Budget Resolutions and Economic Situation

Debate between Graham Stuart and Amanda Martin

Wednesday 28th October 2026 Commons Chamber

[Graham Stuart]

I think—I am not an expert on this, let alone on all those jobs in the hon. Gentleman’s region—that most are already outside of that system and are therefore not being lifted out. UKHospitality has suggested that as few as 10% of these businesses will be affected by the measure. That is my point to the hon. Gentleman, who I know is sincere and wants to properly reflect the serious challenges facing his constituents and his part of the country.

This Government do not get it. Instead of the bold measure we should have had—250,000 businesses being brought out to bring life, dynamism and hope back to his high street and mine—we have a timid Government playing on the margins. That of course is the central problem of today’s Budget, as was laid out far more eloquently and—as Labour colleagues would doubtless say—more reasonably than I ever could by the former Chancellor, my right hon. Friend the Member for Godalming and Ash (Sir Jeremy Hunt).

The Leader of the Opposition said that the Chancellor had received a hospital pass on inheriting the economic situation from his predecessor, but I remember someone once saying to me, “Do you know what the best thing you can ever have in life is, Graham?” I said, “No, I don’t. What is it?” They said, “A lousy predecessor.” On that measure, the Chancellor has been quite fortunate. And yet he comes forward with something this timid, this pallid and this lacking in inspiration, and gives a speech that entirely aligns with those qualities, and he is met with a near rapturous reception from Labour Members who have had to put up with the two previous Budgets, with their disastrous impact on the UK economy.

Why were those Budgets so disastrous? I can tell the House: it is because growth and wealth, which the former Business Secretary, the right hon. Member for Hove and Portslade (Peter Kyle), spoke about so eloquently earlier, come from the private sector. They do not come from a mission-led Government having a tight deadline to go and help rearrange governmental boards and improve the quality of people on them—that is peripheral. It is private business that creates them, but what did the former Chancellor do? She raised taxes on business by £60 billion. [Interruption.] More than £60 billion, I am told. The small businesses that I meet in Beverley, Hedon, Skirlaugh, Withernsea and across my constituency really want to grow and have customers who want to come in, but the tax position has meant that they cannot offer jobs to the young people I also meet outside those shops, standing around listlessly, who want those jobs. That gap has been widened by the £60 billion in taxes.

According to Government Members today, that gap has been narrowed because of this business rates reduction for 70,000 businesses. But that is not telling the whole story, is it? It is a sleight-of-hand Budget as well, which is why I think it is a disappointment. Business taxes have not gone up by another £60 billion—praise the Lord—but they have gone up by over £2 billion through fiddly measures. On top of that, there is the ever-popular call of, “Let’s attack the banks to feed the Labour Back Benchers,” who are so divorced from economic reality. The banks will be paying £1.6 billion in 15 months—that is if we believe that in 15 months, the Chancellor will say to this particular set of Back-Bench Labour MPs, “Oh, I’ve got a great idea. Let’s look forward to the day we take the tax off the banks.” I rather fear that the 15 months will be extended because of those people who have done so much damage before by leaning on their Front Benchers. Anyway, let us assume that it is real and it only lasts 15 months: £1.5 billion or £1.6 billion will be taken out of the banks.

You know, Madam Deputy Speaker, being a long-standing and experienced Member of this House, that the capital of banks has a big multiplier attached to it. When the Government take £1.5 billion or £1.6 billion away from the banks, they are not hitting the rich and helping the poor; they are actually massively reducing the pool of funding available for the very businesses that, if only the Government started to get some of their policies right, might get to a position, as they profoundly want to, where they can offer a job to that young person outside who cannot get one today.

[Amanda Martin (Portsmouth North) (Lab)]

I thank the right hon. Member for giving way during his discussion about banks. Is he aware that Barclays’ profits are up by 1.6%?

[Graham Stuart]

I am delighted. Only one thing is worse than fat, greedy, complacent, lazy banks—if that is how the hon. Member wants to characterise them—and that is broke ones, because once we have a bust banking system, the whole of society is stuffed. People cannot get on the housing ladder, start a small shop or get anywhere. That is why I plead with Labour Members, who I know have had little to do with private businesses—they have come from their charities, social work and trade unions, and have no understanding of business. It seems a populist thing to do to attack the banks, but in fact it hurts ordinary people and means that that small shop on the high street cannot take on the unemployed youngster outside.