Income Tax (Charge)

Iqbal Mohamed Excerpts

Tuesday 5th November 2024 Commons Chamber

[Iqbal Mohamed (Dewsbury and Batley) (Ind)]

I congratulate hon. Members who have made their maiden speeches in the House today. The first Budget of a Labour Government in nearly 15 years is definitely an improvement on the 14 years of Tory austerity and waste, but it is a missed opportunity to bring about the transformative change that the country needs. I welcome the increases in the national minimum wage and carer’s allowance, but it is disappointing that those changes have been accompanied by cuts to social security and disability benefits.

I am grateful for the long-overdue investment in hospitals and the NHS. However, the Government must guarantee that those resources will go into our NHS and not into the pockets of private shareholders.

Some 4.2 million children are growing up in poverty and a quarter of a million people are homeless; meanwhile, we are on the brink of an irreversible climate disaster. Those crises demand bold solutions. The Government could have implemented wealth taxes and closed corporate tax avoidance loopholes to bring about a more equal and sustainable society. Instead, they have chosen to bake in decades of inequality by feigning regret over tough choices they do not have to make. Those include keeping the two-child benefit cap, cutting the winter fuel allowance and increasing the bus fare cap by 50%. At the same time, the Government have committed to an additional £3 billion of military spending.

I echo the comments of my right hon. Friend the Member for Islington North (Jeremy Corbyn) on the link between housing and health. While I welcome the measures in the Budget to increase funding for housing, I am concerned that they do not go nearly far enough. Real security is when everybody has a decent home, and we will solve the housing crisis only with rent controls and a huge council house building programme.

The Government will be aware that plans to freeze the local housing allowance will have a detrimental impact on hundreds of thousands of families struggling in temporary housing or facing eviction. According to the Joseph Rowntree Foundation, if the LHA remains frozen over this Parliament, private renters on housing benefit will on average be about £700 worse off.

If the Government are serious about tackling child poverty and homelessness, they need to start by ending the LHA freeze and linking housing costs to housing support. While I welcome the commitment from the Deputy Prime Minister to deliver 5,000 new social and affordable homes, that is only scratching the surface.

[Mr Adnan Hussain]

On the winter fuel allowance, does the hon. Member agree that freezing pensioners will only increase the need for NHS resources when hospitals are already struggling?

[Iqbal Mohamed]

I thank my hon. Friend for his intervention. I completely agree that there is a direct link between pensioner poverty and demands on the NHS.

The Government’s proposals in the Budget do not go nearly far enough. The situation is simply not sustainable. The ability to provide the bulk of its citizens with a roof over their head is a litmus test for the success of any state. Unfortunately, that test has been failed by successive Governments. Without more radical measures to increase the stock of affordable housing, I fear it is a test that this Government will also fail.