Budget Resolutions

Caroline Nokes Excerpts

Thursday 27th November 2025 Commons Chamber

[Several hon. Members rose—]

[Madam Deputy Speaker (Caroline Nokes)]

Order. In an attempt to get everybody in today, I am going to put an immediate six-minute time limit on speeches.

--- Later in debate ---

[Sir Geoffrey Clifton-Brown]

No, I have already given way once on this subject.

Our wealth creating sector is shrinking, whereas the public sector is ballooning, yet the Government’s policies are punishing businesses and wealth creators. The freezing of tax thresholds is a tax rise, as the Chancellor has confirmed many times at the Dispatch Box, but she has now confirmed that they will be frozen for another three years. Every time they are frozen, that brings more people into the tax net. In this case, it is forecast to bring another 750,000 into the tax net. The 2% increase on savings and dividends is another penalisation of those working hard to save their money. Where are the incentives to save money if the Government are taking more of their savings?

Finally, hospitality businesses are going to be hit hard by this Budget. In North Cotswolds, they are at the heart of the community, yet nationally one pub is closing its doors every day at the moment. I do not see any pub landlords welcoming this Budget—

[Madam Deputy Speaker (Caroline Nokes)]

Order.

--- Later in debate ---

[Monica Harding]

I do not have the time.

Older homeowners who have watched their properties’ value soar over the years will be hardest hit by this granny tax. They are asset-rich but cash-poor. They may be forced to sell up—at reduced asking prices—and more properties will get dragged into the mansion tax net. As that happens, a proportion of terraced houses, flats and semis will join them.

Worst of all, this is not a serious attempt to reform property tax, including business rates, stamp duty and council tax. Like the Budget, it is tinkering and meddling around the edges. This is a patchwork Budget that does not take us much further forward. Where has the national mission for growth gone? This is a low-growth Budget from a low-growth Government who thumb their nose at the wealth creators. It does not tackle some of the big questions. Where is the money in the plan for adult social care? Where is the money in the plan for the £14 billion deficit in SEND provision to help local authorities that are about to go bankrupt? The Budget is a smorgasbord of contempt for aspiration and growth. The Government have not only abandoned working people in my constituency, but waged a quiet war on aspiration itself.

I am pleased that the Government have lifted the two-child benefit limit. [Hon. Members: “Ah!”] My party laid out how we would do that, but Government Members know as well as I do that poverty does not end there. To tackle poverty, we need to create growth.

There is an alternative, which the Liberal Democrats have laid out in our plan to turbocharge economic growth by repairing the £90 billion Brexit black hole caused by the previous Conservative Government. The UK needs to negotiate a new bespoke customs union with the European Union: a modern arrangement designed around the needs of British businesses and workers, which would raise £25 billion a year. Instead of that we have a Budget that taxes work, punishes investment, stifles aspiration and still fails to deliver for public services; a Budget that tells wealth creators—

[Madam Deputy Speaker (Caroline Nokes)]

Order. I call Graeme Downie.

--- Later in debate ---

[Several hon. Members rose—]

[Madam Deputy Speaker (Caroline Nokes)]

After the next speaker there will be a five-minute time limit.

--- Later in debate ---

[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.

[Madam Deputy Speaker (Caroline Nokes)]

I call Perran Moon.

--- Later in debate ---

[Ben Obese-Jecty]

I wholeheartedly agree. I have spent the last year talking to small businesses in my constituency that have been crippled by the measures in the last Budget. When this year’s measures come in as well, some of those businesses will struggle desperately to keep on lower earners, particularly young people.

My first job as a 16-year-old was working in a supermarket, and I am sure many Members had a similar experience. Those opportunities are going to disappear for young people as a result of these measures. What this Labour Government have not taken into account is that every above-inflation wage increase leads to higher business costs, lower investment and fewer opportunities for those we represent. Many businesses that want to employ people will now find themselves unable to take on staff or to take the risks that the Chancellor mentioned, meaning that businesses cannot grow.

We are very likely to see the wage compression effect, whereby the gap between those on the minimum wage and those in more skilled or experienced roles becomes smaller. That, yet again, leads to a lack of incentive to develop skills and opportunities for those with them. The Government must address that, as it will curtail opportunities for young people and lower earners. Unemployment is now set to peak at 5% and the number of economically inactive people will also rise.

The pay-per-mile tax on electric vehicles will surely disincentivise the switch to EVs before the ban on new petrol and diesel vehicles kicks in, and the OBR estimates that there will be 440,000 fewer EV sales over the next five years because of the tax. How much tax revenue will be lost because those sales never happen? Then there is the plethora of other taxes that are part of the smorgasbord: the tourism tax, the NI raid on pension contributions, the reduction in the tax-free cash ISA allowance and even a milkshake tax.

We have not even touched on the absence of the commitment to 3% of GDP on defence anywhere in the Budget. There is not a single reference to it and I do not understand how. We saw today that the service chiefs will write to the Defence Secretary to tell him that it will not be possible to deliver the strategic defence review. I would love to hear from the Minister how Labour will facilitate defence in this day and age.

The OBR has stated that not a single measure contained in the Budget will improve growth, which has, in fact, been downgraded from the figure forecast in the summer. Taxes on working people have been increased by stealth to pay for welfare. That will be Rachel Reeves’s legacy, and this is quite possibly her last Budget—

[Madam Deputy Speaker (Caroline Nokes)]

Order. You can refer to the Chancellor of the Exchequer as the Chancellor or by her constituency name, but not by her own name.

[Ben Obese-Jecty]

I apologise, Madam Deputy Speaker. I shall draw to a close.

It comes to something when the Chancellor can stand at the Dispatch Box to deliver her Budget, make a boob joke and that not be the most offensive thing she says.