Budget Resolutions

Ayoub Khan Excerpts

Monday 1st December 2025 Commons Chamber

[Iqbal Mohamed (Dewsbury and Batley) (Ind)]

At a time when families in the four corners of our nation are struggling just to get through the week, the test for any Budget is simple: does it make life easier for ordinary working people? Does it put money in the pockets of low-income and middle-income earners? Does it strengthen our public services? Does it support those who are working hard, yet falling behind because of rising prices, high inflation and chronically stagnant wages?

The first thing I welcome is the lifting of the two-child benefit cap. I welcome the Chancellor finally bowing to pressure from campaigners, my independent alliance colleagues, and the seven Labour Back Benchers who defied the whip last year to vote for its abolition, but telling families that they must wait until 2026—nearly two years after Labour came into government—is not the Labour way. While children go hungry now, today and this winter, that is unconscionable.

For many winters, families have been choosing between heating and eating. Food banks remain at record high levels of usage, and warm banks are now a thing that we accept in our society. Every month, millions are one broken boiler or late pay check away from crisis. A modern economy cannot function when its people are too poor meaningfully to participate in it. That is why we need radical tax reform that prioritises a fairer tax system that funds our future.

One of the great myths of our political age is that there is not enough money to fix these problems. That is simply not true. Our tax system is full of holes wide enough for billionaires to sail yachts through; we must get a grip in this place.

[Ayoub Khan (Birmingham Perry Barr) (Ind)]

In my constituency, child poverty is at some 50%, so I certainly welcome the scrapping of the two-child benefit cap. Does the hon. Member agree that a wealth tax is the only way that we can resolve the underlying issue, which is the cost of living?

[Iqbal Mohamed]

I will come to that in the short time I have remaining.

It is not true that we do not have enough money to fix these problems. If the Chancellor was serious about rebuilding Britain, she would adopt straightforward, fairer tax reforms. As many Members across have said, we could raise tens of billions of pounds by closing loopholes that allow foreign multinationals to shift profits offshore and avoid paying UK corporation tax while onshoring expenses and taking advantage of subsidies and tax relief. We could implement the digital services tax that was originally promised, ensuring that big tech finally pays its fair share of its record profits. We could end the preferential treatment of income from wealth over income from work by taxing capital gains at closer parity with earnings. We could introduce a genuine windfall tax on excessive profits, particularly in energy, finance and banking, and reform tax reliefs that disproportionately benefit the wealthy, and instead redirect revenue to public services.

These are not radical ideas; they are basic principles of fiscal fairness. The Budget is a moral statement, and today’s Budget shows us a Government who still choose war over welfare, profits over people, and short-term headlines over long-term stability. To borrow a phrase, they are choosing the few over the many.