Autumn Budget 2024

Lord Forsyth of Drumlean Excerpts

Monday 11th November 2024 Lords Chamber

[Lord Forsyth of Drumlean (Con)]

My Lords, the Minister, in his speech, criticised the previous Government’s record on growth. Well, this is certainly a Budget for growth, is it not?

There will be massive growth in taxes, massive growth in the debt that our children and grandchildren will inherit, and growth in the cost of it too, as the noble Lord, Lord Burns, pointed out. There will be growth in inflation, with supermarkets already warning of food prices rising as the Chancellor adds billions to the cost of staff.

There will be growth in blocked beds and hospital waiting lists, as yet another Government fail to tackle social care. With employers’ national insurance increases being imposed on low-paid, part-time workers for the first time, we can be certain of care home closures, rising fees that councils cannot pay and our most vulnerable citizens being denied the support that they need, as the noble Lord, Lord Fox, pointed out in his remarks. Building costs will soar too, undermining the Government’s housing targets.

There will be growth in class sizes, as pupils are forced to leave private schools, with a vicious, wicked mid-term tax on education leading to private school closures and heartbroken parents being forced to tell their children that they can no longer stay at school with their friends because of this Government.

There will be growth in the number of family-owned businesses and farms—held for generations—that are forced to throw in the towel and be broken up, reducing competitiveness, enterprise and choice. There will be growth in the number of wealthy individuals leaving our country and, with them, the private investment capital and tax revenues we desperately need. There will be growth in human misery, as children with special needs are forced out of the security of their specialist school places with no alternative support available from a state already struggling to meet demand.

There will be long-term growth in the number of folk with inadequate pension provisions as constant changes, state interference in investment policies, new taxes and uncertainty destroy trust in saving for a pension. There will be growth in the size of the state and, with it, unaffordable, unfunded, index-linked final salary pensions.

There will be growth in unaffordable student debt. When we looked at this in the Economic Affairs Committee some years ago, we were told that, by 2050, student debt would amount to £1.2 trillion on the Government’s balance sheet. This Government are adding to that.

There will be growth in private sector unemployment as firms are forced to shed labour to meet the tax burden, business rate increases, and the costs and risks of Labour’s so-called employment rights. Insolvency numbers are already rising.

The growth our country desperately needs if we are to have decent public services, and which this Budget does not provide, comes from private enterprise, from releasing the forces of competition, from flexible labour markets, and from government as referee and not player. It comes from unleashing the aspirations of the British people, from rewarding hard work and thrift, and from giving folk in genuine need a hand up and not a handout. It comes from nurturing the family, encouraging self-reliance, independence and excellence, and from encouraging the basic aspiration to hand on a better life to our children, not taxing it.

The adage “primum non nocere”, or “first do no harm”, is often associated with the medical profession. It also applies to Chancellors of the Exchequer. I fear that our first woman Chancellor will be remembered for having forgotten this. Of course the Government inherited a bad situation, as the costs of Covid and war in Europe were funded by quantitative easing, but to deliberately set out on a path that history tells us will sink our economy in pursuit of failed dogma and class war is unforgivable. It is astonishing, is it not, that in a matter of weeks the Government have squandered a great victory, set a course heading for the rocks and betrayed the trust of millions of voters who supported them in the general election?

It is said that the crew rearranged the deckchairs on the “Titanic” when faced with inevitable disaster. In Downing Street now, they are rearranging the pictures; out go the portraits of Margaret Thatcher and William Gladstone, both of whom understood, as Gladstone put it, that

“money is best left to fructify in the pockets of the people”.

Having broken their election promises, the Government now pledge that there will be no return to austerity. Without growth and the kindness of strangers, that is just empty rhetoric. This divisive, nasty and irresponsible Budget puts both prospects in mortal danger.