Budget Resolutions

Debate between Helen Whately and Liam Byrne

Monday 1st November 2021 Commons Chamber

[Helen Whately]

I will make a bit more progress.

I heard some Opposition Members say that rich people are not paying in enough. Well, I ask them to look at the Government’s distribution analysis and the analysis of the Resolution Foundation. These analyses say that the Government’s policies boost incomes for those on the lowest incomes, while those with the broadest shoulders—the better off—are the ones who will be paying the most. I also ask Opposition Members to acknowledge, as so many Government Members did, how both the increase to the national living wage by 6.6% and the changes to the universal credit taper rate will help millions of households on the lowest incomes. For example, a single parent of two children who works full-time will be £1,200 better off next year thanks to these changes.

[Liam Byrne]

I only intervene because I am sure that the Minister does not want to lead the House astray. The Resolution Foundation is very clear in its analysis that three quarters of the 4.4 million people on universal credit will be negatively affected and the bottom fifth of people will be £280 a year worse off as a result of the £20 uplift being stripped away. I am sure that she would want the record to reflect that.

[Helen Whately]

I stand by what I said: the Government’s distribution analysis and the Resolution Foundation analysis say that this Budget and spending review boost the incomes of those on the lowest incomes, and that those who are better off are paying in the most. The crucial point about the changes to the taper rate for universal credit is that it is about ensuring that people keep more of what they earn, and get the benefits and rewards of their hard work. The effect that it has is a tax cut for those on the lowest incomes.

There were times when I wondered whether Opposition Members were scrutinising the same Budget as Government Members. At many points, it felt as though they had missed the point. It was clear that the Opposition have no alternative plan. It was not clear whether they felt that we were spending too much or too little; what they would cut; what they would change; or where they would raise funds from. We on the Conservative Benches know that we are making the hard, responsible decisions, and setting ourselves up for the future.

I come to a serious point I want to make. Colleagues rightly pointed out that public spending is relatively high, and I share colleagues’ concerns about the size of the state at the moment. In fact, the Chancellor himself spoke about this last week. We on the Conservative Benches know that government should have limits. We want people to keep more of the rewards of their efforts, and we have said that, by the end of this Parliament, we want taxes to be going up, rather than down.