Autumn Budget 2025

Lord Bridges of Headley Excerpts

Thursday 4th December 2025 Lords Chamber

[Lord Bridges of Headley (Con)]

My Lords, this has been an excellent debate. Let me start by saying that I have some sympathy for the Chancellor. Her approval ratings are now so low that she is giving even Kwasi Kwarteng a run for his money. Just 12% give her a favourable rating, and from listening to the Benches opposite, the entire 12% seem to be here today, so I congratulate the Government Chief Whip on herding them all together.

I actually agree with some of what those on the opposite Benches have been saying. The Conservatives left office with taxes, spending and debt far too high, and growth anaemic. Worse than that, we and the party opposite all colluded in a conspiracy of silence about what that meant for the nation’s finances. We did not dare level with people before the last election that spending was too high and that either taxes would need to rise, or the state would have to do less. That is the background to the tragedy unfolding before us.

With their enormous majority, I, like many others, had high hopes that this Government, a Labour Government, might be bold in the spirit of other Labour Governments and reform the state. Where are those hopes now? They are dashed. This Government are a ship adrift in a storm, its captain struggling to stop it from crashing on to the rocks and trying to control his mutinous crew, his Ministers clinging to their lines to take as if they were lifejackets.

Like others on this side, I have been in similar situations at that Dispatch Box, so I have some sympathy with the Minister. As I know how demanding these moments are, I do not want to unnecessarily make life more miserable for him. However, I expect him to clarify how this Budget delivers on the ambitions that he and his entire Government have made.

Let me pull together a number of points made by my noble friends. First, on the mission to kick-start growth, is it correct that the Budget contains no measure that materially improves the OBR’s growth forecast, that the rate of productivity growth has been downgraded, and that growth in real household disposable income will fall sharply this year and next?

Secondly, on Labour’s promise not to raise taxes on working people, is it correct that the Budget’s £26 billion tax rise will push 1.7 million more people into higher tax bands, pushing the tax take to a record level?

Thirdly, the Chancellor pledged her Budget would ease the cost of living. Is it correct that, despite the measures the Minister mentioned were contained in the Budget, the OBR now expects inflation to stay higher for longer?

Fourthly, the Chancellor pledged her Budget would “reduce the national debt”. Is it correct that by the end of the Parliament, debt will be almost two percentage points of GDP higher than in 2024-25, with debt interest higher than today?

Finally, the Prime Minister has stated, as others have noted, that the welfare bill is “unsustainable … indefensible and … unfair”. Is it correct that annual welfare spending will be £56 billion higher at the end of the Parliament than today, that by 2028-29, spending on health and disability benefits alone will be double defence spending, and that without further reform, changes will reward dependency and not work? I look forward to the Minister’s answers.

I will end with this. The Government were given an enormous majority to change this country for the better. Millions of people put their hopes in the Prime Minister and the Chancellor, trusting them to keep their word and meet the economic, social and security challenges Britain faces with credible plans. Instead, with this Budget, the Government have not merely broken their word but have dragged us all deeper into the economic mire. That is a tragedy for us all.