Budget Resolutions

John Whittingdale Excerpts

Thursday 29th October 2026 Commons Chamber

[Sir John Whittingdale (Maldon) (Con)]

Before I turn to the Budget, I would like to take this opportunity to pay tribute to Sue Holt, whose death Mr Speaker announced to the House this morning. I am a member and former leader of the OSCE Parliamentary Assembly delegation, and I worked with Sue over quite a long period. She was always immensely cheerful and efficient, and her death came as a real shock to us all. I send my condolences.

At least there is one part of the Budget that I welcome: the continuing support being given by this Government to Ukraine. That was initiated under the last Government —indeed, over 10 years ago, long before the full-scale invasion by Russia—and we have continued to maintain it. It is a cross-party matter, so that support is very welcome. One of the reasons it is so important that we support Ukraine is that Ukraine is our frontline, and the threat to Ukraine is not just a threat to that country; it is a threat to all of us. That is why it is essential that we increase our defence expenditure now.

The Chancellor has recommitted to spending 3% of GDP on defence by 2030, but that is still some way off, and we have heard from the Secretary of State for Defence about the immediacy of the threat. It is a matter of some concern that while we are still debating how we will get to 3%, allies such as Denmark, Estonia, Lativa, Lithuania, Norway and Poland are already exceeding that level and planning to spend more. Perhaps one of the reasons we have not yet been able to explain how we will meet the target is that the essential measures to fund it—in other words, addressing the welfare budget—have again been ducked by this Government. We await the outcome of the reviews by the Minister and Alan Milburn, but we have reached a position in which 6.7 million people are now claiming out-of-work benefits. That is creating a situation that is not just unaffordable; it is actually immoral that so many people of working age are out of work and living on benefits.

The situation in this country is that all the economic signals for the long term are heading in the wrong direction. Borrowing is going up. Our national debt already stands at £3 trillion and is scheduled to increase further. Tax levels are the highest in our history. The Chancellor claims that he wants to cut regulation, but we have heard today from the OBR that the Employment Rights Act 2025 will result in unemployment standing at over 5% next year. That situation destroys incentives to work, drives away investment and causes entrepreneurs to leave the country. It is an unsustainable situation, yet nothing in this Budget does anything to give confidence that those things will be reversed.

I will quickly refer to a couple of measures. In the Prime Minister’s first statement to the House, I raised the situation on our high streets, where so many businesses have been hit by not just the increase in business rates, but the increases in national insurance contributions, energy costs and the minimum wage. Although the measure to increase the threshold for business relief is of some small help, it is nothing like sufficient to help those businesses that are struggling to survive. I regret that there was no mention of VAT, a cut to which UKHospitality has identified as a critical measure that could help, because such businesses have to compete with those in countries such as France, Spain and Italy, which levy rates that are half of those here.

I will quickly mention hair salons, which the Chancellor talked about. They often face unfair competition from identical-looking salons next door, where the chairs are rented out and the staff class themselves as self-employed. That is depriving the Treasury of proper revenue while also creating unfair competition. I hope that is something that the Treasury will listen to.

I am sorry that the gambling sector is yet again being used as a cash cow, and I refer the House to my entry in the Register of Members’ Financial Interests. By increasing the tax on gambling yet again, the effect will hit our high streets even harder, because a lot of betting shops are going to be driven out of business.

[Mr Francois]

My right hon. Friend has been a staunch defender of Ukraine for many years in this House. Would he agree with what President Zelensky said yesterday, as reported in The Sun, when he advised this Government to prioritise UK defence spending and to do so without further delay? Does Zelensky know something the Government do not?

[Sir John Whittingdale]

I am extremely grateful to my constituency neighbour for making an excellent point—and for giving me another minute. He is absolutely right that President Zelensky once again has spoken words for the Government to listen to, if only they would. It is absolutely right that we should increase our support for and expenditure on defence.

Finally, my right hon. Friend and I both represent relatively rural constituencies, and I regret that the Budget made no mention of the harm being done to the agriculture sector through the family farming tax, nor did it provide any help to those constituents—I have many, and I know he does as well—who are off the grid and rely on heating oil. They will not benefit from the abolition of the standing charges, yet they have faced huge increases.

Perhaps the only thing to celebrate in this Budget is the fact that the Chancellor did not listen to his Back Benchers who wanted him to go even further, with a wealth tax, a mansion tax and an increase in capital gains tax; long may it continue that he listens to us, not to them.