Oral Answers to Questions

Wendy Morton Excerpts

Tuesday 28th April 2026 Commons Chamber

[Mr Gagan Mohindra (South West Hertfordshire) (Con)]

7. What assessment she has made of the potential impact of fuel duty on the cost of living.

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

14. What assessment she has made of the potential impact of fuel duty on the cost of living.

[The Exchequer Secretary to the Treasury (Dan Tomlinson)]

The Government have already taken action on fuel affordability at the pump. In last year’s Budget they extended the 5p per litre cap for a further five months, and they have also cancelled the increase that would have otherwise taken place in line with inflation at the start of this financial year.

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[Dan Tomlinson]

Before the conflict in Iran started we saw inflation falling, we saw unemployment falling and we saw growth increasing by 0.5% in one month at the start of the year. That showed that our economic plan was the right plan for this country, and it is important that we stick to it rather than returning to the bad old days of the high borrowing and high interest rates that the Conservatives brought us when they had a chance to run the economy.

[Wendy Morton]

Labour is at war with motorists, and Reform’s idea of protesting about fuel prices was revealed at their non-event yesterday—and, indeed, its members are not even here today. Only we on the Conservative Benches are standing up for our motorists and our constituents. Will the Chancellor take this opportunity to help our constituents, our businesses and our motorists, and adopt our plan to extend fuel duty relief—yes or no?

[Dan Tomlinson]

I agree with the right hon. Member that Reform’s rabble yesterday was deeply underwhelming. As for fuel duty, the rate is currently lower than it was at any point under the last Government, or, at least, it was never lower under the last Government than it is now. In real terms, it is lower than it has been at any point since 1993.

Agricultural Property Relief and Business Property Relief

Wendy Morton Excerpts

Monday 5th January 2026 Commons Chamber

[Dan Tomlinson]

Because I sign them off, I can tell the hon. Lady that there are many consultations on tax changes that we publish alongside fiscal events. If she wished to engage with the consultation on electric vehicle taxation, she could do so; if she wished to engage with the consultation on the high-value council tax surcharge that will be published shortly, she could do so too. The Government have published many consultations on tax changes, and on those where formal consultations are not published—it is not universal—we continue to engage in detail with those who are affected, as we have done with this change.

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

Despite many opportunities to do so, the Minister simply refuses to apologise. Despite warnings from so many organisations that this tax would do real harm, farmers, including those in my constituency, have been forced to live with fear and uncertainty for more than 14 months. Can the Minister explain what support his Department will give to the families who have shelled out money for advice and whose businesses have suffered irrevocable damage as a result of this Government?

[Dan Tomlinson]

I have been asked that question already by an Opposition Member, but I am happy to give the right hon. Lady a similar answer. I can say to those families that we listened carefully to the representations that were made about the level of the threshold as it was originally set at the Budget in 2024, and we have now come forward with a change to increase the threshold from £1 million to £2.5 million, which, coupled with the changes announced at the Budget in 2025, will now be transferable between spouses, allowing those families to pass on up to £5 million tax free.

Office for Budget Responsibility Forecasts

Wendy Morton Excerpts

Monday 1st December 2025 Commons Chamber

[James Murray]

Not only is my hon. Friend an excellent advocate for tackling tax avoidance and evasion, but he is absolutely right to point to the fact that what is important for people across this country is that this Budget cuts the cost of living, cuts NHS waiting lists and cuts Government borrowing.

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

It is deeply damaging and, dare I say, unprecedented that we find ourselves here today, listening to this statement about OBR forecasts, midway through the debate on the Budget. It raises more questions, not least because the Chancellor chose not to be here today to answer those questions. Why?

[James Murray]

I do not know whether the right hon. Lady missed my explanation of where the Chancellor was, but I am pleased to announce to the House that the Chancellor is in Wales today, at the Wales investment summit. She is there following yesterday’s announcement of £1.4 billion of extra investment into Wales, and that is just the latest tranche of the £16 billion of new investment announced since the summit was launched.

Budget: Press Briefings

Wendy Morton Excerpts

Monday 17th November 2025 Commons Chamber

[James Murray]

At the Budget last year we took the right decisions to fix the public finances and to get the NHS and public services back on their feet. We could not carry on with public services as they were when we inherited them. We could not carry on with public finances as they were when we inherited them. We have restored stability because that is a prerequisite for functioning public services, for investment and for growth.

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

Leaks, unauthorised briefing and speculation—or maybe not speculation—are creating instability, chaos, volatility and uncertainty for the markets, for businesses and for households in my constituency, so why will the Minister not answer the shadow Chancellor’s question about having an inquiry into what has actually happened? Let us get to the bottom of this.

[James Murray]

As I have said, I am not going to comment on the ongoing Budget process. However, the right hon. Lady mentioned stability, and stability is at the heart of our approach, which is why building more resilient public finances with the headroom to withstand global turbulence is so important in giving businesses the confidence to invest.

Oral Answers to Questions

Wendy Morton Excerpts

Tuesday 4th November 2025 Commons Chamber

[Dan Tomlinson]

I thank the hon. Member for raising her constituent’s issue, and I would be happy for her to write to the Department about it. Even though it is not appropriate for me to get involved in an individual taxpayer’s affairs, I hope the Department can improve on that service. We have improved the response rates for both people making phone calls and people getting in touch via the post, but of course there is always more we can do.

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

6. What assessment she has made of the potential impact of the increase in employer national insurance contributions on businesses.

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

16. What assessment she has made of the potential impact of the increase in employer national insurance contributions on levels of employment.

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[The Chancellor of the Exchequer (Rachel Reeves)]

The previous Government left a £22 billion black hole in the public finances, and in the Budget last year I had to take urgent action to ensure our public finances were on a firm footing and to properly fund our public services, including a £29 billion investment every year in our national health service. The Opposition cannot support more investment in our public services unless they support the tax changes to pay for it.

[Wendy Morton]

I am not convinced that that answer went anywhere near my question. Family businesses are the lifeblood of communities and constituencies such as mine. Last week, I met Family Business UK to discuss how the Government’s national insurance hike and restrictions to business property relief are forcing businesses to pause investment, think twice about taking on more staff and, in some cases, even to close their doors. Ahead of the Budget, will the Chancellor meet me and representatives from family businesses to seek ways in which the Government will work with, not against, these really key businesses?

[Rachel Reeves]

I thank the right hon. Lady for that question, and 43% of employers—almost 1 million—will pay no employer national insurance this year. That is an increase because of the changes we made to the employment allowance. Over half of employers with NIC liabilities will see no change, or will gain overall, and businesses can employ younger people—those aged under 21 and apprentices under 25—without NICs. However, the Conservatives must decide whether they will stick with this change to national insurance. If they are not going to, they will have to admit that they will not be able to put the money into the national health service.

Stamp Duty Land Tax

Wendy Morton Excerpts

Tuesday 28th October 2025 Commons Chamber

[Sir Mel Stride]

We will take no lessons from the Labour party when it comes to the mismanagement of our economy. What I have just set out has led to a Chancellor who had a Budget in October last year in which she blew all the headroom and more, rebuilt it in the spring and is now, as we all know, heading into the Budget on 26 November with a gaping black hole that she will have to fill. That is due to economic incompetence and it is causing huge uncertainty.

I speak to businesses up and down the country. None of them know what to expect. They are all fearful about the tax rises that are yet to come, and that is down to this Chancellor. The consequence is that we have the highest level of unemployment in four years. We know that every other Labour Government in history have left office with unemployment higher than that it was when they came into office. In the retail, hospitality and leisure sector alone, 90,000 jobs have been destroyed under this Government. Young people are bearing the brunt of these policies. Under the Conservatives, youth unemployment fell by around 45%. Under the last Labour Government, it rose by around the same amount, and this Government are on course to do that too. Young people are particularly affected, because the national insurance changes involve not just an increase in the rate but a reduction in the threshold. That affects young people who are desperate to get their first job and their foot on the career ladder the most.

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

Does my right hon. Friend agree that, even in such a short period of time, this Government are showing that it is they who cannot be trusted with the economy and the future of this country? Is it not time they woke up to the reality?

[Sir Mel Stride]

My right hon. Friend is absolutely right. We see that in inflation, which is running at about twice the Bank of England’s target and about twice the rate that this Government inherited from us on the day of the general election. Within that, we see food inflation rocketing up at over 4%, damaging and impoverishing the very people that Labour claims to want to stand up for.

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[The Chief Secretary to the Treasury (James Murray)]

I thank the shadow Chancellor for opening today’s debate with characteristic theatricality. I know that Opposition Members are desperate to forget their time in office. They are desperate for us all to forget the damage that they caused to the economy and to public services on their watch. Surely, however, they cannot have forgotten how the Budget process works, so they will know that no Treasury Minister, particularly in the weeks immediately before a Budget, will speculate on tax changes. Any decisions on tax will be taken at the Budget by the Chancellor in the usual way—[Interruption.] I see surprised faces among Opposition Members, but I remind them that that is how the Budget process works. They will know that the OBR produces a forecast, and the Chancellor will take decisions in the round based on that forecast when she presents the Budget to this House on 26 November.

Notwithstanding those limitations on what I, and indeed any Minister, can say, I will seek to address some of the ideas that the Opposition have tried to raise with this motion. First, let us be honest: stamp duty is hardly a popular tax. Moving house and buying a home is a complex and often stressful process, and stamp duty must be paid at a point when most people probably feel they have enough to worry about already. If there was a cost-free way to get rid of stamp duty, I would not expect long queues of people lining up to keep it. But there is, of course, no cost-free way of doing so. Figures show that the tax raised £13.9 billion in 2024-25.

At this Government’s first Budget, we made changes to stamp duty to help to give first-time buyers, and other people who are buying a home to live in, an advantage over those who are buying second, third or further homes. If an Opposition party proposes getting rid of a tax that raises nearly £14 billion a year, it needs a plan for doing so. Being a credible Opposition means proposing things that could actually work. Frankly, the motion exposes the current Conservative party’s total lack of seriousness, and its complete failure to learn any of the lessons of its time in office.

[Wendy Morton]

The Chief Secretary to the Treasury indicated that if there was a plan to fund the proposal, he would back it. The shadow Chancellor has clearly set out that we do have a plan to fund it, so will the Chief Secretary back it?

[James Murray]

The right hon. Lady is attempting to bring some humour to the Chamber by pretending that the Opposition have some kind of a plan for their proposal. To call their motion half-baked would be not to go far enough. In fact, it shows the recklessness in their approach to the economy. It may be Halloween on Friday, but the ghost of Liz Truss is here today, because the economic recklessness that the former Prime Minister embodied is back in front of us in this Chamber. We have a half-baked motion from the Opposition, built on the wholly unworkable premise of more unfunded tax cuts. Three years on from their disastrous mini-Budget, they have learned precisely nothing.

Taxes

Wendy Morton Excerpts

Tuesday 15th July 2025 Commons Chamber

[Darren Jones]

I roll my eyes because, evidently, all my hon. Friends put themselves forward and stood to serve the country. As my right hon. Friend the Prime Minister has made very clear, he changed the Labour party to make sure that we put the country first. The right hon. Gentleman makes the case that the name of the game is not to get Members elected to this House; if that is the case, he obviously played the game very well, because the Conservatives failed to do that miserably.

At the Budget, we took the decisions necessary to stabilise the public finances and give our public services a vital injection of cash to start to turn around the years of decline that members of the public across the country know: NHS waiting lists growing, schools crumbling, the prisons crisis, and project after project being cancelled or delayed. That investment was underpinned by changes to the tax system to make it fairer and more sustainable, while protecting working people against higher taxes in their payslips.

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

I wonder whether the right hon. Gentleman could help me out by explaining what a working person is.

[Darren Jones]

A working person is someone who goes to work, and in our manifesto we made a very clear commitment to protect working people through the taxes they pay on their pay slips—which is something that we experience when we go to work.

However, we did more than that. We ended tax breaks for private schools to help fund new teachers and raise education standards, supporting more than 90% of children in state schools to achieve and thrive. We removed the outdated concept of domicile status from the tax system, so that all long-term residents of the United Kingdom pay their fair share of taxes here. We ensured that the UK tax system remains internationally competitive, reforming the tax treatment of carried interest. We took further action by raising the higher rates for additional dwellings for stamp duty land tax to support first-time buyers and main home movers, giving them a competitive advantage. We made changes to the energy profits levy to ensure that oil and gas companies contribute to the clean energy transition. In the Budget last autumn the Government introduced the most ambitious package ever to close the tax gap, ensuring that more individuals and businesses pay the taxes they owe.

Income Tax: Personal Allowance

Wendy Morton Excerpts

Monday 12th May 2025 Westminster Hall

[Lewis Atkinson]

Of course, I join the hon. Gentleman in paying tribute to his constituent for securing this debate; 250,000 signatures is an extraordinary level of engagement in the democratic process, and that is to be applauded. I will make some points about the distribution of the benefits of income tax freezes later on in my speech.

The cost of the policy requested by the petition depends on the answers to the questions I just posed. Other Members may wish to speak about how they would approach such matters, but, to aid debate, I thought it would be useful to present some indicative costs. At this point, I want to place on record my thanks to the staff of the House, including those from the Petitions Committee and the Library, for their work in helping me to access such information.

The House of Commons Library estimates that it would cost more than £60 billion to increase the personal allowance to £20,000, make corresponding increases to the higher rate tax threshold, and raise the national insurance threshold to £20,000 to maintain alignment. That figure is consistent with the range of costs expected by the Institute for Fiscal Studies, which I also met in preparation for this debate. The IFS estimates that increasing the personal allowance to £20,000 would cost somewhere in the range of £40 billion to £90 billion, depending on the choices made on the related tax matters that I have outlined.

To put those figures into context, at a minimum cost of £40 billion, the proposal would be at least as large as the tax measures proposed by the September 2022 mini-Budget, which were then quickly reversed after the economy crashed. At the higher end of the estimates—£90 billion—the cost of such a change would be around the same size as the entirety of public revenue spend on education, or two thirds of the total cost of the state pension. It is not for me, in introducing the debate, to advocate one way or another, but I urge Members contributing to speak frankly about the costs and funding of any tax changes they favour.

I hope it is also useful briefly to provide some context about how individuals throughout the UK would be impacted by increases in the personal allowance. The IFS notes that the income level of one third of adults is already below the existing personal allowance. That group—those with the lowest incomes in society—would not benefit from the changes sought by the petition, while the greatest benefits would be received by those who are best off. That is to say, in net, such a change would be regressive, increasing inequalities of income.

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

I thank the hon. Gentleman for setting out the petition’s argument. I came to the debate because an unusually high number of my constituents signed the petition. On the hon. Gentleman’s point about disparities, does he not agree that a considerable number of pensioners feel aggrieved and hard done by at the moment—and rightly so—because of a number of a policy decisions? That is why it is worth the Government having a proper look at the petition and what it proposes, and not just the financial aspect. If pensioners were able, for example, to earn a little more before they hit the threshold, they would have more to put back into the economy, and those who continue to work might want to do so for a little longer.

[Lewis Atkinson]

I thank the right hon. Lady for that intervention. Of course, it was the previous Government who harmonised the income tax thresholds for pensioners and those of working age alike, the situation having previously been different. I absolutely recognise the stress felt by pensioners around the land. That is why such a debate is difficult without wider consideration of pension incomes and in particular the maintenance of the triple lock, which is not the subject of this debate, but which strikes me as important to consider.

As I was saying, there is a disparity between the potential benefits of a significant increase in the personal allowance for those with different levels of income, with those earning the most benefiting the most from such an increase. Members may also wish to know that there would also be significant geographic differences in the impact of any changes. The places with average lower levels of income—for example, Sunderland—would lose out relative to places with higher average incomes, which are disproportionately in London and the south-east. Were such tax changes funded by cutting public services, regions such as the north-east would lose out even more. I hope those matters of context will help inform the debate this afternoon.

I will end where I started, with a reflection of public sentiment on living standards. As other Members have mentioned, there is undoubtedly a strength of public feeling on these matters. We have to be frank: it is our job to improve the incomes and lives of the people that we serve. When I am out in Sunderland Central every week, that is the key issue that people raise with me, because for years they have been no better off and, in many cases, they are struggling to make ends meet. I get it. Putting more money in people’s pockets so they can do what they want is the public’s top priority. A key part of that is managing the public finances well. We all saw what the Liz Truss mini-Budget and unfunded half-baked tax plans did to living standards.

[Wendy Morton]

Will the hon. Gentleman give way on that point?

[Lewis Atkinson]

No, I will make progress. The public expect us to do better than that and they expect us to do more. They want wages and pensions to go up faster than inflation, as is now starting to happen. They want to the personal allowance to rise. I pay tribute to Mr Frost again for calling for those measures, and to all those who signed the petition. We should be hugely thankful to have citizens who are engaged in our parliamentary democracy, as the 250,000 people who signed the petition are. I look forward to an interesting, and I hope informed, debate.

Oral Answers to Questions

Wendy Morton Excerpts

Tuesday 8th April 2025 Commons Chamber

[Rachel Reeves]

Hear, hear. I had better declare an interest as a proud Member of Parliament for Leeds West and Pudsey. West Yorkshire combined authority is receiving £830 million for transport spending through round 1 of the city region sustainable transport settlement. That includes £200 million for the development of a mass transport system. For too long Leeds has lacked this. This Government will put that investment in and get those trams running.

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

T3. With the jobs tax and the increase in business rates, and as a result of US tariffs, it is vital that we stimulate the UK economy. What is the Chancellor’s plan, and can she expect us to see interest rates fall? Perhaps if she was listening to the question, she would be able to answer.

Spring Statement

Wendy Morton Excerpts

Wednesday 26th March 2025 Commons Chamber

[Rachel Reeves]

My hon. Friend is a proud advocate for her city, and this Government are a proud advocate for the people of Portsmouth. That is why we have put investment in the Portsmouth naval base in today’s statement. As we grow our defence spending to keep our country safe and secure, we want to ensure more good jobs that pay decent wages, to make Britain a defence industrial superpower, and to support those who serve on the frontline.

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

Today, the Chancellor could have taken action to reverse the damage that she has done to people and businesses in my constituency and beyond, but she failed; she chose not to. What does she say to all the pensioners, farmers, businesses, charities, hospices and hard-working people who face her huge tax rises?

[Rachel Reeves]

When I became Chancellor, I inherited from the Conservative party a £22 billion black hole, which we have taken action to address. I would say to the right hon. Lady’s constituents that they will now see a doctor or nurse more quickly than under the last Government, because NHS waiting lists have fallen for five months in a row.