Property Taxes

Debate between Robbie Moore and Ashley Fox

Wednesday 3rd September 2025 Commons Chamber

[Sir Ashley Fox]

I do not accept that at all. This surge is entirely due to the Chancellor losing control of public expenditure, and the increased cost of servicing our national debt adds further pressure on the British taxpayer.

Having presented her Budget, the Chancellor said:

“We’re not going to be coming back with more tax increases, or indeed more borrowing.”

The problem is that no one believes her. The markets do not believe her, and Labour Back Benchers certainly do not believe her. They now know that they only have to threaten to rebel on any item of public expenditure and the Chancellor will cave. We saw that on the welfare reform Bill, which was brought forward to save a modest £4.5 billion. What happened? The first whiff of a rebellion, and the Bill was gutted, leaving the taxpayer to pick up the cost.

In that context, over the summer we saw briefings from the Treasury testing the water on a whole series of potential tax rises: higher rates of council tax, a land value tax, capital gains tax on family homes, lowering the thresholds for inheritance tax and an annual property levy on the family home. No wonder the Deputy Prime Minister is being so careful about which of her many homes is her primary residence.

The Chancellor is clearly desperate to raise more money. It is a cruel irony, is it not, that having invented a £22 billion black hole to justify her taxing and spending, the Chancellor now finds herself facing a black hole entirely of her own making? It is her jobs tax and other tax rises that have caused the economy to slow and unemployment to rise. Her increase in public expenditure has fuelled inflation, which has led to higher wage demands and increased benefit costs.

[Robbie Moore (Keighley and Ilkley) (Con)]

That is exactly the problem. Many businesses in my constituency—and, dare I say it, in others—are saying to us as Members of Parliament that they want to but dare not invest in growing their businesses, because they do not know what increases in taxes are coming down the line from this Chancellor. Does my hon. Friend share my concern that businesses are reluctant to invest right now in the projects they want to deliver for the growth of their own enterprises?

[Sir Ashley Fox]

I agree. It is the threat of higher taxes that is causing the economy to stall.

Rather than reducing the size of the state so that it is affordable, the Government give every indication of wanting it to grow further. The fundamental reason that this Government need to raise taxes is that they are incapable of controlling the fiscal incompetence of their own Back Benchers. At their core, Labour MPs genuinely believe that the state can spend our constituents’ money better than they can spend it themselves. They do not believe in thrift or self-reliance, and they see no limit on the size of the state.

Opposition Members know that it is businessmen and businesswomen across Britain who create wealth and growth. Success is the result of hard work, taking risks, satisfying customers and employing neighbours. The Government should provide the environment for those businesses to thrive, rather than threatening every part of the economy with higher taxes.