Income Tax (Charge)

John Glen Excerpts

Monday 4th November 2024 Commons Chamber

[John Glen (Salisbury) (Con)]

What a great privilege it is to be sitting on the Back Benches and able to make a contribution freely after 12 years on the Front Bench, as a Parliamentary Private Secretary or Minister.

I pay tribute to the hon. Member for Wrexham (Andrew Ranger) for his maiden speech and acknowledge what a wonderful experience it was to visit Wrexham about 10 months ago, as part of the Places for Growth work that I was involved in in the Cabinet Office.

I hope that I can use the freedom I now have to speak candidly about some of the experiences I had in government. I want to make some remarks about that experience and the legacy of the last five years, talk about growth enablement, make some observations about some of the Budget measures related to that matter, and also speak for a few moments about unforeseen risks and my concerns about whether the Budget will give us the space as a country to deal with those risks.

Five years ago, an election was called, with an outcome a few weeks later—I certainly did not think that three months after that we would be shutting down the economy because of covid. I was in the Treasury with my right hon. Friend the Member for Richmond and Northallerton (Rishi Sunak), and we quickly had to institute the bounce back loans and the furlough scheme—exceptional infusions of cash for public services to keep the economy going. Consequentially, tax levels had to rise, and of course we had a spirited debate this year about those levels of taxation.

Those of us who have been through several elections recognise that, given the politics of elections, there is a trade-off between candour and obfuscation. I observe that, after this Budget, the gap is wider than normal, and the assertion about the £22 billion black hole has not been legitimised. I look forward to addressing some of those issues on the Treasury Committee in the coming days.

The Government’s core argument, though, is that there is a level of investment required to secure growth through improvements in productivity and by dealing with the lack of investment in recent years. I wish them well with that, because it is in the interests of our whole economy to see greater productivity, but I am profoundly concerned about some of the choices that have been made. There seems to be a surge of investment in the next two years, but serious questions about the settlements for non-protected Departments thereafter.

I am concerned about the decisions made on public sector wage settlements and the precedent deemed to be given for other workforces in subsequent years to seek greater settlements without conditionality. Unless we drive higher productivity in the public sector, as well as encouraging investment in the private sector, we will not see the growth that we hope for. I am also worried about the costs—nearly £5 billion—of the Employment Rights Bill, and about the tax increases for those who employ people in this country. But I wish the Government well.

The theme of today’s debate is some of the reforms needed to look after the interests of working people. We have seen a surge in the number of working-age people who are not in gainful employment. About 12 years ago, we decided in this House, rightly, to ensure parity of esteem between those experiencing mental health problems and those with physical health problems. But in truth, our benefits system has not adequately interrogated how to deal with intermittent mental health problems. We will have to work together constructively for the right settlement to get those people back into work. We must put the emphasis on what people can do, rather than what they cannot do, and ensure that people who are partially fit for work are encouraged back into work.

Finally, I want to address our capacity, further to this Budget, to deal with shocks. In February 2022, we thought we were coming out of covid. I was at a meeting in my neighbouring constituency of Andover, and Putin’s Ukraine incursion happened. We had massive inflation and had to find £90 billion overnight. My concern is that there is not enough capacity to deal with the shocks that we could see in a very uncertain world—the energy shock might occur again.

I want to be as constructive as I can be from where I now sit—that is a responsibility of His Majesty’s loyal Opposition—but I am concerned that a number of the decisions in this Budget will not lay the foundations for the more productive, higher-growth economy that is expected and wanted, and I am very concerned about there not being enough in reserve for what we may face.