Budget Resolutions

Edward Leigh Excerpts

Monday 11th March 2024 Commons Chamber

[Sir Edward Leigh (Gainsborough) (Con)]

On tax cutting, there has always been a social contract in this country by which people pay national insurance until they become of pensionable age, and then they do not pay national insurance. Therefore, cuts in national insurance do not help pensioners, and in particular aspiring pensioners, who have put something aside. What I would like to know from the Secretary of State—I see alongside her the Exchequer Secretary to the Treasury, who said this change might take decades—is what is the long-term plan to protect pensioners? National insurance cannot just be abolished and replaced with nothing. It can only be replaced with higher tax, from which pensioners do not benefit.

[Lucy Frazer]

My right hon. Friend knows that we want to reduce taxes on working people. It is not right that they have double taxation. He will also know about the importance of protecting pensioners, which is why, throughout our time in government, we have protected them, with one of the key ways of doing that being through the triple lock.

I will highlight the progress made on the five priorities that the Chancellor and the Prime Minister set out some time ago. Debt is falling in line with our fiscal rules, inflation has halved and growth is a full 1.5 percentage points higher than predicted. That has only been possible because of the decisions taken by this Government, such as putting an average of £900 back into the pockets of 27 million workers in the space of four months. There is further to go, and the Budget will help us get there, creating more success stories like our creative industries across our economy and across the entire United Kingdom.

While the Labour party snipes aimlessly and endlessly from the sidelines, we are targeting funding where it is needed most. While the Labour party talks the economy and indeed the rest of the country down, we are backing working families and British businesses with tax cuts and tax breaks. While the Labour party U-turns on its U-turns, we are putting our economy on track for new jobs, new growth and new investment. The Conservative Government have a plan, and that plan is working. I commend the Budget to the House.

--- Later in debate ---

[Wes Streeting]

I agree with the hon. Member. Politics is about choices, which is why we choose to end the tax breaks enjoyed by private schools, which are attended by the 7%, in order to fund more teachers and education for the 93%. The Conservatives have not nicked that policy yet—it could be any day now—but it does say something about choices.

There is something else that I found really galling. When the Government appointed Sir Kevan Collins as their catch-up commissioner, they could not have found someone better to advise on education, life chances and how to correct the obvious damage that had been done to children’s education as a result of successive lockdowns. Most of us in this House—on both sides—felt that the lockdowns were necessary, given the scale of the virus, but we ought collectively to acknowledge that there was a consequence and a debt to be repaid to that generation. When Sir Kevan Collins published his report, which was commissioned by the Government, the Prime Minister decided that he could not do any more. If the Prime Minister’s children attended state schools and he understood the challenges that such schools were facing with recruiting teachers and providing the wide range of extra-curricular opportunities that so many independent schools offer, I wonder whether the Prime Minister would have made the same political choices—or is it just for other people’s children that this Prime Minister and his Government have low aspirations?

I think it is fair to say that we know why the Prime Minister was so wedded to the non-dom tax status. In fact, the only way the Chancellor could have upset his neighbours more was if he had raised taxes on helicopter rides and heated swimming pools too. But at least the Prime Minister can now look the British people in the eye and honestly tell them that we are all in this together. In fact, we have to pity poor non-doms—they cannot even look to their friends, or indeed their husbands, in the Conservative party to defend them any longer. Nor can pensioners, incidentally, because 8 million pensioners will see their taxes increase as a result of this Chancellor’s decisions. I do not think that is right or just, and I do not think people will forget it come the general election.

I turn to the Prime Minister and how he evaluates his own performance. At a Wetherspoons in Maltby last week, he told the public that at the start of this year we “turned a corner.” He is right: at the start of this year the economy turned the corner from flatlining and entered recession. Rishi’s recession is taking a heavy toll on working people. Labour’s candidate for Rother Valley, Jake Richards, told me about John from Maltby, who lives just down the road from what was probably the first ’Spoons the Prime Minister has ever been in. John is a veteran of our armed forces. He served his country and now, thanks to the recklessness and incompetence of this Government, he cannot make ends meet. That is the price that people are paying, and it is why this country is crying out for change.

Having crashed the economy just two years ago, the Conservative party is at it again with a £46 billion unfunded tax plan. Can any Conservative Member explain how on earth they are going to pay for the abolition of national insurance? This is a bigger unfunded commitment than the “kamikwasi” Budget of the right hon. Member for South West Norfolk (Elizabeth Truss). Mortgage payers are still paying the price for that grotesque act of economic self-harm, and the Conservatives are at it again—

[Sir Edward Leigh]

rose—

[Wes Streeting]

I hope that the right hon. Member for Gainsborough (Sir Edward Leigh) can tell us why.

[Sir Edward Leigh]

This is great knockabout stuff, but I would like to make a serious comment on the whole national insurance thing. With the retention of the triple lock and with fiscal drag, more and more pensioners are being dragged into paying tax. I understand that the Labour party will support the cut in national insurance rather than in income tax, so what is its long-term plan?

[Wes Streeting]

The right hon. Member made a right and fair point earlier about the cuts to national insurance and what is happening to pensioners’ incomes at the moment, but the Government’s long-term plan is totally unfunded. They cannot tell us how they will fund it or when it will be delivered by. I am happy to give way if anyone wants to correct me on that, as I am sure the whole country would like an explanation on this £46 billion unfunded tax plan. We cannot have a situation where once again the Conservative party gets away with an entirely unfunded gimmick. We saw where that led our country before, and Labour will not play fast and loose with the public finances in the way that the Conservatives have—[Laughter.] It is no use laughing. I am amazed that Conservative Members still laugh when people’s mortgages are going up month after month. They still have the audacity to laugh at their recklessness and not take responsibility for their mistakes.