Oral Answers to Questions

Debate between Rachel Reeves and Tim Farron

Tuesday 3rd September 2024 Commons Chamber

[Rachel Reeves]

I thank my hon. Friend for her question and welcome her to her place. The regeneration of Stratford after the Olympic games is truly phenomenal, and I know that she will be a strong voice for her constituency and help to deliver the growth mission, which is the No. 1 priority of this new Government. The success of London’s economy will be integral to delivering that mission, and we will work with the Mayor of London, Sadiq Khan, and with our MPs to ensure that economic growth benefits people in the capital and across the country, ensuring that we narrow the gap between rich and poor and also showcase the huge opportunities that London has on the international stage. We will be hosting an international investment summit in London on 14 October, bringing together some of the biggest global investors in the world, to showcase everything our great country has to offer.

[Tim Farron (Westmorland and Lonsdale) (LD)]

Investment in our rural economy must focus heavily on rewarding our farmers for the food they produce and the environment they protect. The last Government ringfenced £2.4 billion a year for England to support our farming sector. Through indifference or incompetence, they underspent by £100 million last year and betrayed our farmers in doing so. Will the Chancellor confirm to me, my farmers and this House that she will not bake in that underspend, which was the fault of the last Conservative Government, and that she will at least commit to ringfencing what is already invested in farming? If not, hopefully she will back the Liberal Democrats’ call to back £1 billion extra into farming so that we can feed our—

[Mr Speaker]

Order. Mr Farron, please do not take complete advantage. I think you have slightly strayed from the original question. Chancellor, if you want to have a go at it, by all means do so, but I will understand if you do not.

National Insurance Contributions Increase

Debate between Rachel Reeves and Tim Farron

Tuesday 8th March 2022 Commons Chamber

[Rachel Reeves (Leeds West) (Lab)]

I beg to move,

That this House calls on the Government to cancel its planned 1.25 percentage point rise in National Insurance Contributions that will cost families an average of £500 per year from April 2022.

Six months ago today in this Chamber, I set out Labour’s opposition to the Conservatives’ national insurance tax hike. It was clear to us then that this was going to be a heavy burden on working people and businesses who could ill afford it. Since that time, the situation has worsened, but the Conservative party has not altered its wrong course. Filling up the car with petrol is more expensive, energy bills are soaring, and the cost of the weekly food shop is rising. It all adds up. Inflation is now 5.5%, the highest level since 1992, and is forecast to reach a massive 8% next month, outpacing people’s pay rises—if they get one at all. Growth is expected to slow further. The stark reality is that over the past 12 years, the Tories have become the party of high taxes because they are now the party of low growth.

This morning’s report by the Resolution Foundation finds that the average household will experience a £1,000 hit from tax rises and energy price increases this year under the Conservative Government. The Treasury Committee rightly highlighted the Office for Budget Responsibility’s forecast, which stated that

“the policy mix chosen by the Chancellor”

at the last Budget

“will act as a boost to inflation”.

Just focus on that for a moment: the Chancellor’s own policy choices are boosting inflation. The Government should have acted when the cost of living crisis started growing last September and well before it spiralled out of control in December, with costs soaring and inflation heating up.

The Russian invasion of Ukraine is devastating lives and livelihoods, and we must do all we can to stop Putin’s aggression. What is happening in Ukraine will have a cost of living effect here at home, too. When the facts change, so should the Government’s policies; people cannot afford Ministers carrying on regardless of worsening circumstances. The Chancellor must show some understanding of the real-world consequences of his policies for working people and businesses.

The spring Budget will take place two weeks tomorrow, on 23 March. If the Government cannot commit to halting the national insurance rise today, they must do so then, two weeks before it comes in on 6 April and hits working people and employers hard. Today is an opportunity for the Conservatives to show that they get it, and do not want to make the cost of living crisis even worse than it already is.

[Tim Farron (Westmorland and Lonsdale) (LD)]

The hon. Lady is making an important speech. She is right that the national insurance rise will cripple families who are already struggling to get by, but does she agree that what makes it worse is that not a penny of the money raised will go into the hands of hard-working carers who desperately need it? In a community such as mine that is above the national average age, with a need for more carers, that means people without care or with inadequate care.

[Rachel Reeves]

The hon. Gentleman is absolutely right. That is the great deceit at the heart of this national insurance tax rise. I will address some of those details in a moment.