Budget Resolutions

Debate between Luke Charters and Justin Madders

Monday 1st December 2025 Commons Chamber

[Justin Madders (Ellesmere Port and Bromborough) (Lab)]

It is a pleasure to see you in the Chair, Madam Deputy Speaker.

As always with a Budget, there is far more to say than one can fit in a speech, but I just want to start by saying that the decision by the Chancellor to increase the headroom is not one that will garner many headlines or capture the public’s imagination, but it is probably one of the single most important things in the Budget. We simply could not have had another year where every bit of speculation on policy led to speculation on the markets, pushing up borrowing costs and leading to a constant cycle of uncertainty. I hope that this increased buffer and the move to annual forecasts will mean that we get some stability back, and that we will see the OBR—under new leadership—make far more accurate predictions and forecasts in the future than it has made to date.

I support the measures in the Budget that have been introduced to put more money into people’s pockets. My constituents will welcome another above-inflation increase in the minimum wage and the freeze to prescription charges, as well as the £150 reduction to average household energy bills, rising to £300 for the poorest households. Energy and transport costs make up a significant proportion of household expenditure, particularly for those on the lowest incomes. I hope that the rail freeze will also apply to Merseyrail, which is the main rail line for my constituents. It did seem a bit odd that we could not get confirmation from the Government last week that the freeze would apply to Merseyrail, but I see that the Transport Secretary is present—hopefully she will be able to confirm by the end of the debate that she does indeed have good news for my constituents on that score.

I am also proud that Labour is treating child poverty with the seriousness that it deserves. I welcome the measure announced by the Chancellor to scrap the two-child benefit cap that has forced so many families into hardship and harmed children through no fault of their own. This measure alone will lift 450,000 children out of poverty, meaning that, alongside other measures previously announced, we will see more than half a million children taken out of poverty. More than 2,000 children in my constituency alone will be lifted out of poverty as a direct result of this Budget.

I have heard commentators say that scrapping the cap was a measure simply to appease Back Benchers like me, but I think that really belittles the moral case for action. Let us be clear: this cruel policy did not achieve its initial aims, often punished families for changes in circumstances that were beyond their control, and ultimately cost our economy far more than the £3 billion a year that it saved.

[Mr Luke Charters (York Outer) (Lab)]

I wonder if my hon. Friend will allow me to raise the case of a single mum in my constituency who unexpectedly became pregnant a third time. It was a time of anxiety for her. She used food banks periodically and worried that she would not be able to afford toys for her kids at Christmas. Does my hon. Friend agree that the two-child benefit cap imposed by the Conservatives is the cruellest Tory policy of all?

[Justin Madders]

My hon. Friend is right to point out that the policy punished children for being born, which is not something any Labour Government should be part of.

We hear that this decision may encourage people not to work, but we all know from the statistics that a majority of people in receipt of benefits are in some form of employment. As for the wider cost, the Child Poverty Action Group estimates the cost of child poverty to the country to be about £40 billion a year, so not only is scrapping the cap the morally correct thing to do; it is also the best thing for our country economically.

While I understand the pressures facing the Government, I hope that the fiscal circumstances will improve in such a way to see income tax thresholds readjusted to take account of the inflationary pressure recently experienced. Going forward, we must continue to ensure that those with the broadest shoulders carry the burden to ensure that more and more working people are not dragged into paying tax by fiscal drag.

I have to say, I would like an explanation of the Chancellor’s comments about how those in receipt of the state pension will not have to pay any tax at the point that the state pension reaches the tax threshold in future. Of course they should not have to pay any tax on it, but why should a pensioner who might have a small private pension of £20 a week have to pay tax on that and their state pension? Once we start to look at some of the implications of the policy, it becomes clear that there are a number of unintended consequences. I hope that when the extra headroom that has been created by this Budget goes on to inspire further ideas in future Budgets, we can look at stopping some of the anomalies that the fiscal drag has created.

I will conclude with a few words on the automotive sector. I am proud to have in my constituency a Stellantis factory—or a Vauxhall Motors factory, as it is more commonly known round where we live. It is a site I have fought hard for over the years. Of course, the factory now manufactures electric vehicles. I welcome that the Budget reinforces the commitments that were made to our automotive sector in the industrial strategy for manufacturers. I am pleased that funding for DRIVE35 has been expanded by £1.5 billion, providing £4 billion over the next 10 years, which will help to build on the important investment the automotive sector needs.

I am also happy that plans to change the rules for the employee car ownership schemes have been delayed from next year until 2030, as that would undoubtedly have left many of my constituents hundreds of pounds a month worse off. Having now seen the impact of that policy, I hope the Government go the whole hog and cancel it altogether.

Draft Limited Liability Partnerships (Application and Modification of Company Law) Regulations 2025 Draft Economic Crime and Corporate Transparency Act 2023 (Consequential, Incidental and Miscellaneous Provisions) Regulations 2025 Draft Register of People with Significant Control (Amendment) Regulations 2025

Debate between Luke Charters and Justin Madders

Tuesday 2nd September 2025 General Committees

[Justin Madders]

I welcome the shadow Minister back after the summer recess. It is a little disturbing—discombobulating, possibly—to hear the Opposition arguing against legislation that they introduced when they were in government, although it is not the first time, I suppose. I think that there was cross-party agreement in the previous Parliament that it is important to clamp down on economic crime by ensuring the integrity of the Companies House register and that it is accurate and up to date.

[Mr Luke Charters (York Outer) (Lab)]

I share my hon. Friend’s discombobulation. I had a career in countering financial crime before entering this place. Shell companies are rampant, and Companies House needs these powers. Ultimately, when it comes to fraudulent claims against the public purse, His Majesty’s Revenue and Customs and others across the public realm are all dependent on Companies House reform. Director identity verification is necessary and proportionate, and as my hon. Friend said, it is discombobulating that the Opposition oppose it.

[Justin Madders]

I thank my hon. Friend for his intervention. I think that is now three references to “discombobulating”. That is quite a record for this early in September. Members have been pretty clear about the value of this legislation and the draft regulations that we are debating today, and it is disappointing that we have heard them wrapped up in an argument about red tape.

The Companies House data is currently valued by business users—the people who actually invest in business in this country—at between £1 billion and £3 billion a year. It is a hugely important tool for investors and other businesses to understand the business environment, so the reliability of that data is paramount. These reforms will ensure that people know who they are dealing with, that those people’s identities have been verified, and that we do not have the plethora of fake companies that have been set up on the register in recent years. We all know the consequences of that.

The shadow Minister mentioned enforcement, and made reference to the burdens on it. The Insolvency Service is generally responsible for any prosecutions under the legislation, but between September 2024 and August 2025, 99% of the entities that were required to record a PSC did so correctly at incorporation. It is quite often the case that those that have not responded are not doing so because the companies simply are not active any more and have been taken off the register.

Part of the new landscape is that the fees that are charged by the various bodies for registering are meant to be on a cost-recovery basis, and the number of fines issued and prosecutions pursued are part of that overall landscape. It is important that there is proportionate but effective enforcement. The shadow Minister asked what we will be doing in terms of outcomes. We will certainly expect Companies House to do regular reports on the numbers of companies that have incorporated, and where there are issues with people not providing IDV or details of the PSC. I have given some further information about progress to date, but when the full system goes live in November, I fully expect Companies House to provide regular updates to Members about progress on that. On that note, I commend the draft regulations to the Committee.

Question put and agreed to.

DRAFT ECONOMIC CRIME AND CORPORATE TRANSPARENCY ACT 2023 (CONSEQUENTIAL, INCIDENTAL AND MISCELLANEOUS PROVISIONS) REGULATIONS 2025 

Resolved,

That the Committee has considered the draft Economic Crime and Corporate Transparency Act 2023 (Consequential, Incidental and Miscellaneous Provisions) Regulations 2025.—(Justin Madders.)

DRAFT REGISTER OF PEOPLE WITH SIGNIFICANT CONTROL (AMENDMENT) REGULATIONS 2025 

Resolved, 

That the Committee has considered the draft Register of People with Significant Control (Amendment) Regulations 2025. —(Justin Madders.)

Competition and Markets Authority Chairman

Debate between Luke Charters and Justin Madders

Wednesday 22nd January 2025 Commons Chamber

[Justin Madders]

I would not accept the hon. Gentleman’s characterisation at all, and I am sure that Conservative Members would not, either. We announced only this morning that we will take action against Amazon on knife sales, so I do not think the characterisation that we are in the pocket of big tech is at all accurate.

[Mr Luke Charters (York Outer) (Lab)]

The CMA took far too long to reach a decision on the Vodafone and Three merger. This slowed down the roll-out of 5G across all our constituencies and was a drag on growth. How can regulators be pushed to ensure that their decisions lead to growth?

[Justin Madders]

My hon. Friend is right that we need to give the business community confidence that decisions will be made quickly to provide certainty, so that it can move forward with investments for the benefit of the whole economy.