Budget: Pre-announcement of Provisions

John Redwood Excerpts

Tuesday 26th October 2021 Commons Chamber

[Mr Clarke]

It is important that we consider all the measures that have been trailed in the round. It is clear that the wider announcements that have been made are entirely accurate. The national living wage is to rise by £1,000 a year, which will take the benefit for a full-time worker on the national living wage to £5,000 since 2016. That is a substantial increase. It beggars belief that the Labour party can stand there and say that a 6.6% increase in the national living wage is somehow not enough. It needs to be considered in conjunction with all the other announcements that have been made, including the £500 million household support fund, the energy price cap and all the action that we have taken to freeze fuel duty and to keep bills low. We are acutely conscious of the pressures that face households and we take action to modify them.

On public sector pay, which the hon. Lady asked about, I am delighted that we will be returning to the normal processes that adjust public sector pay in the light of all the pressures that exist. It will be for the relevant pay review bodies to discuss that, in conjunction with the Government, in the normal way. I am not going to pre- empt that work, but we will work closely with them to make sure that what is announced is right. The Chancellor will have further details on that in his speech.

On the cost of energy, the energy price cap is protecting households, with up to £100 a year off their bills. That is the right thing to do. We all recognise that that is a priority for all our constituents.

On business rates, we will get the upshot of the fundamental review of how we can get the future of business rates right. The Labour party has committed to abolishing business rates, without any clear idea of how it would fund that. Indeed, the disconnect between what the Labour party has committed to and what it has actually identified the funding for is somewhere in the region of £400 billion of commitments with £5 billion of savings to pay for them. That is not a responsible way to run the economy.

What you will be hearing from the Government Benches tomorrow, Mr Speaker, is a clear plan to make sure that we can not only balance the books but take our economy forward in a way that works for the benefit of all our communities. That is obviously the priority for my right hon. Friend the Chancellor and for me.

[John Redwood (Wokingham) (Con)]

This is not the first Government who have wanted more than one day’s news out of a Budget, but the right way to do it is for all Ministers to observe complete Budget secrecy, for the Chancellor to announce the tax changes and the block totals on spending and then, in the days that follow, for Cabinet Ministers to come to the House to announce the detailed spending plans and subject them to our scrutiny. If that was right for all previous Governments, why is it not right for this one?

[Mr Clarke]

I thank my right hon. Friend for his question, and I completely share his assessment of the importance of this House, of which both the Chancellor and I are acutely aware. In 2013, the then Chancellor, George Osborne, asked the permanent secretary for Her Majesty’s Treasury to conduct a review of the practice of the release of Budget information under embargo on Budget day, and he set out a series of recommendations. His central conclusion was that the Treasury should introduce

“a ban on the pre-release of the core of the Budget…that is: the economic and fiscal projections, the fiscal judgement and individual tax rates, reliefs and allowances.”

We have observed that stricture in full and I am obviously totally committed to continuing to do that.