Budget Resolutions

Scott Arthur Excerpts

Monday 1st December 2025 Commons Chamber

[Joe Robertson (Isle of Wight East) (Con)]

Average households will be £850 worse off by 2029-30, according to the Joseph Rowntree Foundation. That is a consequence of this Budget, with the highest taxes in history, growth down, borrowing up and inflation up. In fact, the Government have missed their inflation target every single month they have been in office, with no projections that they will hit it any time soon. That target is 2%. The last time we hit 2% was in July 2024, when this Government took office. That is the result of a nightmare sequel to a horrendous original. We have had two Budgets, back to back, making people poorer, with more tax for more welfare.

It did not have to be this way; the Chancellor had choices. Instead of raising tax again—this time by £26 billion, with 43 different taxes—she could have cut the size of the civil service back to where it was in 2016. She would have saved £8 billion. She could have taken welfare spending back to where it was just before the pandemic. She would have saved £23 billion. She would have had the money she needed to not raise taxes, with some left over to cut them instead.

[Dr Scott Arthur (Edinburgh South West) (Lab)]

It would be interesting to talk through the implications of such a drastic cut to welfare in one single Budget, and what that would mean for people in the hon. Gentleman’s constituency, particularly the young people with children who will be lifted out of poverty by this Budget.

[Joe Robertson]

It is one single Budget with a plan over five years, as the hon. Gentleman well knows. The best way to lift all families out of poverty and to stop them slipping into poverty is to grow jobs and grow the economy so that we have more money to spend on public services.

We know that the Government wanted to cut welfare. Indeed, they tried to cut welfare spending just a few months ago, but they were held to ransom by their Back Benchers and watered down their plans. Instead of coming back with a properly costed, reformed proposal, we have a £5 billion cash grab. They have given up on tackling the welfare bill altogether. We have more tax for more welfare.

Most people on welfare do not want to be there if they have a choice, but the key word is choice. The Government have to give them choice, by allowing businesses to employ people and by increasing job opportunities, not decreasing them. What happened to the party of a hand up, not a handout? Until Labour rediscovers the central role of businesses in employing hard-working families and in growing the economy, so that we can invest more in public services through growth, people will remain on welfare and our economy will remain sluggish.

I will finish by saying something on transport costs, particularly as the Secretary of State for Transport is in her place. Although I do not agree with her reforms to rail and buses, I share the sentiment behind them: that we should be putting passengers above profit. I continue to ask that she does that not just for rail and buses, but for communities all over the United Kingdom that rely on ferries. While she is freezing the cost of rail, my constituents are paying more and more in ferry fares, because we have providers that are controlled by private equity companies that are unregulated and unlicensed. I know that she would not accept that for any other community across the UK. Of course, I do not hold the Secretary of State responsible for that—it is not a situation that she created—but she is in the wonderful position of being able to do something about it, and I urge her to do so.

I thank the maritime Minister, the hon. Member for Selby (Keir Mather), for the talks that he has had with me and my neighbour, the hon. Member for Isle of Wight West (Mr Quigley). I look forward to continuing those conversations because, quite frankly, with private equity trading one of the ferry companies in the past few days, those companies are not going to make the changes that we deserve without the Government stepping in.

--- Later in debate ---

[Graham Leadbitter]

I agree that we need a publicly owned energy company, and I would fully support that. The problem is that we do not have the full powers of an independent country, which are just the normal powers that we would need to do that. I am glad that the hon. Lady recognises that problem. We are nearly 18 months into this Government and their energy price promises have fallen apart, alongside the collapse in trust in the Chancellor.

Secondly, let me come to the Chancellor’s treatment of the North sea. Today, Harbour Energy announced a further 100 job losses, on top of the 350 it announced earlier in the year. Mossmorran, Grangemouth, Aberdeen port and many other sites and companies associated with the North sea energy sector are closing, reducing the workforce or focusing elsewhere in the world, as the sector grapples with a fiscal regime that not only acts as a barrier to investment but is accelerating decline. The latest announcement of job losses is pinned squarely on the Government’s failure to reform the energy profits levy. The decision by the Government to do nothing is akin to Thatcher’s treatment of miners and their communities and the steelworkers at Ravenscraig.

[Dr Arthur]

At the SNP conference, I think the First Minister said that he was keen to replace the energy profits levy, but he was not quite sure what he was going to replace it with. Does he know yet?

[Graham Leadbitter]

I would be happy to debate that when it is brought before the House by the Chancellor, if that ever happens.

To accelerate the demise of an industry without ensuring that the right and appropriate time is available for the transition is frankly criminal. I have heard many times Labour Members railing against the impact of Thatcherism in the 1980s—and they are right to do so—yet now they are defending their record of doing the same thing to our oil and gas sector. It is utterly shameful.

--- Later in debate ---

[Dr Arthur]

I think there is support for this issue across the House. I do not know any MP who does not think that the WASPI women should not be compensated, because their fight is a just fight, but there is uncertainty about how it would be funded. How would the hon. Gentleman fund it?

[Graham Leadbitter]

We have made the point repeatedly that there can be additional funding from banks, which I know hon. Members from the Liberal Democrats agree with, and funding could certainly be made available through a wealth tax, which we have supported for a long time.

The one thing I can welcome from the UK Government in this Budget is the removal of the two-child benefit cap, but I have questions for Labour Members. A principled few Members voted in support of the SNP’s amendment to the King’s Speech nearly 18 months ago, including the hon. Member for Leeds East (Richard Burgon)—I agreed with pretty much everything he said earlier. That could have happened then, but Labour Members chose not to support it. I am glad and grateful that they do now.