Income Tax (Charge)

Richard Burgon Excerpts

Tuesday 5th November 2024 Commons Chamber

[Richard Burgon (Leeds East) (Ind)]

The Budget is a welcome break from more than a decade of austerity, and especially from the Tories’ slash-and-burn plans announced at their last Budget, which would have meant even more deep cuts. It is good to see public investment being emphasised, as that is key not only to rebuilding our public services but to driving growth and better living standards. Likewise, the boost in day-to-day spending for public services over the next couple of years is welcome—for example, we are funding 40,000 extra NHS appointments a week and recruiting 6,500 new teachers. Having campaigned against poverty pay for many years, I welcome the boosts in the minimum wage, although there is more to be done.

The Budget included positive measures for those like me who want the wealthiest and tax dodgers to be made to pay their fair share. That is why we have heard so much squealing from the Tories and the right-wing press in recent days. It seems that defending the super-rich is the main reason why they get out of bed in the morning. Progressive taxes, achieved by ending the non-dom scheme—why on earth would they have a problem with that?—having higher capital gains taxes, and extending the windfall tax on oil and gas profits, are what we need to fund our services. We need more of that, because public services need more funding. The increases announced in the Budget, after the initial boost over the next couple of years, will not be enough to repair the damage done by a decade of Tory cuts. The Government should grasp the nettle and introduce a series of wealth taxes, starting with a 2% tax on wealth above £10 million, which would raise billions more for our public services.

I would have liked the Budget to do more on tackling poverty. I am concerned that real-term cuts to benefits next year appear to be planned. That must not happen, and disabled people must not be subjected to more cuts and attacks. The two-child limit needs to go, fast. A Labour Government should eradicate child poverty, not allow more children to fall into poverty. The last Labour Government lifted many children out of poverty, and that is what we want to see again. The winter fuel allowance cut should be reversed. That cut makes no sense morally, politically or even economically, and it is not too late to think again and scrap it.

The Budget is a welcome break from a decade of austerity. It contains progressive tax measures, but more needs to be done now and going forward on poverty reduction. It was put together following the toxic inheritance from the Conservatives. It would be good to see more than a handful of Members on the Opposition Benches. Who knows? They might be able to learn something.