Oral Answers to Questions

Debate between Jacob Young and Rachel Hopkins

Monday 22nd January 2024 Commons Chamber

[Jacob Young]

I am very sorry to hear of my hon. Friend’s concerns. I will meet him and discuss how our antisocial behaviour action plan can help in Ferryhill.

[Rachel Hopkins (Luton South) (Lab)]

I refer the House to my entry in the Register of Members’ Financial Interests. Today, more than 40 of the Government’s own MPs have written to the Prime Minister with their concern about the financial situation facing councils and the need for emergency funding. The Local Government Association says that there is likely to be a £4 billion funding gap over the next two years. If there are to be these council shortfalls and many people will not see the essential services they rely on, what will the Secretary of State do to ensure that people still have access to the vital services they so desperately need?

National Insurance Contributions (Increase of Thresholds) Bill

Debate between Jacob Young and Rachel Hopkins

2nd reading
Thursday 24th March 2022 Commons Chamber

[Rachel Hopkins (Luton South) (Lab)]

The Chancellor’s spring statement left households and businesses across Luton South to fend for themselves in the middle of a cost of living crisis, as we are set to see this year the biggest drop in incomes on record. The Office for Budget Responsibility confirmed that real household disposable income will fall over the next two years, leading to

“the biggest fall in living standards in any single financial year since ONS records began in 1956-57”.

Britain is facing the highest tax burden in 70 years, with the Chancellor confirming £24 billion in tax rises this year. For every £6 the Chancellor has taken in tax since he became Chancellor, he is giving back just £1 today. This situation cuts to the heart of the Conservatives’ mismanagement of the economy, structured on low investment, low pay and low growth. It also shows their total disregard for the hardship that my constituents in Luton South are facing. Whether it is that people cannot afford the soaring heating bills, the petrol at the pump or the rising food prices, it is our communities that are suffering right now.

The Bill represents just one aspect of the Chancellor’s sleight-of-hand approach to the management of public finances, which is based more on feathering the nest of his own popularity—or, dare I say, his Instagram account—than it is on building an economy based on high growth, high productivity and higher redistribution. Although increasing the national insurance contributions threshold will provide some respite, it will deliver twice as much benefit to the top 50%—the top half of earners—as it will to those in the lower half. And it cannot be considered in isolation. The Chancellor announced in the 2021 autumn Budget that national insurance contributions rates would rise from 12% to 13.25%. Overall, that tax increase is regressive: those earning more than £100,000 a year could end up paying proportionately less. Notwithstanding the threshold change, the rate will be around 13.25% on most earnings up to £50,000 but just 3.25% on any income above that threshold. For all the references earlier in the debate about everyone paying their fair share, I am not sure that is the case.

[Jacob Young]

The hon. Lady mentioned the health and social care levy; does she recognise the point made earlier by my hon. Friend the Member for Grantham and Stamford (Gareth Davies)? The top 14% of earners will pay 50% of the levy. Surely that demonstrates that the levy is more progressive.

[Rachel Hopkins]

There are many ways to cut a cake. The people in my constituency know what fairness is and they know that they are paying disproportionately more in their everyday lives.

Could the Chancellor point to any other major economy that is putting up taxes on working people this April? The policies in the spring statement are poorly targeted and not grounded in fairness. According to the response from the Institute for Public Policy Research, they will help the wealthiest households four times more than they will help the poorest. Alongside the lack of support in the spring statement, wages are forecast to fall in value by 2% this year, which is equivalent to a real-terms cut of £552.

We have heard much about a parallel universe, but it is clear whose side the Conservative Government are on. They are certainly not on the side of the pensioners, families on universal credit and children living in poverty in Luton South, who face the choice of heating or eating. I wish the hon. Member for South Dorset (Richard Drax) was still in the Chamber. I listened intently to his comments about freedom; if someone cannot afford to heat their home or feed their kids, they do not have much freedom. For those on the very lowest incomes, there is nothing. There is nothing for those unable to work or those who are unemployed.

The reform places a greater level of tax on almost all workers. The Government’s negligence will lead to increased fuel poverty. Government Members may try to point, again, to the household support fund. A colleague told me earlier that for those under the income threshold, the increase would be equivalent to 6p a day.

[Jacob Young]

Will the hon. Lady give way?

[Rachel Hopkins]

One more time.

[Jacob Young]

We are talking about the second tranche of the household support fund. The first tranche of £500 million was announced last year. Luton got £1.83 million from that fund, which I am sure was helpful to her constituents. They will get a further share from the second tranche. Does the hon. Lady welcome that?

[Rachel Hopkins]

I am really pleased that the hon. Member is able to remember that figure; I hope he is also able to remind the House of the more than £100 million that has been taken away from Luton council over a decade of Tory austerity, which is why so many of the families in my constituency are living in poverty and are in fuel poverty.

Rail Investment and Integrated Rail Plan

Debate between Jacob Young and Rachel Hopkins

Wednesday 8th December 2021 Commons Chamber

[Jacob Young]

Will the hon. Member give way?

[Rachel Hopkins (Luton South) (Lab)]

Will my hon. Friend give way?