(2 months, 1 week ago)
Commons ChamberMy hon. Friend is right to draw attention to the disastrous impacts of the Conservative mini-Budget just over two years ago, which is still having an impact on people’s lives as they pay higher mortgage bills. This Government have committed to return sustainability to the economy and to working with business to reform our planning system, our pensions system and our skills system. We have already brought in £63.5 billion of private sector investment to grow our economy in all parts of the country and deliver the jobs and better wages that constituents in Cramlington and right across the country need to see.
Small business owners are working people, and they are some of the hardest-working people that I know. The Labour party struggled to define them over the weekend, but does the Chancellor agree that any rise in fuel duty, which the Conservatives froze or cut for 14 years, would be a tax on those hard-working people or those hard-working small business owners?
The previous Government factored into their forecasts an increase in fuel duty this year. I will set out our plans in the Budget tomorrow.
(2 months, 4 weeks ago)
Commons ChamberI want to say from the outset that this is clearly an attack on aspiration, an attack on opportunity. I say to the constituents of the hon. Member for Southampton Itchen (Darren Paffey) that he voted for winter fuel payments to be slashed and now he is voting for an attack on hard-working families who will be struggling to make ends meet. I went to a state school and an independent school and I was grateful for both those journeys and the education that I received in both. Plenty of hard-working families will be struggling to make ends meet.
The first point I want to make is about tone. I will come back to the Education Secretary’s tweet, which was deeply offensive. Surely Labour Members must acknowledge—it is a simple case of maths—that people who are rich enough to afford VAT increases, whether it is 4%, 16%, which is the average, or the whole 20%, will continue to send their kids to independent schools and pay the fees. It is the people who are struggling to make ends meet, or the really hard-up families, or—God forbid—parents of children who are on scholarships and bursaries who will no longer be able to send their kids to those schools, because those schools will have to withdraw those scholarships and bursaries as they will be less affordable. So the tone of this debate is really important. I would caution the Government to be more reticent on this. They refer to tax breaks; these are not tax breaks. Education should not be, and is not, taxed, and they are about to open that Pandora’s box.
There have been a lot of comments from Government Members about state schools. I agree: standards in state schools should be improved. They talk about the last 14 years. We delivered a real-terms increase per pupil. We have delivered record funding—about £60 billion. They may challenge that, but it is pure fact. I am happy to share those facts. We did that, and the result of that, especially with our focus on things like phonics, which Labour challenged when in opposition, is that we now have some of the highest reading standards in the world—independently and internationally rated. We also have some of the highest ratings in mathematics. So the Government may try to frame this debate as anything other than ideological, but those arguments are severely undermined by the Education Secretary’s tweet, which put it out there that this is really a class war.
My hon. Friend is making a great point about how this change is ideologically motivated. Can he see why there is a difference between private school fees, which the Government have chosen to tax, and something like Kip McGrath tuition, which is also a paid-for form of education, which they have chosen not to tax—at least yet?
My hon. Friend made an excellent speech about the practicalities of introducing this change in January, and she makes an excellent point now about the slippery slope involved. The Government say that the money will be focused on educational improvements, but there is no guarantee of that, as it will go into the general pot. They promised 6,500 new teachers, which is fewer than we delivered; it is a drop in the ocean, which will barely make a difference to the hundreds of thousands of schools that, of course, need extra teachers. I concede that point; we should have better educational standards.
SEND will affect every Member of Parliament. It affects me. I was with a north Solihull parents group just a few weeks ago. Those parents will no longer be able to afford to give their children a private education for SEND purposes, and they will now have to rely on the state. Surely Government Members can see that that will further increase the burden on state provision, particularly if they are right that there is a lack of teachers. The Minister might address this point: how does this policy improve state school provision? How does it improve the standard and quality of delivery for SEND parents? It was all right for the Prime Minister to make special provision for his kids, and for the Education Secretary to have a benefactor, but what are these parents going to do?
(5 months, 1 week ago)
Commons ChamberI find it staggering that in almost two hours in the Chamber, not a single Opposition Member has apologised for the state they left our public finances and public services in. It has fallen on this new Government to address that challenge. We will rise to that, but they should never have been left in this state.
I welcome you to the Chair, Madam Deputy Speaker. The Chancellor spoke about the need to lay the estimates. That is really important, and the legal duty is not just to lay them but for them to be accurate. The Chancellor is right that we have been here for nearly two hours, but we have not got an answer to the question of what she knew and when she knew it. Did she know any of the information that she has set out today before the estimates were laid? Please answer the question.
I have done more in three and a half weeks to get a grip of our public finances than the previous Government did in 14 years. I have worked these last three and a half weeks to get a grip of the public finances and to understand the true extent and scale of the challenge. We have pulled this together over the last three weeks, and at the weekend we were able to produce the document showing the £22 billion gap between what the previous Government were spending and what they had budgeted for.
(5 months, 2 weeks ago)
Commons ChamberI start by wishing His Majesty the very best of health on behalf of myself and my constituents. As we welcome many new Members to the House, His Majesty sets a clear standard for public service that we can all hope to emulate. I have had the privilege of listening to a number of maiden speeches from across the House—all fantastic, all unique. I am sure all new Members will have received countless pieces of advice, so I will just say this: none of us, new or returning Members, should ever forget what a privilege it is to serve in this House and in this Parliament, the mother of all Parliaments.
We on the Conservative Benches have much to be proud of in the legacy of the last 14 years. Just last week we have seen inflation remain at the Bank of England target rate of 2%. We created more than 800 jobs a day for the last 14 years. It was under the Conservative Government that, in 2023, the UK became the third most valuable tech economy in the world, worth $1 trillion. We also boast more billion-pound companies than France, Germany and Sweden combined. As has been repeatedly mentioned, we have the fastest-growing economy in the G7.
I want to address the notion that the Government are trying to push, where they talk down the economy, paving the way for tax rises. It clearly does not stack up. If the Chancellor insists on pushing this alternative narrative, as we have heard today, some questions need answering, because surely all those promises made during the election cannot have been made by the Chancellor, or the shadow Chancellor as she was then, flying blind, especially when the OBR provides the transparency that she now denies she had.
Throughout the campaign, we heard about how the Government’s policies were fully funded. If the Chancellor did not use the OBR forecasts, what was she using to make those promises in the first place? I do not think anyone is fooled by this narrative or these tactics. Most importantly, if they are going to raise taxes, which will they raise? They need to come clean about that, because the British people deserve the truth, not whatever the Government are trying to peddle to justify their tax and spend policies. The Government can be assured that the Opposition will do our duty and hold this Government to account.
I want to address a number of things in the King’s Speech. I have to say I was astonished by the lack of respect in the King’s Speech to rural communities. A lot of my communities in my rural area felt incredibly disrespected, and it was incredibly disappointing. I am also disappointed and deeply concerned by the Government’s focus on building on the green belt. We have some of the most precious green belt land in Meriden and Solihull East, not least the Meriden gap, which is a hugely important throughway for migrating wildlife. It is not clear how the Government will protect the Meriden gap.
In fact, the only thing that has been clear in the early days of this Government is that they are willing to set aside local community opinions, and anyone who challenges that will be accused of being a nimby. My villages in Balsall Common, Hampton in Arden, Marston Green, Knowle, Dorridge, Chadwick End and Hockley Heath have already made huge sacrifices when it comes to green-belt land, not least because of HS2. These top-down targets and vague references to grey-belt land are already causing huge anxiety. This matters because when it comes to setting aside community opinion and disenfranchising whole communities, the tactics that the Government are already employing are the best way to do it. I am deeply concerned by that. We on the Opposition Benches will ensure that we hold this Government to account.
The title of this debate includes public services, and one of my key campaign pledges was to restore A&E services to the borough of Solihull. My argument on that is simple: we have about 220,000 people in the borough, and if there is an emergency, my constituents have to go all the way to Heartlands hospital or Warwick hospital, which are way too far away. It is clear to me that the case is strong. One thing I will be campaigning for in this Parliament, whether it takes five or 10 or 15 years, if I am lucky enough to be returned repeatedly—I make no assumptions on that, of course—will be to get that A&E service. I will be working with the integrated care board to achieve that.
I will finish on this: my constituents and the British people have been clear. As we discharge our duties as His Majesty’s official Opposition, their expectations are that we do so with integrity and humility, but always with courage and boldness in what we stand for and who we are. I assure my constituents that for the sake of our country we shall not falter.
I call Kate Dearden to make her maiden speech.
(1 year, 4 months ago)
Commons ChamberDialogue is ongoing on this matter and I can confirm that we will continue to work on this in the coming weeks.
Andy Haldane, the former Bank of England chief economist, recently said in a Sky News interview that the Bank of England kept on printing money for longer than it needed to. It is clear that central banks across the world have been addicted to cheap money and that this has contributed to inflation across the world. Does the Chancellor agree that printing cheap and easy money has not been without consequence, and instead our monetary policy must focus on important growth factors such as productivity?
I agree with what my hon. Friend says. The Bank of England itself has said there were problems with its inflation forecasting. It is learning the lessons from that and we must support it every step of the way as it brings down inflation.
(1 year, 9 months ago)
Commons ChamberThe hon. Lady makes an excellent point. We have put in place a huge amount of support to help people through this immediate challenge with their energy bills, but we do need to think long term. That is why the Chancellor has put in place the 15% target to reduce energy consumption in both domestic and non-domestic buildings, but alongside that, and crucially, we have to increase the supply of UK energy, both renewables and in the North sea.
Thanks to the quick thinking and quick moves by the Chancellor, the Prime Minister and the Treasury, the tech sector was saved from almost certain oblivion, and at no cost to the taxpayer. Can my right hon. Friend confirm that he is still ambitious for the tech sector, and can he confirm that the merger with HSBC will ensure that our fantastic tech sector, especially our start-ups, will have access to the funding they need?
My hon. Friend is right. We have a very good solution to the Silicon Valley bank issue with the HSBC takeover. In the long run, we would like our brilliant tech superstar companies to have more choice about how they finance their expansion, and we will bring forward plans to make sure that happens.
(2 years, 6 months ago)
Commons ChamberThe right hon. Gentleman makes an excellent point. As I said from this Dispatch Box at the time of the spring statement, we were unable to extend our VAT cut on energy-saving materials to Northern Ireland because of some of the provisions in the protocol. He will know that the legislation we have put before this House, which I am glad received support last night, will address exactly those issues.
A couple of weeks ago, I met people from a number of hospitality businesses at Nailcote Hall. They expressed not only their gratitude for the support the Treasury gave during the pandemic, but their concerns about the cost of living and about supply-chain costs, which they cannot necessarily pass on to consumers. What assurances can my hon. Friend give the businesses in my constituency, especially those in the hospitality sector, that the Government will keep them in mind in terms of future support?
It is good to hear that my hon. Friend has been speaking to the hospitality sector in his constituency, no doubt drawing on his expertise in those conversations. As he said, we provided substantial support to that sector during the pandemic. We recognise the ongoing challenges for businesses as we recover, which is why we are giving thousands of hospitality, leisure and retail businesses a 50% cut in business rates this financial year—worth up to £110,000 per business.
(2 years, 7 months ago)
Commons ChamberThe warm home discount is an existing scheme that covers only 3 million households. It is also funded by other billpayers. What we are doing today is setting out Exchequer-funded support to all those on means-tested benefits, so that anyone on those benefits will benefit from the £650. Additionally, those in receipt of any other disability benefits, which are non-means-tested, will receive £150.
I thank the Chancellor for this package. Clearly he is a Chancellor who listens and a Chancellor who does. Will he confirm that this Government will continue to focus on energy sector reform, so that we can meaningfully reduce the impact of energy costs on household bills in Meriden and across the country in the medium and long term?
My hon. Friend is absolutely right, and that is why the Business Secretary and the Prime Minister announced the plan to reform the energy market so that we can reduce those bills over time and also double down on our initiatives to improve the energy efficiency of people’s homes, which can save them £200 or £300 relatively quickly.
(2 years, 7 months ago)
Commons ChamberOf course the Government recognise that energy bills are the single biggest challenge households face. That is why we have provided £9 billion-worth of support, including £150 for English households in the most recent month, with £200 more in support to come later this year.
I believe the Conservatives are and ought to be the party of hard-working families. According to a report released yesterday by the Centre for Policy Studies, reducing the cost of childcare can increase GDP by 10% and increase access to opportunities for women in the workforce. Does my right hon. Friend the Chancellor agree that helping hard-working families with childcare costs is good for the economy and that it is the Conservative thing to do?
I completely agree with my hon. Friend. In fact, we do support families with the cost of childcare. One thing we do is to provide families with access to tax-free childcare, which means they can get a 20% reduction on the cost of childcare, up to a cap of £2,000 a year.
(2 years, 11 months ago)
Commons ChamberWe have had this debate. Conservatives believe in more investment in our domestic energy sector. We want to support British jobs and British energy security and we believe in doing the right, responsible thing. That is what a responsible Conservative Government do.
I thank my right hon. Friend for these packages, which will help my constituents across my constituency. On the issue of a windfall tax, will my right hon. Friend confirm that the Labour party’s call for a windfall tax would undermine competition in the market, reduce investment and kill off jobs? Ultimately it would mean that energy prices were likely to be higher for longer and hit the poorest the hardest.
My hon. Friend is exactly right. Some 200,000 jobs are supported in that industry, and as I pointed out earlier, there are £11 billion-worth of projects waiting to get going. I would like to see those projects go ahead, which will be good for the country’s energy security, good for our economy and good for jobs. I know that the Energy Minister and I share that ambition.