Taxes Debate

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Department: HM Treasury

Taxes

Bradley Thomas Excerpts
Wednesday 12th November 2025

(1 day, 6 hours ago)

Commons Chamber
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Sam Rushworth Portrait Sam Rushworth (Bishop Auckland) (Lab)
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I would also like to thank the Opposition for giving us this opportunity to set out two competing visions for Britain: growth, modernisation, new infrastructure and stronger public services under Labour; or a return to austerity, Government waste and decline under the Tories—of both their shades of blue. The Tories’ 14 years of power is a tale of two halves. First came—[Interruption.] They do not like to hear it. First came austerity, which broke our public services, leading to the social problems that have increased cost pressures on Government today, but in their final years they did away with austerity, and we saw astonishing levels of profligate waste, dodgy covid contracts, vanity projects and promises that were made to our constituents but never funded.

The hon. Member for Clacton (Nigel Farage) described Liz Truss’s Kwamikaze Budget as

“the best Conservative budget since 1986”,

but I think most people in this place would agree that we have to live within our means. The Chancellor has inherited a difficult challenge because, on the one hand, she inherited an economy with a debt to GDP ratio of over 99%—the highest debt since the 1960s. On the other hand, she inherited a broken state.

Bradley Thomas Portrait Bradley Thomas (Bromsgrove) (Con)
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Can the hon. Gentleman clarify the bundle of contradictions that we have heard over the last year from Labour Members? I recall that, in July 2024, we heard from the former Leader of the House, the right hon. Member for Manchester Central (Lucy Powell), that Labour had to abolish winter fuel payments for older people because there would be a run on the pound, and then they were reinstated because the economy had allegedly stabilised. We are hearing from the Chancellor and from Ministers that the economy is in a state that requires additional taxation and additional spending. We are hearing all these noises from the Labour party around the need to—

Caroline Nokes Portrait Madam Deputy Speaker (Caroline Nokes)
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Order. I am sure that the hon. Gentleman will be making a speech in due course. That was a very long intervention.

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Sam Rushworth Portrait Sam Rushworth
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That is a fair question, and I will answer it. It is important that we do not return to the days when the Conservatives were in office and vanity projects wasted so much public money, because child poverty is the scourge of our time. We need a national mission to eradicate child poverty. Some of what we need to do will come through, for example, our looking at the two-child cap, but not all of it. I have argued in this place for us to extend free school meals, and I am pleased that the Government have listened to that and are extending them to more children. I have argued in this place for free breakfast clubs, and I am pleased that the Chancellor is listening and funding them. Unlike the Conservatives, she is funding free childcare, because these things matter, too. This is not just about benefits; it is about ensuring that we give children what they need to have a meaningful childhood.

Bradley Thomas Portrait Bradley Thomas
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I am not sure that I heard an answer to the question from my hon. Friend the Member for Spelthorne (Lincoln Jopp). Does the hon. Member support a two-child cap, or would he like it removed?

Sam Rushworth Portrait Sam Rushworth
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I have never supported the two-child cap. The Conservatives introduced a two-tier benefit system that penalised younger families in a way that it does not penalise older families. My genuine view is that this needs to be looked at creatively. I do not know what the Chancellor will do, but my view is that we need to do something about the problem; possibly we need a tapered system. I have a big family, and I know that my fifth child did not cost what my first child did. I have confidence that this Government, like the last Labour Government, will eradicate child poverty.

I make the point again that child poverty is not just about benefits; it is about what we do to improve childhood. It is about giving children more access to the creative arts, as the Education Secretary this week announced we would. It is about getting youth hubs back; we are working on that. It is about free breakfast clubs, and the warm home discount being extended to more people.

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John Slinger Portrait John Slinger
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I absolutely accept that the previous Labour Government took difficult decisions towards the end of their tenure in office following the global financial crisis. What happened from 2010 onwards was unnecessary and reckless, and we are all still paying the price to this day.

Bradley Thomas Portrait Bradley Thomas
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Will the hon. Gentleman give way?

John Slinger Portrait John Slinger
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I will not; I may give way in a little bit, but let me make some progress.

We will ensure that we avoid another decade of under-investment in public services and infrastructure. I am sure we all agree that we owe it to future generations to ensure that the economy we hand down is secure, with debt under control. I would like to hear more from Conservative Members—perhaps they would like to intervene on me. Their motion makes no mention of the public services that would be cut. How many doctors, teachers, soldiers and police officers would they want to cut? I am happy to take an intervention.

John Slinger Portrait John Slinger
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That £47 billion seems rather like a number plucked out of thin air. Frankly, I do not think that that number holds any credibility.

The previous Government cut national insurance in 2024, which was deliberate sabotage. They cut public services from 2010 onwards, which was deliberate ideological recklessness and is still damaging the services that our constituents rely on.

Bradley Thomas Portrait Bradley Thomas
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Will the hon. Gentleman give way?

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John Slinger Portrait John Slinger
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Since hon. Members mention taxes from a sedentary position, let me say that the Conservatives broke their tax pledge by increasing national insurance in 2021.

John Slinger Portrait John Slinger
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I will not give way.

The Conservatives broke their triple lock promise in 2022 and 2023.

Bradley Thomas Portrait Bradley Thomas
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Will the hon. Gentleman give way?

John Slinger Portrait John Slinger
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I will not give way; I will make a little progress.

The Conservatives paint themselves as economically competent and as the party of low taxes. Well, Liz Truss blew the first claim out of the water. On the second claim, the tax burden under the Conservatives reached a record high of 36.3% in ’22-23.

Bradley Thomas Portrait Bradley Thomas
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On a very brief point of clarification, is the hon. Gentleman saying to this House that he would like this Labour Government to not increase taxes and therefore stick by their manifesto?

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Laurence Turner Portrait Laurence Turner
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My hon. Friend is right, and we could all point to examples of waste and inefficient spending under the previous Government. That is, of course, part of the context of where we find ourselves today, as are the £9.5 billion of undisclosed spending pressures that were withheld by the Treasury on their watch from the Office for Budget Responsibility.

I will just say this before concluding, because it has been part of the debate: we are today in a pre-Budget debate, and no Back Bencher knows the contents of what will be announced. But when we do look back on the past in that reflective way, I think the right hon. Member for New Forest East (Sir Julian Lewis) had—

Bradley Thomas Portrait Bradley Thomas
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Will the hon. Gentleman give way?

Laurence Turner Portrait Laurence Turner
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I will give way to my constituency neighbour.

Bradley Thomas Portrait Bradley Thomas
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I wonder if the hon. Gentleman could tell the House whether he would be content if income tax, national insurance or VAT were to rise in the Budget in two weeks’ time.

Laurence Turner Portrait Laurence Turner
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I will happily say to the hon. Gentleman that I do not think any of us come to this place wanting to raise taxes. I will just draw attention to one thing in the Labour party manifesto: an important statement that a growing economy needs strong public services. I welcome the record investment in our NHS—the biggest in 20 years—which has seen waiting lists in Birmingham fall by 20%. That is a philosophical difference between my side and his, but it was also a very important part of the manifesto that I stood on.

Earlier, the right hon. Member for New Forest East suggested that he remembered when Hugh Dalton resigned in 1947. I am not sure that the numbers can be right on that one, but I will just say this. Every Conservative Government and leadership from 2010 onwards claimed mitigating circumstances—some were great, such as the pandemic, and some less so—when they deviated from manifesto commitments. There is no doubt that the weakening of international trade, the imposition of tariffs and the forthcoming OBR revision on productivity estimates are new and relevant factors. That is why difficult conversations are currently happening in Governments and Parliaments across Europe. When the Conservatives demand consistency from others, they would do well to reflect on their own confounding record.