Finance (No. 2) Bill

Debate between James Wild and Laurence Turner

Committee of the whole House
Tuesday 13th January 2026 Commons Chamber

[James Wild]

The hon. Gentleman tempts me on to my next paragraph.

Instead of tinkering, the Chancellor should adopt Conservative party policies and abolish business rates for pubs, hospitality businesses, retail and leisure businesses, as well as slashing the average pub’s energy bill by £1,000. That is real help—the Minister can have those ideas for free.

The duty increases will also have an impact on the UK’s world-class wine and spirits producers, which together generate £76 billion in economic activity. Across our wine sector, there are more than 1,000 vineyards, including some excellent ones in North West Norfolk, which I recommend. Despite that success, we see the Government putting yet more costs on to the sector; some 60% of the price of a bottle of wine already goes to tax. Instead of listening to calls from the sector to freeze duty, the Chancellor has decided to increase it, and she has failed to fix the small producer relief so that it works for wine makers and distillers.

The picture is no rosier in the spirits sector. The Scotch Whisky Association has said that the increase piles additional pressure on to a sector already suffering from job losses, stalled investment and business closures. It estimates that the lost revenue to the Treasury as a result of the previous rise in spirits duty amounted to about £150 million. The UK Spirits Alliance has called the Budget

“a sad day for the nation’s distillers, pubs and the wider hospitality sector.”

WineGB joins its ranks in pointing out that higher prices will likely lead to lower sales and reduce the Treasury revenue, so the sector could not be clearer. The only people still pretending this is good economics are those on the Government Benches.

When the Government should be backing businesses, they are instead choosing to add to their costs. Increased taxes have consequences—they depress demand and revenue. In October, YouGov found that one in four regular drinkers was likely to reduce their alcohol spend this year due to price increases, and the Wine and Spirit Trade Association has called for the OBR’s forecasting assumptions to be reviewed. The Government are putting themselves and the UK on the wrong side of the Laffer curve, which the hon. Member for Stoke-on-Trent Central (Gareth Snell) should read more about—he will be persuaded. Ministers should take fresh advice on the impact of these changes.

The UK’s brewers, producers and hospitality businesses are resilient. Frankly, in the face of this Government’s onslaught, they need to be. They are at the heart of our communities, creating jobs, driving local growth and giving many young people their first opportunity in work. Now is the time to support the sector, not tax it more, which is why we will be voting against these measures this evening.

[Laurence Turner (Birmingham Northfield) (Lab)]

I draw attention to my chairship of the GMB parliamentary group, a union that represents workers in the distillery and retail trades. I will limit my comments to the uprating of excise duty, but I welcome this Budget more generally. It represents the right choice—investment and renewal over austerity and decline.

Clause 86 of the Finance (No. 2) Bill represents a simple uprating of alcohol duty in accordance with the retail prices index. In that sense, the clause represents continuity with the policy of successive Governments over many years, going back to the early 1970s, and of course the principle of excise duty predates that by many more years. Having noted the shadow Minister’s comments, it is telling that none of the amendments we are considering today would actively reverse that increase. The effects of the escalator is also softened to an extent by the reduction for draught products, which, combined with pre-existing changes to the tax system, amount to a somewhat more favourable regime for the drinks most sold in pubs. This direction of policy is welcome, given everything we know about the attendant health and social harm that can be the result of solo drinking.

It is worth noting that the increase is in line with international best practice. It is timely that just today, the World Health Organisation published a new report titled “Global report on the use of alcohol taxes”. That report says that

“specific excise taxes need to be regularly adjusted for inflation or their real value risks erosion over time.”

It also establishes that the UK’s effective tax take is firmly in line with many other European countries, including Belgium and much of central and eastern Europe, and of course it is significantly lower than in Scandinavia. As such, uprating the duty strikes the right balance between the different objectives of encouraging social activity, supporting the hospitality and manufacturing industries, and not encouraging excessive consumption. It is true that there have been changes in alcohol consumption rates among the general public, changes that have been particularly marked since covid. As the 2024 living costs and food survey found, there has been a notable fall in real-terms alcohol consumption, both in and out of the home, which is why specific measures are needed to support the pub trade.

If I may, I will say a few words about the revaluation 2026 process. I have raised questions about this before, and the Minister has indicated that—as the phrase goes—discussions are ongoing, so in the interests of time I will not repeat my questions today. However, I would like to note two things. First, the Valuation Office Agency has been genuinely independent since the days of the increment value duty, and secondly, valuation 2026 has been coming for a long time. It was the last Government who changed the law to introduce three-year valuation exercises, and as successive annual reports of the VOA make clear, the risk of valuations in individual sectors that are not of sufficient quality was foreseen. A delivery plan was developed before the 2024 general election to mitigate that risk, as the VOA saw it. Presumably the Government of the day did not have concerns about the VOA’s approach, because if they did, they would have raised them on the record.

I will make two further brief points, the first of which is about the tax system’s treatment of different types of alcohol sales. Something needs to be done about the sale of high-strength drinks on our high streets in proximity to betting shops. If you were to go to Northfield high street, Ms Cummins, you would see a succession of small betting shops immediately next to off-licences where very low cost, but very high strength beers and ciders are sold. There is a revolving door between those premises, and it is a major contribution to some of the antisocial problems that we have on our high streets. I hope that future exercises will look at different treatments, whether that is powers for local authorities or changes to the tax system to try to remedy the problem.

Employment Rights Bill

Debate between James Wild and Laurence Turner

Consideration of Lords message
Wednesday 5th November 2025 Commons Chamber

[Laurence Turner (Birmingham Northfield) (Lab)]

Given that time is short, Madam Deputy Speaker, I will endeavour to keep my remarks brief. I intend to speak to specific amendments today, but I feel compelled to start with a general comment in respect of financial interests. Throughout the stages of the Bill, and again today, it has been suggested by the Opposition that a number of Government Members speak not from genuine and sincere belief, but because of arrangements involving donations to their constituency Labour parties. I say to those on the Opposition Benches that that argument and line of thought betrays a laziness towards this issue that is reflected in their lack of effective scrutiny of the Bill, with the Opposition resorting instead to hackneyed and ancestral stereotypes and lazy assumptions that reflect nothing about the world of unions and the world of work.

[James Wild]

Members of the public who are watching this debate will not necessarily have ready access to the records of the thousands of pounds that have been taken by each Member referring simply to their financial interests. In the interest of transparency, will the hon. Gentleman therefore say how many thousands of pounds he took from trade unions, if any, to support this Bill?

[Laurence Turner]

I am grateful to the hon. Gentleman for proving my point exactly. I will happily tell him that since becoming a Member of this House, I have not received a penny in political donations from trade unions. My constituency Labour party received a donation before the election, but that is an entirely different matter. I have only one matter to draw attention to in my entry on the Register of Members’ Financial Interests, which is my chairship of the GMB parliamentary group, which is an unpaid role.

We are asked today to consider a number of amendments that directly contradict our manifesto commitments. Lords amendments 61 and 72 on political funds are a case in point. In the other place, the noble Lord Burns gently questioned whether this was a manifesto issue, but the Make Work Pay document, which our manifesto said would be implemented in full, clearly said that the Trade Union Act 2016 would be repealed. That must include this provision.

The amendments before us seek to preserve the punitive restrictions that were originally imposed as retribution in 1927 and repealed in 1946, after which we had 70 years during which arrangements worked effectively. The actual impact of these amendments, were they passed, would be the same as any arrangement that moves from opt-out to opt-in, which is a reduction in the ability of working people to speak with a collective voice.

Let us not forget that trade union political funds do not exclusively fund donations to parties. Look at the campaigns that have been run and the cross-party support they have won, such as GMB and Unison’s “Protect the Protectors” and GMB’s campaigns on domestic defence manufacturing—two campaigns that the Conservatives came to support—as well as USDAW’s “Freedom from Fear”, and the Gangmasters (Licensing) Act 2004, the result of Unite’s campaign in the aftermath of the Morecambe Bay disaster, in which so many cockle pickers tragically and disgracefully lost their lives. Even today, in this place, trade union funding helps to address the abuse that has occurred within the confines of the estate, and which there is a risk will continue in the future.

Trade unions are democratic bodies. Any member of a trade union can demand to see the receipts of political expenditure, and decisions on party donations are taken on a collective basis. When that provision was originally repealed, the Attlee Government’s Attorney General of the day said—I think this bears repeating today—that the Conservatives relied on the

“old delusion that the Labour party was being built upon the hard-earned pennies of honest Conservatives who were too timid to declare their true political colours and were being bullied by horrid, nasty trade unionists into supporting the political funds of a party to which they were so much opposed.”

Anyone who has worked with trade union members will recognise that to be a delusion indeed, and we have heard much of that delusion from the Opposition through the passage of the Bill.

I was going to make similar comments to those my hon. Friend the Member for Tipton and Wednesbury (Antonia Bance)—who is both honourable and a friend—made in respect of Lords amendment 62, but she covered it expertly. I will finish by talking about Lords amendment 121B on the school support staff negotiating body, which has not been discussed so far today. I recognise that this amendment is substantially different from other amendments that have been sent to us on this matter, but I still believe that it is unnecessary.

First of all, the overwhelming majority of academy employers do subscribe to the National Joint Council terms and conditions for school support staff—terms and conditions which, as has been widely recognised for more than 20 years, are out of date in respect of school support staff. The effect of Lords amendment 121B would to be to create a two-tier arrangement between school support staff in local authority maintained schools and academies. It states that employers could introduce terms and conditions. I am concerned about the potential contradiction with the provisions in the Education (Schools) Act 1992, which that require such changes to be made on a collective and not a unilateral basis. Furthermore, it states that terms and conditions that could be changed should be “in aggregate” an improvement. That clearly leaves room for employers to introduce a weakening to some areas to the detriment of the 1,700 school support staff in my constituency.

I am proud to have had an association with this Bill, and I look forward to rejecting those specific amendments tonight.