Spring Forecast

Richard Foord Excerpts

Tuesday 3rd March 2026 Commons Chamber

[Rachel Reeves]

In my hon. Friend’s constituency, thousands of children will be lifted out of poverty from next month because this Labour Government have chosen to get rid of the two-child policy that was introduced by the Conservatives and supported by their Tory tribute act friends on the Reform Benches. On business rates, I am sure that the Secretary of State for Business and Trade or a relevant Minister would be happy to meet my hon. Friend. The changes that we have made mean that there is a permanently lower multiplier for smaller businesses and high street businesses.

[Richard Foord (Honiton and Sidmouth) (LD)]

Many small and medium-sized enterprises add value to our towns and villages, but I am concerned about their survival. The Community Waffle House in Axminster is a community interest company that is struggling under the pressure of last year’s national insurance increases. Waffle Axminster boasts £3.9 million in public sector cost avoidance and value created, according to the Department for Culture, Media and Sport wellbeing valuation for reduced loneliness. Will the Chancellor consider VAT relief to take account of the public sector cost avoidance by that CIC and other hospitality businesses?

[Rachel Reeves]

This Labour Government have permanently reduced the multiplier faced by small businesses and high street businesses—the business rates system that we inherited from the previous Government. The hon. Gentleman mentions VAT. When Labour left office in 2010, VAT was 17.5%, and the Conservative Government, with the help of the Liberal Democrats, increased it to 20%. It has been there for 15 years. If his party wants to cut taxes, it also has to explain which public services it is going to cut. We have increased spending on the health service by £29 billion. That was the right decision, but it was only possible because of the tax decisions we have made.