(2 weeks, 5 days ago)
Commons ChamberThe hon. Gentleman will know that there is more headroom in our Budget in October than was left by the previous Government. The lesson I have learned is that I will never play fast and loose with the public finances, as the Conservative party did, because when it did, interest rates went through the roof and inflation topped 11%, and families and businesses in our country are still paying the price for its disastrous economic management.
At the Budget, I wiped the slate clean after 14 years of chaos and mismanagement of our public finances, and I have brought stability back to our economy, so that we can get on with fulfilling our promise of delivering change. That means investing to fix the NHS and rebuild Britain, while ensuring that working people do not face higher taxes in their payslips.
Only through economic growth can we deliver on the promise of change. That is why we have wasted no time in delivering on the Government’s No. 1 mission. We have established the national wealth fund, have kick-started planning reforms to boost long-term growth, are developing an industrial strategy, and are announcing reforms for our world-leading financial services sector, including in pensions. I am under no illusion about the size and scale of the challenge that we face, and the struggles of working people. That is why we choose stability and investment. The Conservatives, however, choose chaos, austerity and decline.
According to the Local Government Association, local government spending on public services is down 42% on what it would have been had it kept pace with demand and costs since 2010. My local authority, Greenwich, faces a £3 million to £5 million gap in commissioned social care costs, and after 14 years of Tory austerity, there is very little headroom to bridge that gap. Does my right hon. Friend agree that local authorities need more assistance to bridge such gaps in the December local government finance statement?
(7 months, 2 weeks ago)
Commons ChamberMy hon. Friend is right to talk about the What Works programme, which has delivered more than 500 trials and is recognised internationally. There are some very good example in the NHS of what is working, including the NHS app. That is now used by 75% of NHS patients—including 17,000 over-90s, so let no one assume that older people are not internet savvy.
Some £8.7 billion was wasted on defective personal protective equipment during the covid crisis, much of it paid to people associated with the Conservative party. People did not have to be Conservative party members to benefit from the fast track, but it did not half help. What is the Chancellor doing to get public money back from those people who sold that defective equipment to the NHS, and does it not just show that we cannot trust the Tories with public money?
What it shows is that we took very difficult decisions in the pandemic to speed up access to PPE for frontline workers, who were literally dying at the time—but there should be no hiding place whatsoever for anyone who commits fraud on taxpayers, which is why there have been over 100 arrests.
(9 months, 1 week ago)
Commons ChamberI am sure the hon. Lady will be pleased to know that the average earner will be subject to the lowest effective tax rate since 1975.
I am going to make a bit of progress.
Sadly, the Labour party is putting this in jeopardy. Labour Members have no plan to cut taxes, and cannot name a single one that they would cut. Instead, they are trying to pull the wool over the public’s eyes by pretending that they have refinanced their £28 billion a year plan to decarbonise. They themselves have said that their pledge costs £28 billion a year, and they are apparently not scaling their promises down. We all know what that means: more taxes for hard-working families. What the public and the House need to know is this: which tax will they raise to pay for the plan, and, if they are in government after the general election, will they stick to our spending plans as set out in the Budget? The British public deserve to know.
During this Parliament, total departmental spending has increased by 3.2% a year in real terms, and day-to-day departmental spending will grow at an average of 1% a year in real terms beyond the current spending review period. The Government are protecting the record increase in capital spending over this Parliament, which will deliver about £600 billion of public sector investment over the next five years. As announced in the Budget, we are also committing an additional £2.5 billion for the NHS in England in 2024-25, protecting day-to-day funding levels in real terms.
Over the last 14 years, the Conservatives have clearly failed to act for the common good. Budgets are about choices, and they have consistently made the wrong ones.
We have the highest tax-raising Parliament since world war two. The Resolution Foundation says that the tax increases since 2019 will cost £3,900 per household, and that incomes will be lower at the next general election than in 2019. The year 2022-23 saw the biggest drop in year-on-year living standards since the Office for National Statistics began its work in the 1950s. Taxes are going up, not down, despite the protestations of the Tories. I have heard no apology for the fact that only a third of the Tories’ tax cuts in this Budget are funded by identified tax cuts elsewhere, with the majority coming from borrowing. We have heard nothing from the Conservative party about that fact. If the Minister wants to dispute it, perhaps he will take it up with the Resolution Foundation.
The Tories also made the wrong choice with their announcement that it is their desire to prioritise cutting national insurance and abolishing it completely. Given the state of our public services, that leaves them having to find £40 billion, which, in the absence of knowing how it will be funded, the Institute for Fiscal Studies described as a prospect not worth the paper it was written on. We still have the Conservatives’ irresponsible recklessness: the “Tory efficiency” in public services that they talk about is for the birds. How will we find those sorts of cuts to our crumbling public services? It is a return to the austerity that we had between 2010 and 2015, which brought our services to their current state. The Resolution Foundation says:
“The idea that such cuts can be delivered in the face of already faltering public services is a fiscal fiction.”
How did we get to this state? Nothing in our public services is better today than it was in 2010. We are a better country than the one the Tories have brought us to being.
Another choice that the Tories are making is to put up council tax. My council tax has gone up over 50% since 2010, and the fees and charges that are being imposed on local people are stealth taxes forced on them by the Government because they have starved local authorities of resources.
Budgets are about choices, including in education. Every school in my constituency has lower per-pupil funding than it had in 2010. My borough has had £33 million lower funding overall since 2010, which is £867 per pupil. These are the amounts needed to restore funding to 2010 levels. Why are the headteachers and governors I speak to in my constituency worrying about costs when we hear from the Government that they have never had it so good? It is about choice, and the Government have consistently made the wrong choices.
Before I finish, I want to make reference to the contaminated blood scandal. Justice for those infected and affected has been delayed unacceptably by the Government. Sir Brian Langstaff made it quite clear how compensation could be paid, and he published the details in April last year. We are nearly a year on, and we are no closer to those people being paid compensation. In fact, the Government are putting steps in place to delay compensation to beyond the general election. The only way these people will get justice is if there is a Labour Government, and the sooner the Prime Minister calls that election, the better for them and the better for the country. We need a Government who will make decisions in the common good and ensure that everyone benefits from the growth that we need in our economy. We are certainly not going to get it from the Conservatives.
(10 months ago)
Commons ChamberThe right hon. Lady is right that many people have had very challenging times over the last couple of years. Let me correct something that I previously said to the House: the increase in real household incomes since 2010 is actually 8%, while the increase in GDP per capita is 12%. I wanted to put that on the record. As for taxes, I cannot speculate about what will happen at the next fiscal event.
According to the forecast, in five years’ time debt will be higher than it is now. Is this a reasonable time to be talking about tax cuts, and does their doing so not suggest that the Government have learnt nothing from the Budget of September 2022?
I assure the hon. Gentleman that this Chancellor and this Government are very different from those in September 2022 to which he refers. As for debt, I repeat that we are keeping to our fiscal rule, which is and has always been that debt will be falling in the fifth year of the forecast—falling, once we exclude the Bank of England. That has always been our position, and it will continue to be the case.
(10 months, 2 weeks ago)
Commons ChamberThis is an appalling tragedy, and my thoughts remain with all those affected. We understand the strength of feeling, and the need for action. The Government have accepted the moral case for compensation, and have acknowledged that justice needs to be delivered for victims. As such, the Government intend to respond in full to Sir Brian Langstaff’s recommendations for wider compensation following the publication of the inquiry’s final report in May this year.
I know that the hon. Gentleman has a lifelong friend who has suffered from this terrible tragedy, and I can reassure him that we are determined to do right by the victims and those who have tragically lost their loved ones. The victims of the infected blood scandal deserve justice and recognition. On his question on timing, Governments of all colours have failed to sort this out, but I am pleased that the interim payments at least have been paid. As I have said, the Government are committed to the moral case for compensation and we are expecting the final report very soon. We will move as quickly as possible afterwards.
We have had Sir Brian Langstaff’s recommendations since April 2023. Mrs Dorricott, the wife of the Chancellor’s constituent Mike, told the inquiry that the Chancellor, when he was Health Secretary, told Mr Dorricott:
“Don’t worry about this, we’ll sort it.”
He is now the Chancellor, with his hands on the purse strings, so will he now—through his colleague the Chief Secretary to the Treasury—confirm that the Government have identified the contingencies to pay the compensation to the people hit by the infected blood scandal?
I can confirm that we are working with the Cabinet Office and the Department of Health and Social Care to ensure that we can respond as quickly as possible once the inquiry reports.
(1 year, 1 month ago)
Commons ChamberI commit to my right hon. Friend that I will not just continue to engage with the sector, but continue to enjoy the odd glass of Penderyn, which is my favourite whisky.
Can the Chancellor confirm that, after today’s tax cuts, we will still have the highest tax burden for 70 years—up £4,000 per household on pre-pandemic levels—when we go into the next general election?
What I can confirm is that after today’s measures we will have the lowest income tax burden for someone on average pay in the G7—lower than Japan, America, France, Germany, Italy and Canada.
(1 year, 6 months ago)
Commons ChamberMy right hon. Friend is absolutely right. I was pleased to join him in a Westminster Hall debate about the regulation of the cryptoassets sector. I commend the work done in this House by the crypto and digital assets all-party parliamentary group. He might join me in welcoming the decision by Andreessen Horowitz, one of the world’s largest technology companies, to locate its only international office outside of San Francisco here in the UK and to run its 2024 cryptoassets school here.
In 2016, Exercise Cygnus tested the country’s preparedness for a pandemic. Was the Government’s response at that time adequate, and what can the Chancellor do in his current role to make sure that we are properly prepared in the future?
I am looking forward to answering questions about that tomorrow afternoon at the covid inquiry. We did what was recommended following Exercise Cygnus. Certainly, Ministers did what they were advised to do, but the operation was focused on pandemic flu. The question that we must ask ourselves is why we did not have a broader focus on the different types of pandemic that could have happened, such as covid.
(1 year, 6 months ago)
Commons ChamberI am deeply intrigued by the concept that the hon. Lady’s constituents have hitherto been moving to the neighbouring Conservative-held seat of Mid Bedfordshire. Perhaps they recognise the better economic potential—the better opportunity to bring down rates as a result of our making the tough choices. Perhaps they welcome the sheer amount of support that we have provided for homebuyers. I wish her constituents well and hope that those who have moved to Mid Bedfordshire enjoy their next Conservative Member of Parliament.
The Minister claims that the current economic climate is down to the world economic situation, but in the next breath he claims that if, at some unspecified date in the future, things get better, that would be down to the Government. Over the recent period, mortgage borrowers have contributed an extra £1 billion in interest rates. Over the next couple of years, they are predicted to contribute £9 billion. The previous Prime Minister has apologised for her contribution to that, so why will he not do the same?
In fairness, it is absolutely the case that these are largely international factors. The job of the Government is to control the variables within their control. The primary thing that they can do is not to come forward with greater unfunded spending promises as that would put more pressure on the public purse and would lead to interest rates and inflation being higher for longer. That is what is within our controllable domain and that is what we are focused on. I am not worried about where the credit accrues or otherwise; what I am worried about is trying to reduce interest rates for ordinary people at the earliest opportunity.
(1 year, 10 months ago)
Commons ChamberThe hon. Gentleman mentions defence, but he might want to explain to his constituents why, at the last general election, he backed the right hon. Member for Islington North (Jeremy Corbyn), whose policy would have had us leave NATO and undermine the nuclear deterrent.
We have stood by the people of Ukraine in the face of a real war. We have not deployed into the theatre, but we have done everything possible short of that, including training the Ukrainian army since 2015. So yes, I will tell the hon. Gentleman’s constituents the truth: they should be proud of what this country is doing for the people of Ukraine.
I wonder whether the Minister thinks that the sanctions against Russia are having the desired effect. If he thinks that they are, as I suspect he does, can he explain why the IMF predicts that Russia will fare much better than us?
I am happy, once again, to refer to what the IMF said. At this morning’s press conference, Pierre-Olivier Gourinchas, the IMF’s economic counsellor, confirmed
“the good news: the UK economy has actually done relatively well in the last year. We’ve revised”
growth
“upwards to 4.1%...that’s one of the highest growth rates in Europe”.
(1 year, 10 months ago)
Commons ChamberUrgent Questions are proposed each morning by backbench MPs, and up to two may be selected each day by the Speaker. Chosen Urgent Questions are announced 30 minutes before Parliament sits each day.
Each Urgent Question requires a Government Minister to give a response on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
The approach the Government are taking, case by case they will not deal with specifics, is just an excuse not to answer questions on specific examples that we raise in this House. I know that the bar is very high, but there can be few of Putin’s allies more notorious than Yevgeny Prigozhin. How can the Minister come to the Dispatch Box and say that the decisions were made by a civil servant? How can there be no red flag on the file of someone of such notoriety to say, “Speak to a Minister”? When are you going to get on and do the job you were put there for?
The reason that we do not comment on individual cases is well-established. I expect that it would be exactly the same under any other Government. To be clear, the UK sanctions regulations do not exclude payments for any particular legal services from that permission. Excluding such payments can give rise to issues about access to justice. OFSI does not consider it appropriate for HM Treasury to effectively decide whether a case has sufficient merit to be permitted to proceed by deciding whether to issue a licence permitting legal fees to be paid. Such an approach would raise considerable legal concerns.