Budget Resolutions

Gideon Amos Excerpts

Tuesday 3rd November 2026 Commons Chamber

[Derek Twigg (Widnes and Halewood) (Lab)]

Without a doubt, the greatest concern for most of my constituents is the cost of living, in particular the cost of energy. The biggest factors driving up the costs are the Ukraine war and, of course, President Trump’s ill-conceived and, frankly, stupid decision to go to war with Iran. It is just not credible to claim that in the current financial climate this Government could put right in just over two years 14 years of Tory mismanagement of the economy and the impact of those two wars. It is also worrying that we have a generation of young people who feel they will be worse off than their parents. Clearly, it is shocking that we have a million young people not in education, employment or training.

I welcome many of the measures introduced by the Chancellor in the Budget, in particular the breathing space scheme whereby households in bands A to D will get a £100 payment directly into their bank account this winter to help deal with rising energy bills. It is good that the Budget supports households with the rising cost of energy bills by extending the temporary 0% rate of VAT on electricity until 2027 and capping new levies on energy bills at 0% until 2030. Small businesses are the backbone of our economy, so I welcome the fact that we are taking more businesses out of paying business rates by increasing small business rates relief thresholds for eligible retail, hospitality and leisure properties.

Likewise, I support removing eligibility for vape shops and adult gaming centres, to help our high streets to become vibrant places once more, supporting independent businesses and creating town centres where people want to live. I initiated a new town centre plan for Widnes with Halton borough council to help regenerate our town centre as the money becomes available, so I am pleased that the Government have allocated £1.24 million to renovate derelict buildings. When added to the £1.5 million Widnes Pride in Place town centre impact fund allocated last year, that can help kick-start some of the improvements we want to see in Widnes town centre, and I look forward to working with Halton council on that. I am also pleased that Knowsley council has been allocated £1.55 million, and I look forward to discussions with the council on how that will be used.

[Gideon Amos (Taunton and Wellington) (LD)]

Will the hon. Member give way?

[Derek Twigg]

I will not, given the time.

I look forward to hearing more from the Chancellor about the fiscal devolution road map, reforming the long-term funding model for regional and local government. It has the potential over time to make a real difference to the economic performance of many of our cities and towns outside London.

We have had the biggest increase in defence spending since the cold war. It is also true that we face the biggest threat since the cold war. I am pleased that the Chancellor has announced that he is fully funding the defence investment plan and has a target date of 3% of GDP by 2030, but I think we need to see the plan for reaching that target sooner rather than later. It remains my view that threats are escalating, and we need to be spending 3% before the end of this Parliament. The previous Tory Government hollowed out and grossly underfunded our armed forces, leaving them in a truly shocking state, with the smallest Army since the Napoleonic wars, every single recruitment target missed and an equipment programme that was in disarray—over budget,behind schedule or both. Now they have the cheek to try to erase their woeful record on defence. This Government are working hard to make sure that our armed forces are ready forwar, but there is more to do.

I want to turn briefly to the zero emission vehicle mandate. I declare an interest, as chair of the all-party motoring group, and I have both Jaguar Land Rover and Ford plants in my constituency. The consultation on the ZEV mandate review closed on 23 October 2026. Both Ford and JLR want Ministers to publish their response and clarify the mandate’s direction ahead of the 2027 compliance year. Early clarity will help manufacturers to plan, sustain investment and support an ambitious, deliverable transition. Ford tells me that it is committed to a truly electrified future, but the transition must reflect customer need, charging infrastructure and vehicle users’ needs. There are specific challenges for vans.

We have big challenges ahead in bringing down debt and the cost of welfare. It will take some tough decisions and challenging work, but it has to be done, and we must have a credible long-term plan. We cannot just pick an arbitrary figure out of the air to save on welfare; we need a proper, thought-out strategy that is informed by the Milburn and Timms reviews. Finally, productivity remains a real challenge in the economy. We need to deal with the lack of capital investment to make sure we have sustained growth in our economy.

--- Later in debate ---

[Victoria Collins]

Absolutely. That is why we need wholesale reform, looking at how we are supporting the businesses that need it and at the broken business rates system.

Charlotte from Berkhamsted Bookshop tells me that the average independent bookshop will need to sell over 1,000 more books a year just to cover rising costs. Christopher, who runs a small martial arts academy in Tring, tells me that rising rent and service charges threaten his future, with almost no protection for small commercial tenants. Liberal Democrats have repeatedly called for more to be done to help our local businesses, including replacing business rates with a commercial landowner levy and cutting VAT on hospitality by 5p.

[Gideon Amos]

Does my hon. Friend agree with my constituent, Philippe Messy, who runs the excellent Little Wine Shop in Taunton, who was hoping to see a big move in VAT, but who has instead described the Budget as “a soufflé that did not rise—flat, flat, flat”?

[Victoria Collins]

I could not have put it better myself. On top of that there is the cost of hiring, as has been mentioned again and again. The Government have to tackle that for businesses.

If we truly want fresh hope for the future and for our wider economy, we need bold action. Supporting our entrepreneurs is key, and as Lib Dems who have pushed for a type of young entrepreneurs allowance for almost a decade, we are pleased to see that proposal and look forward to hearing more details. I would also push the Government to look at further work to support start-ups and scale-ups, including reviewing the seed enterprise investment scheme, tax on SEIS, tax credits and relief so that they work for businesses.

As for the founders’ relief, I ask the Government to work with the industry to ensure that it works. One founder said to me that they felt that if they stood on one leg and turned around enough times they might just about get close to getting some of it.

On incentivising innovation, the Government must take spin-outs from our world-leading universities across the UK more seriously. We are calling for the Government to quintuple proof-of-concept funding, create regional innovation centres and introduce standardised frameworks for negotiating intellectual property across the sector. As regards innovative spending, the extra £120 million for the Sovereign AI fund pales in comparison to the nearly £8 billion of active contracts with US tech giants or the billions spent on procurement. We call for a proper digital sovereign strategy to back our British businesses and to look at increasing research and development spending, so that we do not have to make decisions over Jodrell Bank, for example, and how that is impacting innovation.

Finally, we need a bold plan on Europe. We are calling for a growth and defence partnership with Europe, rejoining the single market and customs union. Not only can we cut taxes for families with that growth dividend, but inject real growth into our economy for families, businesses and our future.