Budget Resolutions

Lizzi Collinge Excerpts

Wednesday 26th November 2025 Commons Chamber

[Sir Jeremy Hunt]

The hon. Gentleman is absolutely right that we should look at the facts, which are very clear: the OBR upgraded growth for this year, and then downgraded it for every single year of the forecast thereafter. The overall size of the economy is shrinking as a result of the measures taken by the Chancellor in the previous Budget—and, I am afraid, made much worse in this Budget.

I agree with the hon. Gentleman that we need to go further on planning reform, but I do not think we have had any plan from the Government for the really substantive changes that would align incentives between local communities and national Government when it gets to things like planning approval for big infrastructure projects. I would cheer from the rafters if we heard that from the Chancellor, because it is urgently needed.

Can the Government please not tell us that everything is going to be fine just because they are not the evil Tories? That is what I think is most disappointing of all, because those terrible Tories got inflation down from 11% to 2% and saw 4 million new jobs in the economy, as opposed to nearly 200,000 fewer. They grew the economy faster than France, Germany, Italy or Japan, and they attracted more greenfield foreign direct investment than anywhere in the world apart from China and the United States.

[Lizzi Collinge (Morecambe and Lunesdale) (Lab)]

Could the right hon. Gentleman remind us which Government led to that 11% inflation and which Government crashed the economy? Could he also speak to the estimated 1,970 children in Morecambe and Lunesdale who will benefit from the lifting of the two-child benefit cap and tell them why they should continue to live in poverty?

[Madam Deputy Speaker (Ms Nusrat Ghani)]

Order. I will remind colleagues that interventions must be short and to the point, and must be an actual question, not a statement.

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[Sir Edward Leigh]

I am careful, actually, to look at the data and constantly refer to facts that are accepted by the OBR and the Government. These facts are not challenged. We have 300,000 people currently waiting to undergo a work capability assessment. We need emergency measures to clear the backlog. I am surprised that anybody could disagree with what I am saying.

The lack of in-person assessments has created a feedback loop where dependency grows and work expectations diminish. The longer that is allowed to continue, the harder it becomes for people to reintegrate into society. This is a system that writes people off rather than helping them back into employment. I would have thought we could all agree on that. We must not abandon these people; this is about human dignity.

Getting people off long-term benefits and into employment brings significant mental health benefits. It also helps our straitened finances. The cost of sickness and disability benefits is projected to reach £100 billion annually by the end of the decade. Some households receive more than £30,000 a year in universal credit alone, with disability benefit payments pushing support well above that. The current system financially incentivises individuals to demonstrate incapacity rather than engage with work. I agree that the Government have redeployed work coaches to re-engage long-term inactive claimants, but systematic incentives remain unchanged. Failure to tackle long-term benefit dependency impoverishes the nation by increasing fiscal burdens and reducing labour force participation.

The Office for Budget Responsibility reported that the working-age incapacity benefit caseload reached 7% in 2023-24 and is forecast to hit 7.9% by 2028-29. We must stop paying full benefits to young people who are neither working nor studying. Those young people should be working or studying.

[Lizzi Collinge]

Will the right hon. Member give way?

[Sir Edward Leigh]

I will make some progress, if I may. The Centre for Social Justice estimates that by 2026 there will be a gap of over £2,500 between earnings and combined benefit income for under-25s. I could go on making those arguments, but I will proceed to the next part of my speech, on immigration.

I accept that the greatest failure of our last Government was immigration. I admit, and I apologise on behalf of my Government, that the 2021 to 2024 Boriswave allowed—[Interruption.] Why should I not apologise? Why should I not be honest? It allowed over 4 million non-UK migrants into the country. Many of them will soon qualify for indefinite leave to remain. ILR’s granting of access to benefits and public services on the same basis as citizens is destroying financial incentives. The scale of it is financially significant.

I agree that the Home Secretary has announced some sensible moves. I supported her when, for example, she came to the House to extend the standard qualifying period for ILR from five years to 10. As Karl Williams of the Centre for Policy Studies has noted, policymakers cannot say with confidence how many migrants currently hold ILR or what their economic circumstances are. Experimental DWP data shows that about 211,000 ILR holders receive universal credit—that is completely unsustainable. If Migration Observatory estimates are correct, between 27% and 37% of ILR holders receive universal credit. This is a worrying problem that needs resolution.

I turn next to increasing tax. I have long argued for a much simpler tax system where we close loopholes but keep taxes low, especially for married families. Corporate tax complexity creates an inherent bias towards huge multinationals who can hire departments of accountants to reduce their liabilities. A free market relies on everyone paying their fair share. We need creative ways of ensuring that companies like Amazon and Starbucks can operate freely—we all use them—while paying a fair contribution. Then we can help lighten the burden on family farms, working people and small firms. Increasing taxes on working people risks undermining growth by reducing take home-pay and incentives.

Figures from the Office for National Statistics show that direct taxes reduced income inequality by only 4.4 percentage points: limited redistribution for a heavy burden. Higher taxes on the wealthy simply encourage them to leave. Data from the Henley & Partners 2025 migration report suggests that the UK may lose 16,500 millionaires this year. What is the point of it? Why are we driving these wealth creators out of the country? [Interruption.] There is so much to say, Madam Deputy Speaker, but I know that I will weary the House if I go on too long.

May I end on one point? It is quite controversial and difficult to say. I know I am going to get into trouble for saying it, but I have got to say the truth as I believe it. We all know that the triple lock is unsustainable. We cannot have a situation where people of my generation are consuming an ever greater proportion of national wealth through the state pension. Frankly, our Government never dared tackle it, having brought it in, because they knew that the Labour party would crucify them at the ballot box. Now, the Labour party is caught in the same bind. The fact is that it is completely unfair on younger people if the burden of older people, through the triple lock, increases year by year.

We laugh at the French because of their failure to achieve sensible pension reform, but we ourselves have got to have the courage, frankly, to end the triple lock—and I think this will only be done with consensus between the two parties. I am absolutely sure that the Government could come to the Leader of the Opposition and say, “This is unsustainable. Will you share this burden with us?” That may seem very unpopular, but actually many older people—people of my generation—all have children and we all have grandchildren, and we all see our children struggling to get into the housing market. If the Government and the Opposition were prepared to have the courage to deal with the triple lock, I am not sure that it would be as unpopular with older people as is sometimes maintained. After all, we could always relieve the burden on those on pension credit and find ways of helping people who really could not afford to live. But the triple lock must go. That is not a popular policy, but in our hearts, I think we know that it is the right one.

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[Catherine McKinnell]

I share those concerns, as I know does the right hon. Member for Godalming and Ash (Sir Jeremy Hunt). We have cross-party interest in making better use of those resources. I thank the Chancellor for her comments about the infected blood contamination scheme, which is proudly delivered from my constituency in Newcastle upon Tyne North. The team there are incredibly proud of the work they are doing, and they will be proud of the announcement that the Chancellor made today.

Working people in Newcastle are feeling worn down by the cost of living. We know that everybody is feeling the squeeze—it is relentless and it is grinding, and I know the Chancellor knows that too, and has sought in the Budget to deliver on that promise of a better life for a hard day’s work. Many measures in the Budget will deliver that, such as the freeze in rail fares, extending the bus fare cap, measures on fuel duty, frozen prescription charges, and the cut in household energy bills.

I also know that the Chancellor cares deeply about children trapped in poverty, too often in families that are working hard and doing their best. I saw those stories at first hand on the Government’s child poverty taskforce. The driving force behind the crisis is the two-child limit. In the north-east alone, tens of thousands of children living in poverty will be lifted out of that by today’s announcement. The limit is both economically foolish and morally wrong, which is why charities and businesses in the north-east have been calling for it to be scrapped. Poverty comes at a price—a price in NHS bills, educational failure, and wasted potential. I strongly welcome the Chancellor’s decision to scrap that limit today.

[Lizzi Collinge]

On that point, will my hon. Friend give way?

[Catherine McKinnell]

I am afraid that I cannot give way because the time will keep running down. Scrapping the limit is just the start and it has to happen in the context of wider welfare reforms that ensure that every child grows up in a home where work pays and where families can thrive.

The mention of home brings me to council tax. There are deep-rooted inequalities in Newcastle. Just yesterday, I looked up two properties that are for sale: there was a lovely 1,600 square feet, five-bedroom house in Newcastle Great Park for £420,000, and a grade II listed former church in Knightsbridge in London of over 12,000 square feet, with seven bedrooms and a swimming pool, selling for £35 million. If I asked my constituents, “Who should pay more council tax?”, it is pretty obvious what the answer would be, yet incredibly my constituents will pay £75 more in council tax than that household in Knightsbridge. While I welcome the Chancellor’s announcements about council tax, I urge the Exchequer Secretary to go further and to review council tax bands, especially how new properties in all the new estates that are growing around the country are assessed.

Turning briefly to the new powers for mayors on overnight stay levies, of course people flock to the north-east for good reason—our history, culture, stunning coastlines and the friendliest people they will ever meet. It is only fair that tourists help to fund the infrastructure that they use and enjoy when they stay, so I understand why mayors welcome this power and want to decide about it at a local level, so the amount is not just set in London but in every region, according to what works. However, that levy has to be proportionate and not have an unfair knock-on hit on small businesses, because if those businesses go under, we will lose jobs, vibrancy and what makes the north-east special.

Our hospitality sector is under incredible pressure. I know that it is busting a gut to turn a profit and that every cost could be the one that breaks them, so while I welcome the higher wages in this Budget, we have to listen to some of the concerns raised by the Resolution Foundation. We do not want to discourage businesses from hiring, and especially not young people who want to take their first step on the job ladder.

Finally, on electric vehicles, I appreciate the changes announced on pay per mile, but the affordability of electric vehicles remains a barrier to some who want to buy one and to do the right thing. Many workers have access to salary sacrifice schemes to help make the switch, but teachers in academy schools are still unable to access a scheme, because it was put on pause by the Treasury. I want to take the opportunity to make a plea that the Treasury sort out this impasse once and for all. It would be a win-win for teachers and the electric car scheme.

To conclude, the goal is clear: a country where hard work pays, the cost of living is brought back under control, public services thrive and child poverty is history. Every pound of public money matters, because we know that it has the potential to transform lives. That is what people rightly expect of this Government, and I know that is the future that the Chancellor is working to deliver and why she has announced this Budget.

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[Cat Smith (Lancaster and Wyre) (Lab)]

Follow that, I suppose! I cannot promise the same level of entertaining enthusiasm as the right hon. Member for New Forest West (Sir Desmond Swayne) as I rise to speak on today’s Budget.

I want to start by talking about the cost of living, which is my constituents’ major concern. When I have been speaking to them ahead of this Budget, it is the thing they have most wanted me to raise. I therefore welcome the really good measures that cut the cost of living, including the £150 off energy bills, the freezing of NHS prescription charges, and, for the first time in 30 years, the freeze on rail fares alongside the cap on bus fares, which will make a huge difference to people’s commutes.

I welcome the fact that the national minimum wage and the national living wage will rise, giving full-time workers a gross annual earnings increase of £900. One of my biggest asks of this Budget was the alleviation of the two-child limit. Basically, I became involved in politics because I want to eradicate child poverty, so the measures in the Budget to lift these children out of poverty are hugely welcome. The decisions by the last Government, which pushed more than half a million children into poverty, were a disgrace. I am pleased that this Labour Government are reversing that damage.

[Lizzi Collinge]

I know that my hon. Friend is aware of the report from North Lancashire Citizens Advice about child poverty in our area. Its top recommendation to combat child poverty was to scrap the two-child limit. Will she join me in thanking North Lancashire Citizens Advice for its fantastic work to help local people? Will she continue to work with me, as she often so generously does, to tackle child poverty in our area?

[Cat Smith]

My hon. Friend gives me the opportunity to put on record my thanks to North Lancashire Citizens Advice. We frequently end up referring constituents to Citizens Advice, and I thank its volunteers for all their work to support my constituents and those of my hon. Friend.

I do not buy into the idea that those who are in need of state support are in any way irresponsible or on the take. The real scandal in our country is the number of parents who are in work and in poverty. I do not believe it is ever morally right to punish a child for the decisions and choices of their parents, because that was the reality of the two-child benefit cap and its subsequent rape clause, which was abhorrent.

I am pleased that in my constituency of Lancaster and Wyre, the ending of the cap is expected to benefit around 1,550 children, who will be lifted out of poverty because of the measures in this Budget. That, alongside the expansion of breakfast clubs, such as the one at Grosvenor Park primary school, will go a long way towards transforming the life chances of children in my constituency.

One very small part of the Budget that is close to my heart is playgrounds. So far in this debate no one has mentioned the £18 million for playgrounds, but that money is incredibly important. The public space that we give to our children shows them how much we value them. If we value our youngest citizens, we should invest in playgrounds. I very much hope that Lancaster city council will receive some of this money. If it does, I will certainly be putting in a good pitch for the Ridge estate’s playground, which is in desperate need of refurbishment.

I have also been contacted ahead of the Budget by pensioners in my constituency who are understandably, like everybody, concerned about rising bills. I hope that they welcome today’s announcement of the 4.8% increase in the state pension.

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[Bill Esterson]

My hon. Friend is right. The warm homes plan will help those who are in fuel poverty the most. We are talking about up to £500 for a combination of insulation and solar and battery installation. Closing the gap between electricity and gas prices, which is what the money off bills will partly do, will make it more attractive for people to switch to electric heating, be it heat pumps or other forms of electric heating. That will all help with our climate commitments and bring down bills at the same time.

The Budget books contain a section on energy security. There is recognition in the Budget that secure, clean and cheaper energy is central to sustainable economic growth, but it is also essential for our energy security. The threat from Putin is becoming increasingly clear; it will become greater than it is in Ukraine. Submarine drones will target tankers delivering oil and liquified natural gas. That is a very significant threat. We have already seen the threat to pipelines. Tankers come from all over the world, and they are very vulnerable. We see in the strait of Hormuz what the Houthis are able to do. Just imagine how much bigger the threat is from Russia. The answer to that must be to diversify as far as possible. That is why Ukraine is moving away from oil and gas as much as it can, and towards low-carbon alternatives.

[Lizzi Collinge]

On energy security and ensuring a diverse range of clean energy sources, does my hon. Friend welcome, as I do, the Government’s commitment to responding to the nuclear regulatory review within three months, so that we can change the way that nuclear is regulated and ensure that it is kept safe and up to date, and can get building new nuclear?

[Bill Esterson]

My hon. Friend is right. The Energy Security and Net Zero Committee looks forward to hearing what John Fingleton has to say, and to the Government’s response to him. Regulatory reform is key. We have to speed up planning and grid connections, which are referred to in the Budget, in order to address the very serious shortfall in grid capacity, and the delays in grid connection. We could probably say the same about generating capacity, too.

This country has faced 60 years of lack of investment in our grid networks. The problem was exacerbated when the grid was privatised in 1989, despite the warnings of the then shadow Energy Secretary, Tony Blair, who predicted, entirely accurately, that although the grid was of strategic national importance, it was a natural monopoly and really would not attract the private investment that the Conservative Government claimed it would. We are left trying to catch up. That is one of the reasons—along with delays in renewing our gas fleet, let alone moving to new nuclear and renewables—why we have spent so much money on our energy system, and why bill payers are under so much pressure. It is important to say that we would have these cost pressures regardless of whether we looked to invest in fossil fuels or renewables.

I very much welcome the recommitment to the £14.2 billion from the public sector for Sizewell C. That will ensure its success. The Committee wants a fleet approach to large-scale nuclear. There has been very welcome news on a small modular reactor at Wylfa, which will deliver 3,000 jobs. Sizewell C ultimately means that 6 million homes will be powered by cheap, clean electricity.

The ongoing investment in the North sea, referred to in the Budget, has been confirmed by the North sea future plan, published this afternoon by the Department for Energy Security and Net Zero. There is strong recognition that we must support North sea oil and gas production, and a strong commitment to doing so. That will be crucial to our energy supply for decades to come, but also crucial to the energy transition, because the same companies who drill for and produce oil and gas provide the engineering expertise in the North sea for offshore wind. I was pleased to see the call for evidence on the fuel sector and refineries, too.

This Budget is no return to ABT. Instead, we have trade deals with the EU, India and the US. We have rejected the Truss approach, so fondly supported by Reform and the Conservatives, and instead we want to support reductions in the cost of living, investment in infrastructure, skills and business, and rebuilding the public sector. As the Chancellor said, we want strong foundations and a secure future. She did really well today.