Income Tax (Charge)

Graham Stuart Excerpts

Tuesday 5th November 2024 Commons Chamber

[Lauren Edwards (Rochester and Strood) (Lab)]

This Budget will improve the lives of so many of my constituents in Rochester and Strood. They will see the benefit in their wage slips, see the things they care most about in their community, such as the local pub and their high street, supported, and see their public services finally invested in again.

Investment in the NHS through this Budget is key. It was the No. 1 issue raised on the doorsteps in the election and is perhaps best exemplified by the struggle to book a GP appointment. The simplest of tasks—for someone to seek help from a medical professional when they are ill—was made into what felt like an impossible task after 14 years of Conservative government. I reminded voters many times during the election that the NHS is always safer in Labour’s hands, so I am delighted to see that our first Budget sets us up to meet that promise so quickly. As others have mentioned, we have a record-breaking £22 billion increase in day-to-day spending, a £3.1 billion capital boost to pay for new technology and improve our buildings, and a landmark public consultation to set out a long-term plan for how the NHS develops over the next decade.

I am proud that we are a Government who have been transparent and honest with people about our priorities to fund that investment. The Chancellor has delivered a Budget that protects working people and instead asks big businesses and the well off to contribute. The Budget does not dodge the tough choices just to get through the next media cycle, but instead is informed by Lord Darzi’s thorough point-in-time assessment of the state of the NHS that was handed back to us by the Conservatives. It lays the foundation to take the NHS from the analogue to digital, from hospital to community-led care and from treating sickness to focusing on prevention and promoting good health.

Those approaches will take different forms across the country, but I draw the Minister’s attention to the potential for an elective care centre in the former Debenhams store on Chatham High Street in my constituency. I have written to the Secretary of State about this proposal, and I would welcome a conversation about its merits, particularly as it is a good example of the invest-to-save model that is promoted so well in the Budget. It would not only free up space at the Medway Maritime hospital and help tackle waiting lists, but would have further benefits by supporting town centre economic regeneration.

I welcome provision in the Budget for a £600 million increase in local government spending to support social care. Like many MPs, I have a background in local government and I understand all too well how much the uplift is needed.

[Graham Stuart (Beverley and Holderness) (Con)]

Will the hon. Lady give way?

[Lauren Edwards]

I have only 20 seconds left, so apologies, but I will not. We all know that the social care sector needs to be transformed, and I hope that over time we can move to a more fully integrated health and social care system in this country. Future Budgets may be able to apply the same exemptions to charitable care homes as happens for the NHS. That would be to the benefit of places such as Frindsbury House in my constituency, which is run with great care and compassion by the Mortimer Society.

[Andrew George (St Ives) (LD)]

I have three minutes and three quick points, on which I hope I have the attention of the Chief Secretary to the Treasury. My first point relates to the NHS. I welcome the introduction to the debate by the Secretary of State for Health and Social Care today. Certainly the Government have inherited the worst crisis in NHS history, and they have a massive challenge on their hands. I like how the 10-year plan has been framed in relation to moving from hospital to home, from sickness to prevention and so on.

The Prime Minister was right when he said that those with the broadest shoulders should bear the greatest burden, but the way this Government are raising tax through national insurance is, I am afraid, hitting some of those who will be struggling most. I hope that he will look again at that and how the Liberal Democrats have framed it. We propose to raise the money by reversing the tax cut for big banks and increasing taxes on the oil and energy giants and large social media multinationals. Surely that would be a far better way.

In responding to questions on the impact of the national insurance rise on GPs, hospices and care providers, the Secretary of State clearly recognised that a mistake was made, and I suspect that the impact was overlooked. [Interruption.] The Chief Secretary is shaking his head, but he really needs to address those issues, because a crisis will continue to occur.

[Graham Stuart]

Will the hon. Gentleman give way on that point?

[Andrew George]

I will, although the right hon. Gentleman has only just walked into the Chamber, so I think it is rather cheeky of him.

[Graham Stuart]

Cheekiness accepted. The hon. Gentleman is quite right that the £600 million extra is for both children and adult social care, whereas adult social care alone is expected to have a £2.4 billion hit, so does he agree that if the NHS, however well funded, cannot move its patients into social care, that investment and expenditure will not work?

[Andrew George]

I do, although that is rather rich of the right hon. Gentleman when he knows that he and his party left the country in this state.

Another issue is the housing emergency, which we have not debated much today. I welcome the additional £500 million that the Government announced, which will supplement the affordable homes programme to 2026. That is much needed. I hope that the Chief Secretary will also address the large number of shovel-ready projects that have planning permission and pre-development work in place. I must declare an interest as a former chief executive of a registered provider. I hope that the Government will look at the impact of the significant construction inflation we have seen over the last four years, which is holding up many developments that could be addressing housing need in our communities. Only 9,500 social homes were built last year. We need a great deal more if we are to address the serious housing emergency.

I have a final question for the Chief Secretary—if I may have his attention for a moment—about the announcement of two layers of business rating that will apply to the retail, hospitality and leisure sector. Many holiday home owners have managed to abuse the system by using small business rate relief. I hope that such second homeowners will not have further opportunities to take advantage of loopholes. Will he investigate that and ensure that money goes into first homes rather than second homes? I am afraid that there is a loophole in the system.

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[Mr Tom Morrison (Cheadle) (LD)]

The Liberal Democrats have long been pushing for the Budget to be a Budget for the NHS, so it was pleasing to see so much investment in our national health service. The boost in capital expenditure is particularly welcome, because Cheadle’s local hospital, Stepping Hill, is in dire need of support and investment. Only a few weeks ago, Stockport NHS foundation trust released figures showing that the maintenance bill required to bring the hospital up to scratch was over £130 million, up from £80 million just five years ago. The cost of the previous Government is there for all to see.

Last year, the hospital’s out-patients building was condemned and demolished. In March, the intensive care unit was temporarily closed because the ceiling was coming in. Since January, almost 10,000 people have had to wait for longer than 12 hours in A&E. Some 70% of Stepping Hill’s estate is now classed in the highest risk category. In fact, when I was there just a few months ago, the incredible nurses talked me through how on rainy days they had to place buckets down to ensure that water coming through the roof was caught. That is utterly shameful and my constituents are suffering.

One constituent contacted my office shortly after I was elected to tell me about their experience. After waiting months for a simple surgical procedure, the partial collapse of the ICU led to their surgery being delayed. It was then confirmed again as delayed. Then, after it was rearranged, there was a further delay because there were not enough beds for aftercare. Each time, the delay seemed to be imposed last minute and out of the blue, which of course drives uncertainty and worry not just for my constituent but for their friends and family.

I want to put on record that this is not the fault of the doctors and nurses. The doctors, nurses and other NHS staff do an incredible job in the worst circumstances, and they are suffering also. They are being forced to work in these conditions. They are the ones who have to break the bad news to patients when their surgeries and appointments are cancelled, although it is rarely their fault. Every day those staff show up and deliver the best service that they can for their patients. The fault lies with the Conservatives. For 14 years they sat back and watched as Stepping Hill, like many other hospitals, crumbled.

[Graham Stuart]

Will the hon. Gentleman give way?

[Mr Morrison]

I will carry on; I am nearly done.

For 14 years, the Conservatives ignored health professionals and patients who were crying out for their hospitals to be fixed. As those cries were ignored, the problems became worse and worse. We are now facing a repair bill of £130 million, and without urgent action that will only become more expensive, so the new Government must act now. I am delighted that there is a commitment to our hospital, but they must act now and give the patients, the staff and my constituents the hospital that they need. If they delay further, costs will only rise and even more parts of the building will crumble.

[Ms Marie Rimmer (St Helens South and Whiston) (Lab)]

This Budget will deliver to communities such as mine. May I begin by welcoming the mineworkers’ pension scheme resolution? It means that £1.5 billion of miners’ pension payments to their fund will be distributed among 112,000 former miners and their families. It is absolutely right that an injustice has been corrected, for those people have waited far too long. It is also shameful that the last Government failed to budget for the resolution of the Post Office Horizon and infected blood scandals, and I applaud our Chancellor for correcting that now. I urge the pensioners who will not receive the winter fuel allowance—those who are just missing out—to apply for universal credit; in St Helens, £6.5 million remains unclaimed. I regret that we have been unable to remove the two-child cap, or deal justice to the WASPI women.

Let me now turn to the issue of local authority funding for adult and children’s social care. Local councils bore the brunt of austerity; successive Government cuts since 2010 have left them in dire straits, which disproportionately affects the people who are most likely to access social care. There have been increasing pressures to find savings, which has not only cut services and jobs but seriously limited the ability to invest in cost-effective preventive services. Some 73% of the budget of St Helens borough council is spent on adult and children’s social care. I welcome the Chancellor’s 3.2% real-terms increase in local government funding, including the £600 million to support social care—

[Graham Stuart]

Will the hon. Lady give way?

[Ms Rimmer]

No.

It is good that, in the short term, a Labour Government will target additional grant funding at the councils that are most in need, but that needs to be the start of a process that will reverse years of financial decline. For too long, local council funding formulas have worked against underprivileged communities, and the areas that need funds the most often do not receive their fair share. Sadly, that creates a downward spiral, with an ever-increasing percentage of local government funding being spent on social care. This is not sustainable.

As I have said, 73% of our council’s budget is spent on social care. Moreover, the 48 members of the Special Interest Group of Municipal Authorities are unable to invest in their local areas in the same way as their counterparts because of the funding formulas. One in four households in England live in a SIGOMA council area. At present, social care services are a postcode lottery, and that needs to be addressed. We need a methodology that takes actual needs into consideration, and ensures that the funding follows. However, I applaud the Chancellor for providing £250 million for children’s social care and £600 million for adults.

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[Kevin Bonavia (Stevenage) (Lab)]

I want to start by saying that we cannot and should not ever underestimate the power and strength of the message that having our Budget delivered by the first female Chancellor in history sends to young women and girls across the country. There should be no limit to their ambition.

In Stevenage and across the country, 14 years of Conservative rule have left a crippling cost of living crisis, record NHS waiting lists, rapidly reducing school funding and worsening public transport. I could go on, but I represent a town of aspiration. The people of my town have had their ambitions and hopes dampened by decline and held back by a broken Britain. However, this Budget sends a clear signal that Labour has started the work of getting politics to work for working people again.

One of the Labour manifesto’s most fundamental promises was to fix the foundations of our broken public services. I recently attended a local older persons day hosted by Stevenage borough council, where we talked about pensioners’ priorities. The Budget maintains the triple lock, which will be worth an extra £470 for pensioners next year, on top of the more than £900 they are receiving this year from the same commitment.

I spend a lot of time speaking to carers in my area who are looking after loved ones in testing circumstances. This Budget delivers the largest increase in the carer’s allowance since its introduction, starting the work of recognising the huge sacrifice they make. However, I know that this work will be complete only when we fundamentally reform our broken social care system, and I very much look forward to that.

[Graham Stuart]

Will the hon. Gentleman give way?

[Kevin Bonavia]

I am afraid not.

I represent a constituency with multiple borough and district councils that have borne the brunt of 14 years of Government cuts. This Budget delivers £1.3 billion extra for local councils to provide essential services that are vital to our communities.

Fifty per cent of patients in my local NHS trust wait longer than the target treatment times, and 31% wait over four hours to be seen in A&E. Despite the heroism and hard work of NHS staff, something simply has to change. The Secretary of State for Health and Social Care has made the brave decision to stand up and fight for our NHS, boldly supported by our Chancellor. I greatly welcome the shift in focus from sickness to prevention, from analogue to digital, and from hospital to community. This crisis cannot be fixed in one Budget, and it may even take a few Budgets, but at least now there is hope where there was none before.

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[Joe Robertson (Isle of Wight East) (Con)]

This is not a Budget for growth. On the Treasury’s own figures, growth will decline from 2% next year for the rest of the decade. On the OBR’s analysis, this Budget is inflationary. It is not on small businesses that the responsibility should land. Small businesses employ people. Small and medium-sized businesses drive the UK economy. If we tax them, we tax growth. If we tax their greatest assets—the people who work for them—then we take away employment opportunities for hard-working people.

I will talk more substantively about the dire impact of the Budget on health and social care, including health and social care providers that are not part of the NHS. The increase in employer’s national insurance contributions will cause great difficulty and hardship for GP practices; charities, including hospices; dentists; pharmacies, which are crucial providers of health services; and social care providers. Those organisations, charities and businesses thought that they might have a friend in a Labour Government, but I assure Government Members that they do not feel as though the Labour Government are a friend right now. I have been speaking to those in GP practices in my constituency on the Isle of Wight. One said:

“Our increase in tax from this Budget is the equivalent of the salary of a practice nurse. There will be no new practice nurse for us.”

[Graham Stuart]

Does my hon. Friend agree that no one would think less of the Government if they listened to these arguments, heard the message and changed? For instance, there is the message about social care being hit by £2.5 billion of extra costs. The £600 million that has been given to local authorities will not cover those costs. If the Government simply listened and changed, people would think much better of them, and we would have a social care system that supported the NHS, rather than one that stops the NHS being able to do what it needs to do.

[Joe Robertson]

I agree with my right hon. Friend. In fact, there has been one common theme running through this debate: GP practices, charities such as hospices, dentists, pharmacists and social care providers are all being taxed by this Government. At a time when they need Government most, these providers find increased pressure on their ability to employ and provide services to the British people. There would be no shame if the Labour Government were to do something about this gross problem with their own Budget.

Moving on to social care, the Secretary of State for Health and Social Care said that there would be no more money for the NHS without reform, yet the Chancellor provides £22 billion for day-to-day spending unattached to reform. She and the Secretary of State are giving the equivalent of just 2.5%—£600 million—of that £22 billion for social care. That is a tiny fraction, yet the biggest reform that our NHS needs is fairer funding for social care. Money would be better spent on relieving the pressure on hospitals, and getting people out of hospital beds who do not need or want to be there, but who have nowhere safe to go to. Through this Budget, social care providers not only face the full burden of increased national insurance contributions, as employers, but receive a small fraction of the funding that the NHS receives. I urge the Government to go back to the drawing board and provide for our GPs, dentistry, pharmacies, hospices and social care.

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[Jack Rankin (Windsor) (Con)]

The theme of this debate is public services, but there has been a distinct lack of discussion from Government Members about what delivers the finances necessary to fund those services; this is the Budget, after all. The answer is simply the productive economy, and small businesses in particular.

The Government talk a good game about wanting better funded public services, and each and every one of us in this House would be hard pressed to find a constituent who disagreed, but the Government’s measures—particularly the jobs tax in the Budget, but also their wider agenda in the Employment Rights Bill, through which we are moving to French-style labour laws—are an attack on where that money comes from.

We must always remember that every single penny spent by the British state has to be earned in the private sector. Chucking money at an unreformed public sector while ballooning public sector pay, and doing that on the back of the productive economy and small business, shows a distinct lack of real world, private sector experience among Government Members. My first memories are of my parents going to night school on alternate evenings to get the qualifications they needed to set up their small business. Their aim was simple: to give my brother and me opportunities that they could never have dreamed of. In doing that, they paid hundreds of thousands of pounds—I ended up with quite a prosperous upbringing, I admit—into the Government exchequer. They created apprenticeships and skilled jobs in a tough part of urban Greater Manchester. They not only transformed our lives but improved the lives of children around them, and created opportunities for local people while paying for public services through their taxes.

[Graham Stuart]

Does my hon. Friend agree that the absence on the Government Front Bench of anyone with any experience of running a business, when businesses create the wealth that pays for public services, may explain why the Budget is so financially illiterate?

[Jack Rankin]

I thank my right hon. Friend. That absolutely shows, as we see from the Office for Budget Responsibility forecasts mentioned by my hon. Friend the Member for Isle of Wight East (Joe Robertson). Putting up taxes unsustainably may mean adrenaline into the public sector from an injection of cash, but the medium and longer-term result will be lower growth, which will mean that public services are just getting a larger slice of a smaller pie.

It is clear to me that the tax burden is higher than is necessarily sustainable. Tax rises now will not necessarily flow into greater revenue, particularly in the medium term. I ask the Government to check their approach, support small businesses first and foremost, and focus their public service efforts in the first instance on productivity reforms.

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[Kevin McKenna (Sittingbourne and Sheppey) (Lab)]

Thank you, Madam Deputy Speaker, for calling me to speak in this debate about the Budget—a Budget I am very proud to support as the first Labour Budget in 15 years.

I also thank the various Members who have made their maiden speeches in this debate, particularly because like myself, so many of them have worked in the NHS. Many of us have felt the urge to get selected for, and elected to, this House because of our experiences over the past 14 years. I understand that among Opposition Members, there is a feeling that Labour Members do not understand business, but I can tell them that we understand the public sector, public services and our communities—and actually, that is a disservice to all the Members on the Labour Benches who have run businesses. It is particularly important to me that a couple of Labour Members have previous experience as NHS managers. In his report, Lord Darzi made it very clear that one of the problems the NHS has faced is an undervaluing of the management side, as opposed to the clinical side, so those Members’ voices will be really important in this debate.

This Budget gives us solid foundations for investment and rebuilding this country—of that, I have no doubt. This Budget is also what people in my constituency have been crying out for, because they know that our public services are frayed to a point that is almost beyond repair. Honestly, that is what people in my constituency keep telling me. Unlike some Members, who have apparently had some very negative responses to the Budget, I can tell those Members from canvassing at the weekend and from what is in my inbox that I have seen a really positive response to this Budget. People are really glad to see that the investment has started, and frankly, there is a sense of reality—a recognition that this is not going to be a quick fix.

On the health service and social care in particular, I applaud the fact that the Secretary of State has not just commissioned the diagnostic investigation from Lord Darzi, but has now commissioned a 10-year plan for the NHS.

[Graham Stuart]

Will the hon. Gentleman give way?

[Kevin McKenna]

I do not think so.

That plan will be needed to get the NHS back on its feet, and as a counter to some of the comments about national insurance and burdens on businesses, the Secretary of State was very clear that he is going to look at the NHS allocations to GPs and other people supplying the NHS—that comes with the plan. Beyond that, it is really important to recognise the damage that has been done to businesses over the past 14 years by all the other costs that have been accrued. The mental health crisis damages recruitment and retention, and businesses have had to cope with all those extra costs across the board.