Income tax (charge)

Debate between Bernard Jenkin and Richard Baker

Thursday 31st October 2024 Commons Chamber

[Richard Baker (Glenrothes and Mid Fife) (Lab)]

Thank you, Madam Deputy Speaker, for giving me the opportunity to speak about how this Budget is fixing the foundations of our economy, which could not be more important for my constituents. I listened with interest to the remarks of the hon. Member for Harwich and North Essex (Sir Bernard Jenkin) about the last Labour Government. Let us remember that the last Labour Government lifted 900,000 children out of poverty. What costs to our economy are caused by poverty, rather than getting people into work and securing for them the quality of life and living standards that they deserve?

[Sir Bernard Jenkin]

Will the hon. Gentleman give way?

[Richard Baker]

Of course, because I have just mentioned the hon. Gentleman in my speech.

[Sir Bernard Jenkin]

One hon. Member complained about food banks. Actually, food banks started under Tony Blair. I think that we need to share these problems and concerns. We need to understand each other’s different approaches to economic policy if we are eventually to have a solid approach to reviving the economy of this country, but I am afraid that this Budget does not do that. There will be more poor people as a result of this Budget.

[Richard Baker]

I thank the hon. Member for his intervention. In Scotland we say, “Facts are cheils that winna ding.” The fact of the matter is that 900,000 additional children were lifted out of poverty by the previous Labour Government, and the rise and use of food banks under this Administration has been exponential —to the extent that, now we as a Government are dealing with food banks running out of food because of the level of poverty that we have inherited. This Budget will fix the foundations of our economy. It will redistribute wealth, tackle poverty and invest in growth. That is why we can look forward to what will be achieved by this Government, thanks to the decisions taken by my right hon. Friend the Chancellor of the Exchequer.

Anybody looking at events in Scotland will see that my constituents have suffered from two Governments failing to deliver on investment and failing to deliver on growth. Their mismanagement of the public finances stands in sharp contrast to the measures that have been bought forward by my right hon. Friend the Chancellor of the Exchequer, who has taken some challenging decisions on taxation, to ensure that there is no return to austerity and that we can invest in growth.

The Budget gives us the chance to move on from the reckless incompetence of the Tories here in Westminster and of the SNP in Holyrood. It is a chance to move on from the catastrophic mini-Budget of Liz Truss—a mini- Budget that caused so much damage to my constituents. The hon. Member for East Grinstead and Uckfield (Mims Davies) conjured up images of Halloween in her speech, but the economic nightmare was caused by the Conservative party, and our constituents paid the price in their living standards.

Those of us in Scotland cannot underestimate the impact of the shambolic stewardship of Scotland’s finances by the SNP. It is one thing for the SNP to crash the finances of its own party, but quite another to crash the finances of our country. The SNP Government have completely mishandled contracts for much-needed new ferries. Other public sector projects have been overspent by millions, while others have been delayed or cancelled. They have also failed to spend hundreds of millions of pounds which had been allocated to them in structural funds. Funding for our local authorities has been slashed. The housing budget has been cut, and the Institute of Fiscal Studies assessed that the Scottish health budget faced a real-terms cut under the SNP in this financial year.

While we know that this Budget is fixing the foundations, so that we can deal with the reckless approach of the previous Government here, the SNP cannot simply blame everyone else for its own mistakes, as, yet again, it has attempted to do over the past 24 hours.