Budget Resolutions

Debate between Scott Arthur and Meg Hillier

Wednesday 26th November 2025 Commons Chamber

[Dame Meg Hillier]

The hon. Gentleman is a veritable champion of his constituency and of rural issues. There are very important changes to the minimum wage and the living wage, which will have an impact, and there is a lot that can be welcomed for rural areas, but I recognise that his constituency and mine sometimes have very different challenges, and I welcome the fact that he champions that here. Obviously, I have not had a chance to look through the Red Book and the Blue Book, but we on the Treasury Committee will bear that in mind.

Seventy per cent of children in poverty are in working families, so the chutzpah of the Leader of the Opposition talking about people making a lifestyle choice really makes my blood boil. In 60% of households hit by the two-child limit, the parents are in work, and 15% of affected families include mothers whose babies are too young for them to work.

My right hon. Friend the Chancellor said it better than any of us could: the Victorian rape clause means that women face humiliation. Notionally, it affects 3,600 women, but we on the Treasury Committee heard evidence that women will not put themselves or their children through the humiliation of using that policy. Any policy that required a workaround like that is outdated and long needed to be gone, and I commend my right hon. Friend for tackling the issue.

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

I thank my hon. Friend for her forensic analysis of our Budget. Will she take an intervention from the Leader of the Opposition, so that she can apologise for that awful policy and its impact?

[Dame Meg Hillier]

It is interesting that the Opposition are doubling down on the policy, which is humiliating people.

Let us be clear: the birth rate in this country has fallen year on year for the last three years. It is well below where it needs to be. I think that only Luton is at 2.1, which is about where the rate needs to be. Actually, that is a bit lower than where it needs to be. This is a real crisis for the country in the long term, so it is absolutely right that my right hon. Friend the Chancellor is investing in the future of Britain. Young people in my constituency may be poor, but there is no poverty of ambition. Children I met when I was elected 20 years ago are now doctors, barristers and enterprising businesspeople, in spite of the challenges they faced. Just think about the ones who did not get there because they could not overcome the challenges of deep-seated poverty. We should invest in our young people, and that is what this Government are doing, including through apprenticeships, the youth guarantee and the nine youth hubs in London, one of which is in my constituency.

I really welcome the fact that my right hon. Friend listened to the Treasury Committee on the gambling taxation regime. We are a cross-party Committee, but our report was unanimous that there was a real issue with the lower tax on online gambling because of the relative harm that it caused, compared with going to the races or popping along to a local betting shop. I very much welcome my right hon. Friend’s decision to change the gambling taxation regime; that will contribute to taking children out of poverty.

On the ISA changes, I caution my right hon. Friend. I hope that the Treasury is watching very closely the impact on mortgages and lending by building societies, because that was a concern in the evidence we heard. If we want to get people into their own homes through the building that will be going on, we need to make sure that mortgages are available to them, so I hope that the Treasury is in ongoing dialogue on that issue, despite the change having been made.

We need to recognise some of the challenges with green taxes. I have not had a chance to go through the Red Book in the time since the Chancellor sat down, but I very much welcome her bold and necessary decision to take on the challenge of the reduction in fuel duty as people move to electric vehicles. This has been a point of debate for at least the last decade or so. In my time on the Public Accounts Committee, we kept challenging the Treasury on how it would fill the gap, and my right hon. Friend has been bold and right to address the challenge. It is a difficult one to grapple with, but it is great that she has done so. We look forward to hearing more about that. On supporting people with the cost of living, the freeze on rail fares, keeping the bus fare cap and the ongoing freeze on fuel duty will help people get to work.

The increase in the minimum wage and the living wage are vital. In my constituency, some people work four jobs over seven days, just to make ends meet. Even if they are lucky enough to have a council tenancy, it is hard to make ends meet on those salaries. Going into private sector housing is completely unaffordable for those on that kind of income. Contrast that with people who work four days a week because they can afford to do so. I am not criticising them for that life choice, but that is the challenge that we face.

There has been a lot of discussion about a high-value property tax. In my constituency, around 1% of properties are worth over £2 million, and that is in central London. The Opposition might scream foul on this, but in London’s zones 1 and 2—my constituency is right on the edge of the City and 10 minutes from Liverpool Street—around 1% of people will face the surcharge. That is a small price to pay when families next door are living in the deepest poverty, as I have described. It is also great to see some movement on energy bills, which is having a really big impact.

There is a lot more detail in the Budget, which the Treasury Committee will look at over the next couple of weeks. We look forward to welcoming the Chancellor to the Committee on 10 December, when we will ask her to explain, but also challenge her on, the detail of her Budget, as is our proper constitutional responsibility.