Income Tax (Charge)

Ashley Fox Excerpts

Monday 4th November 2024 Commons Chamber

[Sir Ashley Fox (Bridgwater) (Con)]

This is an old Labour Budget. It increases spending by £70 billion a year, funded by an extra £40 billion in taxes and £30 billion in borrowing—I am sure the right hon. Member for Islington North (Jeremy Corbyn) is very proud of the Chancellor. This will lead to higher inflation, higher interest rates and higher national debt—not my words, but the view of the Office for Budget Responsibility.

If the British people had voted for such a Budget, I would not like it, but I would not complain. In its manifesto, the Labour party said it would increase spending by £11 billion. It said its proposals were fully costed and fully funded. That is the mandate on which it was elected. So where does the figure of £70 billion come from? Even if we believe the fairy story of the black hole, 11 plus 22 does not equal 70. When my party said that Labour’s plans would mean a tax rise worth £2,000 for every working family, the Chancellor called us liars. In fairness, we were wrong. The actual figure turns out to be £3,600. Ever since the election, the Chancellor has repeated the canard that her poor economic inheritance justifies these enormous tax and spending increases, but we know that Labour always intended to increase taxes and borrowing by far more than it admitted to the British public.

This is a Budget of broken promises that will hit my constituency hard. Bridgwater is home to many small and medium-sized businesses. Those SMEs are run by people who work hard, generate wealth and provide employment for others in their community. Their reward from Labour is a tax rise that will cost them £758 a year to employ someone earning the new minimum wage. That will reduce the number of people employed. It will reduce private investment.

Labour’s increase in inheritance tax is a spiteful attack on those with family businesses and farms. It is an attack on aspiration and enterprise. This Government have little understanding that even modest farms require a great deal of capital in the form of land, buildings and machinery. If this is taxed at 20% on the death of the owner, that will lead to family farms being broken up, which will damage our rural communities and undermine Britain’s food security. Labour’s policies will damage Britain and make us all the poorer.