Finance Bill

Will Forster Excerpts

2nd reading
Wednesday 27th November 2024 Commons Chamber

[Mr Will Forster (Woking) (LD)]

This Finance Bill is bad news for my Woking constituency. In the Budget, the Government announced an extra £1.3 billion for local authorities. That might sound good, but the reality is stark. Inflation, rising wages and increased demand for services mean that councils are facing a £6.2 billion funding gap over the next two years. By failing to provide adequate funding in this Budget and Finance Bill, the Government are pushing some councils to the brink of bankruptcy.

The situation is even worse in Woking, as our local authority has already gone bankrupt. Woking borough council, a small authority in a two-tier structure, is carrying £2.1 billion-worth of debt. Members can guess which political party ran the council at the time: the Conservatives. It is an eye-watering figure, and taxpayers should never be put in the position of footing such a bill, but they will have to shoulder it. As part of the Government intervention in Woking, the borough council will have to sell a lot of its assets to try to pay off the debt. However, at current values, those assets are worth £1 billion, which is a huge gap that puts the council in massive negative equity.

The Government like to talk about a £22 billion black hole, but I fear the black hole is worse than they realise. To understand these issues, Ministers need to look at local government bad debt and off-balance-sheet debt. It is quite possible that my local authority alone will not repay £1 billion of debt that this Finance Bill assumes will be repaid. Woking is just one local authority in one constituency out of 650. This Finance Bill makes mistakes, but it could be even worse if it is built on flawed foundations.

One way for my constituency to get out of the mess we have inherited is to grow the town, so that our economy grows and improves. However, I worry that this Budget and Finance Bill undermine that goal. The measures go after small businesses, which are the lifeblood of my high street and community. I am particularly concerned that the increase in alcohol duty will hit small breweries, such as Thurstons in my constituency.

Like many of my constituents and neighbours, I use buses all the time. Buses are a lifeline for us. The £2 fare cap was helpful during the cost-of-living crisis and encouraged people back on to the buses after the covid pandemic. However, the Government are now scrapping it. A resident from Knaphill told me:

“The rise is concerning. With a £1 increase each way, it will put even more strain on pensioners like me.”

It amounts to an extra £500 a year for someone who commutes by bus every day. That is a huge burden at a time when households and families in my constituency and elsewhere are already struggling.

Buses are not just a convenience or a luxury; they are the backbone of local economies, connecting people to work, schools, colleges, shops and healthcare. If this Government are serious about economic growth, they should be investing in buses, not hitting passengers with what is effectively a bus tax on working people. In their election campaign, the Labour party promised not to increase taxes on workers, but this Budget and Finance Bill do just that. At a time when people are facing the worst cost of living crisis in decades, this Finance Bill increases the tax burden on everyone.

The Liberal Democrat manifesto and our reasoned amendment show that there is a fairer way. We have bold plans to properly fund the NHS, social care and other public services by asking big banks, oil and gas giants and big tech companies to pay their fair share. Our plan is ambitious, which is what this country needs; Labour’s Budget does not come close. The Finance Bill does not go far enough to protect people and the services that they rely on.

The Government need to get their priorities right. The Liberal Democrats are against the Bill because it does not effectively tackle the crisis in social care, or reverse cuts to winter fuel support. It does not support people with the cost of living crisis, and it introduces a shocking tax on education. Woking deserves better, and this country deserves better.

Oral Answers to Questions

Will Forster Excerpts

Tuesday 29th October 2024 Commons Chamber

[Tulip Siddiq]

I think we were mis-sold a lot of things by the previous Government, if that is what the hon. Member is talking about. I remind him that we had the investment summit recently, where we secured £63 billion of private investment, creating more than 38,000 jobs. That is more than double what the previous Government secured in 2023.

[Mr Will Forster (Woking) (LD)]

7. What fiscal steps she is taking with Cabinet colleagues to help support households with energy bills.

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

Household energy bills have fallen by 30% since their peak, and are now around £800 lower for a typical household. This Government are committed to improving the quality and sustainability of our housing stock through our warm home plan, further details of which will be set out through the spending review. That will be vital in making sure that the UK is more energy-resilient, in lowering household bills and in meeting our 2050 net zero commitment.

[Mr Forster]

Given that many constituents of mine in Woking and across the country live in fuel poverty and are fearful of losing their winter fuel allowance, does the Minister or the Chancellor agree that targeted support for low-income families and households should be included in tomorrow’s Budget or in the warm home plan, so that no one has to decide between eating and heating this winter?

[James Murray]

The hon. Gentleman can see our commitment to supporting vulnerable households with the cost of energy and food in our extension of the household support fund, at a cost of half a billion pounds, from the end of September to the end of March. That will allow local authorities to help low-income families with the cost of essentials, such as food and energy.

Business Property Relief and Agricultural Property Relief

Will Forster Excerpts

Thursday 17th October 2024 Westminster Hall

[Mr Will Forster (Woking) (LD)]

Wanting to leave your children something is a natural part of being a parent. Right now, inheritance tax is quite unfair. Families face a tax rate that is very high by international standards. Tax-free allowances have been frozen for some time, while house prices and inflation have gone up significantly. It is understandable that people I have met on the doorstep in Woking over the years have said that they are worried about their family being caught by that tax, even though they are by no means wealthy. Meanwhile, economists and policy experts have expressed concerns about the ways in which inheritance tax reliefs can be used. The aim of business property relief is to make sure that family businesses can pass from one generation to the next. I hope everyone here would agree that that is a worthwhile aim.

Woking is a town teeming with family businesses. We all have family businesses in our constituencies that are near and dear to our constituents and that enrich our areas not only economically but culturally, making them unique. We need to ensure that those family businesses are genuinely protected by new rules, so that they can continue from one generation to the next, and we need to ensure that they are genuinely sustainable so that the stewardship of the history and heritage of our local areas is maintained.

Experts point out that certain provisions within business property relief are not particularly well targeted at local family businesses or small businesses, which are usually the ones in most need of support. For example, it has been noted that 100% relief applies in the same degree to businesses of all sizes, from large corporations worth several billion to micro and small family shops or farms. There are also questions about accountancy practices that can give certain financial portfolios the same treatment as a local family-owned shop, pub or manufacturing business. I would welcome the Minister’s thoughts on these issues and on how the Government envisage supporting cherished family-owned companies that champion the heritage and local economy in my constituency and elsewhere.

It is equally important that family-owned farming businesses, which have been the focus of most contributions to this debate, be preserved and protected. Farming is vital to our rural communities, providing the foundation for our whole economy and our food security. We need to have the raw materials and to guarantee safety; s we live in a more dangerous world, we need to be able to feed ourselves. I would like to hear the Minister’s views on how we can continue to support agricultural businesses, ensuring that they continue to operate as family businesses, creating jobs and adding value to their area. I also urge him to recognise the contribution of our farmers practically by accelerating the roll-out of the new environmental land management scheme, properly funding it with an extra £1 billion a year to support profitable, sustainable and nature-friendly farming.

After years of Conservative chaos and neglect, there is no doubt that our NHS and social care, our schools, our local authorities and our other public services desperately need more investment, so I can understand why the Government may look at different options for raising revenue. Our GPs are overstretched, our hospitals are overcrowded and our school buildings are crumbling, but at the same time families and pensioners are struggling with the rising cost of living.

The Conservatives put up their taxes by freezing tax thresholds for years. It would be wrong to ask residents to pay again to clear up the Conservative mess. The Liberal Democrats would therefore focus tax changes on making the system fairer, such as by reversing the Conservative party’s tax cuts for big banks and imposing a proper windfall tax on the super-profits of oil and gas companies. Responsible public finances are essential to the stability, certainty and confidence that drive economic growth, and to getting mortgage rates under control.

Budget Responsibility Bill

Will Forster Excerpts

Committee of the whole House
Wednesday 4th September 2024 Commons Chamber

[The Second Deputy Chairman of Ways and Means (Caroline Nokes)]

I call Will Forster to make his maiden speech.

[Mr Will Forster (Woking) (LD)]

Thank you, Ms Nokes, for giving me this opportunity to make my maiden speech. Before I do, I pay tribute to the hon. Member for Southend East and Rochford (Mr Alaba), who spoke of his and his constituency’s proud military past. I am sure that he will see his constituency through these tough challenges and on to a brighter future.

It goes without saying that it is a great privilege and an honour of a lifetime to be here, having been elected by the people of Woking. I thank them for electing me as their Member of Parliament. However, I must begin by addressing the Bill and severe crisis facing my local authority, Woking borough council. Despite being relatively small, the Conservatives left Woking with more than £2 billion of debt following risky investment decisions. This legacy is one of negative equity, service cuts and unsustainable debt repayments. It could be argued that the Conservatives in Woking invented Truss economics before the former right hon. Member for South West Norfolk had her small stint as Prime Minister. What has happened in my constituency shows why the Bill is so important. I fear that, without support from the new Government, the situation in Woking, like the rest of local government, will only worsen. My constituents will suffer the most, and that is unacceptable when it is not their fault. I urge the Government to step in and provide the assistance we so desperately need to ensure that my community can recover and thrive.

Most people might think of Woking as a modern constituency, but it has a rich history that stretches back through the centuries. Woking was mentioned in the Domesday Book. Sutton Place, famous for being the former home of Paul Getty, dates from 1525, and is one of the oldest unfortified houses in the country. Woking palace—now sadly a ruin—was a royal residence for both Henry VII and Henry VIII. As a result, Woking football club, my local team, is affectionately known as the Cards, after Cardinal Wolsey.

Several Acts of Parliament have had an especially profound impact on Woking. For example, the Basingstoke canal was authorised by Parliament in 1778. The canal runs through much of Woking constituency. It has shaped our area, and is a popular cycling and walking route and a haven for nature. But like so many places in the country, Woking as we know it today was shaped by the railways. With steam, stone and iron, Woking was cast into the proud town it is today. In the mid-1800s we laid the foundations to become the great commuter town we are.

Woking is also a wonderfully diverse and welcoming place, home to the Shah Jahan mosque, the oldest in the country. A vibrant Muslim community has developed in the town as a result. More recently, we have welcomed Ukrainian refugees, and I attended many events to support our new Ukrainian residents with my predecessor, our former MP Jonathan Lord. That was a powerful example of cross-party co-operation, and I thank Jonathan for his service as Woking’s MP, especially on this humanitarian issue where there was no disagreement whatsoever. Although we were opponents at the last election, I wish him and his family well for the future. Woking’s MP before Jonathan was Humfrey Malins, who founded the Immigration Advisory Service in 1992, which to this day provides free asylum and immigration advice to those who need it. He got a CBE for his work. Woking has a proud history of electing MPs who welcome immigration, and I am pleased to follow that tradition.

Our town is also known for its connection to McLaren; it hosts its Formula 1 team and luxury cars are built there. I was privileged to make a visit only yesterday. As a young child of around 11, I remember watching with excitement as McLaren toured the town with its Formula 1 cars, driven by Mika Häkkinen, to celebrate their success. McLaren is winning again, much like the Liberal Democrats.

The town also takes great pride in being home to the World Wide Fund for Nature. We have pressing issues, such as sewage in our rivers and the fight against climate change. I am already working alongside the five other newly elected Liberal Democrat MPs in Surrey to hold Thames Water to account for sewage dumping in our local rivers and streams. One of my first acts as an MP is to bring all the surrey MPs together to meet Thames Water to petition it for improvements and a better service.

Woking is fortunate to be surrounded by green spaces. I love walking my dachshund Toffee on Horsell Common, where HG Wells famously landed his aliens in “War of the Worlds”. So it was not a great surprise when Ed Davey’s Liberal Democrats turned up and started campaigning with their out-of-this-world stunts. Of course, I’m only “woking”—I wouldn’t dare call my Liberal Democrat colleagues aliens.

Getting back to the matter at hand, my constituency has a much-loved local hospital, Woking community hospital. Despite feeling like I was born and bred in Woking, I was not actually born in the constituency. Actually, no one has been born in a hospital in Woking for generations. I was born in Frimley Park hospital, one of the nearby hospitals we depend on, as Woking lacks maternity services. However, Frimley Park is plagued with RAAC—reinforced autoclaved aerated concrete—and its future is far from certain. I will work with my hon. Friend the Member for Surrey Heath (Dr Pinkerton) to press the Government for a solution to rebuild Frimley Park hospital.

Another major issue is the cost of rent and mortgages. As someone under 40—just—I understand these issues deeply. They have been raised consistently by local people on the doorstep. The increased cost of mortgages and rents in the past two years is a further reason why the Bill is so important.

My journey into politics began because of Surrey county council’s failure to protect vulnerable children. At the time, it was rated the worst county council in the country because of that failure. We cannot allow vulnerable children to be failed again.

The wider theme of why I was elected, and indeed why so many of my hard-working Liberal Democrat colleagues have been elected, is that we understand our communities’ local issues. I have worked for 15 years in local government and served as deputy leader of Woking Council. I have seen first-hand the crippling issues that some councils face. When I look at the faces of the Liberal Democrat MPs here, I see people who have worked hard in local government for years. What a glorious theme for this new Parliament: a cohort of 72 who understand the local issues our communities face, and a force for good in the country and in the Chamber when we need it most.

[The Second Deputy Chairman of Ways and Means (Caroline Nokes)]

I call Jake Richards to make his maiden speech.