Oral Answers to Questions
Oliver Ryan Excerpts(1 month, 1 week ago)
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Dan Tomlinson
It is worth noting that some 800 of the 1,200 reliefs the hon. Member mentions ensure that the tax system operates as intended by defining the scope of tax correctly and that it operates fairly and simply. I am sorry to disappoint the hon. Member, but I will not be able to comment specifically on any changes that we may or may not make to tax reliefs—any decisions will, of course, be announced at the Budget, which is not today.
Oliver Ryan (Burnley) (Lab/Co-op)
The Economic Secretary to the Treasury (Lucy Rigby)
Our financial services growth and competitiveness strategy sets out the Government’s 10-year plan for the sector, making clear our ambition that, by 2035, the UK will be the global location of choice for financial services firms to invest, grow and sell their services throughout the UK and to the world. To support this ambition, the Government announced the Leeds reforms, which are the most wide-ranging package of reforms to financial services regulation in a decade. The reforms will turbocharge growth, put more money in the pockets of working people and create more good, skilled jobs right across the country.
Oliver Ryan
I also welcome my hon. Friend to her new role. Small businesses in Burnley, Padiham and Brierfield are the lifeblood of our community, providing jobs and livelihoods to our people. Growing manufacturers and exporters such as the brilliant Barnes Aerospace in Burnley are doing an excellent job at taking Britain across the world. Will the Economic Secretary set out what the Government are doing to support small and medium-sized business, particularly our manufacturers, with access to finance?
Lucy Rigby
My hon. Friend raises an important issue, and it is very good to hear him championing businesses in his constituency. The Government published the small business strategy in July, which sets out how we will make the UK the best place to start and grow a business and puts SMEs at the heart of our growth mission. That includes tackling the barriers that SMEs face when accessing finance. That is why the Government are committed to increasing the total financial capacity of the British Business Bank to £25.6 billion and introducing a new business growth service, which will make it easier and quicker for businesses across the UK to get the help, support and advice that they need to grow and thrive.
Property Taxes
Oliver Ryan Excerpts(1 month, 2 weeks ago)
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Sir Ashley Fox (Bridgwater) (Con)
This Government were elected on a manifesto to increase spending by £9.5 billion. That was to be paid for through £7.3 billion of extra taxes and £3.5 billion of extra borrowing, all of which was set out in the Labour manifesto. It was a modest plan with a prudent margin—exactly the sort of plan one might expect a party in opposition to put forward to show that it can be trusted to run the public finances. Labour Members might reflect on the fact that had they implemented the plan, the British economy would be in better condition than at present.
In its first Budget, Labour increased public expenditure not by £9.5 billion, but by £70 billion. How those on the Labour Benches cheered with delight at the thought of all the extra spending: pay rises for train drivers, with no conditions; pay rises for junior doctors, with no strings; money for Great British Energy; and more money for the British Business Bank—all so the Government can invest in projects that the private sector does not think will make a return.
We all know how this story ends: Labour will use all the business acumen that the Cabinet has at its disposal to create a modern version of British Leyland. It is what Labour does best: spending other people’s money, and borrowing yet more money that other people’s children can repay. But all this extra spending and borrowing comes at a price, and the Government are now paying 5.7% interest to borrow money for 30 years. That is the highest level since 1998, and this surge in borrowing costs reflects the market’s lack of confidence in the Chancellor’s ability to manage Britain’s finances.
Oliver Ryan (Burnley) (Lab/Co-op)
Does the hon. Gentleman accept that the surge in borrowing costs actually started with Liz Truss’s mini-Budget and has not really stopped since the trajectory started?
Sir Ashley Fox
I do not accept that at all. This surge is entirely due to the Chancellor losing control of public expenditure, and the increased cost of servicing our national debt adds further pressure on the British taxpayer.
Having presented her Budget, the Chancellor said:
“We’re not going to be coming back with more tax increases, or indeed more borrowing.”
The problem is that no one believes her. The markets do not believe her, and Labour Back Benchers certainly do not believe her. They now know that they only have to threaten to rebel on any item of public expenditure and the Chancellor will cave. We saw that on the welfare reform Bill, which was brought forward to save a modest £4.5 billion. What happened? The first whiff of a rebellion, and the Bill was gutted, leaving the taxpayer to pick up the cost.
In that context, over the summer we saw briefings from the Treasury testing the water on a whole series of potential tax rises: higher rates of council tax, a land value tax, capital gains tax on family homes, lowering the thresholds for inheritance tax and an annual property levy on the family home. No wonder the Deputy Prime Minister is being so careful about which of her many homes is her primary residence.
The Chancellor is clearly desperate to raise more money. It is a cruel irony, is it not, that having invented a £22 billion black hole to justify her taxing and spending, the Chancellor now finds herself facing a black hole entirely of her own making? It is her jobs tax and other tax rises that have caused the economy to slow and unemployment to rise. Her increase in public expenditure has fuelled inflation, which has led to higher wage demands and increased benefit costs.
Oral Answers to Questions
Oliver Ryan Excerpts(6 months, 1 week ago)
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Rachel Reeves
The support that we announced yesterday on the phase-out of internal combustion engine cars was very much welcomed by the automotive sector. It will give much more flexibility around the allowances and around plug-in hybrid vehicles. All of that is welcome, but we are keeping a watching brief as well as trying to ensure that there are new markets for cars made in Britain in other countries around the world by securing more trade deals.
Oliver Ryan (Burnley) (Ind)
Rachel Reeves
My hon. Friend is doing great work supporting local businesses in Burnley, including the digital marketing start-up Door4, which I know he has been championing.
VAT: Independent Schools
Oliver Ryan Excerpts(1 year ago)
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Mr James Frith (Bury North) (Lab)
I refer Members to my entry in the Register of Members’ Financial Interests. I am pleased to speak in this debate. I am proud to do so for the first time since being put back in my place by the people of Bury North. Returners do not get to be maidens again, so I will just send my best to my predecessor and his family, as is customary. There was not much on which we saw eye to eye, but I respect his work and time in office. I know how losing feels, so I sincerely send him my very best.
It will not surprise you, Madam Deputy Speaker, but I speak in favour of this Government’s laser focus on tackling inequality in our education system. I support Labour’s plans to end the state subsidy of private schools, and it is right that they pay VAT, as businesses expect to pay. I understand the aspirations of parents who work hard and save to provide for their children. I can introduce any Member to thousands of them in Bury North. Many live in some of the poorest wards in the country. Few could ever afford to pay for private education for their children, so I do not expect them to pay for the private education of someone else’s children with a state subsidy and their own hard-earned money.
Forty-three per cent. of children in Bury North live in poverty, and that is concentrated in just three of our nine wards. That is an abject failure of the Conservative party’s 14 years in government—a spike of 10% in as many years. We cannot ignore growing inequalities.
Under this Government’s plans, private schools will become subject to VAT. Although that presents new financial considerations for those schools, I would gently push back on the notion that the costs will automatically mean the same in terms of fee rises. Private schools have a range of financial capabilities to absorb some of these costs: reclaiming VAT on supplies and services; drawing on interest from trust funds or assets; considering how the fees for the use of school assets by the wider community can contribute to the overall budget; introducing fee structures or fees for additional specialist support; and joining with schools in neighbouring areas or nationwide to pay for centralised services. They will remain free to determine what to do, but that is necessary in considering business costs.
None of this is new to schools. I have met some of the brilliant leaders in our private school sector. They are not exclusively innovative, but on a personal and character level, I have loved meeting them and those they teach. Bury Grammar in Bury North is one example. However, as someone who served as a state school governor until recently, I have seen at first hand the budgetary pressures enforced on the schools that teach 93% of our children.
Let us take a moment to consider the Conservative party’s time in office and what has brought us to this point. Under its leadership, we saw an atomisation of our school system, zero accountability for multi-academy trusts, the narrowing of the school system, the off-rolling of children with different abilities, and many young people left without the support they need. It presided over a catastrophic financial crisis for local schools and authorities trying to support children with special educational needs, while SEN families have faced immense frustration, misery and often obnoxious bureaucratic barriers. These parents are forced to navigate labyrinthine systems in pursuit of services that they are legally entitled to access but that remain hidden from view under lock and key.
Oliver Ryan (Burnley) (Lab/Co-op)
SEND services are really important to people in my constituency as well. Does my hon. Friend agree that we are not anti independent schools or private schools or the work that they do? He is right when he talks about the whole state sector. Does he agree that this is important?
Mr Frith
My hon. Friend is absolutely right. We are not anti. We are for the many and the few. Conservative Members want to remain in their comfort zone following their election defeat. We have all been there, but it is the wrong place to be. It is right that people pay VAT on school fees.
I was at a termly governors’ meeting—Opposition Members will like this—when news of the last Government’s bare-minimum teachers’ pay rise came through. There was some welcome surprise that the then Government had done even the bare minimum. That was quickly replaced by the hard-headed financial reality from the business manager. They confirmed to the same meeting that, even with the 3.5% that had been kept in reserve to meet the contribution they were expecting in Bury to make the pay rise, they would face a budget deficit because the teachers would no longer be on strike. That is right—the Tories designed a system where the leaderships of our state schools have to rely on the unfair treatment of our teachers in order to come in under budget. That is the reality that we face, and it is their everyday experience. There have been no maths teachers for year 11s, and the leadership have been weighing up whether to buy in multiple teaching assistants for cover rather than a science teacher for science—if they could find one. There is a huge amount to do, and this measure will only touch on a fraction of the legacy that Labour must clear up from the last Government and their 10 Education Secretaries.
Public Spending: Inheritance
Oliver Ryan Excerpts(1 year, 2 months ago)
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Rachel Reeves
I share the hon. Gentleman’s frustration, anger and disappointment that the promises made by the previous Government turned out to be built on sand. The money simply was not there.
The decisions that we are having to take today are not easy. They are not the decisions that I want to make, but we have to put our public finances on a firmer footing. That is essential. My right hon. Friend the Health Secretary will meet the hon. Gentleman and others affected as soon as possible to talk through the next steps to ensure that all our constituents have the public services, including the hospitals, that they rightly deserve.
Oliver Ryan (Burnley) (Lab/Co-op)
The brass neck of Opposition Members is astonishing after what we have heard from the Chancellor today. My residents in Burnley, Padiham and Brierfield will be so disappointed to hear of the mismanagement over the last 14 years that she has uncovered in the Treasury—it was to be expected, anyway. Does she agree that the now shadow Chancellor should apologise and that, if he will not, he should resign?
Rachel Reeves
I find it staggering that in almost two hours in the Chamber, not a single Opposition Member has apologised for the state they left our public finances and public services in. It has fallen on this new Government to address that challenge. We will rise to that, but they should never have been left in this state.