Income tax (charge)
Debate between Andy MacNae and Andrew Rosindell(3 weeks ago)
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Andrew Rosindell (Romford) (Con)
I am pleased to follow the hon. Member for Congleton (Mrs Russell). It was enlightening for me to listen to her because she listed a huge array of things on which the Government are now going to be spending a lot more money. They are all very good causes of absolute benefit to the people of our country. The one problem I have listening to her, and to all the Labour Members, is that we do not have any money left: we have spent it all. We had to spend half a trillion pounds on the pandemic, but I notice that no one has mentioned that. We are, in effect, running on tick. We are living beyond our means, we are spending money we do not have, and all we are doing, laudable though it may be to spend the money we are discussing today, is handing huge debts to future generations.
I have to remind Labour Members that every Labour Government we have ever had in my lifetime has left this country with higher debt, more unemployment and an economy in a worse state. I would also remind them that it was in 1979, after years of failed socialist government, that we finished up having to rebuild the economy under a Prime Minister who had the determination to do what was right for our country, and those economic reforms led to years of prosperity.
Andy MacNae
It sounds as though the hon. Member is giving up on Britain. He seems to be saying that there is no point in trying to find a better future for ourselves because there is no money left, and the previous Labour Government left no money. Would he recognise that the level of debt left in this country at the end of the recent Conservative Administration is twice what was left by the Labour Government in 2010?
Andrew Rosindell
The hon. Member forgets about the pandemic and its associated costs. The reality is that we have to create the wealth before we spend it. For many years I have heard Labour Members talk about how to spend money. I very rarely hear how we actually create the wealth we need to spend on our public services, and that is where it all goes wrong.
Andrew Rosindell
No, I will not give way.
The Chancellor yesterday painted a dire picture of our country’s future. Under Labour, it is not the economy that is booming but the size of the state, with an ever-increasing burden of taxation on working people. Under this Government, it is not the businessmen in my constituency of Romford who are being supported with the future success of their enterprise but the climate alarmist, with a public energy company that will not even produce any energy. How sensible is that? It is not the young family in areas such as Collier Row or the pensioner in Rush Green—both in my constituency—who are being supported by, for example, a decrease in stamp duty or help with energy payments, but, of course, the union bosses who are able to deliver over-inflated pay rises to the public sector, and the private sector is once again paying for that.
Despite the Government’s talk of growth, this Budget is preparing us for the return of the dark days of the 1970s, with hard-working people paying the price. Indeed, the Government are so lacking in aspiration for this country that they want the Office for Budget Responsibility not only to mark their work but, it seems to me, to do their homework completely. They are even gifting the OBR more powers, as was outlined in the King’s Speech.
In my view, Britain’s potential is far greater than a high-tax, low-growth and dysfunctional big state. Far from my “giving up on Britain”, as the hon. Member for Rossendale and Darwen (Andy MacNae) said—quite the opposite—I love this country, I believe in this country, and I hate to see what socialism has done to this country over the years. Labour Governments always end up in a worse situation than when they started, and Conservative Governments always have to come in and pick up the pieces, and restore the economy back to prosperity and vibrancy again. In five years’ time, I am sure we will have to do the same.
It is now clear that, under this Labour Government, the British people face a tyranny of taxation. Not content with the record-breaking tax burden that already exists, Labour is adding to the load on the shoulders of hard-working people. Under Labour, it will be harder than ever to buy a property. The journey to work of my constituents in Romford who are lucky enough to own their own home is going to be even more expensive than it is already under the control of the Mayor of London, Mr Khan, with the rise in bus fares. Once they get to work, my constituents will have far less in their pay packet, because the increase in national insurance paid by employers will, of course, clearly be passed on to employees. It is nothing but a stealth tax by this supposedly transparent Labour Government, and it is job destroying. Businesses in my constituency have already been telling me that they will not be employing people because of this reckless increase in national insurance. My constituents, all our constituents, might even lose their jobs. [Interruption.] They will lose their jobs, as businesses struggle with the national insurance increase. The costs of that will be phenomenal, and the growth-crushing increase in capital gains tax will also have a big impact.
As if that was not enough, when someone sadly passes away, the Labour Government want to make it even harder for them to pass on what they have earned throughout their life to their loved ones, by expanding inheritance tax to pensions and so on. That is incredibly cruel. People pay tax throughout their life, and will pay more tax when they die. Is that really the kind of thing a Labour Government should be doing? It will harm a lot of families who would inherit but will not be able to because of the cash grab from this Budget.
I do not believe that the Government are pro-worker at all. They cannot even define what a worker is. Labour used to be the party of the state from cradle to grave. Now it seems to be the party of taxing my Essex constituents from cradle to grave and beyond. This has been a very Essex-weighted debate, with contributions from my hon. Friends the Members for Epping Forest (Dr Hudson) and for Harwich and North Essex (Sir Bernard Jenkin), my right hon. Friend the Member for Maldon (Sir John Whittingdale), the hon. Member for Harlow (Chris Vince) and others. People in my county of Essex are very disillusioned by all this, because they are aspirational and hard-working. They are market traders and small business people. They will be devastated by all this. I warn Labour Members that they will find that out when they next knock on doors in their constituency.
As Margaret Thatcher warned us—[Laughter.] Well, she did rescue our country’s economy; let’s be honest about it. [Interruption.] She really did, and we are still benefiting today from the reforms that she introduced. As Margaret Thatcher said, any Government who impose high taxation are taking power away from the people and giving themselves power over the people. Of course taxation at some level is always necessary. It has to be in place to support our nation’s armed forces, to support families and protect pensioners, and for investment in necessary infrastructure and public services for the future. But what are the Labour Government doing with all the hard-earned money that the working people of this country have created? I think they will be spending billions of pounds on things that will go to waste.