Income tax (charge)

Jake Richards Excerpts

Thursday 31st October 2024 Commons Chamber

[Pat McFadden]

No, I am not giving way.

The Conservatives talk about their golden legacy, and we heard the former Chancellor read out some of his greatest hits. Who are they kidding? The last Parliament was the worst on record for living standards, with British families worse off than their French and German counterparts. His Government had the second lowest growth in the G7 since the pandemic and the highest inflation in the G7 since the pandemic. They left a prison system overflowing and just days away from collapse, and rather than take responsibility for it, they cut and ran and called an early election.

I have to give the previous Government credit: some things did grow on their watch, such as hospital waiting lists, housing waiting lists, shoplifting, insecure work and the decline of our high streets. That is their record, and it falls to us to fix it and start to rebuild Britain, so there is no point in coming to this Chamber and pretending that people are making it all up.

The former Chancellor talks about business. His party stuffed business—his colleague, the former Prime Minister, said “eff business”, and then the Conservatives carried out the policy. Under them, we had the lowest business investment in the G7. Why? Because of constant chaos in their Governments, meaning that business did not know who would be leading them from one year to the next; because they caved in to their Back Benchers and blocked anything substantial from being built; and because businesses could not hire the workers they needed with so many people on the sick.

This could have been a Budget where we just muddled through—patched up some mistakes made by the Conservative party and hoped something would turn up—but that is not good enough. We have had that time and again. In fact, we have had 14 years of it—long enough to show that that approach is not going to work. The country voted for change, and this was a Budget to deliver change. It is not a time for more of the same; it is a time to choose. We did not duck the challenge or look the other way; we confronted the challenge, because that is what the country needs. This is the moment when the country turns a corner and sets out a proper plan for the years to come.

We did make tax changes in this Budget, which is never an easy thing to do. That was because the first thing we had to do was fix the foundations and put the public finances on a sound footing. With this Budget, we say how we will pay for what we will do. The first fiscal rule announced by the Chancellor is to fund day-to-day spending from the revenue that we raise, a rule that the OBR judges will be met two years early.

The IMF, to which the right hon. Member for Godalming and Ash referred, has today welcomed

“the Budget’s focus on boosting growth through a needed increase in public investment while addressing urgent pressures on public services”,

so let me turn to those public services. Secondly, there will be more NHS appointments to get waiting lists and times down; more technology to improve productivity; more prevention to stop people falling ill in the first place; new surgical hubs and diagnostic centres; a hospital-building programme brought from fiction to reality, this time founded on more than hot air; new schools to help children learn; more teachers to bring out the best in every child; and more investment in further education to give people the skills they need. It is investment and reform together—not just more money into the same system, but changing the system for a new age, with productivity targets alongside the extra money.

The right hon. Gentleman also talked about welfare spending, but the Conservatives had plenty of time to sort out welfare spending. Their legacy is almost 3 million people out of work because of long-term sickness. The truth is that they did not have a plan, but they do have a record, and again, it falls to us to sort that record out. We will take tough action on welfare fraud, and we will not give up on those who can work and make a contribution, because we understand that when the sick can get treated and when every child of every background has the best chance to learn, that is not just good for them and their families but for the economy as a whole.

Thirdly, this Budget put in place help with the cost of living for millions: a rising minimum wage with extra help for young workers, fuel duty frozen, carers allowed to earn more, the triple lock protected, the household support fund extended to help the poorest, and lower deductions from universal credit. Those are the choices that we made—real help for millions of people.

Finally, we reject the path of decline for investment that the Conservatives were planning. They wanted to cut public investment by a third. That was the right hon. Gentleman’s plan—to once again cut back on the house building, schools, hospitals and transport projects that the country needs. That is a path of decline that has been chosen too often in the past. The Tories do not yet have a leader, and the only policy to come out of their leadership contest so far is to cut maternity pay, but on the question of investment, they do have a position. Budgets are about choices, and yesterday they chose: the former Prime Minister, the right hon. Member for Richmond and Northallerton (Rishi Sunak) railed against our new investment rule, and more Conservative Members have spoken out since. What does that mean their position is? New money for housing—opposed. New money for schools—opposed. New money for potholes—opposed. New money for research—opposed. Investment in the future itself—opposed by the Conservative party. I understand the perils of opposition. We have had long enough experience of it, but if the Conservatives really want to run around the country opposing every new investment over the coming four or five years, be our guests.

Yes, this Budget was a big choice, and in opposing the investments within it, the Conservatives have made a big choice too. We will remind them of it, project after project, year after year. They wanted to lock us into the world that voters rejected just four short months ago.

[Jake Richards (Rother Valley) (Lab)]

My right hon. Friend has mentioned the policies, or lack thereof, that have come out of the Tory leadership contest. Unfortunately, I spent an evening watching the GB News debate between the Tory leadership contenders, and the one policy that one of the contenders said she would put in place on day one as Prime Minister was a tax cut for private schools. That is the priority of the modern Conservative party: opposing the investment in this Budget while offering tax cuts for the very richest.

[Pat McFadden]

I thank my hon. Friend for his intervention, although I have to say that his television viewing choices are a little bit different from mine. With regard to education, we have always said that we support aspiration for all children in every type of school.

Our growth plans are about far more than this Budget. They are about planning reform to get Britain building, a challenge that was ducked by the Conservative party year after year. They are about more clean energy for energy security. They are about private investment, with £63 billion of investment announced at our investment summit just a few weeks ago—investors are finally appreciating the stability that has come to the country after the chaos wrought by the Conservative party—and they are about reform of business rates to support our neglected high streets.

This is a big moment for the country. In July, the public did not vote to carry on as we are—they did not vote to continue with the plans of the Conservative party. They voted for change, and this is a Budget for change: not just change in policy, but facing up to the reality of what the Conservative party left behind. It is a Budget to stabilise the public finances, to help people with the cost of living, to begin to turn our public services around, and to start to rebuild Britain. It is a choice between investment and decline—a turning of the page after 14 years. It is a Budget that launches a new chapter for Britain, and we will be proud to vote for it in the Lobby next week.