Family Businesses

Debate between Nick Timothy and Scott Arthur

Wednesday 26th February 2025 Commons Chamber

[Dr Arthur]

The hon. Gentleman makes the point that public spending is increasing faster than he expected. Perhaps he could outline where he thinks it should now be cut to make that good, starting with public services in his own constituency.

[Nick Timothy]

The hon. Gentleman is a little confused. Public spending is not increasing faster than I expected; it is increasing faster than his party told the country. That is the point.

The Treasury might not be what it once was, but even if we believed what the Minister said about the fictional black hole, which the Office for Budget Responsibility has disowned, £9.5 billion plus £22 billion does not reach even half of the £76 billion in extra Labour spending. I am not sure whether the Minister is listening, but he can intervene if he wants to explain himself at this point—he clearly is not.

What do we get for these extra taxes? The Home Office budget is being cut by 2.7% in real terms compared with last year. The Department for Transport budget is being cut by 2.5%, and its capital budget is being cut by 3.1%. That is economic illiteracy. This amounts to taxsterity —tax rises and spending cuts—to go with stagflation, or stagnation and inflation. That is Labour economics.