Budget Resolutions

Wendy Morton Excerpts

Monday 1st December 2025 Commons Chamber

[Ed Miliband]

The hon. Gentleman says from a sedentary position that that is absurd, but it is not. The Conservatives believe in punishing children—

[Wendy Morton (Aldridge-Brownhills) (Con)]

Will the Secretary of State give way?

[Ed Miliband]

I will give way in a moment—let me make my point.

The Conservatives believe in punishing children for having another brother or sister. Children with only one sibling—two children in total—get the full amount, but if they have two siblings, they do not. How is that fair? How is that right? As the Chancellor said very powerfully in her Budget speech, is that good for our economy and our society? Of course it is not.

[Wendy Morton]

If the policy is so good, how will the Secretary of State explain to working people that they will be £18,000 worse off than those on benefits? How can that be fair?

[Ed Miliband]

This is all about working people, as I tried to explain earlier in my speech. Sixty per cent of people—[Interruption.] Please listen for a second. Sixty per cent of families who will benefit from the measure are in work. If the right hon. Lady wants to ask about the Chancellor’s wider Budget strategy, let me say that I absolutely fully support it, because it was a fair Budget. Yes, it did raise taxes on those with expensive homes—a policy that I advocated for 10 years ago, as a matter of interest—as well as on gambling companies and on landlords. [Interruption.] Members should read the Red Book. The measure is part of a fair Budget. By the way, the Conservatives will have to explain to people up and down the country why they want to leave hundreds of thousands of children in poverty. That is not fair or right, and it is bad for our country.

--- Later in debate ---

[Claire Coutinho]

The hon. Member makes an impassioned case, but why did Government Members not make it at the election? Why did the Government remove the Whip from seven Labour MPs who voted against keeping the cap last year? Why did the Government make all Labour MPs vote to keep the cap, including the Secretary of State? That is the question that Members need to ask. The Government want to be known for having helped people with the cost of living. They must think that the public are stupid. Everyone out there can see that everything that the Government are doing is making the cost of living worse. They do not understand the basics, and the situation is apparently so bad that No. 10 has been giving Back Benchers lessons about Government debt. Given that we have seen Labour Back Benchers cheer at two job-killing Budgets, perhaps the Government need to expand the curriculum.

[Wendy Morton]

Is it not the truth that we have in front of us not the Budget of the Chancellor, the Prime Minister or the Cabinet, but the Budget of the Back Benchers?

[Claire Coutinho]

My right hon. Friend is right, and here is the problem: this Budget might have made the Back Benchers happy, but it is not the Budget that they promised at the election. Let me help them. To start with inflation, we left Labour with inflation back under control at 2%. That took difficult decisions, which needless to say Labour opposed, but it was important to do that because inflation hurts: it picks the pockets of families who find themselves working just as hard but able to afford less and less. However, under Labour, inflation has doubled thanks to the choices it made at the last Budget.

We have now broken away from our international peers—Labour Members can check the graphs—and we have significantly higher inflation than Europe and the United States. In fact, we have the highest inflation of any major economy, and the OBR has said that, compared with March, it now expects inflation to be higher for longer. Why? It is because Labour has chosen to make the cost of energy and the cost of food more expensive, and to pursue policies that will push up rent. People’s weekly shop is up because of Labour’s choices: taxes upon taxes—a jobs tax, a packaging tax, a family farm tax. These are Labour’s choices, and they mean that the average family will pay almost £300 more for their groceries this year. With Labour’s war on farmers, is it any surprise that a pack of mince, a family staple, is up 40% this year alone?

Let us take housing: rent is going up by £700 this year for the average renter. Labour does not understand that a lower supply of homes to rent means higher rents, yet it is written in black and white in the OBR document that its new housing taxes risk

“a steady long-term rise in rents”.

Labour’s choices mean that the cost of going away on a family holiday will set people back up to £400 extra because of its flight tax. Those choices mean that food will cost £300 more, rent will cost £700 more and holidays will cost £400 more—that is £1,400 more and I have not even got to energy bills or taxes yet. On energy, where do we even start?

--- Later in debate ---

[Wendy Morton (Aldridge-Brownhills) (Con)]

The Budget is built on fantasy. The Chancellor claimed that there was a fiscal black hole so deep that she had no choice but to hammer working families with the highest tax burden since the war, but we now know the truth: the OBR told her in October that the so-called black hole did not exist. She actually had a surplus, but she deliberately told the public the opposite.

This is now a political crisis of the Chancellor’s own making. Even a Cabinet Minister has said:

“At no point were the Cabinet told about the reality of the OBR forecasts”,

and called this Budget

“a disaster from start to finish”.

The Chancellor promised the country that she had “wiped the slate clean” and would not “come back for more”, but we now know how wrong she was.

Labour Members can dress it up however they like, but this is the “Benefits Street” Budget—tax hikes to fund a welfare splurge, paid for by ordinary, hard-working people who get up, go to work and do the right thing. Labour promised not to raise taxes on working people. That was printed in its manifesto, but within weeks of coming to power it did exactly that. A Chancellor who breaks her word cannot expect to command the public’s trust. She must come to this House and explain herself, and I hope she does the winding-up speech tomorrow evening at the close of the debate.

While this Government play politics with the public finances, it is working families in my constituency, and others up and down the country, who are paying the price. In Aldridge-Brownhills, families who have never been higher rate taxpayers in their lives will now find themselves pushed into a higher band, with no increase in real pay. That is not fairness; it is failure. Businesses reached their verdict within hours. The Institute of Directors found that 80% of business leaders felt negative about the Budget. They know that Labour Members do not understand what business is.

Labour’s job tax has hit employers hard. On Friday, businesses in my constituency told me that they have frozen recruitment and investment, that they have no choice but to pass costs on to customers, and that in some cases they are beginning to think about redundancies. Small businesses—the backbone of our economy—were forgotten entirely in this Budget, and the Federation of Small Businesses has said that dividend tax hikes punish people for investing in their own companies. New employer charges are a bad idea, and the business rate measures fall far short. Small Business Saturday is on this coming weekend, and I am sure that many Conservative Members will be going out and supporting small businesses in their constituencies. Why? Because we understand what business is.

[James Naish]

Will the right hon. Lady give way?

[Wendy Morton]

I am sorry—I do not have time. Connectivity drives growth too, yet we see reheated announcements. The midlands rail hub is crucial for our region, but we do not know whether this is new money or recycled rhetoric. There was no reinstatement in the Budget of the £27 million for Aldridge train station—money that was siphoned away by the Labour mayor—and my constituents deserve better.

Let us be clear: households are being squeezed, food price inflation is running high at nearly 5%, and our farmers are still being hit by the Government’s decisions. This Budget raises taxes, weakens growth, ignores business, hits farmers, sidelines communities and breaks promises. Above all, it is built on fantasy—a black hole that did not exist. My constituents, and this country, deserve better.