(2 weeks, 3 days ago)
Commons ChamberI think this debate is actually about the tax policy of this Government. As I have clearly set out—[Interruption.] To be fair, there was the small matter of covid, which came along and shrank the UK economy by 10% overnight. People at the time speculated that we would see mass unemployment, the like of which our country had never, ever seen, yet through our intervention we ensured that that did not happen.
Likewise, when the Ukraine-Russia war brought inflation to our shores through energy price spikes, peaking at 11.1% at the back end of 2022, we took the tough decisions, along with the Bank of England, to bring that inflation down. In the meantime, we protected millions of low-income families up and down the country from the consequences of that inflation. That came with a £400 billion price tag, so it is not surprising that some taxes had to rise in order to pay for that.
The shadow Chancellor is making an excellent speech. Does he agree that the danger is that if Governments do not have a prudent financial position, they end up in the situation that we are now seeing, with the interest on Government debt going up and up? We are now paying around £10 billion a year more than we were at the time of the general election.
My right hon. Friend is absolutely right. With the increasing Government debt to which this Government are constantly adding, and the higher interest rates for longer for which they are responsible because of their extravagant spending, we are spending about £100 billion a year on simply servicing that debt, which is twice what we spend on defence. That is not sustainable, and things will get worse under this Government.
I congratulate the shadow Chancellor on securing a debate on this motion. When this Government came into office, they found Britain’s public finances vandalised, the economy wrecked, debts soaring, sky-high mortgages, a cost of living crisis that has touched every household in this country, and a mismanaged pandemic, rife with dodgy contracts and corruption. The Conservatives today pretend that they have discovered fiscal responsibility, but we all remember that they increased taxes 25 times in the last Parliament, and gifted us the reckless Liz Truss mini-Budget, which sent mortgages spiralling and tanked the markets.
No Government in living memory have had a worse economic inheritance than this one. The Conservatives have no credible economic plan for dealing with the debt, no credible plan for growth, and no credibility whatsoever with the British public. What they did to the public finances and the national debt even before the pandemic is unforgivable.
Labour Members pretend that 2010 was year zero. In truth, in 2010 there was an annual deficit of 10% of GDP in Government spending, which meant that the Government were borrowing £1 for every £4 they were spending. Does the hon. Member not acknowledge, or understand, that that was a far worse economic inheritance than any Government have been offered since the second world war?
I thank the right hon. Gentleman for that intervention, because it is important to talk about debt. I was disappointed that the shadow Chancellor failed to acknowledge that the inheritance in 2024 was total national debt of close to 100% of GDP, which was up from 60% in 2010. The annual debt payments that the Government are having to make—as others have said, they are close to £100 billion, thanks to the Government’s economic inheritance—are 8.3% of total public spending. Imagine what we could do if we spent that money on the NHS, our schools, or fixing the housing crisis.
This goes much deeper than debt. The truth is that we inherited a sick economy, affecting living standards, wages and public services, and there was no plan for growth. The Conservatives left Britain with rising debt and flatlining growth, yet they oppose the very measures that the Government have taken to fix their mess.
The damage that this Labour Government have dealt to our economy is a real kick in the teeth for all those who voted for them last year—and for those who did not vote for them, but who wished them well and believed their words at the general election. Time and again, my right hon. Friend the Member for Richmond and Northallerton (Rishi Sunak), and many others on this side of the House, warned that the new Labour Government’s priorities and promises on tax were not to be trusted, and that members of the public should take their words with a bucket of salt. The Labour party cried foul, diving to the ground like a premiership footballer screaming blue murder, but what has come to pass is far worse than many on this side of the House imagined it would be. For all the Government’s talk of fixing the foundations, I have been pained to watch the suffering, distress and anxiety that they have wilfully chosen to inflict on the British people. They have hammered the small businesses on which people rely for their jobs, through changes to business property relief, agricultural property relief, VAT and dual cab taxes, and through the business rate rises and the national insurance tax rise.
I cannot think of a policy as woefully constructed and as disastrously executed as the national insurance tax rise. This Government claim to have been elected on a platform of promoting growth, but they are choosing to boost growth by blowing up businesses. That is so inexplicable that it calls into question the Government’s ability to govern. The people hit hardest by the tax rises are those starting out in their first job, who will be hit by the thresholds, and part-time workers—often women—trying to get back into the labour market. It is among those groups that we see the highest rises in unemployment since the Budget.
It is because of the Government’s choice to raise taxes that businesses are cutting back on hiring staff. They are also making staff redundant, shelving expansion plans and closing their doors. I see that in my constituency, where unemployment is up by about a sixth in the 12 months since the general election. It is also because of that choice that inflation is up and growth is down, and because of choices made by the Labour party that this country will continue to miss out on investment opportunities and economic security.
That brings me to the people who will feel the impact most acutely. During the pandemic, we celebrated key workers—the care home workers, teachers and hospice workers who went out every day in horrendous conditions to do their job in a spirit of service. What kind of Labour Government would willingly choose to punish those who represent the heartbeat of the nation? Only recently, I heard from a woman in my constituency who runs a small childcare business, which she kept going during the pandemic. She wrote to tell me that because of the tax rise, she has had to cut back her assistants’ hours and turn away parents. On the one side, the Government pretend that wages are increasing, but on the other, employers are being forced to cut hours, so people are no better off. It is happening in every constituency up and down the country, and that is the real cost of this Government’s choice.
The national insurance tax rise means less money for schools and teachers, for hospices and their staff, and for the healthcare workers who were applauded during covid—those operating in the most difficult circumstances. It is a fundamental disgrace that the Labour Government, who are always so keen to paint themselves as the kinder, more cuddly, and more friendly party, have made the catastrophic choice to balance the books and fix their failures on the back of essential workers and volunteers. The Government are raising taxes on hospices, which they are supposed to stand up for.
I thank the right hon. Gentleman for his defence of teachers. I am sure that he welcomes the pay rise for teachers of 5% last year and 4.4% this year, funded by the Budget.
The hon. Gentleman may shake his head, but he should look at the statistics. Schools in my constituency and his will cut support staff and teaching assistants as a result of the black hole that his Government have created for their workers.
It is particularly pernicious that the Government are raising taxes on hospices. I visited St Luke’s hospice in my constituency at the weekend. It is having to raise hundreds of thousands of pounds a year more—money that would be going towards care for the most vulnerable at the end of their life—to pay for a tax rise that Labour Members will today vote to maintain, while Conservative Members say that it should be removed.
My hon. Friends and I will always raise these issues, as we have the issues for farmers and our food security, or the mind-boggling plans to drive away wealth creators to fill up the Treasury’s coffers, and we will continue to do that in opposition. We are asking the Government to listen to us, because we want the Government to change course and do the right thing. Bizarrely, we do not actually want the Government to drive the country off the edge of a cliff.
In the spirit of listening, I would be very grateful to know which of our investments in the public sector the right hon. Gentleman would cut.
The Chagos deal comes to mind, which the Government seem so keen on: handing over British taxpayers’ money for something we already own. We would not have made the same decisions that this Government have made. We made it very clear in government that we would not have handed out pay rises to train drivers without the need for reform, or to the junior doctors, who have come back yet again with another double-digit pay demand. The hon. Gentleman needs to think about those things. He can say, “What would you have done?” but we actually said that we would not do those things before they happened, so actually we are the ones who have been financially responsible. He is the one handing money away to Mauritius, so that it can cut its income tax, while the Government Front Benchers seem a bit wary of answering the question of whether they will have to raise taxes later this year. We Opposition Members can guarantee that they will.
I call on the Government to do what is right and look again to their manifesto. The Government should choose to back enterprise, reward work, not punish those who help out in hospices, create growth and opportunity in every corner of our country, and back others who do so, instead of taxing everyone and everything they possibly can. Otherwise, I fear that this Labour Government will face the same fate as all other majority Labour Governments that have ever existed, and leave unemployment higher than when they entered office. That is not exactly the Labour party that people voted for in my constituency or across the country.
The motion before us shows the difference in values between the two sides of this House. The Conservatives’ motion speaks of wealth creators, but specifically says that only a few of us create wealth. On the Labour Benches, we believe that every single worker creates wealth in this country. We have seen the consequences of 14 years of their values in action: falling living standards, higher waiting lists, higher energy bills and a weaker nation. Our values, as we saw under the previous Labour Government, left us with a stronger, wealthier and prosperous nation, in which we taxed the wealthiest to invest in the services that we all rely on. We left a more prosperous and stronger nation last time, and that is what we are building this time.
We have seen the damage of the past 14 years, as expressed in the motion. We have seen what the Conservatives’ values mean in practice. They believed that if a few did well, and there were a few tax cuts for those at the top, our country would be wealthier. That started in 2013, and continued with Truss. In reality, at the end of that 14 years, no one did well. We had the longest squeeze on wages since Napoleon threatened our shores. We were the only high-income nation to see sickness rise after the pandemic, had the highest energy bills in Europe, and were the worst-connected country in western Europe. That is the Conservatives’ record. I believe the right hon. Gentleman wanted to make an intervention.
The hon. Gentleman says that the last Labour Government left the country in a fantastic state. As I have mentioned before, they left behind a massive deficit and unemployment higher than when they took office. Does he not understand that a deficit of over 10% of GDP was an horrific legacy to leave in peacetime? Also, unemployment being higher was a betrayal of the people the Labour party is meant to stand up for.
The global financial crisis affected every single nation across the world. I do not deny, by the way, how difficult things were in 2010, but we also left the Conservatives an economy that was growing, record low waiting lists, and investment in our nation and a plan to insulate our homes. Because they did not follow through on our plans, we had the worst insulated homes in western Europe, and some of the highest energy bills to go with that. Yes, we left in a difficult moment, but we left the Conservatives with a strong foundation for going forward.
The Conservatives left us poorer, sicker and slower, thanks to their their record on tax. In the worst cost of living crisis in a century, they attempted to cut taxes for the wealthiest. Everybody on the Labour Benches thought Truss was mad; I really do not know what Opposition Members believe anymore.
(3 weeks, 4 days ago)
Commons ChamberUrgent Questions are proposed each morning by backbench MPs, and up to two may be selected each day by the Speaker. Chosen Urgent Questions are announced 30 minutes before Parliament sits each day.
Each Urgent Question requires a Government Minister to give a response on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
I thank my hon. Friend for his pertinent question. It rather begs the question of whether the last Conservative Government had any fiscal rules at all. Based on the experience of all of us paying our mortgages and rent, and looking at the cost of inflation at the back end of the last Parliament, the answer is no.
Who does the Chief Secretary to the Treasury think is most responsible for the extra 276,000 people unemployed since the time of the Budget? Is it the national insurance jobs tax, is it the business rates increases, or is it the attacks that the Government have made on long-term investment, whether through agricultural property relief or business property relief?
I disagree with the premise of the question. We are not attacking investment in this country; we are welcoming it. We are increasing public investment, we are doing deal after deal with the private sector, and we are welcoming significant amounts of foreign direct investment that will create good jobs with good wages in every part of the country.
(3 months, 3 weeks ago)
Commons ChamberYes, and I congratulate my hon. Friend on championing jobs and businesses in her constituency. As she knows, the Prime Minister and the Chancellor have confirmed that defence spending will increase to 2.5% of GDP by 2027 and that a minimum of 10% of the Ministry of Defence equipment budget will now be spent on novel technologies such as drones and artificial intelligence, which will create highly skilled jobs and drive benefits to the wider economy, including in her constituency of Stoke-on-Trent South.
The right hon. Member knows that we are supporting airport expansion alongside investment in things like sustainable aviation fuel to be able to reduce carbon emissions from long-haul flights as well as supporting investment into decarbonised surface transport, to help people get around the country and to their airports. Opposition Members might want to welcome investment into this country, as opposed to talking it down.
(4 months, 4 weeks ago)
Commons ChamberMy hon. Friend knows that we are doing everything possible in this place to streamline and improve planning legislation and planning processes. We are providing clear signals to everybody across the country that we need to build and build rapidly, not least to meet our housing target. Local councils play an important role in this process, as they make decisions on local developments. I understand that in Lancaster city council she has had some struggles with members of the Green party, who are becoming blockers as opposed to builders. I say to them and to people across the country that they need to get behind the build agenda, because that is what the British people voted for.
To what extent is the Chancellor concerned about multiple potential breaches by His Majesty’s Revenue and Customs of its charter since it issued Spotlight 63, which impacts rental housing supply and is causing real concerns among my constituents—both landlords and tenants? Will the Minister meet me urgently to discuss this matter?
I am afraid that I have no idea what the answer is, but if the right hon. Gentleman writes to me, I shall make sure that he gets an answer.
(6 months ago)
Commons ChamberThose are exactly the issues that Departments are now considering as they submit bids to the Treasury in the spending review. As we move into those negotiations in March, we will have to look at the best growth potential and what we can get delivered on what timeframe. We will be able to confirm those plans in the coming months.
There is nothing in the statement about the lower Thames crossing, which has already been delayed twice by this Government. The crossing is one of the biggest infrastructure projects and will have a huge impact on the entire country. For my constituents, the biggest issues around growth have been about the taxes on business—particularly on family companies—and the jobs tax. Why are the Government not addressing those real issues, which were not addressed in the statement?
The Chancellor will be disappointed that the right hon. Member did not listen to her speech. She announced today—[Interruption.] We are in negotiations with the project leaders at the lower Thames crossing. We are committed to bringing that forward and will have further announcements to make in due course.
(6 months, 1 week ago)
Commons ChamberWhen we entered office, debt was at highs not seen since the 1960s. My commitment to the fiscal rules is non-negotiable, and we will drive debt down to a sustainable level. There have been movements in global financial markets, and the UK is not immune. The Office for Budget Responsibility will produce a forecast in the usual way, and I will respond with a statement to Parliament on 26 March. I will not be giving a running commentary on that forecast.
Labour came to office promising to kick-start growth. Instead, it has kicked growth into the gutter. Over the last few months we have seen some of the slowest growth in the G7—in the actual figures rather than the projections. Where will the money for the public sector and public services come from with zero economic growth?
(7 months, 4 weeks ago)
Commons ChamberI am sorry, but I will not. I spoke earlier about the strength and efficiencies in family farming. From everything that I have seen and heard from farmers so far, it is clear that while valuing embedded ways of working and learning is important, there is also much appetite for innovation and doing things better.
I will not, as I want to make progress. Just look at how farmers have led the way in restoring biodiversity and are diversifying into all sorts of new business ventures. The industry is not scared of change or opportunity, but much of it relies on and is driven by what Government determine is important through subsidies and trade agreements. After 14 years of uncertainty about what Government want from farmers, we must and will do better.
Our farms are the lifeblood of this country, along with nurses, teachers, and, yes, train drivers. I know that farmers in my constituency of Ribble Valley are ready to do their bit to tackle the dire situation in which we find this country. I do not know a group more ready to pull up their sleeves and muck in than that lot. We, as a Government, are meeting that energy and have a similar level of ambition, vision and commitment. We are looking at how these pillars of our community can work with us to achieve what we all strive for: greater prosperity for every person in this country.
I am sorry, but I will not.
The motion tabled by the Conservatives today is not clear or specific on what they would do differently to fix the economy. That, along with the continual lack of clarity and consistency on rural and farming policy when they were in power, suggests that they never had a vision of how they would support these communities well. It is easy to criticise; it is far harder to come up with a long-term vision and do the hard graft to make it a reality.
I will be voting with the Government today, but not because we do not need to push for more understanding of rural communities in Westminster. Generally in the UK, we need a better understanding of the role that farms and rural communities play in our culture and potential prosperity, across all parties and among those who work for us. I am voting with the Government today because we can better push for that change with a Labour Government, as part of a wider plan to improve things for everyone—a plan that is truly ambitious for this country and makes the brave call to take the hard, unpopular decisions now, so that in 10 years something has actually got better for everyone. I would far rather have that than a Government who go for popular headlines today, but to find that in 10 years’ time we are still facing the same challenges that we always did, and that they are getting worse.
I have a lot of faith that tomorrow, and over coming months, this Labour Government will set out an exceptionally clear and visionary plan for what our rural economies mean to Britain. We will respect them and make the most of them by providing long-term stability and a clear route for farmers to contribute to our national missions, and to benefit from them. Anyone who has waited 14 years for a Labour Government to come in and start to tackle the fact that a quarter of our children are living in poverty knows that getting the result they want takes time and hard work. We have been in desperate need of grown-ups to tackle what is coming down the line. I trust this Labour Government to do that and I will work hard with them to get it right.
Finally, I pay tribute to all the incredible farmers across Ribble Valley for continuing the conversation with me, so that we can build the strongest possible vision for farming and the rural economy in the UK.
(9 months ago)
Commons ChamberI thank my hon. Friend for his question. He is absolutely right to say that pubs make an enormous contribution to our society and economy. The current alcohol duty system supports pubs through draught relief, which ensures that eligible products served on draught are charged less duty. The Government are committed to delivering a fairer business rates system for high streets, including hospitality. Any decisions on future tax policy will be announced by the Chancellor at a fiscal event, the next of which is tomorrow.
Eighty-two per cent of those who have seen Labour take away their winter fuel payment are either below the poverty line or within £55 a week of it. How can the Government justify this, when they are not even allowing a freedom of information request from the Financial Times to be responded to? They are hiding the figures from the people.
We are not hiding the figures. If I had had the chance, I would have said that 455,000 pensioners are paying the higher rate of tax and that 39,300 are paying the additional rate. Many wealthy pensioners have said to me that they do not need the winter fuel payment—[Interruption.] The right hon. Gentleman says that, but there are a number of—
(9 months, 3 weeks ago)
Commons ChamberI have a child at a private school. Government Members say that is not a problem. They say, “This is not a criticism of private education; this is merely a revenue-generation exercise, not social engineering or socialist class war.” It must be a coincidence, then, that this policy punishes aspiration, pulls children down rather than lifting them up, and is being rushed through, as we have heard time and again. It is a socialist, red-meat policy to placate the Labour Back Benchers who are having the gradual and terrifying realisation that they may well be single-term Members of this place.
The Government need to think again. We have heard serious objections to this policy—not to its implementation, because the mathematics of this place mean that the Government have sufficient support behind them to force anything through, however ill-advised, but we have heard serious recommendations for review, improvement and tweaking to undo some of the significant damage that this policy, unamended, will cause.
Introducing the policy on 1 January, halfway through the academic year, will damage children and children’s education. These are real people. Some 10,000 children have already left the independent sector. Their education, and that of thousands of others like them, needs to be considered by this Government. On children who are sitting public examinations this year, my hon. Friend the Member for Sleaford and North Hykeham (Dr Johnson) made a brilliant and serious point, which should be not cast aside but considered: if children studying under one exam board are transferred, in the exam year, to another system, what do they do? What is the Government’s answer?
On the subject of pupils who are applying for education, health and care plans, 34% of pupils at Langley school in my constituency are treated for SEND, and only nine of them have EHCPs. What do those other students do? Surely there should be a delay for pupils who are applying for EHCPs. We have also heard from gallant Members that military families are taking decisions now about their future in the armed services. There are also specialist schools for music and dance, which are important for the fabric of our community and the quality of life in this country; those things are not offered in the state system.
Does this not further make the case for the Government publishing in full their assessment of the impact that the measure will have on schools and children right across the country?
My right hon. Friend is absolutely right. The Government have published no evidence to support their stated objective. There has been no impact assessment. This measure is rushed, and vulnerable children are paying the price for internal Labour politics. Shame on you.
I join this debate as the son of educators—my mum, aunties, uncle, and grandad were all teachers in both the state and the private fee-earning sectors, and it definitely makes for interesting conversations round the dinner table. I also join the debate representing both state and fee-paying schools in my constituency, particularly the fantastic Northampton high school, which is part of the Girls’ Day School Trust network and whose students I met in Parliament recently. As a parliamentary candidate for nearly two years and since my election as the Member of Parliament for Northampton South, I have spoken to countless constituents about our long-standing, well documented and consulted on plans to drive up standards in state education. Do you want to know how many of those parents are actually going to move their kids into state schools once I have spoken to them, Madam Deputy Speaker? The answer is zero.
It is right that the Government focus on improving educational standards for those children left behind by the Conservatives, who left a trail of devastation across education, from crumbling schools to a SEND sector in crisis. Their legacy in education should see them hang their heads in shame. When hard-working teachers, teaching assistants and staff reached out, crying out for help, they did not listen. When the independent Institute for Fiscal Studies said that this proposal will raise £1.3 billion for UK taxpayers, they did not listen. As my hon. Friend the Member for Bishop Auckland (Sam Rushworth) said, when fee-paying schools raised their fees above inflation through the cost of living crisis over recent years, leaving families struggling, the Conservatives did not listen. Only now, when there are political points to score and when embossed stationery is at risk, finally they wake up.
I will not—sorry.
No one in this House wants to see the state education sector fail. I am sure no Opposition Member wants to deprive millions of students in the primary state education sector of the healthy nutritious breakfast that they will receive every morning, paid for through this policy. I am certain that all Members on the Opposition Benches want dedicated mental health support in every school, paid for through this policy. I am almost certain that there are those on the Opposition Benches who want to vote with their conscience rather than the Whip, so I urge Members from all parties to vote against this political statement and to support the Government that the country chose to break down barriers to opportunity. It is what our constituents want.
(10 months, 3 weeks ago)
Commons ChamberI associate myself with the comments of Labour colleagues in this debate, but I want to speak about the particular issue of public sector pay and the attempts made in this debate and the preceding one to turn pensioners and public sector workers against each other, including the public sector workers who have been driven to rely on food banks and payday loans, who I was proud to represent as a trade union official. The 6,000 public sector workers in my constituency must wonder what the Opposition have against them in this debate.
A strong economy needs strong public services, but the problem for the last Government—and the public sector workers who worked for them—was that their public finance strategy rested on
“imposing the biggest real wage cuts in living memory.”
Those are not my words but those of the former permanent secretary to the Treasury, Nicholas Macpherson. The consequences for the services that we all depend on are clear: teaching vacancies have doubled over the past three years, there is an 8% vacancy rate in the NHS and one in 10 999 call handler posts is vacant. We all know the consequences of ambulance delays for pensioners and of cancelled operations and appointments. [Interruption.] Does the right hon. Member for Basildon and Billericay (Mr Holden) wish to make an intervention?
Thank you, that is kind. In Basildon and Billericay, 15,000 pensioners will lose out because of this callous cut by the Labour Government. The hon. Member pointed out the impact on public services, but how many more hospital admissions will we have, and how many more people will need operations because of his party’s cut? Will we be unable to find out, because his party will not even put forward an impact assessment so that we can know who is affected?
We will take no lectures on hospital admissions, given the state of the NHS that the right hon. Member’s party left us.
The Conservatives claimed that they did not know what the pay review body recommendations would be, but the School Teachers’ Review Body recommendations were known to Ministers before July. They will know also that the different PRBs tend to make similar recommendations. Why were most of those recommendations not submitted in good time? Because Ministers were late in submitting their evidence, pushing the timetable until after the election. The Office of Manpower Economics has said:
“The work of the PRBs is demand led and essentially non-negotiable—departments set the remits and timetables.”
Shadow Ministers talked about productivity gains, but when it came to NHS negotiations under the last Government, productivity was just a slogan. The cupboard was bare. They had nothing to actually ask for.