Budget Resolutions

Graham Stuart Excerpts

Wednesday 30th October 2024 Commons Chamber

[Mike Wood (Kingswinford and South Staffordshire) (Con)]

I do not know whether you, like me, are a fan of “Yes Minister”, Madam Deputy Speaker, but if you are, you may remember the first ever episode of what was supposed to be a sitcom. In the episode called “Open Government”, Sir Humphrey started by explaining to Bernard, “Dispose of the difficult stuff in the title. It will do far less harm in the title than in the actual report.”

That seems to be a lesson that the Chancellor of the Exchequer has taken to heart. While we see any number of posters, slogans, signs and reports with “growth” in the title—it even popped up once or twice in the Chancellor’s speech—there is virtually nothing in today’s Budget statement, or in the hundreds of pages of documentation that the Treasury has published today, that will actually lead to growth in our economy, and there was almost nothing in the King’s Speech that could deliver the meaningful growth that the economy clearly needs.

With every hour that passes, it becomes clearer that the Chancellor’s promises have not been delivered, and that there is a very wide gap between what was promised and the hopes that were raised before the election and what we have seen both in the legislative programme and in the first Budget in 14 years—as has been said—to be presented by this Chancellor of the Exchequer. The problem is not the black hole that the Chancellor claims to have found, but whose existence the OBR’s “Economic and fiscal outlook” report does not support; the problem is not that hole, but the enormous gap—the chasm—between what the Chancellor and the Prime Minister promised in opposition and before the election, and what they are now delivering for our constituents. With every hour that goes by, people are seeing that they were sold a false prospectus on that growth. The OBR’s report makes it absolutely clear that while it expects a temporary boost to GDP in the short term, there will probably be some crowding out of private activity in the medium term. That is why the OBR forecasts that the measures in the Budget will not raise growth but will cut growth, in 2026, 2027, 2028 and 2029. This is an anti-growth Budget.

We were looking to the Chancellor to announce measures to support growth locally in our constituencies. Where is the certainty when it comes to the levelling-up funds that our communities were promised? Where is the certainty when it comes to the long-term plan for towns that our communities were promised—the plan that, in my previous constituency before the election, I worked so hard with local stakeholders, local councils and the combined authority to help to secure? The new boundaries mean that those projects are no longer in my constituency but in those of Labour Members of Parliament. Although it has been pointed out repeatedly that people voted for change, the people of Brierley Hill did not vote to lose a next-generation vehicle technology centre that would deliver the new skills that the community needs. The people of Dudley did not vote to lose £20 million of long-term investment from the towns fund, which would make such a difference to the community.

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

My hon. Friend is giving a powerful speech on this Budget of broken promises. People in Dudley and elsewhere did not vote for this Labour Government to put up taxes on working people, yet the OBR has said today that 76% of the cost of the rise in national insurance contributions will come out of ordinary working people’s wages. Does he agree that they are rightly angry about that and will get angrier still when they understand the implications?

--- Later in debate ---

[Kanishka Narayan (Vale of Glamorgan) (Lab)]

It is a privilege to speak in this historic Budget and on this historic day, and I start by congratulating my right hon. Friend the Chancellor and the Treasury team. For 14 years, the people of the Vale of Glamorgan and this country have carried the weight of hope, pent up inside. Today the Chancellor has weighed up their hopes, looked them in the eyes and lifted them. For that I congratulate her and the entire Treasury team.

Government is supposed to be the means by which ordinary people exercise their collective agency to shape our communities. For 14 years, the Conservatives denied ordinary people their voice. They denied us collective agency and a sense of hope in our community. Per-worker productivity growth in the past decade was the weakest on average since 1850. That is the worst foundation for shared prosperity. Public services are on their knees. That is the worst foundation for shared dignity. Our Army has shrunk and our prisons are bursting. That is the worst foundation for shared security. And through it all, we have had the double whammy of high borrowing rates and low nominal growth, through which they punched into our weak foundations a further £22 billion fiscal black hole.

As a side note, it is astonishing to me that the hon. Member for Kingswinford and South Staffordshire (Mike Wood) talks about fiscal responsibility and semantics. I do not think he was rising and talking about that during the sharpest spike in overnight gilt yields this country had seen in the 21st century. This is a national embarrassment for the Conservatives. They should be standing here and apologising. They should be pointing the finger down, as they ought to have been doing at the time, and apologising for what they were doing, but I see no contrition on that side of the House.

There are those who ask why we talk about the £22 billion black hole the Conservatives left, and why we dwell on the past. I do so because, if we are to grip the urgency of where we must go, we have to know where we have come from. Even more, amid the worst foundation for prosperity, dignity and security and the final punch of their fiscal black hole, there is a deeper inheritance, which is one of diminished trust and diminished hope that we can get out of their hole. That is why the Chancellor’s Budget is not just good for our economy but essential for my community in the Vale of Glamorgan. It says with strong conviction, “That was them. This is now us.” It is the voice of ordinary people expressed in our collective agency. Foundations that were wrecked by them will now be fixed by us. The OBR that was trashed by them, and is still being trashed by them, will be affirmed by us. Investment in our future, our health and our jobs that was structurally slashed by them will be regained by us.

[Graham Stuart]

The hon. Gentleman talks about investment for our future. What is he going to say to the farmers of the Vale of Glamorgan who fear that they will no longer be able to pass on their farms to the next generation, as each generation before them has been able to do until this black day of broken promises in this Budget?

[Kanishka Narayan]

I will say to them what I said during the campaign, which is that I see the pain inflicted on them over the past 14 years. The fact is that the animal welfare and environmental standards of our proud Welsh and British farms were sold down the river in trade deals negotiated by Conservative Ministers while the right hon. Gentleman laughed along. It was absolutely unacceptable. That is what I will say to them, and I will confirm that we will not allow any of it to happen again.

Structural investment in our future was slashed by the Conservatives, but it has been restored by us. Borrowing rates shot up under them, including the biggest overnight spike in short-term gilts in the 21st century, but they have been brought back to par with the United States by us. The markets were decried as conspiracists by them, but those same markets now hail the return of British fiscal credibility due to us. Wales was denied a voice by them, but it is now front and centre again thanks to this Budget and this Government. Real wages were squeezed by them, but the national living wage is now rising again. Fuel duty has been frozen, carer’s allowance has been increased and, much to my heart’s delight, 1p has been taken off the price of a pint in pubs in Vale of Glamorgan and across the country. At the heart of it, trust, the most critical foundation of my community, ripped up by them, and now, brick by brick, rebuilt by us.

--- Later in debate ---

[Josh Simons (Makerfield) (Lab)]

I, too, rather than getting lost in the weeds, will take a step back, because we in this country today, like allies over the Atlantic and across the channel, are reckoning with turbulent forces of change: technological transformation, ageing societies, the destruction of our natural world, vast inequalities of wealth and power, and mass migration across the globe. Ours is an age of insecurity and uncertainty—a moment when grasping the opportunities before us requires choices, such as whose side we are on, which industries will power growth, what frictions we will permit in pursuit of security, and which partners we will embrace around the world.

Today, the Chancellor has made choices. What underpins those choices is a simple but powerful point: because the challenges of this age are immense, the solutions must be equally bold. A turbulent age requires the confidence to stand tall, square up to what is not working and ensure that we reform what is not delivering for the people of this country. The Chancellor’s choices demonstrate that commitment, reckoning with the magnitude of the challenges that the country faces.

First, the Chancellor chose investment. Sometimes I wonder whether Conservative Members could benefit from more time to think through what they are really for and why, because to oppose the changes that she has made today is to welcome the apathy and defeatism that says that decline is inevitable. A certain mental attitude appears to have gripped Conservative Members: it is too hard; there are too many barriers; it cannot be done. By opposing the revolution in investment that the Chancellor unleashed today, Conservative Members have firmly put themselves on the side of the naysayers, and those who would lie still while Britain declines. Not us. Not Labour Members.

[Graham Stuart]

Will the hon. Member give way?

[Josh Simons]

I will make some progress.

Secondly, the Chancellor chose who the Government will stand beside, by raising taxes; taxing assets, wealth and those who can afford it; protecting working people; and following my predecessor, Ian McCartney, in raising the minimum wage, from which 8,000 of my constituents will benefit.

[Graham Stuart]

Will the hon. Member give way?

[Josh Simons]

No, I will not.

Labour Members are proud that, alongside the Make Work Pay package, the Government are delivering a generational shift in wealth and power towards workers—a shift that is long overdue. We know that eroding worker power and pay is bad for productivity and growth. More importantly, how can any worker in Britain trust their Government and have faith in their country when for so long the Government have failed to deliver for them? This Government will stand beside working people no matter what.

Lastly, the Chancellor chose to move Britain confidently into the future by being an activist Government, embracing a new era of technological change, investing billions in data storage and processing, and transforming how we deliver healthcare to shift towards prevention and community health provision. I hope that she and the Secretary of State for Health and Social Care will visit my local trust in Wigan, which is pioneering such healthcare in the towns I represent in Makerfield.

For weeks now, Conservative Members—disinterested in big arguments about the future—have reverted to type. They have sought to sow discord and division, at times telling outright lies, and as ever wholly lacking the humility to reflect on why they are in opposition and we are in government. I have spoken to hundreds of constituents in the last month who have heard some of their nonsense, and to them I say this: I promised that this Government would not remove free bus passes for pensioners. We kept that promise. I promised that this Government would not levy income tax on pensions, and we kept that promise. I promised that income tax rates would not go up, and we kept that promise. We chose to back workers and tax wealth and assets; we chose to invest in our NHS; we chose to take Britain into the future rather than wallowing in the past; and, above all else, we chose to keep our promises, because that is what Labour does.

I wonder whether Conservative Members will own up to their choices and show some leadership in an age when it is so badly needed. If they oppose our investment rule, which hospital and data centre would they cut? If they oppose our tax rises, which struggling public service would they sacrifice? If they cannot answer those questions, as they have not done today, the public will not take them seriously and will see them for what they are: the same old Tories, always navel-gazing, and always lacking hope and the imagination to see how things could be better and different, and what a stronger and more confident country might look like. Their party no longer measures up to the age in which we live. I, for one, am mighty glad that we have a Chancellor and a Government who do.