Budget Resolutions and Economic Situation

Debate between Ed Davey and Bernard Jenkin

Wednesday 28th October 2026 Commons Chamber

[Ed Davey (Kingston and Surbiton) (LD)]

It is always a pleasure to follow the Chair of the Treasury Committee, the hon. Member for Hackney South and Shoreditch (Dame Meg Hillier). I am glad she committed to looking at the devil in the detail of this Budget, because when one looks at the fine print there are quite a few things for her Committee to scrutinise. In particular, I hope that she will look at the very disappointing growth forecasts, because I think this Budget will be defined more by Labour’s red lines on Europe and the Conservatives’ Brexit red tape than by faster growth.

At the root of so much of what has gone wrong in our country—the cost of living crisis, higher taxes, broken public services, empty high streets, and the lack of jobs and opportunity—is the lack of economic growth. Our economy is being held back. British business is being held back. It is being held back above all by the terrible damage of the Conservatives’ Brexit deal: a deal, let us never forget, that was backed by the leader of Reform and voted for by Labour—a deal that put up pointless new barriers to trade, tied up British firms in extra costs and red tape, and pushed up prices on our supermarket shelves.

[Sir Bernard Jenkin (Harwich and North Essex) (Con)]

Will the right hon. Gentleman give way?

[Madam Deputy Speaker]

Order. As I said earlier in my introductory remarks, Sir Bernard, we do not intervene on Front-Bench speeches. The odd thing is that we went through this scenario this time last year. [Interruption.] We did, we did—yet here we are again.

Budget Resolutions

Debate between Ed Davey and Bernard Jenkin

Wednesday 26th November 2025 Commons Chamber

[Ed Davey (Kingston and Surbiton) (LD)]

We look forward to the Treasury Committee challenging the Government on the details of the Budget. This Government were elected on a promise to tackle the cost of living and grow the economy, and this is the second Budget in which they have failed to do either. For millions of people struggling with higher bills, all this Budget really offers is higher taxes.

The OBR sets it out in black and white: disposable income and living standards are down thanks to this Budget. Surely the Chancellor should have learned from her first failed Budget that we cannot tax our way to growth. Under the Conservatives, the UK’s tax burden reached its highest level since 1948 and it hit the economy, yet under this Budget the tax burden will hit an all-time high.

There is an alternative to all these Conservative and Labour taxes, and the shocking reality is that the Government know it: a new trade deal with Europe—a major new deal to cut the cost of living and grow our economy. The truth is that Boris Johnson’s Brexit deal has cost the Treasury £90 billion a year in lower tax revenue. Imagine if the Chancellor had adopted our plan to reverse those Brexit costs. Imagine how much more we could be helping families and pensioners across our country with the cost of living. Imagine how we could be ending the cost of living crisis today.

[Sir Bernard Jenkin (Harwich and North Essex) (Con)]

Will the right hon. Gentleman give way?

[Madam Deputy Speaker]

Order. You are a senior Member of the House, and I made it very clear earlier that no interventions should be made on party leaders.