Budget Resolutions
Joshua Reynolds Excerpts(1 day, 18 hours ago)
Commons ChamberRead Full debate Read Hansard Text Watch Debate Read Debate Ministerial Extracts
Mr Joshua Reynolds (Maidenhead) (LD)
After years of government chaos and failure we can only end the brutal cost of living crisis and fix our broken public services if we get the economy growing. We need a real growth plan with Europe at its heart, so Labour must fix the Conservatives’ botched Brexit deal by joining the single market, negotiating a new customs union and using the billions of pounds that that raises to cut people’s taxes and bills.
Dr Luke Evans (Hinckley and Bosworth) (Con)
Will the hon. Gentleman give way?
Mr Reynolds
I thank the hon. Gentleman for his intervention. He should have listened to what I said in the previous 30 seconds. What I said was that we need to join the single market and negotiate a new customs union. I did not say that we need to rejoin the European Union.
First, Liberal Democrats would fix the biggest brake on our economy: the botched Brexit deal. It has put up barriers for every business that trades with our largest market. Small firms in Maidenhead tell me that they now spend more time filling in forms than filling in orders. Some have simply given up trading with Europe altogether. That is lost trade, lost jobs and lost revenue. We would rip up the Government’s red lines and build a new growth and defence partnership with Europe, including the single market and a new customs union.
We would grow our economy. According to independent research, those measures would bring in £27 billion a year in extra tax revenue by the end of the Parliament. We would give those proceeds back to the people who earned it by raising the tax-free personal allowance to £15,000 and raising the higher rate threshold to £56,000, taking 2.5 million of the lowest paid out of income tax altogether and putting £650 back in people’s pockets. It was the Liberal Democrats who raised the personal allowance before. We can do it again. That is how to cut taxes responsibly—we grow our way there.
Anna Dixon (Shipley) (Lab)
Would the hon. Gentleman wish to add his thanks to the Chancellor for the new low-income tax-free allowance for pensioners, which will ensure that they can keep their state pension and hard-earned pension?
Mr Reynolds
I think the hon. Lady will find that there is an anomaly within the Chancellor’s proposals: a 54% tax rate for certain pensioners on certain incomes. I do not necessarily believe that a 54% tax rate for pensioners is the right thing to be doing.
Secondly, Liberal Democrats would make fairer choices about who pays. This Budget goes back once again to savers. Tax on savings and property income go up by another two points. That is on top of the two points that were announced last year. The retired couple who have put money away all their lives and the family who are saving for their deposit will be taxed more. The Government are giving savers a little with one hand while taking with another.
There is a fairer option, though. Because of the high interest rates and the way that the Bank of England’s quantitative easing programme works, the Treasury is handing billions of pounds over to the big banks every year. That is a windfall that the banks did nothing to earn. It is a windfall that they keep, and businesses in our villages and towns are paying the price. Our plan to claw back some of that money would raise £5 billion a year on average. That has never been needed more. As UKHospitality confirms, the hospitality sector pays 82p in business taxes for every £1 it makes. That is the highest amount paid by a sector in our economy and double that of the banks.
In my constituency, we have felt that more than ever. Last month, the Crown at Burchetts Green, ranked among the 50 best gastropubs in the country, closed its doors, with its owner blaming staff costs, rent, business rates and VAT. They said enough was enough. If a pub like that cannot make the numbers add up, what hope is there for cafés, restaurants and pubs across the country? That is why we would use some of the bank windfall tax to cut VAT for the hospitality sector, where it needs it most. The third thing we would do is take our security seriously.
Sir Geoffrey Clifton-Brown (North Cotswolds) (Con)
There is a slight irony in what the hon. Gentleman has just said. He wants to cut VAT on pubs, yet he wants to get closer to the European Union, which would not allow us to cut VAT in our own country. Is there not a slight contradiction there?
Mr Reynolds
Once again, the hon. Gentleman is confusing rejoining the single market and customs union with rejoining the European Union.
I am glad that the Defence Secretary is in his place, because just days ago, he said that we need to be ready for war by 2030, within 1,000 days. I take that warning seriously, and I hope that his colleagues do, too. Yesterday, the Chancellor set the target for spending 3% of GDP on defence by 2030, and the plan to pay for that will come in next year’s spending review. The money needed for the issues and compromises that the Defence Secretary describes will not come until next year. No Government can meet a 1,000-day deadline on a funding plan that does not exist. That is why we Liberal Democrats have proposed defence bonds. Our plan would raise £20 billion over two years, ringfenced to rebuild our armed forces. That would start now, inside the Defence Secretary’s 1,000 days, and not after them.
Meanwhile, the Government are funding their defence investment plan by cutting budgets across Whitehall. Earlier this year, Departments were told to cut 1% from their capital budgets to pay for the first £10.3 billion of the DIP. For the remaining £5 billion, they must now find another 1% on top of that. As has already been mentioned, we do not know where the cuts will come from. Families right across the country want to know which capital projects are to be cut. Will it be the rebuilding of our crumbling schools or our leaking hospitals? Where will that money come from? We are asked to choose between security and growth, but we need both. The Government urgently need to make the case for defence bonds, so that we have the money to rebuild our defences as soon as possible. If we built that capacity alongside our European partners, every pound would go further, and support skilled jobs and British businesses in the supply chain.
We have also set out how to keep that investment going for the long term: through the digital services tax. We would raise the tax from 2% to 10%, bringing in billions of pounds a year from the tech and social media giants by 2030. They are some of the most profitable companies in the world, and they should pay their fair share. Our plan shows how, and it is fully costed. Defence bonds will provide the money up front, and the higher digital services tax would sustain that amount year after year. Together, they would pay for us to expand British shipbuilding and build more frigates to protect our waters.
Our European neighbours are investing billions in their defence industries, and Britain must be at the heart of that, not watching from the sidelines. We need our new growth and defence partnership with Europe—buying together, building together and defending our continent together—to ensure that British shipyards, engineers and factories win jobs and investments from European contracts. If we are shut out, those jobs go elsewhere.
This Budget is a holding pattern Budget; it is not the growth Budget that we all needed. There is a better way: growth with Europe; fairer taxes that ask the big banks, rather than hard-pressed savers, to pay their share; lower bills for every household; and a serious plan for our security. That is what fiscal responsibility looks like. We need to grow our economy, cut people’s bills and cut people’s taxes.
Oral Answers to Questions
Joshua Reynolds Excerpts(1 week, 4 days ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Wes Streeting
Notwithstanding the challenges posed by the fact that Ukraine continues to be subject to bombardment by Russia, which is targeting its energy facilities, we are working closely with our Ukrainian friends on this, delivering £17 million to support repairs to the site. We want those repairs to be undertaken as quickly and safely as possible, while recognising the challenging planning environment in which we are operating.
Mr Joshua Reynolds (Maidenhead) (LD)
Support for defence bonds now reaches far beyond political divides; it has spread from the Liberal Democrat Benches to former Conservative Defence Secretaries and many Labour Members. Given that broad support, can the Secretary of State confirm that he will make representations to the Chancellor about including defence bonds in his Budget next week?
Luke Pollard
I thank the hon. Member for his continuing support for defence. There are a variety of methods for increasing support for defence. I am grateful for the work he is doing, and I am always happy to have a conversation with him. In the meantime, the Government will continue to increase defence spending for our armed forces.
Oral Answers to Questions
Joshua Reynolds Excerpts(3 months, 3 weeks ago)
Commons ChamberRead Full debate Read Hansard Text Watch Debate Read Debate Ministerial Extracts
Dan Jarvis
I have huge respect for the Chair of the Select Committee. He will have heard my words the other day on the importance of ensuring that defence is the No. 1 spending priority at the next spending review. That is the moment at which we will need to set out a clear trajectory to honouring our commitment to spending 3.5% of GDP by 2035. I know that he will also understand the leading role that the United Kingdom plays in NATO. Our allies expect us to lead and to step up, and that is what we will do.
Mr Joshua Reynolds (Maidenhead) (LD)
Does the Secretary of State accept that long delays in publishing the defence investment plan and the instability at the top of his Department have sapped confidence from the industry and our allies, at the very moment when the Russian threat demands more certainty from us?
Dan Jarvis
With great respect to the hon. Gentleman, what I accept is that in two and a half weeks, we sorted the defence investment plan. That is a good base to build on. That is £15 billion of additional resource, which sits alongside a commitment to spend £298 billion over the next four years. Those are the kind of numbers that the Conservatives could only dream of.
Oral Answers to Questions
Joshua Reynolds Excerpts(1 year, 7 months ago)
Commons ChamberRead Full debate Read Hansard Text Watch Debate Read Debate Ministerial Extracts
Maria Eagle
I very much agree with my hon. Friend. Of course, there are skills shortages across much of manufacturing, not only in defence, so there is certainly going to be an issue. I can tell him that the apprentices I have met in the defence industry tend to smile the whole time. They are getting extremely good training for lifelong excellent jobs, so I am absolutely certain that we can get that across to young people and ensure that defence gets its fair share of the skilled people that we need.
Mr Joshua Reynolds (Maidenhead) (LD)
John Healey
The strongest argument for saying that there needs to be UK collaboration and co-operation with the EU and across Europe is that some of our best capabilities, from the Typhoon and the Meteor to Storm Shadow, have been developed through multinational efforts including the UK. It is that sort of collaboration that we want to secure for the future, and the EU White Paper gives us a basis for starting to negotiate that.
Oral Answers to Questions
Joshua Reynolds Excerpts(2 years ago)
Commons ChamberRead Full debate Read Hansard Text Watch Debate Read Debate Ministerial Extracts
The Minister for the Armed Forces (Luke Pollard)
I am grateful to my hon. Friend—she and I have campaigned on many similar issues for quite some time. I would like to make it clear that no licences to trail hunt on Ministry of Defence land have been granted for the 2024-25 hunting season. The Department is considering its position alongside other Government Departments, and we hope to have an update soon, but I am very happy to meet my hon. Friend in the meantime.
Mr Joshua Reynolds (Maidenhead) (LD)
Al Carns
I have been utterly shocked by the state of parts of the housing estate that we have inherited. Over the last 14 years, the Government of the time failed to decisively close with this issue, instead kicking the can down the road or continually topping up the leaking bucket. We have examples of families living in accommodation with no running water, with mould and with pest infestations; there were 53,000 complaints between 2018 and 2023. Having lived in some of that accommodation, I can tell the House that it is unacceptable. Our armed forces protect the freedoms we enjoy, and this Government will take action—including a medium to long-term review—to get after the housing and create a new armed forces commissioner to improve service life.