Budget Resolutions and Economic Situation

Debate between Leigh Ingham and Mike Wood

Wednesday 28th October 2026 Commons Chamber

[Mike Wood (Kingswinford and South Staffordshire) (Con)]

The disappointment of today’s Budget is that, having put on his running shoes for the media earlier this week, the Chancellor spent his statement running away from the big challenges facing the country and ducking each difficult decision. The first big challenge that he ducked was getting a proper grip on the public finances, so that we do not have to leave our children and grandchildren with spiralling national debt. He tells us that everything is under control because the OBR says that his fiscal rules have technically been met, but the public are not fooled by Treasury scorecards, and neither are the markets.

Just like his predecessor, the Chancellor promises to bring borrowing down right at the end of the period covered by his fiscal rules, in this case with the hidden promise of 2.6% annual spending cuts, which includes those 2% a year cuts from mainstream schools every year, after the next general election. Those steep cuts will clearly never happen, and the markets know it. In the meantime, he did not say that he was increasing borrowing from 2.9% to 3.4% next year, and from 2.5% to 2.9% the year after—billions in extra borrowing. Like his predecessor, the Chancellor seems to take his inspiration from St Augustine: “Oh Lord, help me to be pure, but not yet.” Every year, the date for that fiscal restraint is pushed back another 12 months and borrowing revised up in the meantime. He speaks of fiscal discipline, but this is fiscal policy on the never-never.

Nowhere is the reason for that fiscal timidity clearer than on welfare. All hon. Members know that public spending cannot be controlled and Britain cannot get back to work without proper structural reform to a ballooning welfare bill, but where we needed action, all we got were yet more taskforces, reviews and procrastination.

That failure on welfare leads directly to the most sorrowful failure in the Chancellor’s entire Budget: national defence. The Chancellor knows the urgent need for an immediate plan to increase defence spending to 3% of GDP by 2030 better than anyone; it is why he said he resigned as Defence Secretary earlier in the year. He knew the Government were playing Treasury accounting tricks—tucking MI5, pensions, the Chagos Islands bills and even £200 million for doing up Barrow-in-Furness high street under the badge of “defence spending” to pad out a press release—but when we strip out those tricks, our armed forces are facing a real-terms cut in their day-to-day running costs over the next three years.

Finally, the Chancellor had the chance today to undo the terrible damage done by his predecessor and inject real, sustainable growth into our economy. Business distress is at a 20 year high. High street names like Poundland are collapsing, and young people have paid the heaviest price of all, with surging numbers of NEETs and a genuine youth jobs crisis. Nowhere feels the triple whammy of high employment costs, punitive business rates and relentless regulation more acutely than our hospitality sector. Our pubs, bars and restaurants are the heart and soul of communities like mine in Kingswinford and South Staffordshire—

[Leigh Ingham]

On that point, will the hon. Gentleman give way?

[Mike Wood]

No, we are coming to the end of the debate.

Those pubs, bars and restaurants are the No.1 place where young people get their first foot on the jobs ladder. The Chancellor’s announcement on small business relief will clearly be welcomed by those firms that qualify, but the truth is that it will do little to help most hospitality businesses. Fewer than one in 10 restaurants and licensed premises are set to benefit, with the rest continuing to suffer from Labour’s business rates bill hike.

The Chancellor had a simple, practical lever right in front of him today—a meaningful increase in the alcohol duty differential for draught beer and cider pulled across the bar in a well-run local pub or restaurant, compared with cheap bottles and cans stacked high in supermarket aisles. It would have helped our British breweries, helped save community pubs and protected hospitality jobs for young people. Again, the Chancellor knows that: in opposition, he called for cuts in beer duty, but in the Treasury he is hiking the main beer duty rate. He ignores the cross-party pleas for big reductions in draught beer duty, and instead hammers publicans and brewers once again, with another hike in the beer duty he used to say should be cut.

The Chancellor needed to step up and take the decision needed to help pubs and hospitality. Instead, just like on debt, on welfare and on defence, he ducked it. Our businesses, our young people and our armed forces cannot afford to wait in a holding pattern until this Government discover their courage.

Civil Service Pension Scheme: Administration

Debate between Leigh Ingham and Mike Wood

Wednesday 4th February 2026 Westminster Hall

[Mike Wood]

I have already given way twice and I may give way later, but I need to get through my speech so that the Minister can reply, because I know that hon. Members will want to hear her response.

Philippa retired in May and suffered a nervous collapse triggered by pension delay. Tragically, Philippa died on Boxing day, so that is the very real human cost. Of course, the National Audit Office report did not stop with the failings of the final years of MyCSP’s contract. It also highlighted that Capita had failed to meet three of the six key transition milestones that were due by March 2025, all relating to scheme design and operational readiness. In other words, the warning signs were there in black and white. Ministers were on notice of the potential for serious problems, and of the consequences that those problems would have for pensioners, for at least the final half of 2025.

[Leigh Ingham]

Does the hon. Member agree that the warning signs were there when Capita failed on the TPS?

[Mike Wood]

As I have said, I did not see the details of the bid. Obviously, with any bid, it is right to look at previous performance. There will be some causes for concern with any of the bidders for large Government contracts because of the complexity of those contracts.