James Cleverly
Main Page: James Cleverly (Conservative - Braintree)Department Debates - View all James Cleverly's debates with the HM Treasury
(3 days, 2 hours ago)
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Sir James Cleverly (Braintree) (Con)
Before I get into my speech, I genuinely welcome the Exchequer Secretary to the Treasury, the hon. Member for Chipping Barnet (Dan Tomlinson), to the Treasury Bench and to his position in the Treasury. I give the House due notice that I do not intend to take interventions; the hon. Gentleman will have a tough enough job defending the indefensible as it is, and I do not want to curtail his time any more than I strictly have to.
The Labour party loves tax, and that has been on display in the Chamber this afternoon. When given the opportunity, Labour has been very critical of us. It is only fair to say that in government we did put up taxes more than we would have wanted. However, I do not remember Labour Members criticising our expenditure when we were supporting businesses and individuals through furlough; I do not remember them criticising our decisions to support people with their fuel bills in response to Russia’s brutal invasion of Ukraine. Labour likes the spending when it comes.
A number of Government Members stood up and criticised us for putting up taxes—a bold move, bearing in mind that that is exactly what they are going to do later on this year. If I am wrong in my estimation, if I have been unfair, or if I have mis-categorised the heart and soul of those on the Government Benches, I will break the rule that I made just a moment ago and take an intervention from any Government Member who is willing to stand up and say that they want to see taxes coming down—I thought not.
Sir James Cleverly
No, I will not give way. The hon. Member had his chance.
This is the point: the Government love putting up taxes. We in the Conservative party put up taxes when we had to; this Government put up taxes at every chance they get. And the reason they put up taxes whenever they get the chance to do so is that they think taxes are not a necessary evil, but a good in and of itself. That is at the heart of the problem. The fact that gilt markets, bond markets, businesses and individuals know in their heart of hearts that taxes will go up under this Government has produced the stagnation and the stifling that Labour Members are criticising.
I was about to say that we have had a number of good contributions from both sides of the House, but that is being generous. The simple fact of the matter is that a key indicator of confidence in a Government is the cost of borrowing, and, currently, that is at a multi-decade high. As we have said, it has not been higher this century; it is trending in the wrong direction. The Bank of England, when setting interest rates, made it clear that it is concerned about the trajectory—specifically the trajectory on property taxes. Those on the Treasury Bench say that they do not want to speculate on what might be in the Budget later this year. They did not want this House to investigate what they claim to be speculation. They probably should not have spent so much time briefing the media over the summer. They cannot have it both ways. We are asking legitimate questions of the Government, because the markets and the country are worried about what is happening and we want to allay their fears.
Sir James Cleverly
No, I will not give way.
Let me just say this: if we are to address the slowing of the housing market, we should make sure—[Interruption.] I say “we”, but Labour is in government now and it should therefore make sure that it does nothing to stagnate the market further. Speculation is rife that there will be a £14,000 tax bill on average for UK households, a £23,000 tax bill for those in the south-east, and potentially an average tax bill of £33,000 for property transactions. That is the Government’s fault. They have the opportunity to put that speculation to bed and they choose not to do so. Despite the fact that they are now in government, they do not seem to have learned the lesson that when they speak—whether it be on or off the record—markets move. That is why speculation among those on the Government Benches is so damaging and so dangerous. They are causing economic problems because of their kite flying. We have given them an opportunity to put one of those pieces of speculation to bed and they have failed to do so. In that failure, the mask has slipped—they want to put up taxes. They love putting up taxes and they are going to put up taxes.
