Cost of Living Increases

Rob Butler Excerpts

Tuesday 25th April 2023 Commons Chamber

[Rob Butler (Aylesbury) (Con)]

In her opening remarks, the shadow Minister asked what planet Conservative Members are living on. I will tell her. We live in the real world, whereas it seems that Labour Members have been living under a rock. We have just emerged from the worst pandemic since 1918, a new disease that killed millions of people globally and as a result saw much of the international economy grind to a halt. That tragedy was compounded by the brutally evil ambitions of President Putin when he launched his illegal and inhumane invasion of Ukraine. Not only has his regime murdered countless innocent civilians; his actions have had a massive impact on energy prices, further adding to the cost pressures experienced globally. And that is just it: this is a global problem—not national, global.

The rise in the cost of living over the past year has impacted on all our constituents. Nobody denies that, least of all the Government. It is surely the very reason why the first of the Prime Minister’s priorities is to halve inflation, which will, in and of itself, bring massive benefit to everybody who is struggling with rising prices and the cost of living. As the late and much-missed Baroness Thatcher said, “inflation devalues us all”. As on so many issues, she was absolutely right.

The good news is that the Bank of England is clear that inflation will fall dramatically this year. Indeed, one of the biggest deflationary tools in the Government’s extraordinary package to help my constituents with the cost of living was the energy price guarantee, which lowered bills for the vast majority of my constituents and the constituents of every single Member in this House. That has helped to curb the inflationary spike caused by what we are seeing day in, day out in Ukraine.

It is not just support with domestic energy on which the Government have helped my constituents. Fuel duty has been frozen for the 13th consecutive year, saving drivers some £200. Let us contrast that with what Labour is doing for people who drive. We need look no further than the Mayor of London. He is costing my constituents money with the ill thought through imposition of his new ultra low emission zone tax. People from Aylesbury who need to drive to parts of outer London for their work or for specialist hospital appointments will now have to pay £12.50 a day for the privilege—no help from the Labour Mayor with the cost of living.

What have we done as a Government? We have come up with a package of support worth £94 billion—an average of £3,300 per household. As we have heard, Conservative Members recognise that we are supporting low-income households with £900 in cost of living payments, the first of which is finding its way into constituents’ bank accounts from today. In Aylesbury, more than 10,000 stand to benefit from that assistance.

Growth and prosperity go hand in hand with improved productivity. That is what my constituents told me on Saturday that they want to see. I am so pleased that the Chancellor has rightly started work in that direction. In time, I would like to see the Government reverse measures on IR35 and reconsider the VAT threshold, because I believe that will help with those ambitions, but it has to come as our economy strengthens following the unprecedented shocks it received in recent times.

Labour offers the prospect of unfunded spending and higher debt. That is not a recipe to help people with the cost of living; it is a recipe for another letter from Labour telling us there is no money left. It is the Conservative party that will provide the short-term help and the long-term policies to enable the British people to enjoy greater prosperity now and far into the future. It is the Conservative Government who are building the stronger economy to help with the cost of living.