Income Tax (Charge)

Caroline Voaden Excerpts

Monday 4th November 2024 Commons Chamber

[Caroline Voaden (South Devon) (LD)]

It is an honour to speak in this debate in response to the first ever Budget delivered by a female Chancellor.

There is no doubt that the Government had some tough decisions to make after inheriting a mess caused by the reckless economic mismanagement of the previous Government, but we are also still reeling from the economic disaster into which that Government pushed us with their Brexit fantasy. Yesterday’s OBR report estimates that Brexit will cost the UK 4% of GDP per year, with imports and exports down by 15%. The predicted GDP growth of 2% next year pales in comparison. If we are serious about economic growth, we absolutely must improve our trading relationship with Europe, and we in this House need to be brave enough to have that conversation—but back to the Budget.

Along with my Liberal Democrat colleagues, I am glad that the Chancellor has listened to our calls for investment and support for the NHS, and promised a cash injection to start repairing the damage done to local health services. I also welcome the £1 billion of capital investment. My local hospital in Torbay represents the ultimate Liberal Democrat case study of despair, with sewage leaking inside the hospital—more than 700 times at the last count. Investment to deal with rotting and broken buildings is vital, and will ultimately help to put our creaking country back on its feet.

The lack of discussion about social care is a gaping hole, and Liberal Democrats have been calling loudly for a cross-party conversation. Free personal care could deliver annual savings for the NHS of up to £3.3 billion by 2031. Yes, it will cost money, but it is this kind of investment that we need to repair our health service.

In the spirit of offering constructive opposition to the new Government, I want to highlight two issues that will affect my constituency considerably. The first is agricultural property relief. Having seen the front pages, I am sure that the Chancellor is well aware of the distress and fury that this has caused in rural communities such as my constituency. It is simply tin-eared to say, “We cannot afford farmers to die tax-free.” We cannot afford to lose more farms: they are the backbone of our rural economy, and they are fundamentally important for national food supply.

The second issue is the tax relief offered to the hospitality, leisure and tourism sector. Those businesses have struggled to recover since the pandemic, while carrying the burden of rising energy prices, interest rates and staff shortages. We urge the Government to go further on business rates reform by fundamentally overhauling a system that is destroying our high streets and town centres. The Liberal Democrats believe that there are much fairer ways to raise the money needed than by hitting small businesses. Our manifesto sets out our calls for a fairer tax system, including raising money by reversing the Conservatives’ tax cuts for the big banks, all by asking the tech companies and the oil and gas companies to pay more. The Government could also have gone further on capital gains tax for the top 0.1%.