, but the public will be concerned that they said one thing before the election and have done totally different things after it. Yes, the Conservatives did win a majority, but they hid their specific cuts from the electorate—they concealed them. It was a secret agenda, only now partly revealed.

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[Chris Leslie]

I will give way to the right hon. Gentleman again if he will confirm that the childcare promise, which was supposed to happen this summer, has been shelved until at least 2017. Is that correct? I will give way to him. This is a debate, so I will give way to him. He wanted to talk about the case studies. He thinks it is—[Interruption.]

[Mr Deputy Speaker (Mr Lindsay Hoyle)]

Order on both sides, I cannot hear!

[Chris Leslie]

The Secretary of State has shot himself in the foot. He should read the small print of the Chancellor’s announcement. Without much fanfare, he left that childcare—

[Chris Leslie]

I have not finished. [Interruption.]

[Mr Deputy Speaker]

Order. The Whip needs to relax a little, and we cannot have two people standing at the Dispatch Box, as entertaining as that may be.

[Chris Leslie]

It is quite entertaining to see the Secretary of State struggle in this way.