Income Tax (Charge)

Esther McVey Excerpts

Tuesday 5th November 2024 Commons Chamber

[Esther McVey (Tatton) (Con)]

I congratulate the hon. Member for Broxtowe (Juliet Campbell) on her maiden speech and her personal story. I thank you, Madam Deputy Speaker, for calling me to speak in today’s Budget debate on fixing the NHS and reforming public services. However, the truth is that this Budget’s smash and grab on the UK’s businesses means that the money will not be there to pay for the excellent public services this country requires.

Labour has never understood the concept of private enterprise and businesses paying for public services, and that it is only with a thriving private sector that the country can have the public services it wants and needs. Make no mistake: this Budget will be catastrophic for the economic health of this country. It is the biggest tax-raising Budget in British history, and it will turn out to be the longest suicide note in Labour’s political history, too.

The Budget is socialism at its worst: high taxes, high spending and massive debt. [Interruption.] Labour Members are laughing, but this is massive debt for future generations. This Budget is anti-business, anti-farmer, anti-aspiration, anti-wealth creation and anti-worker. Yes, anti-worker. Despite all of Labour’s promises before the general election, the Government are taxing workers as they raise national insurance contributions for employers.

This begs the question: do the Chancellor and the Prime Minister not know how the economy works? They certainly do not know how business works. Not one of the current bunch of Cabinet Ministers has ever set up a business. No wonder they do not have a clue about national insurance contributions.

For clarity, both the independent Office for Budget Responsibility and the Institute for Fiscal Studies have said that 80% of the employer national insurance rises will be paid for by the workers through lower wages and reduced employment levels. No wonder Labour Members have now gone silent.

The Chancellor’s raid on the unfairest tax of all, inheritance tax, will double the number of estates that have to pay it and, disgracefully, will make it virtually impossible for family farmers to pass on their business to the next generation. Farmers are most definitely working people, just in case Labour Members do not know. This Budget will be disastrous for our rural areas and for the country’s food security, and all because of good old-fashioned socialist envy.

[Dan Aldridge (Weston-super-Mare) (Lab)]

Will the right hon. Lady give way?

[Esther McVey]

No, I will carry on, thank you very much.

In addition to huge tax rises, this Budget will have an eye-watering impact on the country’s debt. Debt interest payments will be more than £100 billion a year, every year, and will reach an astonishing £120 billion by the end of the decade. To put that into context—

[Several hon. Members rose—]

[Esther McVey]

I will carry on for a little longer.

To put that into context, it dwarfs the UK’s annual defence spend, which stands at £55 billion. This is money being wasted instead of being spent on public services.

And if all that was not bad enough, the Office for Budget Responsibility has downgraded its growth forecast to a measly 1.5% for the years running up to the next general election. So much for Labour saying this would be a Budget for growth. This Labour Budget has taken our country back to the 1970s, with crippling taxation, unsustainable levels of borrowing and the trade unions in control. The Budget has also broken virtually every economic promise Labour made during the election. In fact, even worse than the economic misery this Budget will bring might be the further mistrust in politicians it will cause.

Labour ruled out tax hikes on working people more than 50 times, and it ruled out changing the fiscal rules to fiddle the figures. Mark my words, on top of the betrayal of pensioners with the scrapping of the winter fuel allowance, this Budget will be a nail in this Government’s coffin, only four months after they secured a huge majority.

At the weekend, the Chancellor eventually came round to admitting that Labour will be taxing workers, but I am afraid that saying it now, having denied it at the general election, does not wash. It is way too late to be admitting it. All it has done is expose the fact that this Labour Government were elected on a false premise and therefore do not have a mandate for this Budget. [Laughter.] Laughing after not telling the public what they were going to do is why I certainly will not be supporting this Budget.

[Madam Deputy Speaker (Caroline Nokes)]

I call Lewis Atkinson to make his maiden speech.