Budget Resolutions
Bradley Thomas Excerpts(3 weeks, 1 day ago)
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Sir John Hayes (South Holland and The Deepings) (Con)
G. K. Chesterton said:
“It is human to err; and the only final and deadly error, among all our errors, is denying that we have ever erred.”
Yesterday’s Budget brought into stark relief the fact that the Chancellor and this Government have erred and, worse, are in denial about their error.
The UK faces a twin-pronged fiscal crisis. Public debt is at around 100% of GDP and rising, with debt interest making up about three quarters of the deficit. Public spending, at close to 45% of GDP, is near to a high in the post-war years. Much of that failure is systemic—Governments of all colours have failed to address some fundamental macroeconomic challenges—but yesterday’s Budget not only failed to fix that entrenched mess, but did not even acknowledge that it is happening.
As the global liberal order decays, we face global economic challenges on a scale we have not seen for 100 years. Artificial intelligence risks transforming the jobs market. A recent study by the National Foundation for Educational Research forecast that up to 3 million jobs could disappear by 2035. Employment in sales and customer service occupations has fallen by more than 10% since 2021, and around 12 million people in England currently work in occupations deemed to be in decline. That requires Government to play a role.
Government can be a force for good. This House took far too long to recognise the damage that would be done by the internet, and finally, when those horrors were obvious, it legislated. We need to restrict AI where it does similar damage, rather than indulging this naive faith in technological change at all costs.
The old, comforting bourgeois assumptions about the benign nature of globalisation and the faith in technological change risk endangering many of the jobs I have described, and the purpose and pride they fuel. The US President was right to impose tariffs on cheap goods that were destroying vital US industries. In response, China is dumping surplus goods in Europe, and it has been estimated that 3 million industrial jobs in the EU are at risk from that surge of subsidised imported goods.
In response to these existential threats, the Government seem frozen in time. Too much of the establishment remains wedded to dysfunctional orthodoxies. We are playing by the rules of the game when the important players have left the table. We cannot continue to proselytise for unbridled free trade when the two biggest economies in the world, China and America, have given up on it. We have to protect those industries that are critical to our national economic interests, building greater economic resilience by reindustrialising and by manufacturing again, so ensuring that more of what we consume is made here in Britain, with the jobs, skills and reassurance that provides. An economy can nourish communal health, but it cannot do so in a world that is wedded to globalised, multinational, corporate companies that are careless of the difference they make to communities such as mine in Lincolnshire and those across the country.
Here in Britain, and across the western world, living standards are stagnating, productivity growth has all but disappeared, and the state grows ever bigger in the face of rising poverty and worklessness. Why, then, does the political class continue to profess a blind faith in an economic model that has delivered record levels of state dependency? The assumption that little can be done to reverse the inevitable process of industrial decline is simply wrong, as the experience of the United States suggests. Once we tune out the noise surrounding President Trump’s on-and-off tariffs, we can hear the faint stirrings of industrial revival. A detailed study of the impact of tariffs during the President’s first term found that once the pre-existing decline in manufacturing employment was accounted for, tariffs contributed to rising employment in areas with a large presence of protected industries. Neither did consumer prices surge in the United States, despite the predictions of liberal economists. Just imagine the potential benefits of a consistent and coherent trade policy that puts the needs of British industry first.
Bradley Thomas (Bromsgrove) (Con)
Does my right hon. Friend agree that in a world where capital and labour are highly mobile, and one that is increasingly pressured as a result of energy costs, the best thing the Government could do is pare back the regulation that inhibits manufacturers’ ability to compete competitively and prevents the UK from being a very attractive destination for that capital and labour?
Sir John Hayes
My hon. Friend makes a valuable point. Both Governments and these big corporates welcome a regulatory system that disadvantages small and innovative companies. Big organisations quite like regulation, for they can cope with it because of their scale; small organisations struggle with it, because they simply do not have the resources to deal with it.
In 1979, manufacturing accounted for 30% of GDP in Britain; today that figure is just 8.5%. Manufacturing employed 21% of the workforce in 1982; by 2023 it employed just 8%. By some measure this is the greatest deindustrialisation of any major nation. We can and should build a different economic model—a new order.
We need a fundamental rethink of our economic model, breaking from the failed orthodoxy that currently prevails and moving towards what Hilaire Belloc and GK Chesterton called “distributism”, where local economies —introspective, feeding communal health, with shorter supply chains—mean that we can make more of what we need here in the UK, fuelling skills and nourishing communities. What Chesterton and Belloc intuitively understood was that the excessive concentration of economic power harms society and fuels the discontent that many people in Britain feel today. Real wages have stagnated, while those at the top—large corporations in particular, often based overseas—accumulate huge wealth and power.
We can build that new order. Small family businesses enrich the places in which we all live. Mutuals and co-operatives sustain communal and economic health in localities. We can do this, but it requires a radical rethink of the economic orthodoxy. The Budget does not suggest that rethink. All parties must step up to the mark and understand that we live in a post-liberal age where a new order is possible. Let us together build that new order, to deliver the common good by sustaining our national interest.
Bradley Thomas (Bromsgrove) (Con)
Yesterday the Chancellor attempted to present the Budget as a bold plan to rebuild Britain, but when we strip away the rhetoric, we see a Budget that is unsustainable, unfair and damaging to the very foundations of our economy. Most importantly, it is bad for all our constituents. Last year, the Chancellor raised taxes by £40 billion and promised that she would not be coming back for more. Yet here we are, one year on, with another £26 billion tax raid.
Credibility matters. When promises are broken so quickly, trust evaporates, and my constituents feel that betrayal directly. Families who believed the Chancellor’s assurances will now find themselves paying more tax, with less money left at the end of each month. The first duty of any Budget is to foster growth, yet the indicators all point in the wrong direction. Inflation is up, with food inflation at nearly 5%, so families in my constituency are paying more for their weekly shop. Taxes are up, and the OBR has confirmed that the UK’s tax burden is at a record high. It is projected to reach 38.3% of GDP by 2030. Our constituents are working longer hours, only to see more of their pay taken away.
Sir John Hayes
Food production in this country is critical to my constituency, my hon. Friend’s and others’, yet public procurement still does not prioritise British goods. Might he invite the Government to look at that again? It is absolutely right that this House, the Government and the public sector should support British-made goods, and British-made food in particular.
Bradley Thomas
My right hon. Friend is absolutely correct. The Government have a duty, in every single thing that they do and in their entire approach, to ensure that they promote the interests of the UK and of the businesses and farms that strive to keep us fed and prosperous.
Unemployment is up and redundancies are rising. In my constituency, local employers are cutting jobs, leaving families anxious about their future. Spending is up, and borrowing overshot forecasts by £9.9 billion this year. My constituents know that every pound borrowed today is a pound that they will repay tomorrow. Confidence is down, with business surveys showing stagnation, and local shopkeepers tell me that they are holding back investment because they see no stability. Growth is also down, with GDP growing by just 0.1% in Q3 of this year. My constituents see stagnation in wages, stagnation in opportunity and stagnation in hope.
This is Labour’s economic scoreboard: inflation is up, taxes are up, unemployment is up, spending is up, borrowing is up, confidence is down and growth is down. That is not rebuilding Britain; it is dismantling Britain’s prosperity, and all our constituents are paying the price. Two thirds of the British public now say that they want to see spending cuts. My constituents are tightening their belts, and cutting back on holidays and meals out. Some are even cutting back on heating. They expect the Government to do the same and to live within their means, yet Labour’s Budget expands spending recklessly.
Businesses in my constituency are being hit hard. Last year, employer national insurance contributions were increased and business rates relief was cut, and businesses are struggling to survive. For savers, ISA allowances have been reduced, which undermines savings. Retail has lost over 100,000 jobs in the last year. With our high streets feeling the pain, shops are closing and livelihoods are being destroyed. The Budget offers no relief for small businesses in my constituency; it only offers more burdens.
Labour claims that fairness is at the heart of the Budget, but fairness is not what families in my constituency are feeling. Income tax thresholds have been frozen, dragging more workers into higher tax bands, and savers have seen their allowances cut. Even electric car owners, who have been encouraged to go green and to do the right thing, are now being penalised. This punishes aspiration.
Farmers in my constituency are among the hardest hit, and the family farm tax remains largely intact. The changes to inheritance tax threaten the survival of the family farm, and rising input costs and inflation are compounding the pressure. Farming is not just an industry; it is the backbone of our food security, as my right hon. Friend the Member for South Holland and The Deepings (Sir John Hayes) pointed out, and the backbone of rural life, yet Labour continues to undermine it.
We are seeing an exodus of capital and labour in a world that is highly mobile. Over the last year, we have seen an exodus of high-net-worth individuals. While Labour Members may scowl at and casually dismiss that, the reality is that the displacement of those individuals would require another half a million average earners paying tax to plug the gap of tax revenue lost. That is the scale of the hole that the Government have created. Who will fill that? All of our constituents will—ordinary families, ordinary workers and ordinary savers.
Ambition without discipline is not a plan; it is a gamble. Labour’s Budget is a gamble with Britain’s future. Every £1 spent servicing debt is £1 not spent on public services, every broken promise erodes trust and every squeeze on families and businesses undermines the engine of our economy. Let us be clear: Labour spends until it runs out of other people’s money, and when the money runs out, our constituents pay the price. All of our constituents deserve better than what we have seen in this Budget. They deserve a Government who will restore fiscal discipline, encourage enterprise and deliver fairness for everyone.
Yesterday’s Budget is not a plan for the future, but a blueprint for decline. It ignores the public’s demand for spending cuts and for the Government to live within their means. It presides over the loss of further jobs, and it drives away wealth creation, leaving ordinary taxpayers to pick up the bill. It squeezes families, undermines businesses and will devastate farmers. This is not rebuilding Britain; this is dismantling Britain’s prosperity. Labour spends until it runs out of other people’s money, and my constituents cannot afford that any longer.
Welfare Spending
Bradley Thomas Excerpts(1 month, 2 weeks ago)
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Sir Stephen Timms
Yes, I can. I will come on to talk about that in a couple of minutes.
In contrast to the passive approach of the last Government, we will be active. We are investing in and joining up work, health and skills support. We have brought adult skills and apprenticeships, further education, training and careers into the DWP so that we are better able to give people the skills to thrive in today’s economy and to enable them to move into good secure jobs.
Bradley Thomas (Bromsgrove) (Con)
At the minute, an estimated 13 million households in this country—just over 50% of all households—are net recipients from the state, rather than net contributors to it. What would the Minister expect that figure to be by the end of this Parliament?
Sir Stephen Timms
The hon. Gentleman makes another interesting reflection on the state of the system left behind by 14 years of Tory government. We are going to be making progress, as I said.
Our plan will help deliver our ambition not just for jobs but for national renewal by building new homes, making the NHS fit for the future and powering the shift to green energy. Among people of working age, those with low or no qualifications are some 2.5 times more likely to be out of work than those who are better qualified. Just closing that gap would mean a million extra people in work.
But skills are not the only barrier; for many, it is ill health, and we are determined to get people back to work and back to good health. We will open up more opportunities for people who have been out of work because of ill health in the past with WorkWell employment advisers embedded directly in healthcare teams, from GP surgeries to mental health services.
Oral Answers to Questions
Bradley Thomas Excerpts(7 months, 1 week ago)
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Bradley Thomas (Bromsgrove) (Con)
So many disabled members of society are unable to demonstrate the minimum academic requirements to get on to many courses, or to secure employment. What steps are the Government taking to support those people, so that they can demonstrate vocational and non-academic competencies, and get the jobs that they deserve?
Alison McGovern
That is exactly the point of our changes to jobcentres and the £1 billion of investment in employment support—so that we can understand the pathways to work for people who have skills and talents but, as the hon. Gentleman said, perhaps not quite the right qualifications.
Winter Fuel Payment
Bradley Thomas Excerpts(9 months ago)
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Bradley Thomas (Bromsgrove) (Con)
Constituents across Bromsgrove and the villages, particularly older constituents who have previously been beneficiaries of winter fuel payments, rightly feel short-changed by this Government. I know that from constituents who have contacted me and those I have spoken to directly on the doorstep. The faith that they placed in the Government has not been rewarded by the Government supporting them at a time of vulnerability.
In the limited time that I have, I would like to point out the effect that this policy has on rural communities in particular. It is important to remember that, while about 83% of homes across the country at large are connected to the gas grid, many pensioners who live in rural areas are not connected to mains energy and have disproportionately higher energy costs. They often live in much more exposed older homes that are less well insulated. This means that their energy demands are much greater than those who live in better insulated or more urban residences.
I also want to touch on political choices. I know that this has been stressed many times already today, but governing is about choices. We hear a lot about £22 billion black holes, but we do not hear too much from the Government and Labour Members about the cumulative costs of other choices that they have made. These include the £18 billion for Chagos and the public sector pay award without any increase in productivity. We could say that pensioners are paying the price for the pressure that unions have placed on the Labour party.
It is crucial to remember that, during the election campaign, Labour pledged to bring down bills by £300 a year. Ever since the Government have been pursuing their GB Energy policy, which is a quango funded to the tune of £8 billion that will not own any energy-generating assets, they seem to have abandoned any claim over when that £300 deduction in bills will be delivered, but we have seen the price cap rise. I find it quite spectacular how, in 2025, Ministers are suddenly talking about how market forces are affecting energy prices, when back in 2022 Labour Members said it was the decisions of the Conservatives that caused energy prices and therefore inflation to spike. It is important for the Government to reflect on the reality of what drives energy prices and to restore the winter fuel payment to pensioners, not just in Bromsgrove and the villages but across the country.
Lewis Cocking
No, I will not give way.
The Government got elected on a manifesto. Within eight months, they have introduced significant policies that were not in that manifesto, including the family farm tax, the national insurance increase, and of course withdrawal of the winter fuel allowance. That is what my constituents in Broxbourne are really cross about—it was not in the Labour party manifesto. People went out and voted in good faith in the July election, and lots of the people I speak to in my constituency who voted for the Labour party now heavily regret it because of the choices that Labour and this Government are making. They were not honest about those choices with the British people.
What was in the Labour manifesto, though, was a commitment to cut energy bills by £300. The Government have got in—secured a mandate from the British people—and have then said, “You know what? The manifesto we were elected on doesn’t mean anything. We can throw it in the bin and concentrate on things that we really want to do, rather than concentrate on putting British people first and lowering energy bills by £300.” I hope that when the Minister sums up, he will tell us about the progress that the Government are making towards bringing energy bills down. I suspect that it is very little, because they are too busy concentrating on things that they have not been elected to do.
Bradley Thomas
Further to the point that my hon. Friend has just made, does he agree that the Government made promises to the British public that they not only will not deliver, but cannot deliver, such as lowering energy bills? It is not within the gift of Governments to directly control energy bills—that is why the winter fuel payment is so crucial to so many pensioners across the country.
Lewis Cocking
My hon. Friend makes an important point. What the Government could do to lower energy bills is to secure North sea oil and gas investment in this country, so that we produce here more of the gas that we need to power all the industry in this country, instead of importing it.
Oral Answers to Questions
Bradley Thomas Excerpts(9 months ago)
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The Minister for Employment (Alison McGovern)
JobsPlus pilots were launched in July 2024 and are helping to address employment barriers for the residents of 10 social housing communities. We plan to publish our initial evaluation in the summer, which will help us to understand more about how this type of innovative community-led employment might support our vision to get Britain working. I look forward to working with all Members, especially my hon. Friend, on the next steps for this project.
Bradley Thomas (Bromsgrove) (Con)
Alison McGovern
I absolutely join the hon. Member in thanking all the organisations he mentions. If he could link them up with his local jobcentre, we can help make the connection between young people who have suffered disadvantage and that really positive community support that is available for them in his constituency. That would be very helpful.
Oral Answers to Questions
Bradley Thomas Excerpts(1 year, 2 months ago)
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Andrew Western
The Department takes domestic abuse extremely seriously. My hon. Friend will be keen to hear that the recently concluded consultation I referenced in my previous answer looked to address some of the issues with the direct pay service. Indeed, it consulted on the potential removal of that service moving forward. That service has been open to abuse and has led to victims of domestic abuse continuing to be terrorised. That is unacceptable, and we will look to address it moving forward.
Bradley Thomas (Bromsgrove) (Con)
The Parliamentary Under-Secretary of State for Work and Pensions (Emma Reynolds)
I welcome the hon. Gentleman to his place. Pensioners with a long-term health condition or disability may be eligible for disability-related benefits, such as disability living allowance or attendance allowance, and these benefits also provide for an additional amount in pension credit for those on low incomes.
Bradley Thomas
The Government’s impersonal approach is cold comfort to thousands of disabled pensioners, including Ann in my constituency. She has to boil water to prevent infection and uses an electric nebuliser, and as a result she has high energy usage to protect her health. Can the Minister tell Ann what sacrifices she should make to protect her health this winter?
Emma Reynolds
This is a decision that we neither wanted nor expected to make, but when we came into office there was a £22 billion black hole in the public finances. There are mitigations in place. We have extended the household support fund and the hon. Gentleman’s council will receive an extra £3.9 million. We are increasing the state pension. Through the triple lock, the state pension will increase by £1,700 in this Parliament. We will also deliver the warm home discount scheme, and I hope he will join me in making sure that every pensioner who is eligible for pension credit receives it, which will passport them to the winter fuel payment.