Budget Resolutions

Debate between Graham Stuart and Andrew Griffith

Wednesday 6th November 2024 Commons Chamber

[Andrew Griffith]

Forgive me if the hon. Member has been here for more than 120 days, but I fully support the sectors, and the industrial strategies that the Government have articulated for them, because the strategies continue on from, and are identical to, those of the previous Government. Not for the first time, we see what I call name-plating from this Government. A British business bank—the UK Infrastructure Bank—is being re-name-plated as a national wealth fund. The modern industrial strategy takes the existing science, technology and innovation framework, our plan for financial services and our creative industries strategy and re-name-plates them under a different banner. That is welcome. There is nothing quite as flattering as plagiarism, and I am delighted that those really important sectors of the economy will benefit from a degree of continuity.

The Budget has been absolutely crushing for business. If the Secretary of State is honest, he will know that from his engagement. The only thing that it has delivered to businesses across the country is more burdens. According to the Institute for Fiscal Studies, the increase in national insurance contributions amounts to a £25 billion tax on business. The reduction of the national insurance threshold by over £4,000 will keep small and medium-sized businesses up at night. Let us not equivocate: the measures in the Budget amount, in the words of the Chancellor herself, to a “jobs tax”. From industry leaders to shop owners, those in the retail, hospitality and leisure industries in particular will think back to what they heard during the election campaign.

[Graham Stuart]

I know that my hon. Friend follows these things closely. According to the OBR, the £26 billion jobs tax bombshell actually nets only £16 billion because of reduced investment and other funds, and three quarters of the £26 billion falls on workers’ wages. Only this socialist Government could be so incompetent as to reduce wages by more than they will take from a tax that they have introduced. I have not heard that observation yet in the debate, but I share it with my hon. Friend.

[Andrew Griffith]

My right hon. Friend is exactly right. We have heard talk from Labour Members of a circular economy. Well, this is entirely circular. As the OBR observes, the measure does not add to growth, and as my right hon. Friend mentioned, three quarters of the burden will fall on the low-paid. The Labour party has a distinguished record on these matters, and if Labour Members are serious and thoughtful about this, they will interrogate their Front-Benchers in much greater depth, because the measure will result in lower-paid, poorer jobs—and it will be much harder for people to get on the jobs ladder in the first place.

There is an enormous number of unanswered questions. The impact on GPs is uncosted.