Income Tax (Charge)

Paul Waugh Excerpts

Monday 4th November 2024 Commons Chamber

[Paul Waugh (Rochdale) (Lab/Co-op)]

It is clear that a lot of Tories do not like this Budget, but that is not because it raises taxes—because after all, they themselves raised taxes to a post-war high. Why do they not like it? They do not like it because this Budget exposes their model of a low-pay, low-investment economy—a model that has totally failed. It failed to produce anything other than anaemic growth, dire productivity and broken public services. Among the few mea culpas uttered by those on the Opposition Benches in the last few days was the admission that the last Government had indeed “wasted huge amounts of money”, but just as damning are the huge amounts of talent and potential that they wasted. Under this Budget, people who want to work will get the work, the pay and the dignity they deserve.

The Tories let down parents who have been held back by a lack of affordable, costed childcare. They let down young people on the minimum wage—I am delighted that the minimum wage is now rising to £10 an hour for 18 to 20-year-olds. They let down people in work on universal credit, people struggling to feed their families. In Rochdale, the number of children in relative poverty rose from 45% in 2022 to a staggering 49% in 2023. Most damning of all, however, is the spiralling economic inactivity that the Conservatives presided over: a record 2.8 million people locked out of work due to long-term sickness. That is just one reason why the £22 billion this Budget directs to the NHS is desperately needed.

By grinding down our public services, the last Government piled cost upon cost for ordinary people. Think of the number of people forced to spend thousands of pounds going private for a hip or knee op, an operation they should have had for free on the NHS. Think of the thousands of pounds-worth of damage to cars caused by potholes on roads left to rot. Think of those forced to fork out for a taxi to get to work, to the shops or to hospital because their local bus has not turned up or the train has been cancelled. Think of all the experienced talent leaving the NHS, our schools and our police forces because their pay was cut in real terms and they face crippling staff shortages on a daily basis. Those are the people to whom we owe a debt of gratitude and investment.

The new Leader of the Opposition claimed yesterday that partygate had been “overblown”, yet the defining image of partygate was low-paid cleaners and security staff in No. 10 having to clean up the vomit, the broken bottles and the wine stains left behind by an entitled few. This Government now have to clean up the financial mess that the Tories have left behind and fix the public services that they broke.