Budget Resolutions

Rachel Taylor Excerpts

Thursday 27th November 2025 Commons Chamber

[Sir Mel Stride]

We will come on to why that is the case momentarily.

What has happened to borrowing? One might have thought that the Government would have learned the lesson that ever-increasing borrowing always leads to disaster, but no: there is £11 billion of additional borrowing on average in every year of the forecast. What has that done to living standards? Real household disposable income—the economists’ measure of economic wellbeing —is down in every year of the forecast compared to the forecast in the spring.

The OBR says—the Parliamentary Secretary to the Treasury will like this one—that real income growth across this forecast will be well below the average of the last decade. So this Government should not point a finger at the last one when it comes to living standards.

[Rachel Taylor (North Warwickshire and Bedworth) (Lab)]

Will the right hon. Gentleman give way?

[Sir Mel Stride]

I will in a moment. It is there in black and white in the OBR’s report. The reason for that forecast is £26 billion of additional taxation in 2029-30, and, as the Parliamentary Secretary to the Treasury will know, an additional £12 billion of tax take that will occur because of fiscal drag. Those higher inflationary numbers in the forecast are dragging ever more people into paying ever more tax.

--- Later in debate ---

[Sir Mel Stride]

The hon. Gentleman is absolutely right. The income tax threshold freeze—which has been extended for three years, even though the Government briefed that it would probably just be two—means 780,000 more people paying tax for the first time, because the personal allowance will be frozen for longer, and 920,000 people going into the higher rate tax bracket. In fact, by 2029-30, around one in four workers in this country will be in the higher rate tax bracket.

The Institute for Fiscal Studies has said that the measure is a clear breach of the Labour party manifesto. The Chancellor herself accepted in the autumn Budget last year, when she said that she would not come forward with the measure, that it would hurt working people. She repeated that yesterday. It is very clear that this is a breach of the Labour party manifesto.

When it comes to young people, we hear that there will be a freeze to the student loan payment thresholds. Young people are already disproportionately impacted by the changes to national insurance, particularly the reduction in the threshold that means that lower-income earners, which include younger people, will be disproportionately impacted by those tax changes.

The Employment Rights Bill, which is coming down the line, will make it far riskier to take younger people—[Interruption.] Government Members should be careful what they wish for. The Labour party speaks a lot about those who are not in employment, education or training, of which there are about 940,000; that Bill will do nothing to improve their life chances. It will make things worse. It will make it more risky to take those people on and employ them.

[Rachel Taylor]

rose—

[Sir Mel Stride]

The hon. Lady has been very patient, so I give way to her.

[Rachel Taylor]

As the right hon. Gentleman seems to care so much about those who are not in education, employment or training, why did he allow 88,000 young people to become NEETs, and is he proud that when he left office, almost 1 million young people were not in any form of employment, education or training? Is this not the worst kind of hypocrisy?

[Sir Mel Stride]

I congratulate the hon. Lady on reading accurately from the Whips’ circular. The Opposition stand by our record—[Interruption.] Absolutely. When we were in government, we were a job-creating machine: there were 4 million more jobs under us than had been there before. When we left on the day of the general election, we had a near-record high level of employment and a near-record low level of unemployment. Unemployment is now at a five-year high—[Interruption.] The Parliamentary Secretary to the Treasury shakes his head, but it happens to be true. One of the results of the Budget for young people is that there will continue to be a lost generation of workers.

What about those who want to save, do the right thing and provide for their future in retirement? Should we not be encouraging that? What has the Budget delivered on that front? Salary sacrifice has been savaged, the savings tax has been put up, and the cash ISA has been cut. We are punishing savers. We will see the reverberating effects of those measures for many generations and many years to come.

--- Later in debate ---

[Rachel Taylor (North Warwickshire and Bedworth) (Lab)]

I thank my right hon. Friend the Member for Leeds West and Pudsey (Rachel Reeves) for delivering a Budget with fairness and action to tackle the cost of living at its core, and one that will make work pay. Having sat through this debate for about eight hours, it is interesting to observe that Members on the Labour Benches are giving a voice to those vulnerable children living in poverty, while those on the Conservative Benches are simply standing up for those who own mansions. That is the difference.

I am pleased to see that around 1,990 children in my constituency of North Warwickshire and Bedworth and nearly half a million children across the country have been lifted out of poverty, and that the degrading rape clause has been removed from child benefit. That will be the biggest change a Government have ever made to child poverty in a Parliament and it is the right thing to do for children. I know that everyone in my area will be pleased to see the £150 off their energy bills too. That is the difference our Labour Government are making to the cost of living for ordinary families.

In a coalfield community such as mine, we carry immense pride in our heritage. Standing up for former mineworkers in North Warwickshire and Bedworth is personal to me. My grandad Bill was a miner at Birch Coppice, and I grew up understanding the dignity, sacrifice and solidarity that defined that way of life. That is why I am delighted that the Government have taken the long-awaited decision to return the British Coal staff superannuation scheme surplus to its members. The last Government allowed that injustice to continue for far too long. I have campaigned tirelessly for that measure, alongside my colleagues who represent coalfield communities and have lobbied hard for the Government to do right by BCSSS members. I am immensely proud that this Government have listened to the voices of my constituents who were impacted by that unfairness.

Earlier this year, I held an event for BCSSS members in my constituency. Ray Sweet, Andy Callow, Don Jennings and others shared with me the years they spent working in and around our mines. I am delighted to be able to tell them that they will finally receive the full pension they worked so hard for. I also met a woman who joined the National Coal Board at 16. She worked for years from 5.30 am to late in the day to ensure mineworkers got paid on time and at the end of their shift. Women like her, who supported the mining industry behind the scenes, have often gone unrecognised and underappreciated. I hope they now feel the recognition they have long been owed and the nation’s gratitude for their work to keep our lights on and our homes warm. I know that for many this comes too late, and I remember them too.

I thank the Chancellor for abolishing the bingo tax. I visited Palace Bingo in Bedworth last week and met the owners, Pete, Donna and Paul, who took over the family business. It was great to see the investment they have made; there are new toilet facilities there has been a total renovation. They provide safe entertainment for hundreds of people every day of the week in Bedworth, and I know how much people in my constituency enjoy a good night out at the bingo, as do I. It is right that they are exempted from bingo tax, and that online gambling pays the price for the harm it causes.

Finally, I have listened carefully to farmers in my constituency. They know that I have passed on their concerns to the Treasury, so I am pleased to hear the Treasury’s small concessions.

I want to reassure the residents of North Warwickshire and Bedworth that this Government are on their side. For all my constituents, I am feeling positive. There is work to be done, but this Budget will continue to bring the change that we promised at the general election. The damage left by 14 years of austerity is finally being undone. This Labour Budget is putting money in the pockets of those who need it most, delivering healthcare for everyone, providing opportunities for young people, unlocking growth, delivering new homes, reducing energy bills, reducing business rates for hospitality and retail, putting more money in people’s pockets to spend in local businesses, giving us pride in our towns and powering our future. That is the difference a Labour Government can make.