Budget Resolutions

Caroline Nokes Excerpts

Wednesday 6th November 2024 Commons Chamber

And it is declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.

[Madam Deputy Speaker (Caroline Nokes)]

I call Jonathan Reynolds.

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[Several hon. Members rose—]

[Madam Deputy Speaker (Caroline Nokes)]

Before I call the next speaker, I wish to make a short and hopefully helpful statement. It is about the way in which Members are called to speak in debates. Members who wish to catch my eye, or indeed the eye of Mr Speaker himself or any of the other Deputy Speakers, should write to Mr Speaker in advance. Those who have not written in may still be called, but priority will be given to those who have applied in writing in advance.

Members who have applied to speak, but no longer wish to do so, should notify the Speaker’s Office as soon as possible. Once you have written in to request to speak, you should turn up in the Chamber for the start of the debate and for all contributions from the Front Bench. You should be present in the Chamber for most of the debate. If you are not able to be here because of other commitments, then you should withdraw your application to speak.

Selection of speakers in debates is at the discretion of the Chair. The Chair, however, cannot predict precisely when a Member might expect to speak. When a very large number of Members have put in to speak, as we have seen over the course of the entire Budget debate, it may not be possible to get you all in, even with the use of time limits. If for any reason you need to be briefly absent from the Chamber during the debate in which you are down to speak, you should notify the Chair, but a prolonged absence may result in your name being removed from the list.

May I ask Members not to crowd the Chair, please, to make requests about when they are likely to be called? Please go through your Whip. It is very distracting and difficult for the Chair, particularly if there are a large number of interventions and a large number of Members trying to speak to me. Please go through your Whip, who will be able to handle those requests appropriately.

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[Jonathan Reynolds]

Let us reflect on where we are today—the first day of the constructive Opposition. The new Leader of the Conservative party stood at the Dispatch Box two hours ago and called for both tax cuts and massive public spending on defence. How are you going to pay for projects that you promised but never delivered, and that you knew you could never pay for?

[Madam Deputy Speaker (Caroline Nokes)]

Order. The Secretary of State knows better than to say “you”.

[Andrew Griffith]

We would have got a better answer from ChatGPT. The reality is that the Budget not only increased taxes in the outyears by £40 billion a year but increased borrowing by £140 billion over the course of the plans—yet despite that largesse, there was no room to fulfil the mandate of British researchers and continue to invest in the supercomputer and infrastructure that they need.

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[Andrew Griffith]

Well, my—[Interruption.]

[Madam Deputy Speaker (Caroline Nokes)]

Order. I will hear the shadow Secretary of State.

[Andrew Griffith]

My hon. Friend makes exactly the right point. The Government are enormously lucky, given the spike in gilt yields over the preceding weeks and subsequent to the Budget, that the previous Government dealt with the aftermath of the financial regulatory failure in respect of liability-driven investment. We dealt with that, and as a result we have a more stable financial system, which has been able, so far, to survive what the Government have done.

In evidence taken by the Treasury Committee yesterday, Richard Hughes explained, and I shall say this slowly, that an increase to interest rates of just 0.3%—one third of 1%—would wipe out all the headroom. That is in the OBR’s economic and fiscal outlook, and is no doubt why the OBR gives the Government only a 54% chance of hitting their targets. That is barely better than the odds on a coin toss.

So there we have it. The Government spent months talking up their credentials on enterprise. They looked business owners in the eye and told them that they would have their back and support them, but 120 days later they went back on their promise—a prawn cocktail offensive with a nasty dose of indigestion. They have crushed confidence and destroyed investment. They have checked any incentive for growth. They have left thousands of enterprising strivers wondering when the day will come when the shutters on their shops are not lifted any more. I dare the Secretary of State to stand before the 4.8 million family business owners and tell them that this is a Budget that will work for them. Risk takers and wealth creators deserve a Government who have their back, invest in infrastructure and do not embolden the inefficiencies of the public sector. Be in no doubt: while the Government keep growth, innovation and entrepreneurs in their crosshairs, the Conservatives will always be on the side of business.

[Florence Eshalomi (Vauxhall and Camberwell Green) (Lab/Co-op)]

I am delighted to speak about the first Labour Budget in 14 years. For my constituents, the last fourteen years have been difficult. Too often, they felt that the then Government were not on their side. That Government did not hear that austerity left us not only with deteriorating public services but more fragile communities. They did not reform the planning system, which would have alleviated the housing crisis and stopped the 20% to 30% rent increases that left many of my constituents facing eviction during a cost of living crisis. They did not take the difficult decisions to protect the economy, and left our new Government with a black hole to fill.

We heard loud and clear in July that government must be different. This Budget offers that. We have a rise to the national living wage and to the rate for under-21s, which will make work pay whatever someone’s age. Funding of over £25 billion for the NHS over the next two years will deliver more doctors and tens of thousands of extra appointments, helping hospitals such as St Thomas’, just over the river in my constituency.

As the Chair of the Housing, Communities and Local Government Committee, I have heard a lot from our local authorities, which have borne the brunt of the failure to tackle the housing crisis. Councils have been forgotten, with devastating consequences for communities. Yesterday, at our first public Committee meeting, we heard from homelessness organisations and local authority representatives on the state of temporary accommodation. Councils are having to spend unsustainable amounts to fill gaps in that area, which is driving them to near bankruptcy. In London alone, 70% of local authority housing budgets are being absorbed by temporary accommodation. That means less money for repairs and maintenance of housing stock, which leaves tenants feeling the increase in the crisis.

The human impact is even more shocking. As I speak, over 150,000 children are in temporary accommodation across England. In the last five years, 55 children have died in circumstances linked to temporary accommodation; 42 of them were under the age of one. That should shock and shame us. Those deaths are not coincidental. Yesterday, the Committee heard about families living in one room. That can stunt a child’s growth because they are not able to do the things they should, such as crawling. We heard about how a child’s ability to form social attachments with peers can be affected by the lack of consistency caused by constant moving. We heard about how parents are often plunged into mental health crises because of the stress of raising a family in those conditions, which further isolates the child.

The Government can and must do better. I welcome the steps in this Budget to supplement the affordable housing programme, increase homelessness spending and scale back right to buy to boost our social housing stock, but they must be first steps. We need further significant change in the upcoming funding settlement, and the next Budget must truly start to address that crisis. I am particularly worried about the freeze to local housing allowance rate, because it is a lifeline for people who are struggling. That is covered by the Department for Work and Pensions, but the measure could have a significant impact on attempts to tackle the homelessness crisis, so it must be addressed in upcoming statements.

The deep harm caused by the last 14 years cannot and will not be fixed overnight. The Budget is the first in my five years in this House that gives us a glimmer of hope and a road map for fixing our broken public services. I congratulate the Chancellor and her team on getting on with the job so quickly, but I will be a voice for the thousands of families who continue to fall through the cracks with no safety net beneath them. They cannot afford to wait any longer for help—they need it now. I urge the Government to give attention to people in crisis, such as those in temporary accommodation. We cannot, as a Labour Government, risk failing a generation of young people.

[Madam Deputy Speaker (Caroline Nokes)]

I call the Liberal Democrat spokesperson.

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[Daisy Cooper]

I thank my hon. Friend for that excellent intervention. I absolutely agree that they should be exempt; I think the rise in national insurance contributions is the wrong thing to do, full stop, but if it is going to go ahead, there must be exemptions. In my own area, for example, one local hospice in Hertfordshire will see its national insurance contributions go up by £150,000. Its warning is very clear: that if this rise goes ahead, beds will have to close.

People must see opportunities in enterprise as well, but the rise in national insurance contributions will hit small businesses hard, especially those on the high street. The success of our high streets really matters, not just for growth but for confidence: for so many people, the high street is the most visual and visceral mark of whether or not the economy is thriving. I would be grateful if the Minister could indicate later today whether the Government intend to bring forward a high streets strategy, and if so, when we might see it.

I have been inundated with messages from small businesses on my high street in St Albans. Here are just some of the quotes: one business said that

“the reality of last week’s budget will mean no more investment and no further recruitment as was planned and in all likelihood redundancies.”

Another small business said:

“I provide employment locally, raise money for local charities and have created a much-loved addition to our town centre…I am worried about how much longer I can go on.”

One business said that it

“would be impacted mainly with our business rates increase and my plea is that that can’t happen. The high street challenges are hard enough as they are”

without having to face

“an uncertain Christmas trading period.”

Other colleagues have mentioned the impact on medical charities, hospices and GPs. In Hertfordshire, the local medical committee said:

“Since 2014 we have seen 56 practices close or merge across Bedfordshire and Hertfordshire, representing 35% of the 216 practices that existed back in 2014.”

GP practices need certainty as to whether any of these costs will be passed on to them at a time when they are already feeling the squeeze. I can guess what the Minister may say: he may encourage Members on the Opposition Benches to indicate how we would raise taxes instead. In the spirit of constructive opposition, we Liberal Democrats urge the Government to think again, because we believe the burden of fixing our public services should fall on the shoulders of the big banks, the gambling companies and the big tech companies, not the small businesses that are the beating heart of our communities. Suppressing small business is not the route to growth.

The business rates reforms in the Budget not only fall short of what we need, but actually make things worse in the short term. The last Conservative Government promised to reform the business rates system, but failed to do so. The current system penalises bricks-and-mortar retailers, while out-of-town retailers manage to get off almost scot- free. Pubs, high street shops and the rest of the hospitality sector have been hit really hard, with the discount being reduced from 75% to 40%. That is going to have a major impact. St Albans is renowned for its pubs—as many of the more long-established Members will remember, I talk about the pubs in St Albans on many occasions. We have more pubs per square mile than anywhere else in the UK, but those pubs will now face additional business rates bills of between £5,000 and £35,000. Some fear that this could push them over the edge.

Over the past few days, much has been said about food security as well. We Liberal Democrats agree that the loopholes that are being exploited by big corporations that buy up swathes of our land must be closed, but we are concerned that the Government’s approach is rather crude—that as they try to close those loopholes, some family farms will be collateral damage. Again in the spirit of constructive opposition, I encourage the Government to look again at our proposal for a proper family farming test, as is used in some other countries.

Finally, I will say a word or two about investment. We Liberal Democrats believe that the Government have done the right thing in changing the fiscal rules, and in principle, we believe in the importance of borrowing for productive investment. However—once again, I say this in the spirit of constructive opposition—I think the Government have put all of their growth eggs in the building back basket. I understand why they may be doing that. However, given the Trump presidency and the prospects of potential tariffs and trade wars that could drive up the price of products such as semiconductors and construction materials, there is a very real risk that the investment that the Government make will not reap the rewards that we all hope for—through changes in the global climate, rather than any fault of their own. We need a resilient economy, so I praise the Government for investing, but urge them to look at the question of resilience. At this time, it is even more important that we look to small businesses and high streets for growth, so I urge the Government to think again and unleash the power of our high streets and small businesses, rather than hamper them.

[Madam Deputy Speaker (Caroline Nokes)]

I call Irene Campbell to make her maiden speech.

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[Several hon. Members rose—]

[Madam Deputy Speaker (Caroline Nokes)]

Order. There will have to be a time limit, but after we have heard all the maiden speeches. I call David Williams to make his maiden speech.

[David Williams (Stoke-on-Trent North) (Lab)]

Thank you, Madam Deputy Speaker. I am really pleased to follow the excellent maiden speech by my hon. Friend the Member for North Ayrshire and Arran (Irene Campbell), and I look forward to many more such speeches as the afternoon goes on.

It is an absolute honour to represent Stoke-on-Trent North and Kidsgrove, an area that has made me who I am. I am also proud to speak in this incredibly important debate. This Government take seriously the need to boost household incomes and to lift families out of poverty. I am delighted that the increase in the national living wage outlined in the Budget will put an extra £1,400 in the pockets of thousands of workers across Stoke-on-Trent and Kidsgrove.

In memory of Sharlotte-Sky Naglis, I would like to thank my predecessor, Jonathan Gullis, who campaigned to change the law to allow blood samples to be tested without consent where loss of life has occurred following dangerous driving. I said to Sharlotte’s mum last week, “I will continue to fight for this critical legislation, though I know nothing can make up for the loss of your child.”

I will also say thank you to Baroness Anderson, who put the national scandal of holiday hunger firmly on the radar during her time in this House. So many children up and down our country are now fed during school holidays.

I did not set out to become an MP. After studying at Keele University—one of our two great local universities—I worked in a local Sure Start centre. I saw how mums had been let down by the state, but I also saw how, with a hand up from the new Labour Government at the time, they were able to get back on their feet. I then worked for the YMCA, where we set up training schemes, secured funding to reopen youth clubs that were closed under austerity, and supported young people into affordable housing.

However, 14 years of Conservative Government left our services on their knees and levelling up was a failed promise. We faced a 97% cut in spending on youth services in my constituency alone. Our Sure Start centres were hollowed out. Annual household incomes have fallen behind rising living costs. Indeed, in some areas of my constituency as many as two thirds of families live in poverty and weekly earnings are some £100 lower than the England average.

I put myself forward to be an MP to break this cycle of broken promises. Our young people locally should not feel they need to move away for well-paid work. I want our families to live in affordable, decent homes, and I want high-quality care for everyone who needs it—real investment, high-quality public services, restoring hope to our people.

My dad once told me, “People like us don’t become MPs.” While, thankfully, he was wrong, because I am here today, many people still believe that where we are born will forever dictate our life’s direction. That is why I am a member of the Labour party, because we believe that everybody, no matter where they are from, should have equal access to opportunities.

I am incredibly proud of my background. My mum and my grandad worked in our local potbanks—H&R Johnson, Richard Tiles and Dunn Bennett and Co. My mum and dad met in the old Adulte ballroom in Burslem. My weekends as a child were spent at Burslem and Tunstall markets, playing out in Tunstall park—after mass, of course—and doing our weekly shop in the Normid hypermarket in Talke Pits. Having worked locally for over 20 years, I know how blessed we are to have so many local people, charities, businesses and faith groups that provide vital support to our community. Whether it is the Chell Area Family Action Group, Middleport Matters, the Hubb Foundation or excellent community organisers like June Cartwright, Anne Marie and Colin, or Mark Porter, I am so grateful for the contributions they make to our towns.

Our history is one of hard-working people, from the potters and the miners, who powered us through the industrial revolution, to the public sector workers who care for us and the business owners who create opportunities for our community. Our history is forged by our people, who have contributed enormously to our local economy and the success of our country: Reginald Mitchell, from Butt Lane, the engineer behind the Spitfire, which helped lead us to victory in the second world war; Clarice Cliff, a pioneering potter who took on a male-dominated industry to make a name for herself; and A. R. Wood, our best-known architect, who created some of our most beautiful buildings including the Burslem school of art and the Queen’s theatre.

These buildings, and our many other historical sites, are ready to have new life breathed into them. We need new spaces for small businesses and new homes for our families, and I want to see our history build our future. In my constituency, we are proud of our past and ambitious for our future, and I know that ambition will be matched by our new Labour Government.

Traces of our proud history can be found in our bottle kilns; whether Moorcroft Pottery in Cobridge or Moorland Pottery in Burslem, it fills me with pride to see the flames of our history continue to burn in these modern times. And I am part of what we call “the turnover club”, and I have attracted some bemused looks as I walk around the cafés in Westminster and lift each plate, bowl and saucer to see where it was crafted; I am pleased to see that so many were made at the Steelite factory in Burslem or at Churchill in Sandyford. I am so proud that my constituency continues to lead the way in ceramics production.

Finally, I would like to pay tribute to my friend and predecessor, Joan Walley, who represented Stoke-on-Trent North for 37 years. Joan truly embodies what it means to be a good constituency MP. In her maiden speech she spoke eloquently about the quality of housing. Her fight for improved living standards continues to this day, and I am incredibly proud to be a part of a Labour Government who have delivered their commitment to working people through their first Budget in 14 years.

[Madam Deputy Speaker (Caroline Nokes)]

I call Charlotte Cane to make her maiden speech.

[Charlotte Cane (Ely and East Cambridgeshire) (LD)]

I want to thank those who elected me as the first MP for the new Ely and East Cambridgeshire constituency, although I follow in the Liberal footsteps of Clement Freud and others before him. I congratulate the hon. Member for North Ayrshire and Arran (Irene Campbell) on making her first speech to this House; her constituency sounds almost, but not quite, as beautiful as mine. I also congratulate the hon. Member for Stoke-on-Trent North (David Williams) on his first speech. My mum is a member of “the turnover club” and I became an honorary member when I came to this House because I felt I needed to check the saucers so that I could report back to her; so I understand where the hon. Gentleman is coming from.

Ely and East Cambridgeshire contains part of the old North East Cambridgeshire constituency and most of South East Cambridgeshire. I thank the right hon. Member for North East Cambridgeshire (Steve Barclay) for being so helpful in passing over casework from constituents and I thank Lucy Frazer KC for representing South East Cambridgeshire and in particular for supporting the much-needed upgrade to Ely rail junction. I was disappointed to hear nothing about funding for that in the Budget. We all want economic growth for this country and the Government need to help us fix Ely junction if we are to get freight to and from the ports and allow us to have that growth. I am a chartered accountant so I know that the business case is unanswerable and I urge the Chancellor to put the funding for the Ely junction upgrade in the spring spending review.

My constituents have a range of occupations: we have farmers, we have people in horseracing, and we have cutting-edge technology. Going back to the comments of the hon. Member for Stoke-on-Trent North, I was amazed to be invited to accompany Almath Crucibles to receive the King’s award for innovation—people have been making crucibles for 8,000 years, yet it has come up with an innovation, which, as an archaeologist, I found utterly amazing. I was also amazed to look at how they make those crucibles in my constituency; they make them with fantastic materials, but they do so in a way that our parents would recognise from the pottery industry. It is stunning.

We are also a beautiful constituency, with an amazing natural environment. We have chalk grasslands, wetland peat and the River Great Ouse running through it all. Over the centuries, people have added things: have ditches, dykes and lodes that help control the water in the fens; and the Devil’s dyke, which runs from my home village of Reach through to Woodditton, a beautiful, probably late Saxon earthwork and a chalk grassland. Watching over all that, we have the “ship of the fens”, which many say is one of the best cathedrals in Europe. Personally, I think it is the best but I would not claim to be an expert in cathedrals.

The National Trust is doing a lot of work near me with Wicken fen, as it has a vision to enlarge the wetland peat area to protect the biodiversity that depends on it and, as we heard in an earlier debate, capture the carbon that is within. I was lucky enough to visit recently, and was promised that we might see a kingfisher. We did indeed see that beautiful kingfisher going back and forth across the river. It was fantastic.

However, there are some downsides to my constituency. It is very expensive to buy or rent a home, which is pricing out young people and families. The median price of a house in my constituency is 11 times the average salary, and the rental market follows on from that, basically. It is unaffordable for many people. On top of that, a lot of our affordable housing is badly insulated, and people rely on oil for their heating. Across my constituency, there are families who cannot afford to heat their homes. As the Government are rebuilding Britain, which I hope that we can do, they should ensure that homes are built that are affordable for people to live in—not just homes that have an affordable price or rent but that are energy-efficient so that they are cheap to run. We must also ensure that we have the infrastructure and support around those homes, whether that is doctors, dentists, schools, green space or water. We need to have all those things.

On the subject of dentists, Ely and East Cambridgeshire is a dental desert. I am horrified to say that people cannot get on an NHS dental list in my constituency. That has to change. I have met people who have spent their life savings on dental treatment or people who, for heaven’s sake, have done it themselves. It is horrendous and we have to address it.

My great-grandfather grew up in the workhouse around Stoke-on-Trent. My parents were the first people in their families to go to university, and they always brought me up to believe that I could do anything I wanted as long as I worked hard on it. I first stood for Parliament in 1987, and mum and dad helped me with that campaign. Sadly, my dad died a few years ago, but my mum supported my election campaign this year, and I know that dad would have been really pleased to see me elected to this House, just as mum was.

I now have to correct an error I made on election night. I did not expect to win, so I had not written a victory speech. I remembered most of the people I had to thank but, as my husband and my children have repeatedly reminded me since, I forgot to thank them, so I am delighted to put on record, and in Hansard no less, my thanks to my husband, Jon, and my children, David and Kathryn, for their unswerving support and encouragement. This might sound a bit odd, but I also need to thank Fosters mill, which is a 19th-century windmill in Swaffham Prior that is still going strong. Its Prior’s oats fuelled my campaign and now give me a breakfast boost each morning to get me through the day. I have to thank my agent Lorna Dupré for running a wonderful campaign and all my campaign team for delivering leaflets and doing all the canvassing. Most of all, I want to thank the people of Ely and East Cambridgeshire for engaging in the conversations and putting their trust in me to be their MP. I will do my utmost to make sure that their voices are heard in this House. I will also try to be the very best local MP possible.

[Madam Deputy Speaker (Caroline Nokes)]

There will be a three-minute time limit after the next speaker. I call Michelle Welsh to make her maiden speech.