Budget Resolutions

Sammy Wilson Excerpts

Wednesday 26th November 2025 Commons Chamber

[Sammy Wilson (East Antrim) (DUP)]

May I, on behalf of the whole nation, thank the Chancellor for advance sight of her statement over the last few weeks? I do not know what she hoped to gain by that—she may have hoped to make it more palatable—but I am afraid that the leaks have not made it any more attractive today than when they came out of the Treasury and, in fact, we are seeing a repeat of last year.

In last year’s Budget, we were told that there was a black hole, that it was all down to the Tories and that we would have to have all the tax increases that we have had over the last year to fill it. Well, like some kind of fiscal JCB, the Chancellor seems to have dug another one and now she is back again, looking for more tax increases. Labour Members might say, “Yes, there is pain to be taken, but at least we are now getting the target right and going after the wealthy.” I have heard that so many times today, but let us look at the facts: the real tax increase here is the freezing of the thresholds.

What does the OBR say? As a result of the freezing of the thresholds, we will not drag dead rich people into the tax brackets. Instead, we will drag into the tax bands three quarters of a million people who are currently not paying tax because their income is so low, along with people on modest incomes who will be dragged into the top tax bands. Let us not fool ourselves that this will be financed by rich people, because the only evidence we have been given about rich people is the council tax on big mansions, which will generate only £400 million of the extra tax that is required and will not do so until 2031. This Budget still hits those who are working.

[Luke Akehurst]

If the right hon. Gentleman were to look at the Budget book, he would see that the graph that shows the progressiveness of this Budget shows that, in every decile, it is redistributive. He might be correct about the impact of the specific measures he has spoken about, but the overall impact of the Budget is that the poorer people are, the better off it makes them, and the richer they are, the less well-off it makes them.

[Sammy Wilson]

Some of that redistributive impact is the result of taxes being taken off people who are on modest incomes for welfare increases. This is a figure that the Chancellor has quoted in the House time and again: one in seven under-25s is now fully reliant on benefits and is not in work. Where is that money coming from? It is coming from people who are working on a daily basis and, in many cases, for not a great deal of money, but who will be dragged into the tax system.

This is an unfair Budget, because it still relies on taking money from working people who are not mega-rich to pay for some of the Government’s grandiose schemes. Some people may argue that if it works, it is worth doing, but let us look at the record of the previous year. The OBR tells us that the outcome of the Chancellor trying the same tactic last year has been that investment is now predicted to fall as a percentage of GDP. Output growth is going to fall by a sixth, productivity is going to fall from 0.4% to -0.4%. Consumer expenditure is down by 0.5%. People are receiving less and profits for companies are going to fall from 12.5% to 10.75%, all of which will affect investment and economic growth, and undermine the very objective that the Chancellor says she is seeking to achieve.

Of course, many people will argue that that is fine, but we have levels of expenditure that we have to finance, so how do we pay for it? Let us look at some of the decisions that the Government have made over the last year. Welfare payments are going to go up quite substantially to £58 billion over the period of this Parliament. On net zero, environmental taxes are going up by 60%, affecting the profitability of companies, and the renewables obligation next year is going to cost us £3 billion. So net zero, the impact of which we are all experiencing on jobs, is going to lead to further costs. I think many people would question whether those are the kinds of things we should be spending money on at a time when we have an abundance of fossil energy in this country.

Tax avoidance has not been dealt with. I have heard tax avoidance being mentioned every time we have a Budget, including under the previous Government, but it is never dealt with. The Googles and Amazons of this world still sell goods here but do not pay taxes in this country. The budget for welfare in relation to immigration is now predicted to go up to £15 billion. Also, we have had debates in this House time and again about the bases in the Indian ocean that we had possession of. We gave them back to Mauritius and we are paying Mauritius for that. What is Mauritius going to do with the billions that we give them from taxpayers here? It is going to cut its own taxes. We are putting up our taxes in order to allow taxes to be reduced in another country when we did not even need to do it. So there are ways in which the money could have been achieved.

I welcome the announcement about the loan charge. As a vice-chairman of the loan charge and taxpayer fairness all-party parliamentary group, I trust that we will now see the Government treating the ordinary people who are affected by the loan charge in the way in which they treated big business. Businesses were given a concessionary payment of 15%, while some of the ordinary people who were affected were being charged nearly 100%. I hope that the McCann review leads to that being sorted out.

As far as Northern Ireland is concerned, I welcome the Barnett consequentials and I hope that the Northern Ireland Assembly and the Sinn Féin Finance Minister in the Northern Ireland Assembly will spend the £370 million wisely—

[Tom Tugendhat]

That is unlikely.

--- Later in debate ---

[Sammy Wilson]

It may well be very unlikely, but I am expressing a wish that he does that.

Some £17 million has been set aside for the cost of the protocol. The protocol and the Windsor framework are costing the Northern Ireland economy dearly, and the money that has been allocated today does not replace the cuts in the trader support system and the movement assistance scheme. Without that support, Northern Ireland suppliers are increasingly finding themselves cut off from their main market of supplies here in Great Britain, and that is something that the Government need to address. I do not think that the £17 million is going to address it. It is a token, and an acceptance that there is a problem, but the problem has to be properly dealt with. Only when we have the same lawmaking arrangements as the rest of the United Kingdom, to which we belong, is that going to be dealt with.

The other issue—I noted the wording—is that while welfare changes will be funded by the Government in Westminster, because the annually managed expenditure is funded from here, when it comes to the concessions about reducing electricity bills, it simply says that the Government will work with the Executive. The Chancellor needs to give clarification. Will the Northern Ireland Executive be expected to fund the reductions in electricity bills while they are funded through Great British Energy in the rest of the United Kingdom?

Lastly, we have no vested interest in seeing the Government fail, because we will not be an alternative Government, but I do not believe that this Budget will deal with the issues that need to be dealt with. I believe we will find the Chancellor back with the same problems next year.