Property Taxes

Luke Murphy Excerpts

Wednesday 3rd September 2025 Commons Chamber

[Luke Murphy (Basingstoke) (Lab)]

As my hon. Friend the Member for Gateshead Central and Whickham (Mark Ferguson) pointed out, the motion we are debating is based purely on media speculation. It also conveniently overlooks the Conservatives’ own disastrous record. Let us not forget that it was the Conservatives who presided over 14 years of failure, during which the very foundations of our economy rotted away. It was on their watch that taxes were increased 25 times in the last Parliament and the costs of mortgages soared, crippling family finances across the country.

We have heard Conservative Members talk about covid, and Russia and Ukraine—and some even seem to acknowledge the travesty that was Liz Truss. However, a 2021 report from the cross-party Treasury Committee highlighted that the OBR had been warning since 2011 about an “unsustainable” fiscal trajectory in the public finances, although the Government failed to engage with that fact. Who was the Chair of the Treasury Committee making that shrewd analysis? It was of course the current shadow Chancellor. Before we got to Russia, covid and the disaster of Liz Truss, the Conservatives had already been mismanaging our economy.

Now the Conservatives come to this House to complain about a Budget that has not even been written, offering no credible economic plan of their own and continuing to make unfunded promises. This Labour Government took immediate emergency action to stabilise our economy, and made difficult but absolutely necessary decisions. We are already seeing the early signs of promise: wages are now rising faster than prices; we have had five interest rate cuts, bringing down the cost of mortgages; and we have secured three major trade deals.

[Jerome Mayhew]

The hon. Member and a number of his colleagues have referred to the reduction in interest rates as the sign of a growing economy. If he even googled it, he would realise that the first explanation for the Bank of England reducing interest rates is that it is worried about a weakening economy. Does he not realise that?

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[Luke Murphy]

The foundation for being able to cut interest rates is a stable economy, and that is exactly what the Bank of England has done.

We are putting more money directly into people’s pockets, lifting the minimum wage for 3 million workers and delivering free breakfast clubs for all primary school pupils. We are getting Britain building again by reforming the planning system to cut through red tape, bringing in hundreds of new planning officers and making a record investment of £39 billion in affordable housing. We are committed to building 1.5 million new homes, so people are not locked out of the dream of home ownership. We are correcting the mistake of successive Conservative Governments with the crucial £113 billion in extra capital investment right across the country to boost our infrastructure and catalyse high-growth sectors.

Crucially, we have had to make difficult but fair decisions on taxation—decisions that ensure that the richest and larger businesses pay more—because we urgently need to invest in the public services that the Conservatives ran into the ground. That means vital investment in our NHS, schools and other essential services that all my constituents tell me we need. It is only because of the revenue measures applied by this Government, which the Conservative party repeatedly opposed, that we are able to make that investment.

As many others have said, the Opposition parties want all the benefits of our difficult choices, but refuse to say how they would pay for them. They talk about growth, but they consistently attempt to block measures to get our country building and they have been holding our economy back for far too long. As the Prime Minister and the Chancellor have said, the next phase of this Government is singularly focused on making working people better off, improving living standards across the entire country, boosting British jobs and delivering the renewal that our country desperately needs. We will not be swayed by Opposition motions based on their fantasies, or by those who offer no credible solutions themselves.

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[Luke Murphy]

rose—

[Sir James Cleverly]

No, I will not give way. The hon. Member had his chance.

This is the point: the Government love putting up taxes. We in the Conservative party put up taxes when we had to; this Government put up taxes at every chance they get. And the reason they put up taxes whenever they get the chance to do so is that they think taxes are not a necessary evil, but a good in and of itself. That is at the heart of the problem. The fact that gilt markets, bond markets, businesses and individuals know in their heart of hearts that taxes will go up under this Government has produced the stagnation and the stifling that Labour Members are criticising.

I was about to say that we have had a number of good contributions from both sides of the House, but that is being generous. The simple fact of the matter is that a key indicator of confidence in a Government is the cost of borrowing, and, currently, that is at a multi-decade high. As we have said, it has not been higher this century; it is trending in the wrong direction. The Bank of England, when setting interest rates, made it clear that it is concerned about the trajectory—specifically the trajectory on property taxes. Those on the Treasury Bench say that they do not want to speculate on what might be in the Budget later this year. They did not want this House to investigate what they claim to be speculation. They probably should not have spent so much time briefing the media over the summer. They cannot have it both ways. We are asking legitimate questions of the Government, because the markets and the country are worried about what is happening and we want to allay their fears.