Budget Resolutions

Mark Ferguson Excerpts

Wednesday 30th October 2024 Commons Chamber

[Mike Wood]

We have yet to see the departmental allocations. It is clear in the OBR’s projections that there are massive increases in borrowing, but even the savage tax rises that have been set out today are dwarfed by the increases in spending. The choices that the Chancellor has made are not to do with any black hole; they have been made because of her priorities, which were set out before the election. People were told that taxes would not have to rise under a Labour Government, but they are now seeing the reality. The current budget deficit will increase by £9.3 billion a year.

[Mark Ferguson (Gateshead Central and Whickham) (Lab)]

I notice that the hon. Member still has numerous pieces of paper in front of him, so I hope that he is coming to this point. The Chancellor stood up today and made choices for the future of the country. We can agree or disagree with the choices that have been made, but I am not hearing from any Conservative Members what alternative choices they would make.

[Mike Wood]

The Chancellor and the Prime Minister made it very clear to voters that nothing in Labour’s plans would require tax rises, other than very specific tax rises that they had indicated. They said that they were not looking to raise taxes on businesses, working people and farmers, which was dismissed as “a lie” in the television debate. We now see that the claims made during the election campaign were untrue only inasmuch as the Leader of the Opposition and shadow Chancellor hugely underestimated how much the Labour Government would hike people’s taxes. Again, a false prospectus was sold.

Page 11 of the OBR’s outlook sets out that earnings growth will halve over the course of this Parliament. This is a betrayal of working people. It is the tax on jobs that the Chancellor was so keen to attack while in opposition. The increase in business rates will add £6,000 to the bills for a typical pub at a time when so many are only just managing. Per worker, the increases in national insurance contributions for businesses will add—

--- Later in debate ---

[Mark Ferguson (Gateshead Central and Whickham) (Lab)]

I wish first to refer the House to my entry in the Register of Members’ Financial Interests. Madam Deputy Speaker, I am one of those terrible trade unionists you have been hearing about from those on the Opposition Benches. It is a shame so few of them are here; clearly, this is a contractual obligation attendance at the debate. I genuinely suggest that they should look at getting a trade union rep.

Many Members who have spoken in this debate are trained economists—my hon. Friends the Members for Swansea West (Torsten Bell) and for Hendon (David Pinto-Duschinsky) being two of the most recent. I have been called many things in my life but never an economist, so I want to focus on what the Budget will mean for people where I am from, in Gateshead. I am particularly pleased that we will not be returning to austerity, because austerity ripped through Gateshead and the scars will remain for a long time. Today was about rebuilding the foundations of communities like mine for a better future. Let us recap on what some of that means.

As my hon. Friend the Member for Welwyn Hatfield (Andrew Lewin) said, the investment in the NHS is the biggest outside of covid since 2010—£25.6 billion. That will get waiting lists down—promise made, promise delivered. There is investment in high streets, transport and homes that will change my community for the better—promise made, promise delivered. There is a higher minimum wage, up nearly 7%, and closing the gap faced by younger workers. For some that will mean up to £1,400 a year, which is a life-changing amount of money—promise made, promise kept. Injustice is being tackled in a promise made to those who suffered from the Post Office scandal and a promise made to those affected by infected blood—promises that have previously been made by all parties, but a promise made by this party and a promise kept in government. There is £1 billion for the household support fund, targeting those who need help most—a promise made, a promise kept—and promises have been made to those who rely on our schools, too.

In particular, I want to mention our colleges: £300 million into further education is a huge and hugely welcome change for colleges such as Gateshead college in my constituency. On SEND, all of us on the Labour Benches promised that if we were elected into government we would act to help those with special educational needs. We have done that today, with a £1 billion investment—promise made, promise kept. There was also a promise made not to raise the taxes of working people in their payslips—a promise made and a promise kept.

There were also some underrated changes in the Budget that I would like to refer to in the time remaining. Universal credit changes reducing the gap in deductions will keep more people out of poverty, more people out of food poverty and, yes, more children out of poverty—as will breakfast clubs, because no child should go to school hungry and under Labour none will.

The people of Gateshead Central and Whickham who sent me here should take heart from today. The road to changing our country is a long one. We take the first steps together. We should take heart, because real change and positive change is coming.