Income Tax (Charge)

Peter Bedford Excerpts

Monday 4th November 2024 Commons Chamber

[Mr Peter Bedford (Mid Leicestershire) (Con)]

The Budget we saw last week was the most anti-aspirational Budget of modern times. It is a bad Budget for growth, jobs and working people. First, let us consider its impact on small and medium-sized businesses, many of which are staffed by working people. The £40 billion tax bombshell, combined with the additional regulation in the Employment Rights Bill, will place a massive burden on businesses, and we will only see more of them close over the coming years. Whatever industry people are in, there are now significantly higher taxes and regulatory burdens than we have ever seen. The ludicrous hike in employer national insurance contributions will lead to many businesses no longer employing new people and having to slash jobs. That is not in the interests of working people. The last Conservative Government played a crucial role in reducing unemployment throughout the UK. The Labour Government have torn that up just a few months into office. Let us be clear that having fewer jobs is not in the interests of working people.

The left like to portray capital gains tax as a tax that only affects the richest in society. However, that is simply not true. Ordinary working people who save and invest and make a modest profit on small shareholdings, or who maybe have a second home for their pension, will see their taxes rise as a result of this Budget. That is not in the interests of working people. It is the politics of envy unleashed.

Having recently secured a Westminster Hall debate on the pub and hospitality sector, which was well attended by Members from all parts of the House, I welcome the penny cut to draft beer. However, that reduction is purely academic if people do not have a pub to go to. This Government have failed to extend the 75% rate relief that the last Government put in place for the sector. The residents of Mid Leicestershire are deeply concerned that this Government’s measures will damage the economy, rather than create growth.

Finally, VAT on education is perhaps one of the meanest policies that this Government have brought in. It will not only affect those who have the wealth to send their children to public schools, but impact those in the state sector, putting additional burdens on our children’s futures.

To conclude, this is not a Budget for aspiration. What is the point in someone setting up their own business? What is the point in saving to pay for their children’s education? What is the point in keeping their family-run farm? Today, we have a Government lacking in any ideas to boost aspiration. Instead, we have the politics of envy at play.