Budget Resolutions

Judith Cummins Excerpts

Thursday 27th November 2025 Commons Chamber

And it is declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.

[Madam Deputy Speaker (Judith Cummins)]

I call the shadow Chancellor of the Exchequer.

--- Later in debate ---

[Sir Mel Stride]

I have already set out the fact that this Government’s ruinous taxation policy, including in the Budget yesterday, is to load up taxes on people who are in work, many of them not high earners. The impact of that tax is the reason why the OBR has concluded that for every year of this forecast, real household disposable income—in other words, the cost of living issues people are facing—will deteriorate compared with the forecast back in spring. The Labour party is making poverty worse by making sure that work does not pay to the degree that it should.

The other point to make is about inflation. If the Government run a policy of borrowing vast amounts of money and spending half a trillion pounds over and above the plans that they inherited across this Parliament— that was added to by more than £100 billion just yesterday—we should not be surprised if inflation is the highest in the G7, or if the International Monetary Fund says that it will be the highest in the G7 next year. What does high inflation, particularly on food, do to poverty? It drives poverty up, and therein lie the answers that the Government need to think about.

There is an alternative, which is to get on top of and control Government spending and to do the responsible thing. Our golden rules is that at least half of those savings should go towards driving down the deficit and the debt, but we would then have capacity to drive down taxes as well. That is exactly what we set out at our conference: £49 billion of savings, and £23 billion of savings on welfare. Thanks to the solid commendable work of my hon. Friend the shadow Work and Pensions Secretary, we have found those savings, and it is a tragedy that the Government—[Interruption.] The Parliamentary Secretary to the Treasury says, “What are the savings?” The savings are £23 billion on welfare—[Interruption.] It is a number. As a member of the Treasury team, he should be familiar with numbers, but clearly he is not.

We will be bringing down the welfare bill, and the savings are clear. I direct the Parliamentary Secretary to the Treasury to the paper from the Centre for Social Justice, which makes it clear—[Interruption.] Well, it is rather better than the Resolution Foundation stuff that he produced, I have to say. The paper from the Centre for Social Justice makes it clear that by changing the gateways into longer-term sickness and health benefits, which we did when we were in office—[Interruption.] If the hon. Gentleman stops jabbering and starts listening, he might actually learn something, and that might be for the good of his party and this country.

When we were in office, we made reforms to the work capability assessment that, according to the OBR’s own scoring, would have seen 450,000 fewer people going on to those benefits. We were making a real difference in arresting the rise of the welfare bill. What did the Government do on coming to office? They scrapped those measures on day one. They then came forward with their own proposals—[Interruption.] I hope that when the Parliamentary Secretary to the Treasury gets to his feet later he will address this, and talk us through what happened to his Government’s attempt to control the welfare bill. It got smashed into a million pieces on the rocks of his own Back Benchers—that is what happened. That is the tragedy of much of this Budget: the economics are being driven by the internal politics of the Labour party. We have a Prime Minister and a Chancellor whose position is now so precarious that they have to bob up and down like a cork on the tide when it comes to making policy at the whims of Labour Back Benchers.

There is a certain melancholy about this Budget. It is like groundhog day; an old song, with the words seared into the collective mind. A socialist anthem for all time:

“That for he who has, then that must be taken away.

For he who has not, then to him must be given.”

That is not on the basis of any measure of fairness, as suggested in the topic for debate today, but rather on a fundamental misunderstanding of basic economics. Economics is about resources, of course, but it is also about incentives. To he who has, I say this: if you work hard we applaud you, and we will incentivise you to work harder still, recognising your contribution to the common good. To the vulnerable we say this: we are there for you. But to others who have not we say this: here is not a hand out, but the means for improvement.

For the socialist, Madam Deputy Speaker, distribution is all, and the means are never sufficiently willed. The eternal lesson—also the lesson of this Budget—is that that path leads all to be diminished. An economy laden with debt, with Government spending spiralling still and taxation touching skyward, will never burn bright. The whole will never grow. It is not enough—it will languish. That is how the dreams of millions perish. Yesterday, the lingering flickers of hope died.

[Madam Deputy Speaker (Judith Cummins)]

I call the Secretary of State.

--- Later in debate ---

[Pat McFadden]

I note the right hon. Gentleman’s request for more public expenditure and I am coming on to the growth and skills levy in a moment. What we will do with that is tilt it more towards young people and towards more short courses, and this Budget puts a further £725 million into that, which will enable the full funding of apprenticeships for the under 25s for small businesses. That is good for young people and good for employers. It is important, because no matter where they are from, what their background is or who their parents are, every young person should have the chance to make the most of their life. I want the country’s young people to know that through our youth guarantee, the apprenticeship support and the other measures outlined in the Budget and outside it, we will support them, we believe in them and we want them to succeed.

Even after that, I know that we need to go further, and that is why I have asked former Health Secretary Alan Milburn to report in the new year on the issues of young people, work and inactivity, looking across departmental boundaries and recommending policy responses that will offer young people more opportunity and a better chance in life.

After the Conservatives either neglected all that or opposed that which they did not neglect, what have they got left? Arguing that instead of our approach, people’s wages should be lower. We saw where that led during the last Parliament. The shadow Chancellor talked about living standards—during the last Parliament, living standards declined more than at any time in living memory. Now living standards are rising in this Parliament and wages have risen more in a matter of months than they did in 10 years when the shadow Chancellor’s party was in office.

As people sometimes remind me, I have been around for quite a while. I am proud to have served in the last Labour Government, which lifted 600,000 children out of poverty—and almost all the measures delivered were opposed by the Conservative party. In fact, the Conservatives’ record was a rise in child poverty of 900,000. Their argument was that the two-child limit would force people to make different choices about the number of children that they would have, but that is not what happened; it simply forced more children into poverty.

The real indictment goes deeper, because, as the right hon. Member for Central Devon knows, the two-child limit was not really a welfare policy at all. In the end, it was not even about saving the money. The truth is that it was about political dividing lines. It was a device used by the Conservative Government, in which children were the weapon of choice. That is what it was about, but not any more. Tackling child poverty is an investment in the future of those children and in the country, because children who do not grow up living in poverty will have a better life. This policy is not just about the distribution of money; it is an investment in opportunity. That is why the Chancellor announced the abolition of the two-child limit in the Budget. As my hon. Friend the Member for Calder Valley (Josh Fenton-Glynn) said, the clear majority of households that will gain from this measure already have someone in work. The policy will lift 450,000 children out of poverty, and that number will rise, thanks to other measures, such as the expansion of free school meals, help with energy bills, and the expansion of free childcare so that more parents can take up work.

This will be the largest reduction in child poverty over a Parliament since records began. As the Chancellor spelled out, it can be funded by a combination of tackling fraud and error in the system, the Motability and other changes, and the changes to online gambling taxation that she announced yesterday.

We understand that the health and welfare systems are deeply connected, so we will continue to get waiting lists down, and to treat more patients. We announced 250 new neighbourhood health centres in the Budget. Waiting lists and waiting times rocketed when the Conservatives were in office, and that was not just a health issue; it was an economic and benefits issue. A system that treats people more quickly, rather than having them wait in pain, is good for the economy, too. Through the reforms that we are making on incentives and support in the system, and on opportunity and tackling poverty, we are beginning to change the welfare state from a passive distributor of benefits to a platform of opportunities to get people back into work. However, we need to go further, and we will.

No one on the Labour Benches underestimates the scale of the challenges we face. There is no escaping the fact that the OBR’s decision to downgrade its assessment of productivity is the official verdict on the Conservatives’ years in office. They left this Chancellor with a £16 billion hole to fill. That hole is not because of the decisions she took, but because of the scarring effects of the Conservatives’ time in power. A botched Brexit deal, austerity that impoverished the public realm, and cuts to capital investment—the OBR is clear that they all caused long-term damage to the UK’s productivity and economic growth. That has to be owned by the Conservatives.

The shadow Chancellor attacked the Budget in the strongest terms, and he is right that it is a contrast with the Conservatives’ record, because they took the country to the very precipice of economic disaster. They used the British public as a test bed for a giant ideological experiment that saw mortgages go through the roof. The Bank of England had to launch an emergency rescue package for the country’s pension system. The Conservatives shook international confidence in the UK economy and destroyed whatever economic credibility they had by their own hand. There is a difference in our approaches—a very welcome one.

We have trade agreements with the world’s biggest economic powers—agreements that eluded the Conservatives. We have a reformed planning system, which will get the country building. Public investment is at its highest level for four decades, and inflation is coming down faster, as a result of the measures that we are taking. It will come down by a full 0.4 percentage points next year, according to the OBR. Borrowing is down in every year of the forecast. We are keeping corporation tax at the lowest level of any G7 country. We have help for high streets, and permanently lower tax rates for 750,000 businesses. We are doubling eligibility for our enterprise tax incentives, so that new businesses can not only be created, but can grow and scale up here in the United Kingdom.

We are cutting energy costs for 7,000 businesses to make manufacturing more competitive. We are providing help with the cost of living through the first rail fare freeze for 30 years. We are freezing prescription charges. Energy bills are being cut by £150 per year. We are raising the national minimum wage for millions of workers, as recommended by the independent Low Pay Commission. We are expanding free breakfast clubs, and there are free school meals for all children in families on universal credit.

This is a Budget for the whole country. It helps with living standards and helps people to meet their monthly bills. It fixes some of the problems of the past, and gives the country strong foundations for the future. It is a Budget that believes in maintaining the public square, and it continues the progress that we have made on the NHS. That progress is, for us, not just a social goal, but an economic goal. It is a Budget that protects the state pension and raises its value by £575 next year. It is a Budget that continues with welfare reforms, reduces child poverty and offers hope to young people for the future. That is the difference, and that is why we should support the Budget today.

[Madam Deputy Speaker (Judith Cummins)]

I call the Liberal Democrat spokesperson.

--- Later in debate ---

[Phil Brickell (Bolton West) (Lab)]

rose—

[Madam Deputy Speaker (Judith Cummins)]

I call Andrew Lewin.

--- Later in debate ---

[Josh Newbury (Cannock Chase) (Lab)]

I came to this House determined to speak up for the people I represent, particularly those who feel under pressure, children whose life chances are held back, and 1,500 former mineworkers. In my maiden speech, I spoke about our proud mining heritage. When I made that speech, this Labour Government had just delivered justice for members of the Mineworkers’ Pension Scheme and, just over a year later, I am immensely proud that the same has been done for the British Coal staff superannuation scheme. These former mineworkers, who built the communities that I am proud to represent and helped to power our nation, had to wait far too long to even be heard, so I commend this Government on righting this historical wrong, but even more so all those campaigners on never giving up. The action taken by this Government will mean a 41% boost to the pensions of 40,000 former mineworkers.

Turning to the cost of living, we have taken action to reduce energy bills by taking 75% of the renewables obligation off bills, and the energy company obligation will be scrapped as well, saving my constituents an average of £150 a year. That saving will be added to by the first freeze to rail fares in 30 years, the continued freeze on prescription charges and the £89 that they will not have to pay on fuel duty.

As the Chancellor said, one policy above all has supressed the life chances of children in the most deprived households and neighbourhoods in our country: the two-child benefit cap. Scrapping it will lift 2,430 children in my constituency out of poverty. Contrary to the stereotypes often peddled by Opposition Members, almost 60% of the families who will benefit from this change are in work. While the cost of scrapping the limit is £3.5 billion, the cost of child poverty is £39 billion. Behind that staggering sum are life chances blighted and immense talent that our country is missing out on. Along with expanding free school meals, increasing the minimum wage, introducing Best Start family hubs and introducing apprenticeships that do not cost small businesses, these changes will ensure that all children and young people have the best start in life.

Finally, another matter close to the hearts of many in my constituency and county is growth in rural communities. Many people in rural towns and villages have felt left behind by successive Governments, and that is particularly true in the world of farming, which often feels far removed from the corridors of Whitehall. This Government deserve great credit for the biggest farming budget in history and for getting money out of the door, something that the Conservative party failed to do.

However, while visiting farms in my constituency, I have heard repeatedly that changes to agricultural property relief are hanging over many farmers and their families, and supressing confidence. The personal impact of that was brought home to me when I sat down with a couple in their mid-80s, 15th generation livestock farmers in my constituency, who told me about farming families that they know being affected by mental ill health, particularly among elderly farmers. They told me that they feel paralysed in the face of these changes, not knowing if there is a way to ensure that their farm has a 16th generation.

The changes are holding back growth in the agricultural sector, as many are not investing in new machinery or rapidly advancing technologies. However, following concerted efforts by many Labour Members, we have the change that will enable spouses to transfer their allowance to a surviving partner. That will take some farmers out of inheritance tax and will reduce the bills of many others, so it is welcome.

Looking ahead, I am encouraged by the Government’s relentless focus on farm profitability and changes to the planning system, which will free up farmers to get on with the things that help their businesses and infrastructure and the environment. Baroness Batters’ review, due to be published next month, will be critical in charting a path to more profitable farming, and I and many Labour Members will engage with it keenly. Rural Britain is ready and willing to make a greater contribution to the vital mission of growing the economy and ensuring that the benefits are felt in every corner of our country.

Yesterday’s Budget made it clear that there will be no return to austerity or short-termism. It rectifies the injustices of the past for members of the BCSSS. It acts right now, in the present, to cut the cost of living, and it safeguards Britain’s future. This is a Budget that keeps us on the path to renew Britain and improve life for people in the towns and villages I represent in Cannock Chase, so I very much welcome it.

[Madam Deputy Speaker (Judith Cummins)]

Order. I will start speeches by the Front Benchers at 4.40 pm. With the remaining time, I call Phil Brickell.

[Phil Brickell (Bolton West) (Lab)]

I warmly welcome the Chancellor’s Budget. It will improve the lives of my constituents by putting £150 back into the pockets of working people through removing levies on energy bills and by lifting 2,570 children out of poverty. This is a Budget with fairness at its core; it reduces child poverty, has more funding for the NHS and has more investment in school libraries. After the chaos of the 2022 Truss mini-Budget, the Chancellor has shown what real fiscal discipline looks like: inflation falling, growth prioritised and proper headroom restored.

I am particularly pleased that the Chancellor has stared down the sloganeers at both extremes. She has rejected the failed trickle-down instincts of the populist right, which bequeathed this Government with a legacy of failed austerity and profligate wasting of taxpayers’ money on dodgy PPE contracts during the pandemic. She has also dismissed unevidenced calls from the left-wing populists for a wealth tax, when it has no answers to the hard questions about capital flight, offshore assets or our overburdened enforcement agencies. All the while, she has increased the burden on those with the broadest shoulders, including via the new high-value council tax surcharge on homes valued at more than £2 million, ensuring that homeowners in mansions are not paying less in council tax than someone living in a mid-terrace in Blackrod.

I thank the Chancellor for heeding my calls by introducing new measures to tackle high street tax dodging and organised crime. The National Crime Agency estimates that some £12 billion in criminal cash is generated in the UK every year, including in the suspicious vape shops we have all clocked while walking round our constituencies. Those suspect enterprises not only erode the civic pride we have in our high streets, but undercut genuine businesses looking to provide a service and make ends meet. I welcome the Chancellor’s commitment to a cross-Government taskforce to tackle tax abuse and money laundering on our high streets, backed by £50 million every year over the next three years, which is funded by an increase in the economic crime levy paid for by the banks and other professional services firms. That is despite the platitudes from Lib Dem Members saying that banks are not being asked to pay more, when actually they are.

I will bring the issue of tax dodging on our high streets to life with an example of just how egregious some of these wheezes truly are. In the brief time that I have, let me talk a little about the world of snails—snail fornication, snail gestation, snail feed and snail cannibalism. London Centric’s Jim Waterson recently published an investigative report on this topic. It details how former Lancashire shoe salesman, Terry Ball, runs elaborate snail-based tax avoidance schemes that are costing councils millions of pounds simply by placing boxes of snails in vacant office buildings in an attempt to exempt them from business rates.

The scheme, perfected over many years to prevent the snails from eating one another and stop mass snail fornication, allows unscrupulous individuals to claim that empty warehouses are being used for agricultural purposes. In turn, landlords are granted a business rates exemption. If the firms in question are challenged by the local council, they are simply liquidated. They hold no assets, so no business rates can be claimed back, and they magically reappear under the guise of another mollusc-based enterprise registered at Companies House—it is taking shell companies to the extreme.

One local council has reported a loss of £370,000 in tax receipts just because of this specific mollusc-based wheeze. This is not just a quirky anecdote; it is a hard-edged example of how loopholes in our system are being exploited, made all the easier by the Tories’ decision in the last Parliament to abolish the Office of Tax Simplification. Indeed, the very same council is reporting losses of £10 million a year due to non-payment of business rates.

I welcome the further steps announced by the Chancellor yesterday, such as rewards for informants of high-value tax fraud, extra funding for trading standards, enhancing tax transparency on real estate, 350 new criminal investigators to tackle fraud and illicit tobacco and vapes, and a boost to HMRC to go after tax dodgers and their unscrupulous advisers. We need to do a lot more, but I commend the Chancellor. I urge her to continue in the same vein by reforming reliefs, strengthening enforcement and sending a message that Britain no longer tolerates tax gimmicks—whether involving snails, shell companies, or slimy advisers.

[Madam Deputy Speaker (Judith Cummins)]

I call the shadow Minister.