Finance Bill

Sarah Edwards Excerpts

2nd reading
Wednesday 27th November 2024 Commons Chamber

[Dave Doogan]

I could not agree more with the hon. Member. That is absolutely right, and I am going to touch on that topic a little later.

We see in clause 75 that the rates of landfill tax are going up by 25%. I wonder what discussions Government Ministers have had with local authorities on the impact of this increase. It would be just like this Government to not have put two and two together and realised that it will be a significant upward pressure on costs for councils.

Clause 78 deals with high-sugar drinks. A public health emergency exists in this country—in this state—and the Government are proposing to increase the tax on high-sugar drinks from 24p per litre to £2.59 per 10 litres. That is scarcely an increase at all. A tax of 24p per litre is going up to 25.9p per litre, an increase of 1.9p per litre. We do not sell sugary drinks in litres, we sell them in 330 ml cans, so that is an increase of 0.6p per can. Are the Government kidding? It is a public health emergency—the clue is in the title. Have they got no ambition at all?

This Bill, and the Budget that led up to it, will impose billions of pounds of tax rises and cuts that will hit working Scots in the pocket. We see our old folk freezing in their houses as a result of this Bill and the Budget that underpins it. As a result of the Bill, young people will be chasing fewer and fewer jobs with lower and lower wages. The CBI said this week that the tax rises in the Budget had sent businesses into “crisis containment” and “damage control”, because this Chancellor’s £40 billion raid on businesses is the single biggest tax increase since Norman Lamont’s in 1993. The Chancellor’s decisions hinge on 2% departmental efficiencies that will never ever be realised—we know this because it has never ever been done—so further cuts are coming down on top of these taxes.

This is pure fiscal poison for communities and businesses across these islands. The Government are inflicting the same pain on the Northern hotel in Brechin, Perthshire Timber and Montrose port as they are inflicting on Nissan and Tesco. I am not implying that it is fine for big business and bad for small business; this is a “one size fits nobody” Finance Bill, and the Budget that goes along with it is the same. The clawback that they are applying to the devolved nations, which the Exchequer Secretary would not speak about earlier, does not come close to meeting the cost of the national insurance increase. There is £300 million of compensation for the Scottish Government, who are facing a £750 million exposure, and that is the nature of what this Government are doing. What of the reward for this fiscal pain? Lower growth in the economy, lower profits, increased debt, lower investment, lower wages, falling output, capital flight and the risk of default as the ultimate conclusion. It is almost as though the Chancellor has forgotten that her job is to run the economy, not ruin the economy.

This would be a matter for separate debate—I know that, Madam Deputy Speaker, and I do not want to test your patience—but the raid on employer’s national insurance will devastate small businesses, charities and the care sector. It will cost Scottish public services—the public sector with direct employees in Scotland— £600 million, and when we include the partner agencies working with our NHS and our care services, that figure will be very much higher. Supermarkets and other retailers have also said that the inevitable result of the Chancellor’s changes will be higher prices for consumers. The Government make great play about not raising taxes, but it amounts to the same thing when wages are suppressed and prices are going up.

As the hon. Member for Gordon and Buchan (Harriet Cross) mentioned, the duty on Scotch whisky has been hiked in this Bill, which the industry has called an “indefensible tax grab”. This was despite Labour’s leader in Scotland—for Labour Members’ interest, he is a gentleman called Anas Sarwar—claiming that he spoke to the Chancellor about it. I would be very interested to know about that conversation, but perhaps it was: “Is it okay if I hike up duties, Anas?” with the reply, “Yes, no bother, Chancellor. You carry on.”

One of the glaring omissions in the Bill is any provision for the WASPI women. It is of course welcome that the Budget will address the great impositions put on people affected by the infected blood scandal and on postmasters. However, those were caused by the Post Office, or the NHS and others, whereas the WASPI women issue was caused by the UK Government. That great tragedy was caused by the Government, yet it is the one that is not addressed in this Bill or in the broader Budget.

It is therefore little wonder that polling in Scotland last week showed that 75% of Scots feel they are going to be worse off, or certainly no better off, as a result of the Budget. Since the Chancellor delivered her Budget, supermarkets, farms, pubs and telecom providers have all warned that these decisions will be inflationary.

[Sarah Edwards (Tamworth) (Lab)]

Does the hon. Member think it was fiscally responsible for the SNP Finance Secretary to have used all of the £460 million from offshore wind? He has spoken a lot about this Government, but does he think that that was appropriate?

[Dave Doogan]

To my great regret, I am not entirely sure what the hon. Member is talking about. If she would like, I am very happy to catch up with her afterwards. We can find out exactly what is concerning her, and I will make sure she has all the facts she needs.

Just when mortgage payers thought things were going to stabilise and that the worst of the last UK Government’s fiscal incompetence was over, the major banks have been talking since the Budget about an increase in the rates they are able to offer.

Many hon. Members have talked about what was said before the election, and what has come to pass after it, but during the election the Prime Minister promised that there would be a £300 reduction in energy prices. We have seen that that is not the case, and that energy prices are £149 higher and will go up by £21 in January. There is a £470 honesty tax on energy bills across the United Kingdom as a result of what people were told was going to happen before the election, and what has come to pass at the hands of this Labour Government.

Economy, Welfare and Public Services

Sarah Edwards Excerpts

Monday 22nd July 2024 Commons Chamber

[The Chancellor of the Exchequer (Rachel Reeves)]

It is a pleasure to open today’s King’s Speech debate on behalf of His Majesty’s Government. I always enjoy debating with the right hon. Member for Godalming and Ash (Jeremy Hunt), though I must say I rather prefer doing so from this side of the Chamber. [Hon. Members: “Hear, hear.”]

I appreciate the shadow Chancellor’s generous words on my appointment and also his tribute to officials, who I can confirm are indeed first rate. It has been more than 14 years since a Labour Government were in office for a state opening of Parliament—14 years of chaos, 14 years of economic irresponsibility, 14 years of wasted opportunities and 14 years since there has been a Labour Chancellor of the Exchequer standing at this Dispatch Box. Today, I pay tribute to my most recent Labour predecessor, the late Lord Darling. He was an outstanding Chancellor, a kind man and a good friend.

Mr Speaker, it is also the very first time that there has been a female Chancellor of the Exchequer. On my arrival at the Treasury, I learned that there is some debate about when the first Chancellor was appointed. It could have been 800 years ago, when one Ralph de Leicester was given the title of “Chancellor of the Exchequer” for the first time, or, 900 years ago, when “Henry the Treasurer” was referenced in the Domesday Book. It could even have been 1,000 years ago, when Alfred the Great was in effect the first Master of the Mint. Whichever it is, I am sure the whole House would agree on one thing—that we have waited far too long for a woman to be the Chancellor of the Exchequer. [HON. MEMBERS: “Hear, hear.”]

I stand here today proud, but also deeply conscious of the responsibility that I now have: a responsibility to women across the country whose work is too often undervalued; and a responsibility to every young woman and girl, who should know that there is no ceiling on their ambitions and no limit on their potential.

[Sarah Edwards (Tamworth) (Lab)]

Seven Tory men have stood at that Dispatch Box over the past 14 years and the result has been an economic crisis, crumbling public services and a cost of living crisis. Can we expect a change of approach from the new female Chancellor of the Exchequer?

[Rachel Reeves]

One thing is that I hope to be in post for a bit longer than some of my predecessors.

As tempting as it is, I do not intend to conduct a full sweep of the past 1,000 years of economic history from the Dispatch Box today—[Hon. Members: “Ah”!] I am sorry. However, we must talk about the past 14 years. I warned that whoever won the general election would inherit the worst set of circumstances since the second world war, and I have seen nothing to change my mind since I arrived at the Treasury. I will update the House on our public spending inheritance before Parliament rises for recess.

I heard what the shadow Chancellor said from the Dispatch Box now and on the television yesterday, which was to claim that I should be grateful for what he has left us. That is unbelievable, because he knows the truth and is now trying to rewrite history. In doing so, he has reminded the British people why the Conservatives lost the election. They are out of touch, deluded and unable to defend the indefensible. In the weeks ahead, it will become clear what those in his party did. They stored up problems, failed to take the tough decisions and then they ran away, leaving it to us—the Labour Government—to pick up the pieces and clear up their mess.

Today, I want to focus on one thing above all else: economic growth. Since 2010, Conservative Chancellor after Conservative Chancellor, including the now shadow Chancellor, stressed the importance of growth. We have had more growth plans than we have had Prime Ministers or Chancellors, and that is quite a lot, but growth requires more than talk; it requires action. Like so much else with the previous Administration, when we scratch beneath the surface the façade crumbles, and all that is left is the evidence of 14 years of failure.

Budget Resolutions

Sarah Edwards Excerpts

Tuesday 12th March 2024 Commons Chamber

[Sarah Edwards (Tamworth) (Lab)]

Mr Deputy Speaker, I wish to tell you a story about modern Britain, my constituents and how their experiences of a Conservative Government have left them alone. People I know in Tamworth are struggling; they tell me that on a daily basis. This is an issue when we have a Government who are gaslighting the public into thinking that they are better off under the Conservatives, yet the tax burden is the highest for 70 years, wages are lower and public services around them are literally crumbling in a Parliament that will be defined as the worst on record for living standards.

Paul Johnson, the director of the Institute for Fiscal Studies said that, come the election, tax revenues will be 3.9% of national income—about £100 million; higher than at the time of the last election. This remains a Parliament of record tax rises. The Treasury’s own figures make it clear that the cut to national insurance will be paid for by years of austerity affecting Government Departments and our already overstretched public services. When the Conservatives’ infamous mini-Budget caused massive damage, crashing the economy and sending mortgage rates soaring and families’ budgets plummeting, they left constituents fearful for the future. Despite working full time, many hard-working people find themselves struggling to make ends meet.

It was a shock recently to attend an event where Conservative-run Tamworth Borough Council claimed there were no homeless people in Tamworth, following the annual snapshot survey taken on one day in autumn 2023. Government data between July and September 2023 showed that the council had assessed that 43 households were homeless and 38 were threatened with homelessness —81 households. According to figures collected by the Tamworth food bank over the last 12 months, 207 users stated they were of no fixed address, and 56 of them were children.

Local charities know that there are people who are homeless in Tamworth. Some are sleeping in their cars, some in local churches, and others are sofa surfing with no fixed abode. For many, the Government’s poor stewardship of our economy has pushed the dream of getting on the housing ladder even further away. I speak daily with parents who still have an adult child living at home because even with good wages and a deposit saved there are no affordable homes in their communities. Of the houses that are being built in Tamworth, many are on the floodplains and therefore at risk when it comes to flooding incidents. The track record is getting worse and worse. The Government have slashed the Environment Agency’s resources by two thirds since 2010 while one in six homes is now at risk of flooding and climate change is on the march.

Where next can I turn in this twisted tale of Conservative failure? To the high streets, where shops, cafés, restaurants and pubs have suffered and where people can no longer sustain the businesses that communities so value. In Tamworth, our high street has received some levelling-up funding. However, the £3 million shortfall following the astronomical rise in inflation is not covered by the Government, yet the time constraint for spending the money remains. This “use it or lose it” attitude has left destruction in its wake. As part of the project, the Peel café—one of our heritage buildings—was knocked down, contrary to requirements to consult on changes to the plans. Our communities are being cut out of conversations around regeneration. Without them, we fail to plan for our future.

Labour offers a review of current business rates that do not support businesses, in an economy that has fallen off the tracks. Speaking of which, my constituency is a graveyard to HS2—£92 billion has been squandered on a badly managed, badly scrutinised HS2 project that could have unlocked financial benefits and higher network capacity across the nation. The Government claim that network speeds will not be impacted, but HS2 trains on Victorian tracks will run slower, meaning fewer trains per hour and decreased network capacity for Tamworth and the nation. The irony is that if the Government had done absolutely nothing and spent no money at all on rail infrastructure, we would be in a better position than we are today.

Let me turn to the tragedy of our public services, which are at breaking point and decimated after years of austerity. After 14 years of the Tory Government, more than 90% of crimes are going unsolved, meaning that the criminals are less than half as likely to be caught now than when Labour was in government. Tamworth no longer has a police station at which to report crime. One in seven people in England is on an NHS waiting list. More than ever before, people have put their lives on hold while they wait in pain and discomfort for months, even years. Such a tale I have had to tell of an utterly let down country, often left to pick up the pieces. Ordinary working people, families and pensioners see little to celebrate. We need a Labour Government. We need Labour’s plan. This Budget is nonsense.

--- Later in debate ---

[Tulip Siddiq (Hampstead and Kilburn) (Lab)]

This Budget was the last gasp of a dying, desperate Government. It did nothing to address 14 years of Conservative economic failure and, as always with this Government, it is working people who pay the price.

Many Opposition Members have made powerful contributions to today’s debate, and I apologise for not being able to mention every single one. However, I pay tribute to my hon. Friend the Member for Huddersfield (Mr Sheerman), who said it was his last ever Budget speech today.

The British people are struggling with the highest tax burden in 70 years, and they still face further tax rises over the next five years—a point that was powerfully made by my hon. Friends the Members for Tamworth (Sarah Edwards) and for Newport West (Ruth Jones). Food prices are still 25% higher than they were two years ago. Rents are up by 10%, and a typical family will pay an extra £240 a month when remortgaging this year. Nothing the Chancellor said in last week’s Budget changes that. As much as he tries, he cannot hide from his Government’s record: 14 years of low investment, stagnant wages and poor productivity, the country in recession, wrecked public finances and an economy crippled by debt. The Chancellor tried to wash away the realities last week, but families in our constituencies cannot do the same. People feel worse off under the Conservatives because they are worse off.

As my hon. Friend the Member for Liverpool, Walton (Dan Carden) focused on, the Office for Budget Responsibility—not us—has now confirmed that this will be the worst Parliament on record for living standards. Let me repeat that, because it is worth repeating: this will be the worst Parliament on record for living standards. It is the only Parliament on record in which living standards have fallen. Real pay has gone up by just £17 a week over almost a decade and a half of this Conservative Government. When the Labour party was last in power, wages rose by £183 a week over 13 years. After 14 years of Conservative rule, people have less money in their pockets.

As my hon. Friend the Member for Bedford (Mohammad Yasin) touched on, the latest ONS figures show seven consecutive quarters of falling GDP per capita from the start of 2022. This is the longest period of economic stagnation in this country since the 1950s, and now, under this Prime Minister and this Chancellor, the country has fallen into recession. Government debt has almost tripled under the Conservatives from £1 trillion to just under £2.6 trillion.

Did last week’s Budget give the British people or British businesses any hope that the Government could turn things around? Absolutely not. Household disposable income is set to fall by £200 per person over the course of this Parliament. Real GDP per capita is expected to be lower at the end of this year than it was at the start of this Parliament, and borrowing has been revised up in the next five years of the forecast period. The Institute of Directors described the Chancellor’s efforts as an “unremarkable Budget for business”, and the British Retail Consortium has said that it

“will do nothing to turbo charge investment and growth in communities”.

This was a failed Budget from a failing Government.

[Sarah Edwards]

Does my hon. Friend agree that this Conservative Budget has confirmed that the next Government will receive the worst economic inheritance since the second world war? Does she agree that the Tories should listen to our constituents, call a general election now and stop taking a wrecking ball to the economy on their way out the door? [Interruption.]

[Tulip Siddiq]

I thank my hon. Friend for her intervention. Those on the Conservative Benches do not want to hear it, but if they have so much confidence in their record, why do they not do as she asks, call a general election and put a test to the public?

Unable to defend his own Government’s records and unable to offer any plan to get the country out of the economic mess that his party created, this Chancellor has resorted to undeliverable promises. When we thought things could not get any worse, the Chancellor bizarrely ended his Budget last week with a £46 billion unfunded tax plan to abolish national insurance. This would leave a gaping hole in the public finances, put family finances at risk and create huge uncertainty for our pensioners. This is even bigger than the unfunded tax cuts announced in the Conservatives’ mini-Budget that added hundreds of pounds to people’s mortgages, as my hon. Friend the Member for West Ham (Ms Brown) powerfully pointed out. I will be listening intently to the Minister’s response today, and I hope that he will set out how his Government would fill that gaping hole in the public finances to avoid rerunning the disastrous experiment that crashed the economy just 18 months ago.