(2 weeks ago)
Commons ChamberThat is an important point. Looking at the pure asset value of farms does not tell us what their inheritance tax liability might be. As my hon. Friend rightly points out, any liabilities must be netted off against the value of any estate, and the ownership structure—the various nil rate bands, previous spousal transfers, giftings and so on—need to be considered.
No. I am going to make some progress.
As my hon. Friend the Member for North East Derbyshire (Louise Jones) has pointed out, a range of exemptions need to be taken into account. Full exemptions for transfers between spouses and civil partners will continue to apply. Any transfers to individuals more than seven years before death, as gifts, will continue to fall fully outside the scope of inheritance tax, and taper relief will apply in certain circumstances within that time. Furthermore, any tax that is due in relation to these assets can be paid in instalments over 10 years, interest free. Those payment terms are more generous than in any other part of the tax system.
As I have mentioned several times during the debate, these decisions have been based on understandings that draw on data from both DEFRA and HMRC. I note that there has been some confusion on the Opposition Benches, whether wilful or not, about what the data shows.
I am going to make some progress.
As I said earlier, a farm worth £5 million but owned by five relatives in equal shares could have no inheritance tax liability.
I will give way to the Liz Truss cheerleader on the Back Benches.
The CLA has pointed out that 46% of farms are owned by individuals. The data produced in the letter does not take that into account; it concentrates on couples who will receive the relief.
I note that the hon. Gentleman’s grasp of economics is about as good as Liz Truss’s was. As I have said, the importance of the claims data is that it tells us what the inheritance tax liability will be. I understand that Members are referring to many other sources and sets of data, but when we are looking at the impact of a change in inheritance tax relief, it is claims data that tells us what that is likely to be.
(2 weeks, 1 day ago)
Commons ChamberIn fact, it is both things: it is true that we have kept to our manifesto pledge of protecting working people by not increasing income tax, the national insurance that working people pay or VAT; at the same time, the situation is far worse than we thought it would be when we won the general election, with the £22 billion black hole and the fact that the OBR said that its forecast would have been “materially different” in March, had it known the true extent of the previous Government’s cover-up. Those are facts that the OBR put out there and from which we cannot hide.
I believe the Minister is misleading the House—[Interruption.] Inadvertently. The OBR did not say the words “cover-up” so will he correct the record?
I said that the OBR said that its forecast would have been “materially different” had it known what the previous Government did not share with it at the time of its March forecast. I have been absolutely clear, and I suggest that the hon. Gentleman reads the OBR forecast as it might be illuminating—
No, I will not give way again. It might be illuminating for him to read the OBR forecast and understand what it says about the previous Government’s relationship with it, how much information was not shared, and how that impacted on its forecast going into the election.
It is a pleasure to speak so high up on the list and to follow the hon. Member for Loughborough (Dr Sandher). I believe I will have different views from him in this jobs tax debate.
Manifesto commitments are very important. As politicians, we go out to the public and tell them what we are going to do. I heard time and again the phrase, “We will not raise taxes”, which Government Members will finish with “on working people”—I will come to the definition of “working people” shortly—so why are we now in a debate discussing national insurance contributions and how they will rise?
I have a couple of questions for the Minister. When the Chancellor looked at the figures and the OBR forecast, did she either not spend enough time on them, or did she not understand them? I am keen to understand that. Also, in the access talks, when Labour sat with the civil service, they were told about everything that was happening. At what stage did they then realise that the figures were completely different? They were not. Labour was able to see behind the scenes and the Chancellor had a full view, through which they could go to the British people and tell them they would not raise taxes—yet here we are today with a debate on raising taxes for working people.
I met a group of working people—I define them as working people—made up of almost every publican in Ludlow. They deal in hospitality at the highest level, given that Ludlow is the fine food capital of the UK; indeed, I invite Members to come and see that great quality. I sat with those members of the hospitality industry. Some had been in it for a few years and many for a decade or two. They knew the trade in South Shropshire and know hospitality exceptionally well, having worked year on year and created a great reputation. They are at the stage where their turnover is the same, their footfall is roughly the same, but they cannot see, as of next April, how they can make a profit. We can argue backwards and forwards about what we think. I am listening to my constituents, in a town, who almost unanimously agree that they cannot see a way forward when the Budget comes into play next year.
Under the last Conservative Government, 10 pubs closed every single week. Before the hon. Member talks about our record, will he apologise for the record of the last Conservative Government, which was incredibly damaging to businesses, particularly hospitality businesses, across the country?
I thank the hon. Member for his intervention. I am pretty sure the Chancellor has just said, “Hold my beer, I will make that 20 pubs a week.”
My constituents are really struggling with this Budget. They cannot see a way forward and are pleading with me to lobby the Government to say that this will not work for them. These are people who know what works for them inside out. They do not own massive businesses, but many of them employ more than four people. They may not have the broadest shoulders, but they have worked for many years to make things work. Businesses are struggling not just in Ludlow, but across my constituency. Small Business Saturday is coming up, and I am hearing business after business saying that they are finding it impossible to see a way forward next year.
The hon. Member is talking about small businesses. Last week, I was proud to host the Federation of Small Businesses in Parliament. Representatives welcomed the Budget, particularly the increase in the employment allowance, which will see the smallest businesses benefit. Some 250,000 of the smallest businesses say that they are better off now than they were before the Budget. Are they wrong?
I am pretty sure that the Federation of Small Businesses has not welcomed the national insurance rise on small businesses. I am happy to look at that, but I am convinced that no small business is enjoying a rise in employers’ national insurance contribution rates.
Finally, I have a question for the Minister. Does she believe that the Chancellor will still be in her position when this Bill comes into play—if it is voted through tonight?
I do not regret the vehicle we have chosen. I have faith in the figures in the Red Book. Interestingly, I have heard colleagues on the Opposition Benches cite the OBR, and that is from the same party who, just two years ago when it was in government, wanted to get rid of the OBR and not listen to expert voices at all. Indeed, I remember them saying that they had “had enough of experts”.
We have heard lots of supposedly deep concern for business from Conservative Members. Of course that was not so much of an issue for the former Member for Uxbridge and South Ruislip, who as Prime Minister told his Government to “eff business”. Or indeed for his successor, the former Member for South West Norfolk. Her one fiscal event as Prime Minister was called a “mini-Budget”, but the lasting damage that it did to our economy was anything but small—markets in turmoil, higher mortgage repayments for thousands of my constituents in Welwyn Hatfield, debt rising, debt interest payments up, and of course not even a hint of an apology.
As for the most recent Administration, I am sorry not to see the shadow Chancellor in his place. During the election campaign I hugely respected how many times he hit the airwaves of TV and radio stations to defend the manifesto that the Conservatives put to the country. For a verdict on that manifesto I defer to Paul Johnson, director of the Institute for Fiscal Studies, who said:
“What the manifesto did not tell us was where the £10 to £20 billion of cuts to spending on unprotected public services…might come from. This manifesto remains silent on the wider problems facing core public services.”
The Labour party will not stay silent on the problems facing our public services. Opposition parties can choose fantasy economics; we choose a change to national insurance to fund the rescue and reform that our public services need. That change starts with paying our public servants properly. When I go through the Lobby to support this national insurance Bill, I will think of the serving members of the armed forces, who received a 6% pay rise from this Labour Government, the biggest in 22 years. I will think of the extra money in the pockets of the police, who faced down the shocking disorder in our communities across the country this summer. I will think of Daisy and Jake, the two paramedics I joined on a shift in Hertfordshire a few months ago.
Has the hon. Member spoken to anyone in his constituency who is not in the public sector?
Absolutely. I speak to businesses day in, day out. Those businesses say to me, “Thank goodness we have had a change in government after the past 14 years.” I will return to Daisy and Jake, because I would like to put them on the record. I joined those two paramedics on a shift in Hertfordshire. They are extraordinarily dedicated public servants finally receiving an overdue boost to their incomes.
I also think of our teachers. I have visited a different school in Welwyn Hatfield in almost every week of this job, and it is invariably the highlight of my week to meet such dedicated staff and inspiring pupils. At the same time, it is evident how many schools are stretched to their limit and beyond. This change to national insurance helps to fund a billion in extra revenue for the special education needs and disabilities budget and, further, it makes sure that we can recruit 6,500 additional teachers across the country.
Everyone in this House has a choice today. Members can choose to oppose the Bill and by doing so confirm that they are not serious about the public finances or our public services, or they can support it, and back our nurses, the police, the fire service, teachers and our serving military personnel. I will back this Bill as I backed the Budget. Together, they are the foundation on which this Government will deliver on our manifesto and drive the change our country so badly needs.
I have been an MP for five months. I have had some wonderful moments in my constituency and in this place, but there have also been some tough and sobering moments. One of those was soon after the election, when I sat here listening to the Chancellor’s statement on the public spending inheritance. I heard about the huge hole in the public finances, the promises made without the money to pay for them, a promised new hospitals programme with no money behind it, and promised compensation for miscarriages of justice and promised funding for Ukraine that were not in the Conservatives’ budget. I was truly shocked by the sheer scale of Conservative economic mismanagement and—I will admit—I was intimidated by the sheer scale of the challenge to put it right.
Has the hon. Member seen a breakdown of the £22 billion black hole? Because I have not.
The hon. Member should go on Google.
In the months that have followed, I have been proud that this Government have been willing to make the hard choices necessary to protect our economic security, and have taken the long-term decisions necessary to fix the foundations of our country and finally prioritise our broken public services. We are investing in the NHS, rebuilding our crumbling classrooms and recruiting thousands of teachers to end the era of government by press release and empty promises. That is why I support this legislation.
As a new Member of Parliament, I was looking at the shadow Minister, the hon. Member for North Bedfordshire (Richard Fuller), when he was responding to the Minister, and trying to figure out why he looked so familiar. I realised that it was because he was Liz Truss’s Economic Secretary to the Treasury; the person who had to go out and defend Liz Truss’s mini-Budget. I therefore wonder why this new Conservative party led by a new person is sending out Liz Truss’s Treasury Minister to respond to a Labour Budget that is mopping up some of the mess created by her. When I realised that, it got me thinking about how much we should be listening to the Conservative party. This is a party that, in its contributions today, has shown no desire to learn a lesson from the election or listen to voters who were so damaged in their incomes and their lives by the Government we have replaced, but only a desire to play politics at its worst. The Conservative party has done that rather than actually scrutinise what this Government’s Budget is intended to achieve.
It is worth reflecting on what has happened over recent years. The economy crashed, mortgages were sent through the roof and an early election was called to avoid the Conservative party having to deliver the Budget. There were covid contracts that cost this country millions and a £22 billion black hole; that is what this Government are having to respond to.
As this is such an important topic, why are there fewer than half a dozen Back-Bench Government MPs here to discuss it? It is not important enough to get their Benches full?
I have literally just said that this debate should not be about party politics, but about the scrutiny of this Government’s Budget. Instead of asking questions about the nature and substance of the Budget, the Opposition are resorting to party politics. [Interruption.] As my hon. Friend the Member for Harlow (Chris Vince) says from a sedentary position, we could list debates such as the Grenfell Tower inquiry debate yesterday, during which Conservative Members were deserting their Benches.
The burden of tax has fallen on working people for far too long under the Conservatives. Working people have suffered in many more ways, too: they have been unable to get the NHS appointments they want, the mortgages they want and all the services they should be entitled to. When I have knocked on doors in Bournemouth East and spoken with thousands of people over the last two years, the overwhelming feeling has been of hopelessness. It is the feeling that nothing ever changes in politics because there is a constant back and forth between our Benches about unimportant things rather than a focus on what those people actually want.
People want an NHS that will truly deliver. They want the 40,000 additional appointments a week. They want the billion pounds that is being invested in SEND. They want the £600 million going into social care. They want the £22 billion going into our NHS to start to fix the problems that have been ongoing for 14 years. I say to Opposition Members that if they are dedicated to their constituencies, if they care deeply about putting our public services back on track, and if they care about an economy that grows so that we have private businesses supporting our investment in the public sector, they should be voting with the Government tonight. I am disappointed to see so many of them saying that they will not be doing so.
We have stuck to the commitments we made in our manifesto, and that is why the British people will see over the months and years to come that they voted for change and investment in our public services, and that is what this Budget makes possible.
When we came into power in July, we faced a difficult economic inheritance. I wish we had taken power in more benign circumstances, but Opposition Members will know that public sector debt had increased to 100% of GDP—the same size as the economy—and trillions of pounds, constraining our ability—[Interruption.] They are chuntering from the Front Bench, but it is true that public sector debt increased to 100% of GDP—a massive increase on the Conservatives’ watch—making it more difficult for us to manage the public finances in a sustainable way, which is what we want to do and what they failed to do.
We also took over after 14 years of failure on productivity and wage growth. If wages had grown in line with the pre-financial crisis trend, families in my constituency and constituencies across the country would not be £100 or £200 better off a year; each worker would be £10,700 better off a year.
On productivity, all the public sector wage increases that have been given since the Government have been in power come with no productivity requests or increases. How does the hon. Member square that circle?
I think we will see productivity increases in the NHS, because part of the reason that it has struggled for productivity in recent years is that it has not had the necessary investment, so doctors and nurses have not had the beds and capital expenditure that they need in their hospitals. I have been to Barnet hospital in my Chipping Barnet constituency and spoken to the chief executive of the trust. They were clear that what has happened nationally, and has filtered through to their hospital, is that capital spending budgets have been raided to fund day-to-day spending, and that has made it more difficult for the NHS to be productive. More beds and £3 billion for scanners and other capital equipment will make a difference to productivity in the NHS. [Interruption.] Conservative Members know that that is the case.
Let us just go back to the inheritance that the Labour Government face. We have high public debt, low productivity and wage growth. Our economy has also been hampered because the Conservative party has made it much more difficult for us to trade with our nearest neighbours. That has been bad for competition and productivity across the country. I could go on about the economic inheritance, but I do not wish to make hyperbolic statements or overdo it; we can just look at the facts presented to the Labour Government.
It is a great pleasure to wind up the debate on behalf of the official Opposition. I pay tribute to and thank all colleagues from both sides of the House for their contributions. I will try to touch on some of their points as I go through.
Just nine months ago, I opened the Second Reading of a Conservative national insurance Bill that cut taxes for millions of working people across the country. Today, we have before us a Labour national insurance Bill that will take the tax burden to the highest levels in history on the backs of working people. That is the stark difference that a Labour Government make, but it is not the change that people voted for.
Nine months ago, the Economic Secretary to the Treasury told the House that the then Opposition supported our tax cut, but barely three hours later, she and her Labour colleagues remarkably failed to vote for it and back up their words with actions. Now we know why: it is Labour’s playbook to say one thing as loudly as possible and then do the exact opposite as quietly as it can.
On the Government’s tax policy, does my hon. Friend think it is concerning that the Chancellor today refused to rule out further tax rises in future Budgets?
Absolutely. We all heard what the Chancellor said at the Confederation of British Industry conference. It is remarkable that the Prime Minister will not back up her words, and even more remarkable that the Chancellor herself would not back up her words today at Treasury questions.
The British people see the Bill for what it is: the biggest broken promise of them all, and there are plenty to choose from. It is a good job the Chancellor has experience on a complaints desk, because, quite frankly, there are quite a lot coming in at the moment—not least from the business community, as my hon. Friend the Member for South Shropshire (Stuart Anderson) highlighted so well in his speech. Before the election, the Chancellor embarked on what she referred to as the “smoked salmon offensive” with British business; now the election is over, she has dropped the smoked salmon and is focusing on just being offensive.
Today’s Bill will introduce tax rises on working people in business that were never declared before the election. It is a double whammy, as the Federation of Small Businesses has said in Lincolnshire: it introduces not just the rate rise, but a reduction in the threshold. This tax is the only major tax that is paid exclusively by working people. It is a £25 billion tax rise on jobs. The OBR makes it clear that by 2027, 76% of the total cost of this tax increase will be passed on to working people through lower wages and higher prices, as the hon. Member for Angus and Perthshire Glens (Dave Doogan) said in what I thought was a very thoughtful speech for the SNP.
As I said at Treasury questions this morning, the OBR says this is a tax on working people; the IFS says this is a tax on working people; even the Resolution Foundation says this is a tax on working people. By anyone’s measure—be in no doubt—this is a manifesto breach the public will not forget. That is clear.
What is not so clear any more is what this Labour party stands for. The Budget was an attack not just on working people, but on the very lowest paid working people, according to the IFS. This is a fundamentally regressive policy, leaving many out in the cold and giving businesses no choice but to freeze hiring and freeze wages. It will hit others, too. It will hit the doctors and the nurses working in general practice and social care, as my right hon. Friend the Member for East Hampshire (Damian Hinds) set out in his speech. It will hit charities and voluntary organisations, with Marie Curie expecting that it will cost the charity £3 million next year alone—all part of a £1.4 billion bombshell to hit all charities next year. It will hit hospices, homeless support groups and disability charities, which are all warning they face reducing headcount and limiting services. This is not what the British people voted for.
The Department of Health and Social Care will confirm funding for general practice for 2025-26 as part of the usual GP contract process later in the year, through consultation with the sector. I understand the concerns about the impact on the healthcare sector, but I can assure the hon. Lady that the Department of Health will continue to engage with GPs, dentists and pharmacists as part of the usual contract process, and that changes in NICs will be taken into account in those discussions.
Let me now turn to the rant, I would say, rather than speech, from the hon. Member for South Shropshire (Stuart Anderson). I was not quite sure what question he was getting to, but he did ask very clearly whether the Chancellor understood the impact of the economic policies that she was making, and whether she would remain in her place. Considering those questions, I wondered what he thought about economics as a whole, so I decided to look into him. Not long ago, he said:
“I have worked with Liz Truss on many occasions…I believe that her economic position…and her parliamentary experience make her the best option to lead our country.”
I stand by the comments that I made. [Interruption.] I do. I fundamentally believe that Liz Truss would be a better Prime Minister than the one we have now.
If you will forgive me, Madam Deputy Speaker, I feel that a lettuce would have better judgment.
I turn to the devolved Governments. The Government will provide Departments and other public sector employers with support for additional ER NICs costs only. The funding will be allocated to Departments, with the Barnett formula applying in the usual way. The overall outcome of the Barnett formula is that all the devolved Governments will receive at least 20% more funding per person than the equivalent UK Government spending in the rest of the UK. The Scottish Government will receive £47.7 billion in 2025-26, including an additional £3.4 billion through the operation of the Barnett formula. The Welsh Government will receive £21 billion in 2025-26, including an additional £1.7 billion through the operation of the Barnett formula.
(2 months, 1 week ago)
Commons ChamberI rise to speak on what I clearly see as an aspiration tax. I want to make it clear that all of my five wonderful children are in, or have gone through, state schools. One is in a school that requires improvement because of the catchment area we are in. My education was exceptionally poor. I went to the worst school in the area. I did not get any GCSEs, and when I was handed my results, the teacher said, “There you go, Anderson. I told you you’d never make anything of your life.” My experience of education was not good, but I am a Conservative because I believe in opportunity. I did not have those opportunities as a child, but I believe that everybody should have them.
There are about 1,000 children in my constituency who go to Moor Park school, Bedstone college or Concord college; I have visited all three. Bringing in VAT for independent schools will create huge pressure. I believe that the measure is rushed. It has not been thought through, and it will have a massive impact on all those schools. Some parents will be able to afford it and will not feel the pinch, but many parents I have spoken to in my constituency work two jobs, have one car and do not go on holiday. They do everything they can to give their children the best opportunity in life. That should be championed. We should not remove these opportunities. We should have great state schools across our country, but if somebody wants to work hard and strive, and aspires to give their children the best opportunities they can, we should not remove that. We do that at our own cost.
Growing up, my dad was a soldier, and my mum also served in the military. Many of my friends at school moved around every two years or so. I, too, was a soldier and had children while I served in the military. I know the Minister is a supporter of the armed forces, and even the Secretary of State for Defence has said how serious this measure is for military families. In this debate, there will be a lot of to-ing and fro-ing, but I urge the Government to take seriously the impact that this policy will have on military families. To bring it in as a blanket measure will be detrimental. We will see people leave the armed forces; that will be the cost. That would not be a good way to do this. I am asking for time. Can we push this back? We have talked about what to do to fill the gap. Recruiting more people and raising the standard of state schools will not have happened by January, so we need to look for a time to bring in this measure; mid-term does not work.
The measure will have an impact on special educational needs and disabilities, and people who aspire to send their children to private school, but what is important to me and many of my constituents are military families. I urge the Government to think about that, and come to a decision very quickly about military families, because people are deciding whether to stay in the forces or sign off. Our great men and women in the armed forces need certainty that their children’s education will not be disrupted.
I call Antonia Bance to make her maiden speech.
(3 months, 1 week ago)
Commons ChamberI thank the hon. Member for his intervention. I am afraid that I cannot comment because I did not see that, but I thank him for raising it.
It is not right for the consequences of the decisions of the outgoing Conservative Government and this burden to be carried by some of the most vulnerable in our society. Those with the broadest shoulders should carry a heavier burden. Liberal Democrats have set out detailed proposals to tackle fuel poverty and we are calling on the Government to look at them very seriously. That includes steps such as: launching an emergency home energy upgrade programme, with free insulation and heat pumps for low-income households; introducing a social tariff for the most vulnerable to provide targeted energy discounts for vulnerable households; and implementing a proper windfall tax on the super-profits of oil and gas producers and traders, to raise vital revenue. We have also called on the Government to tackle the wider cost of living crisis, including by investing an extra £1 billion a year in our farmers to bring down food prices, increasing the carer’s allowance and expanding it to more carers, and removing the two-child limit and the benefit cap.
More than 2 million pensioners are currently living in poverty. They have had a tremendously difficult time during the cost of living crisis, dealing with record high energy bills and eye-watering food costs. That is why the Liberal Democrats are proud to have introduced the triple lock when we were in government, lifting countless vulnerable pensioners out of poverty, and why we are strongly committed to ensuring it remains in place. Pensioners deserve to have the support and the security of knowing that the triple lock will be there in the long term.
We acknowledge the dire economic situation the new Government have inherited, yet we have heard warning calls from sector representatives, including Age UK, Disability Rights UK and many pensioners themselves, regarding the damage that this cut might cause. As the Government try to clear up the Conservative party’s mess, they must ensure that that does not come at the expense of pensioners and families who will struggle to heat their homes this winter.
On a point of order, Madam Deputy Speaker, you will know the rules far better than me, but this is a really important debate and I just want to ensure that the House is quorate. Can you tell me how many people have to be on the Government Benches for a debate? There are fewer than 20 Labour MPs who have decided to find this a worthwhile debate to come to, and I want to make sure we have enough people here for this debate, because it is really serious.
My right hon. Friend is giving a moving and compassionate speech. Will he tell us where, specifically, the responsibility for this cruel policy lies?
I am grateful for my hon. Friend’s question, because it does not lie with the hon. Member for Ealing North (James Murray). It lies with the Chancellor of the Exchequer and with the Prime Minister, both of whom should be on the Government Front Bench this afternoon, but neither of whom have been present during the debates—although the Chancellor did come in to vote, and then nipped out again. That in itself is shameful. I abhor the fact that there are politicians sitting on the Labour Benches who are quite prepared to fight to the last drop of somebody else’s political blood, because that is what is happening this afternoon.
I am sure Labour Members never thought in the general election campaign that they would be giving pensioners the choice between heating and eating. Many Labour Members have not even bothered to turn up for a debate on something so critical for many pensioners across this country. We have talked about choices, and this is all about choices. The Government have made a political choice. Labour Members will all have to make a choice, and face their constituents whether they vote for or against. I urge them not to cut the winter fuel allowance.
Let me go on a journey and set out the narrative. The Government say there is a debt and imagine there is a black hole they have to fill, so let us have a look at the numbers. They say they have to find £22 billion, so let us cut £1.1 billion but in the same breath add £9 billion for the pensions. At the same time, the red herring that is the Great British Energy flop adds another £8.4 billion. That is a decision that the Government have made, but why would the Labour party let numbers get in the way of a good story? The numbers show the Government have no issue making decisions against pensioners.
I am a proud veteran. In November, on Remembrance Day, we ask people to remember those who paid the ultimate sacrifice in the service of their country. I challenge Labour Members to look at pensioners who have served and say, “We will never forget,” because those pensioners have already been forgotten.
In the spirit of what my hon. Friend describes, I will cite the example of Betty Webb, a constituent of mine who received an MBE for her work as a codebreaker at Bletchley Park. She is 101 years old. She is a widow who lives alone. She is living in fear not just that the Government will take away the winter fuel allowance, but that in future they will snatch away the 25% single person’s discount on council tax. Many other constituents of mine are fearful of the same thing.
My hon. Friend makes a great point. Pensioners, including those who have given a life of service to this country, are living in fear of what is coming next. Almost a third of residents in South Shropshire are pensioners, and they have been writing to me and they are absolutely livid. They feel like they have been led down the garden path—taking away this payment was not what was promised. It is cruel, heartless and callous. This policy needs to change.
The Chancellor has made a rookie error. She has gone into the Treasury and, with everything in front of her, said, “Do this,” and she has removed the personal view. She has made a political decision—[Interruption.] Of course it is a rookie error. This is a massive error. She has listened and removed people from the equation. When people are removed from politics, it is a road to nowhere. Will the Chancellor go and see the Downing Street chief of staff and ask for permission to reverse this proposal?
(4 months, 2 weeks ago)
Commons ChamberI thank my hon. Friend for that question; I am pleased to have her as a constituency neighbour in Leeds. She is absolutely right that the previous Government went into the election knowing that there was a £22 billion black hole. What did they do during that election? They made more unfunded spending commitments and more unfunded promises about tax that they knew they could not keep. That was deeply irresponsible. After all the damage that they have done, they should have come to the Chamber today and apologised.
Would the Chancellor confirm that all the information presented today was not known to her before last Thursday, when the estimates were laid?
When I arrived at the Treasury three weeks ago, I asked Treasury officials to do a full analysis. We concluded that analysis over the weekend and I am publishing it today for the House of Commons.
The right hon. Member will know as well as I do that that is not for the Chair to decide. It is for the Government to decide what they put in their estimates and in documents that are published.
Further to that point of order, Madam Deputy Speaker. The Chancellor said—for transparency—that she had found out about everything this weekend, but last week, prior to this weekend, she said that the Treasury had also met the Office for Budget Responsibility to explain how bad things were. The two cannot both be correct. Could the Chancellor come to the House and correct the record?
I have made it very clear that it is not a matter for the Chair. Those on the Government Benches will have heard three points of order on the same subject. If they wish to come to the House, I am sure the Chancellor will.
(2 years, 10 months ago)
Commons ChamberHer constituent, in order to have been fined, would either have had to admit wrongdoing or have been found guilty in a court of law on the evidence before that court. The situation is completely different. No such state of affairs exists as far as No. 10 or the Prime Minister is concerned.
I fought in bloody conflicts in Europe. At the moment, we are seeing hundreds of thousands of Russian troops on the Ukrainian border, and could see the bloodiest conflict for generations. We are wasting time here. [Interruption.] Sorry, Mr Speaker. Does my right hon. and learned Friend agree that every time the Opposition call for our Prime Minister to resign, it only strengthens Putin’s hand and destabilises negotiations?
My hon. Friend is quite right to focus on what matters around the world and to the Prime Minister of this country.
(3 years, 9 months ago)
Commons ChamberThe hon. Gentleman will know we are carrying out an alcohol duty review that will look at all these decisions in the round, and I am very happy to speak to him in more detail specifically about any particular schemes or requests that he has.
The Government are supporting these businesses through new restart grants—a one-off cash grant of up to £6,000 per business premises for non-essential retailers in England—and up to £18,000 for hospitality and leisure businesses. They will also benefit from a five-month extension of the coronavirus job retention scheme, a further 12 months’ relief from business rates and a new UK-wide recovery loan scheme. Tony’s Deli, which my hon. Friend mentioned, and other businesses serving hot food can also enjoy a 12-month VAT cut at 5% until the end of September, and at 12.5% until the end of March.
(4 years, 1 month ago)
Commons ChamberAs a country, we are in a situation that we do not want to be in, and the decisions that we make in this House will determine not only how we come out of covid-19, but what our country is going to look like for generations to come. It is on that note that I want to talk about one of the most deprived areas in my constituency, Whitmore Reans.
I love Whitmore Reans and the people there love it too. It has a diverse community and I always enjoy spending time there. My family and I have always been welcome and we have received the greatest of welcomes from the imam and shafiq at Bilal mosque. I enjoy many different culinary delights in the area, such as Kurdish cuisine, Turkish kebabs or the great British fish and chips—although I do have to run a few extra miles the next day.
People who live in Whitmore Reans have one of the lowest life expectancy rates in the region and live in one of the most deprived areas. The area has the highest proportion of children in families receiving low-income benefit anywhere in the city. Whitmore Reans has many multigenerational households which, despite working hard, just have enough to get by. There is no secondary school in the area and no local walk-in medical centres. Fly-tipping is rife and crime rates are high. But people love Whitmore Reans and they are proud of it. They have a great sense of community spirit and are always proud of the multiculturalism and diversity in this area.
It is clear that Whitmore Reans, as well as other places in Wolverhampton, have been left behind for decades. I want to see that change and I will not sit back and ignore the problem. I have pushed for investment in Wolverhampton almost every week since I became an MP. The Treasury must know me as the death-by-a-thousand-cuts MP, given the amount of times I have lobbied them. Only on Monday we sent the latest request about the support that we need in Wolverhampton. This is a regular occurrence and it will continue. I get it, however, that not all these requests are going to come back with a cheque and that the Treasury will have to make sure that we have a sustainable economic future as a country that is not a bottomless pit.
We do not know for how long we will be fighting this virus. We are in tier 2. With the rate rising, we could end up in tier 3 soon, having these same discussions. We do not know what measures we have to put in place as we move forward. We do not know how long we have got this for. I do not believe that a one-size-fits-all policy is right, and I support the generous economic measures that the Chancellor has provided during these difficult times. To level up, we need to have a sustainable economy that will see the children of Whitmore Reans and the rest of Wolverhampton growing up in a place that they will also love.
(4 years, 3 months ago)
Commons ChamberAs the Member of Parliament for Wolverhampton South West, employment has been high on the agenda for me from the outset. For decades, Wolverhampton has been above the national average on unemployment. Economic opportunity for our great city was really championed when the Prime Minister said that he was going to level up the country, and areas like St Peter’s, Graiseley and the rest of Wolverhampton were given hope. Then covid hit and the world as we knew it changed. In dark times, I was able to see a city come together in unity, regardless of party, beliefs or views, and do what was right for the city. Businesses were repurposed or adjusted to serve the community, from the amazing Jim Gough’s of Tettenhall to Grill-It in Newbridge. Key workers went over and above in a time of crisis.
As lockdown was eased, I was able to get out and see these businesses face to face to see what they were doing. Simply put, it was hard for them. Footfall is down and the future of business looks more challenging than ever before. The market traders of Wolverhampton trade on with steely determination in a difficult climate. There are businesses such as EcoWulf in Chapel Ash, which was set up one year ago and had to deal with covid in its first year but trades on with a great product. Malik Butchers of Whitmore Reans has used this time to repurpose its business to provide some truly amazing halal street food.
Without a doubt, business in Wolverhampton will be concerned about paying the bills and keeping their employees in jobs, but what has made a difference in this unprecedented time is the support the Government have provided. From the job retention scheme to business grants, it has all made a huge difference to people. I have heard this from so many; it has been well received. It has been a lifeline that has saved many jobs and businesses throughout our great city. However, it does have to end.
It is never good to see someone lose a job or a business go under. This I know from experience having gone through it: the sadness you feel when you make people redundant; the numbness you feel when you tell your family you cannot put food on the table. Nobody wants this. But we have to look forward. We must make sure that we provide the best circumstances to safely get the economy moving forward and create sustainable public finances. We need to empower businesses to give them the opportunities to fulfil the visions that they have. We must move forward in supporting them as we are through the kickstart scheme and other great opportunities. We have to support businesses moving forward, but we cannot keep the furlough scheme going forever and a day.
(4 years, 8 months ago)
Commons ChamberAs the hon. Gentleman will be aware, we have specifically ruled out the possibility of eviction for three months, and we will continue to look at that situation as well.
I regularly discuss school funding with the Secretary of State for Education. At the spending round, the Government committed to a £7.1 billion cash increase in the funding for schools in England by 2022-23.
I understand that there are immediate pressing issues for the Department, but after this will my right hon. Friend arrange to meet me and the Education Secretary to discuss the funding of a secondary school in Wolverhampton?
I would be very happy to give that commitment to my hon. Friend. He will be aware of the significant allocation to capital funding that was set out by my right hon. Friend the Chancellor in the Budget, and obviously part of the discussion at the comprehensive spending round will be the allocation of that budget.
We are certainly very happy to look at whatever letter the hon. Gentleman or his colleagues on a cross-party basis may wish to present.
I want to follow on from my right hon. and gallant Friend the Member for Bournemouth East (Mr Ellwood) and talk about our great armed forces. I expressed my delight at the budget of £10 million identified for veterans’ mental health. Will the Chancellor confirm that that will remain a priority, as the problem does not go away?
I am happy to give that assurance. I know my hon. Friend is a champion—rightly so—of our armed forces and speaks with great experience and authority on that. He will be aware of a number of measures that my right hon. Friend the Chancellor has announced. That is one of them, and we stand by it.