(3 weeks, 4 days ago)
Commons ChamberMy hon. Friend is very well respected in his area for the fantastic amount of work that he has done in Scunthorpe. He is constantly holding the Government to account, and indeed working with the Government. We have to do this together to protect our steelmaking capacity, for the sake of our industrial wealth.
I agree—we all agree—that the energy independence Bill provides a framework for transitioning the UK energy market away from fossil fuels and towards alternative forms of energy. We have no problem with that; it is sensible in the context of nuclear energy. However, the ideological pursuit of renewables is doing harm, and is at odds with achieving energy security when we have our own fossil-fuel resources in the North sea. It is not a zero-sum game. I do not see the ideological virtue of simply exporting our carbon emissions, which we are doing.
No, I must make some progress. I do apologise.
I should have thought that we could have a compromise on this. We could have a policy that is sensible, gradually moving away from fossil fuels and gradually becoming a more green-energy economy, but we should not simply export our emissions and set arbitrary dates.
As this is a debate on the King’s Speech, I hope you will you forgive me, Madam Deputy Speaker, if I mention another subject in the short time available to me. When you get to my age, you can say unpopular things; I have not got much longer anyway. [Hon. Members: “Aah!”] I have two minutes!
The problem with our country is that we are governing by focus group. What do focus groups want? They want less tax and, of course, better public services. Debt is already 100% of GDP, and within 50 years, because of the triple lock and other benefit increases, it will be 170%. Of course the old vote, but the old have children and grandchildren, and we have a responsibility to younger people in our country. The Government know that the present system is unsustainable. While the average increase in the triple lock measures over the past 13 years—and we brought that in; it was supposed to be a temporary measure, but no party has the courage to change it—has been about 40%, pensions have gone up by over 60%. That is nearly £20 billion of annual additional costs so far, and that will get bigger every year and more unaffordable. The gap is likely to grow to £120 billion, if not more, by 2050, exacerbating the economic crisis. Whoever becomes Prime Minister will have to cope with that. By then, there will be 20% to 25% fewer taxpaying workers—our children and our grandchildren—per pensioner in Britain.
Of course we have to care for old people, particularly old people in poverty, and divert resources to them, but we must remember the younger people as well. This is entirely unsustainable. Yes, we want to keep a triple lock, but not the triple lock. We want it to be the average of the three indices, so that the amount does not go up exponentially every year. The Government should do the right thing by the nation, and bring in a measure to that effect. They should make our finances affordable, and those on my party’s Front Bench should not oppose them. We should govern in the national interest. We should make our finances sustainable, and then we really can help the people who are most in need.
(6 months, 2 weeks ago)
Commons ChamberThe benefit bill is now unsustainable in this country. Really, the main reason I will say what I want to say today is that I hope we can create some consensus in the House to try to deal with this problem, which is imposing a massive level of debt on families.
I am absolutely sure that the Government accept that this burden is unsustainable, and I am absolutely certain that if they came to the House with sensible proposals to try to get people off benefit, Her Majesty’s loyal Opposition would support them in that endeavour. The Government ducked the challenge earlier in the year to cut benefits and thereby encourage more people into work. We said at the time that we were prepared to support the Government to try to deliver those cuts, and I am sure that those on the Conservative Front Bench would repeat that promise.
Ms Polly Billington (East Thanet) (Lab)
May I confirm that the right hon. Gentleman is then perfectly happy for children to continue to live in poverty while we try to reform the welfare benefit system?
I was not actually making that point. What we were discussing earlier in the year was people seeking work, and trying to encourage people to get back into work. I can understand the political imperative of what the Chancellor has done today—to sustain her position with her Back Benchers—but the problem is that the Government will create a perverse incentive for people on benefit with larger families to stay out of work. I am not sure that is good for their morale or the economy. It is not good for anybody. It seems a very easy hit for the Chancellor today, but I think it will have perverse results.
As a Member representing a rural constituency, I want to say a word about the family farm tax. The Budget’s extension of inheritance tax for business assets over £1 million has, as we know, imposed a major new burden on long-established family farms in my constituency and elsewhere. Although I could understand the Government targeting larger estates and people who were acquiring estates to avoid inheritance tax, the new family farm tax affects not just large landed estates but ordinary farms worked by generations of the same families. I recently visited a tenant farmer in my constituency. He is affected because his tenancy—he does not own the and—is a capital asset, and he will be taxed perhaps as much as £300,000 on it, which affects the family’s ability to stay in farming.
As we know, many family farmers lack liquid assets, which forces them to hold cash back, restructure, borrow or consider selling part of their business. Because the dividends used to pay inheritance tax are themselves taxed, these family farms face an effective tax rate of about 33%. The measure affects a significant share of medium-sized, long-standing firms even though it raises less than £500 million annually. It achieves maximum social and economic destruction for minimal financial reward. The policy also discourages business growth, because expanding a family firm increases future tax liabilities on heirs.
Some advisers are recommending that owners sell businesses outright to avoid future tax complications. A climate of unpredictable tax changes creates fear among owners and undermines long-term planning. The uncertainty over succession planning is freezing investment and expansion across affected businesses. The arguments can be repeated, but I appeal to the Government to listen to the National Farmers Union, which has come up with sensible compromises that would keep family farms in business and achieve the Government’s objective.
Let me say a bit about the benefits bill. Four million universal credit claimants are now excused from even looking for a job. This is a disaster in terms of self-reliance, the economy and much else. We know that the numbers have grown sharply since the pandemic. A surge in reported illnesses—particularly mental health conditions—is the main driver. Two thirds of recent work capability assessments cite mental or behavioural disorders. My right hon. Friend the Member for Chingford and Woodford Green (Sir Iain Duncan Smith) has blamed the collapse in the assessment process for the rise in successful claims, with remote and paper-based assessments introduced during covid having weakened checks on eligibility. That, again, is something on which we could co-operate across the House. It is a question not just of cutting benefits but of summoning people in, helping them and giving them confidence to try to get back into the workplace. Unless we do that and tackle the perverse incentives in the whole benefits system that discourage people from working, we will fail as a nation.
(1 year, 2 months ago)
Commons Chamber
Ms Polly Billington (East Thanet) (Lab)
Will the right hon. Gentleman clarify whether he was aware that the Chinese company that is now in possession of British Steel was sold it by a Conservative Government of which he was part?
Of course I am, because I just said that. I have just admitted that it was a mistake, but I ask everybody what they were saying at the time. Of course, there is silence. It is easy to be wise after the event, but I am worried about my steelworkers—I am worried about their future.