Budget Resolutions

Layla Moran Excerpts

Wednesday 26th November 2025 Commons Chamber

[Sir Jeremy Hunt (Godalming and Ash) (Con)]

Budgets are not easy for Chancellors, because there are so many things beyond their control, but being forced to make trade-offs reveals priorities. I am afraid today’s priority was not economic growth, but political survival. That is because there was one central call the Chancellor had to make today: do we reform welfare, or do we raise tax?

Getting our welfare bill down to pre-pandemic levels would save about £47 billion a year within five years. It would not have been easy, but it would have meant no tax rises and plenty of headroom in public finances. Instead, welfare spend is going up, and jobs and growth are going down. In every single day of the Government’s first year, around 2,200 people have been signed off not just work, but from even having to look for work. That is 1 million more people on universal credit just in the last year. Most of those claimants cite mental ill health, but every doctor I spoke to as Health Secretary said that people with anxiety and depression need social contact. That means being at work, not being at home.

[Layla Moran (Oxford West and Abingdon) (LD)]

On mental ill health, the right hon. Gentleman is absolutely right to point out that it is one of the drivers of people going on universal credit and that does need to be tackled. Does he share my alarm that today in the Health Service Journal it has been reported that the Government are planning to water down the mental health investment standard, which will start to reverse the trend we saw over many years of achieving parity of esteem between physical and mental health?

[Sir Jeremy Hunt]

I absolutely share the hon. Lady’s concern. That standard was introduced when I was Health Secretary. This could have been the Budget in which the Chancellor announced we would speed up treatment for people with mental illness and not park them on welfare. This could have been the Budget that said that we will eliminate fraud by stopping completely benefit applications by phone. It could have been the Budget that said that instead of relying on migration to help firms expand, we will make sure that people at home are fit to join the workforce. Instead, the welfare bill is going up by around £14 billion, not least because of the totally unfair abolition of the two-child cap, which I fear will see more children, not fewer, living in the structural poverty caused when there are no adults in the household at work.