Income Tax (Charge)

Sarah Smith Excerpts

Tuesday 5th November 2024 Commons Chamber

[Tom Tugendhat]

It is a pleasure to hear the hon. Gentleman, who has come off the fence and now has a seat; he can express his views freely. What fills me with sorrow is when I look at the future—when I look at the businesses that have invested so hard in places such as Tonbridge and now cannot pass that on over generations and over time. The investment timeline is being reduced and so is the growth. Do not just take my word for it—the Office for Budget Responsibility, the National Farmers Union and every business in this country have been clear on the point. The Government are not just taking the eggs from the golden goose; they are slaughtering the goose by trying to get the eggs out quicker. That simply does not work.

We all know what is going to happen next: the Government are going to have to come back for more. We just need to look at the predictions by various financial bodies over the last few days, which have been talking about our running out of the money raised in the Budget in the next two or three years. We know why that is going to happen. This Budget is not investing—worse than that, it is not encouraging investing. It is trying to exploit.

[Sarah Smith (Hyndburn) (Lab)]

As a member of the Government at the time of the disastrous mini-Budget, does the right hon. Gentleman seriously expect us to take lessons from him on how we grow the economy, return to economic stability and get the desperately needed investment into our public services that his Government failed to deliver for the past 14 years?

[Tom Tugendhat]

The hon. Lady can play politics if she likes; I am trying to think about the future of the country.

Dyson, who was not in any Government, is pointing out the problems being raised. Minette Batters, who was not in any Government, is pointing out the problems being raised.

--- Later in debate ---

[Sarah Smith (Hyndburn) (Lab)]

This Budget provides absolute clarity that the Government are focused on putting working people back at the heart of economic decision making. This is most evident in the Chancellor’s decision to protect and support public services, enabling the Government to kick-start a mission-led approach to reform. Let us be frank: this Government have inherited public services that are falling apart at the seams, and we know that our constituents deserve better. I commend the Chancellor and Treasury Ministers for taking the difficult decisions that will raise £9 billion per year by the end of the forecast to support public services. The tax decisions that have been taken are difficult, but I thank Ministers for being transparent, as restoring economic stability to put the country back on a trajectory of growth is essential.

It is important to highlight that investing money in our valuable public services is also about securing growth in the long term, as my right hon. Friend the Chief Secretary to the Treasury has remarked. Enabling a worker to get a quicker GP appointment so that they can return to work sooner, or supporting a parent who wants to take a job that starts an hour earlier by giving them access to a breakfast club before school, supports growth. In my constituency of Hyndburn alone, the impact of the past 14 years of economic failure is that over 7,000 children are living in families that face absolute poverty. Investment in people and public services has real economic payback, as well as being the right thing to do. Members on the notably empty Conservative Benches refuse to say what choices they would make differently. Would they choose to not invest in public services, to not lift children out of poverty, or to not get the public finances back on a firm footing?

The increase in the national minimum wage is also welcomed by many of my constituents in Hyndburn and Haslingden, who work tirelessly to support their families and the local community in skilled but often undervalued jobs, whether in retail, in hospitality or in care. Currently in my constituency, though, we are facing entrenched problems due to a lack of investment in our public services. Most obviously, we face the closure of our highly valued Accrington Victoria hospital due to the fact that the building is now entirely unsafe for both patients and staff. Neglecting public services leads to real consequences, and my constituents have been left to pay the price for the Conservatives’ dereliction of their duty to manage health services sustainably.

I therefore particularly welcome the Government’s announcement of a £1 billion investment to reduce the backlog of critical NHS maintenance. If that money had been available previously, and if maintaining NHS facilities at a local level had been a priority for the former Government, we might not have ended up in this unforgiveable situation. Is the Minister able to share any further information on that funding, and will he or a member of the Health team meet me to discuss how we can work to ensure that Accrington’s health services are both retained locally and aligned with this Government’s national strategy for community-based provision?