Budget Resolutions

Debate between Mike Wood and Mark Ferguson

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—