Finance (No. 2) Bill

Alison Taylor Excerpts

2nd reading
Tuesday 16th December 2025 Commons Chamber

[Dave Doogan]

rose—

[Alison Taylor (Paisley and Renfrewshire North) (Lab)]

rose—

[Sir Mel Stride]

I will give way to the hon. Gentleman and then I will come to the hon. Lady.

[Sir Mel Stride]

As I have to say so often following his interventions, the hon. Gentleman is absolutely right. There is a huge difference between the position of a dynamic, growing organism of a company and the other situation that he has described. Loading up these taxes on the death of the principal owner or one of the significant owners of a business means loading it up with uncertainty, and quite conceivably the business must be broken up as a consequence.

[Alison Taylor]

As someone who used to be part of a small family business in Glasgow, I wonder whether the right hon. Gentleman agrees that stability in relation to inflation and corporation tax and reducing interest rates are equally important to a small family business.

[Sir Mel Stride]

It is interesting that the hon. Lady should raise the issue of inflation. Inflation is currently at about twice the target of 2%, and it was bang on target on the day of the general election, at 2%, because of the action that we took, alongside the Bank of England. The International Monetary Fund is forecasting that inflation in our country will be the highest in the G7 this year, and the highest in the G7 next year. If we ask why that has happened, the answer is relatively simple. If national insurance increases are imposed on employers, they pass on some of those additional costs by way of higher prices, and that is inflationary. If vast amounts of money are borrowed, and, notwithstanding what the Minister had to say earlier, vast amounts of money are spent, too—about half a trillion pounds more than was the case under the plans that Labour inherited—that also stokes inflation. Those on the Government Front Bench may trumpet the fact that interest rates have come down five times, but if they had not mismanaged the economy, rates would have come down an awful lot faster. Interest rates are higher, and for longer, because we have sticky inflation, which is due to the choices made by this Government.

--- Later in debate ---

[Alison Taylor (Paisley and Renfrewshire North) (Lab)]

It is a pleasure to contribute to this important debate. Members on both sides of the House have eloquently set out their views on the provisions of this Budget. From my own experience of running a small business, I empathise with entrepreneurs working hard to build something, to employ people and to be willing to take on the risk of building a business. In my constituency, as in many others, small businesses are an important part of the local community. Obviously, they provide a source of local employment. They make our high streets into destinations. Many of them lend their expertise to local charitable and social organisations in the community, including local sports teams and volunteer organisations.

Paisley and Renfrewshire North benefits from the generosity of local businesses in lending expertise, making donations or providing sponsorship. This Budget provides a sure foundation for the services that our entrepreneurs need to establish their business. We need a firm foundation of laws, police to enforce them and courts to oversee the process. We need transport infrastructure and public transport by which workers and customers can get to work places or shops and deliveries can be made.

[Jim Shannon (Strangford) (DUP)]

One of the concerns that probably all of us in this Chamber have, including the hon. Lady, is the squeeze of the middle class and the working class. Many of my constituents have told me—I wonder whether her constituents have also told her—of their concern that that squeeze is going to be felt even more. The people who are paying the most are the working class and the middle class, who cannot afford it.

[Alison Taylor]

I thank the hon. Gentleman for his point. We need a balance about fairness, and there are a lot of things in this Budget that will balance things out in the round, including all the investment in infrastructure. In Scotland, and in my constituency, that is really important for driving economic growth.

We need a workforce with the education to produce our goods and services and to drive our business ecosystem forward. This Budget sets a fair balance between taxes and services, a fair balance between benefits and responsibilities, and a fair balance between meeting immediate needs and investing in the future. I know that people are still suffering the hangover from the last Government, and I hope that they will start to really feel the benefits of recovery from this Budget.

Last week I was at the Paisley Christmas market. I expect it is quite like markets up and down the country: a mix of established local businesses and young and family entrepreneurs testing out a business idea, or making Christmas gifts or treats for a little extra income. In 2026 some of those stallholders will grow their businesses locally. Some will be taking steps in wider markets and new products, and my constituency of Paisley and Renfrewshire North is a suitable place to do that. Recently named Scotland’s town of the year, Paisley has a supportive infrastructure for new and growing businesses. New net zero commercial property developments across my constituency are making it one of the most welcoming places in the country to locate or grow a business. This Budget gives them a firm foundation on which to build.

The Budget’s demonstration of the Government’s commitment to fiscal responsibility is keeping borrowing costs down and bringing much-needed stability to the economy. In education, we are focusing on skills and increasing the availability of apprenticeships. We are negotiating exciting trade deals across the world, attracting important new orders for ships to be built on the Clyde and so much more.

I am in no doubt that much more still needs to be done, and I look forward to what my right hon. Friend the Chancellor of the Exchequer and colleagues across Government can achieve in 2026.