Oral Answers to Questions

Debate between Seema Malhotra and Jacob Rees-Mogg

Tuesday 25th October 2022 Commons Chamber

[Seema Malhotra (Feltham and Heston) (Lab/Co-op)]

In recent weeks, having crashed the economy, the Conservatives have increased the barriers facing small firms, with spiralling costs making it harder than ever to do business. Last week, the Federation of Small Businesses reported business confidence falling to its lowest levels since the pandemic. Yet, as almost half of small businesses reported falling revenues this quarter, the Secretary of State spent the weekend saying it was “Boris or bust”. Surely recent Government chaos shows that, for small businesses, it is Labour or bust. If the Secretary of State really wants to reduce the cost of doing business, will he back Labour’s call to raise the small business rate relief threshold for this financial year, saving local firms up to £5,000?

[Mr Rees-Mogg]

The hon. Lady has been in this House long enough to know that rates are a matter for the Chancellor of the Exchequer. She is raising the question at the wrong Question Time. It is worth bearing in mind, with unemployment at its lowest level since 1973, that every single socialist Government, including their brief period in office in 1923, have led to higher unemployment. What are they talking about?

European Union (Withdrawal) Bill

Debate between Seema Malhotra and Jacob Rees-Mogg

Ping Pong: House of Commons
Wednesday 20th June 2018 Commons Chamber

[Mr Rees-Mogg]

I do apologise to the hon. Lady, but I will not give way, because other people want to speak, and time is very short.

Therefore, the rights of this House are intact. The legislation will ensure that the Government can pursue their objectives, which is very important. The Chief Whip is in his place. I commend him for the tactful way that he has discussed these issues with so many people over the past week to ensure that we could come to something that every Conservative Member is able to agree to and put their name to that maintains the privileges of this House, ensures that the Government can negotiate properly, and sends the Prime Minister and the Secretary of State to the negotiating table with a united House of Commons behind them.

[Seema Malhotra (Feltham and Heston) (Lab/Co-op)]

I am grateful for the opportunity to speak today. I will make just a couple of remarks.

I want to reiterate the comments that have been made that this is not about reversing Brexit or about tying the hands of the Government. This is about what happens and the role of Parliament if things go wrong. It is about clarity, about what will happen in this Parliament and to the interests of our country in the event of no deal, or no deal being agreed by this House.

It is incredibly disappointing to have reached this position. It could have been so different. A week after the referendum, I wrote to the then Prime Minister. I then wrote to the current Prime Minister. I made the argument that it was in the interests of our country that this House came together, that we had ways of working across parties, across this House and the House of Lords, and that we came to a solution together and worked through the issues together. But, step by step, we have seen a Government who have run and a Government who have hidden—a Government who have not even wanted to bring forward their own impact assessments so that we can take part in an evidence-based debate on the impact of Brexit on our country and get the answer right. A process by which this country comes together is essential if, in the autumn, we reach a situation in which what was unthinkable becomes thinkable. To have a way in which we handle that is our responsibility.

Every large Government project has a risk register and a response to those risks. This is a critical risk for our country and it is vital that, in advance of such a situation, we all know what is going to happen and that we have a say, on behalf of our constituents, about what could be an incredibly catastrophic situation for our economy, our country and our society.

Tax Credits

Debate between Seema Malhotra and Jacob Rees-Mogg

Tuesday 15th September 2015 Commons Chamber

[Seema Malhotra]

My hon. Friend is absolutely right, and it is shocking that a Government who profess to care about democracy should be so afraid of scrutiny.

Today’s changes are substantial and highly controversial, and we oppose them.

[Mr Jacob Rees-Mogg (North East Somerset) (Con)]

Will the hon. Lady give way?

[Seema Malhotra]

I will in a moment.

These cuts in tax credits will hit working families in every constituency, and they were to be sneaked in through the back door. Indeed, when asked directly during the election campaign whether the Government would cut child tax credit, the Prime Minister said:

“No, I don’t want to do that.”

His statement was repeated on “Question Time” on 1 May. Today’s debate is about a political decision made by the Chancellor which is set to see more than 3 million families lose an average of £1,000 a year.

[Seema Malhotra]

I will in a minute.

This measure is ideologically driven, it is cynical, and it will directly increase levels of poverty in Britain.

[Mr Rees-Mogg]

Will the hon. Lady give way?

[James Cartlidge]

If the measure is passed, will it be Labour’s policy to reverse it?

--- Later in debate ---

[Mr Rees-Mogg]

Will the hon. Lady give way?

[Seema Malhotra]

I will give way in a moment.

Effectively, these regulations, which come into force in April next year, will lower the level at which working tax credit starts to be withdrawn from £6,420 to £3,850, and increase the taper rate at which tax credits are withdrawn from 41% to 48%, meaning that for every £1 earned over the threshold there will be a 48p reduction in the level of tax credit entitlement. As a consequence of these changes to working tax credit, the level at which child tax credit begins to be taken away is lowered from £16,105 to £12,125. This change was not announced in the summer Budget, but is a consequence of steepening the taper for working tax credit.

--- Later in debate ---

[Seema Malhotra]

I will not give way.

These measures will hit families with children the hardest and impact on child poverty at a time when the Government are also abandoning their commitment to eradicating child poverty by 2020, and effectively abolishing the child poverty watchdog. The Social Mobility and Child Poverty Commission’s remit will now just be social mobility. Tax credits have played an enormous role in tackling child poverty. I hope that Government Members will think twice before they go through the Lobby tonight.

[Mr Rees-Mogg]

Will the hon. Lady give way?

[Seema Malhotra]

I will give way to the hon. Gentleman.

[Hon. Members]

Hurrah!

[Mr Rees-Mogg]

I am very grateful to the hon. Lady for giving way and I congratulate her on her promotion and her new appointment. She is now more than quarter of an hour into her speech, but we still do not know where the £3.4 billion would be saved from, if not from this measure? The Opposition cannot be credible if they are still going to go for further deficit spending.

[Seema Malhotra]

The hon. Gentleman’s constituents will certainly be pleased to hear him raising their concerns about the likely impact of these changes on their incomes. I hope that he will engage—[Hon. Members: “Answer!”] He has heard the answer before from the Labour party. We certainly would not give tax cuts to the very wealthy in this country, which his party has had a good record of doing over the past five years.

Around 10 million people—a sixth of the population—will be affected by these changes. Every Member in the House represents some of those who will be hit—around half the working families in our constituencies. However, it is heartening to read in media reports today that at least five Members on the Government Back Benches are planning to vote against the changes. We have also heard reports, cited by the Chair of the Work and Pensions Committee, that the Chancellor spent yesterday talking to anxious Tory MPs and urging them not to defeat him in the vote today, after they took him at his word when he said that the Government represented low-paid workers. I am sorry that Conservative Back Benchers feel let down by their Chancellor, but it is not too late for the Government to change their mind.

It is disappointing that the Government have failed to tackle the real drivers of welfare spending—notably, low pay and the high cost of rent. That failure caused the Department for Work and Pensions to overspend by £25 billion over the last Parliament. The Chancellor has slashed entitlement to housing benefit, including through the bedroom tax and the benefit cap, yet the number of working people being paid housing benefit has still risen by 400,000 since 2010 because working people are not bringing home enough money to pay the rent. The number of people paid less than a living wage has risen by 45% since 2009, with 4.9 million workers today being paid less than the living wage.

This week the Government also launched the most sustained attack on rights at work in 30 years. The Trade Union Bill amounts to a suppression of the democratic rights of ordinary people, and the Government’s cuts to tax credits are a disgraceful attack on the incomes of families up and down the country. Labour would bring down welfare spending not by punishing the most vulnerable but through supporting a higher wage economy, introducing a real £10-an-hour living wage, tackling high rents by addressing the housing crisis, and supporting trade unions to ensure fair pay.

The proposed changes arguably represent the largest single cut to family incomes ever implemented by a Government. I hope that Conservative Members will search their consciences on this issue and vote with their hearts and their heads by joining us in the No Lobby today.