Budget Resolutions

Neil Shastri-Hurst Excerpts

Wednesday 6th November 2024 Commons Chamber

[Dr Caroline Johnson (Sleaford and North Hykeham) (Con)]

I declare that I have a financial interest in some of the Budget measures.

The Budget is one of broken promises and poorly thought out measures for every generation. For children who attend private schools, their schools will face VAT. Quite apart from the disruption that will cause, it is unlikely to raise the money the Government suggest, because the wealthier parents have already paid, more students will need to be looked after in the state sector, there will be greater demand on SEND services and there will be a reduction in employment among staff who previously worked at such schools.

The Prime Minister told those who go to university that he wanted to abolish tuition fees. I wonder whether they are surprised that he has put them up. Young people wanting to buy their first home will see stamp duty thresholds fall, and many more will pay stamp duty on their first home.

What of those working people the Labour party has found it so difficult to define? First, they have to get to work. Those who use the bus will find that the fare has increased by 50%. Those who have commercial pick-up trucks will see that the tax on them has gone up too. What about the national insurance rise? It is a tax on every single working person and it has not been thought through, as public sector workers will also need to pay the national insurance.

The Government said to The Times that they were going to provide mitigation, but the Department of Health and Social Care does not seem to know how much it is going to cost to start with. I asked a written parliamentary question and was told it will take longer to prepare an answer. The Department does not seem to know how much it will cost directly or indirectly. Many right hon. and hon. Members have talked today about the indirect costs that will face air ambulances, hospices, general practices, opticians, care homes, mental health services and outsourced laundry, catering and human resources.

What about the private hospitals delivering waiting list initiative work for the NHS? They will also need to put up prices. Will the nurse who works at a private hospital doing a proportion of her or his work for the NHS and a proportion for private enterprise be partly recompensed, or not? It has not been properly thought through. We will need the NHS for all those old people, cold and vulnerable in their homes, who have had the winter fuel allowance snatched from them—people the Labour Government have let down. If they die, they have the prospect of further taxation on their pensions, business assets and family farms.

[Dr Neil Shastri-Hurst (Solihull West and Shirley) (Con)]

My hon. Friend raised the issue of family farms; does she agree that it has been hugely disingenuous of the Government to repeatedly say they have farmers’ backs, only to abandon agricultural property relief at the first opportunity?

[Dr Johnson]

I do. As a farmer’s wife, I particularly recognise the effort of families to work together on farms. It is not the most profitable work, but is a labour of true love.

Those who need a pint after listening to all the increases in taxation across the generations may be pleased to hear that pints are going to be a penny cheaper—woo-hoo—but with business rates relief for pubs and other hospitality having gone from 75% to 40%, and the rise in the minimum wage and in national insurance contributions, the likelihood is that prices will not go down at all, leading to further disappointment.

The Budget is bad for business, bad for growth, bad for the young and bad for the old. But most of all it is a break of trust. It is a litany of broken promises from the Labour Government to the public. Labour voters, like the Prime Minister’s favourite singer, may be saying to themselves, “Did you have to do this? I was thinking that you could be trusted.”

--- Later in debate ---

[Dr Neil Shastri-Hurst (Solihull West and Shirley) (Con)]

It is a pleasure to follow so many excellent maiden speeches this afternoon.

The Budget marks a seminal moment in the parliamentary calendar. Irrespective of party politics, there is a collective desire that any Budget provides the foundations for our great nation to succeed.

My constituency of Solihull West and Shirley, with its range and breadth of businesses, is an important economic driver for the west midlands. Having sat down with 17 business leaders last Friday, and having visited multiple businesses in the lead up to the Budget, it is important that I convey their balanced and market-led views.

Businesses look for stability. They want to understand the Government’s growth and economic plan for an industrial strategy. However, as one CEO described it, the Budget represents private industry versus public sector, employer against employee. One cannot have well-funded public services if there is no private industry to pay for them; one cannot have high employment rates if there are no private business to spur job creation; and one cannot have economic growth if private investment is driven out of this country.

This Budget has brought businesses more complexity and uncertainty. As a consequence of last Wednesday’s announcements, businesses in my constituency have already announced recruitment freezes.

By now, the Chancellor will have received my letter, sent yesterday and signed by approximately 40 Members of this House and the other place, regarding the impact that her new national insurance contributions policy will have on general practitioners, dentists, hospices and care homes. These vital services will be forced to decrease staff numbers, thereby creating further pressures on the NHS and public services.

[Graham Stuart]

I am grateful to my hon. Friend for giving way. [Interruption.] Government Members do not like to hear this.

[Graham Stuart]

Not when an intervention is happening. Every Labour Government in history have ended with higher unemployment than when they began. From the look of these measures, does it not seem that this one will be exactly the same?

[Dr Shastri-Hurst]

rose—

[Madam Deputy Speaker (Judith Cummins)]

Order. Although the hon. Gentleman will be very grateful for the intervention, may I remind Members that time is tight?

[Dr Shastri-Hurst]

I am grateful to my right hon. Friend for his intervention, and I agree with him entirely. I am mindful of the tightness of time, Madam Deputy Speaker.

Will the Chancellor reconsider the exemption list, to protect the vital services I mentioned, much as she reconsidered when it came to VAT on continuity of education allowance payments? We all understand how much money the Chancellor hopes to raise, but I ask today that she sets out a realistic plan to raise the money. What is her plan to grow the economy? GDP growth predictions are lower than inflation rise predictions, which effectively means the economy shrinking over the next five years.

Finally, I ask the Minister to set a firm date for the publication of the Government industrial strategy, so that businesses have stability, rather than being on the receiving end of the Chancellor’s smash-and-grab tax raid.