Taxes

Alison Griffiths Excerpts

Tuesday 15th July 2025 Commons Chamber

[Phil Brickell (Bolton West) (Lab)]

It is a pleasure to speak in the debate, and I do so on behalf of my constituents, who dutifully pay their taxes in the expectation that they will receive a fair deal in return. Today’s motion from the official Opposition implies that the efforts that this Government have undertaken to deliver that fair deal are not in the interests of those constituents. I reject that premise entirely. Instead, Labour in government has constantly and rightly stuck to ensuring that those with the broadest shoulders carry the greatest burden. That approach has secured over £20 billion a year of revenue to pay for schools, the NHS and our national security. The Chancellor has restored responsibility and credibility—

[Alison Griffiths (Bognor Regis and Littlehampton) (Con)]

Will the hon. Member give way?

[Phil Brickell]

I will make some progress given the time limits that will be put in place on other Members.

That finally put us on a strong footing to move on from the irresponsible and reckless chaos of Liz Truss’s mini-Budget and the litany of unfunded spending commitments left behind by the previous Administration, who had no intention of implementing them.

I must remind the House of what Labour inherited from the last Government when the Chancellor walked through the doors of No. 11 just over a year ago: a national debt at nearly 100% of GDP—the highest since the 1960s; living standards falling for the first time since the 1950s; anaemic growth that left us second to last in the G7; and the UK as the only G7 country where the employment rate had still not recovered to pre-covid levels by the first quarter of 2024. That was the Conservative legacy—a legacy of economic mismanagement and a tax system weighed down by loopholes, complexity and underenforcement, so I will take no lectures on fiscal responsibility from the architects of that wreckage.

We on the Labour Benches will not indulge the fantasy that the path to prosperity lies in slashing public services, making unfunded promises and claiming that we can borrow endlessly without consequences. Our constituents deserve better. This Government, led by the Prime Minister and the Chancellor, are getting on with what Labour always provides: a Government of service.

First, let me address the abolition of the outdated non-dom regime. For too long, our tax code allowed the very wealthiest to live in this country and enjoy our services, infrastructure and rule of law but contribute only a token amount to the national purse. That ended, quite rightly, with this Government. The new residency-based regime is a matter of principle: “If you live here, you pay here.”

Secondly, we have increased the rate of capital gains tax on share sales—not to punish wealth but to deliver fairness. Many of my constituents contact me to say that they see no reason why wealth—assets, and stocks and shares—should be taxed less than work. There is more to be done on that, but I welcome the measures that the Government have taken so far.

--- Later in debate ---

[Dr Sandher]

We saw it in the insulation build-out; David Cameron, as he put it, cut the green crap. Insulation rates were rising when we left office, but they were cut throughout the 2010s; as a nation, we have not had that insulation. That is why we brought in the warm homes plan and are funding it with £13 billion. Millions more homes will be insulated under this Government, bringing down energy bills by hundreds of pounds. Those plans for insulation are funded by the tax rises that the Conservatives oppose. Time and again, we ask them what they would like less investment in, and time and again, no answer is given.

We on the Government Benches are trying to build a country according to our values—a country where each of us is doing well, is doing better, is better educated, is healthier and finds it easier to get around. Those are the building blocks of our nation’s wealth. To build that wealth takes investment, which must be funded, and those who benefit most from our nation’s productivity should be asked to contribute more. That is exactly what this Government are ensuring.

[Alison Griffiths]

Does the hon. Gentleman recognise that if people are to contribute, the fundamental bedrock is having a job, and that the jobs tax is causing mass unemployment and business closures?

[Dr Sandher]

Employment is rising, and has risen since the general election. [Interruption.] The reason why unemployment is rising is that more people are seeking to enter the labour force; people are less inactive than before, because we are getting waiting lists down. I would rather people were looking for a job than stayed out of the labour force entirely, as the Opposition would have it. We want to build the kind of country where people are able to work.

We increased employers’ national insurance contributions in the Budget while protecting the smallest businesses. We ended the non-dom tax break, to make sure that the ultra-rich could not escape taxes by using a loophole, and increased taxes on private jets. We are getting more of the energy giants’ unearned profits into the public purse to invest in the things that we all need.

We know the Conservatives will complain constantly about the things we are raising money for, but they will never say what they would cut. We saw what happened over the past 14 years; we saw the weaker nation they left in their wake. The Government are investing to change that for good. After the past 14 years, we were left a weaker and more divided nation—a nation in which each of us produces less, and looks inward as we have found it harder to pay the bills. That is exactly what the Government are fixing, and what we are investing in.

I am proud of this Government. I am proud of this country. Most of all, I am proud of the country we will build, in which each of us does well, and we recognise that our common strength is found in our common prosperity.

--- Later in debate ---

[Alison Griffiths (Bognor Regis and Littlehampton) (Con)]

Hard-working families and business owners in Bognor Regis, Littlehampton and our villages are feeling the squeeze as never before. Labour stood on a manifesto promise not to raise taxes for hard-working people, yet at the very first opportunity, in the autumn Budget, they raised employers’ national insurance. This is a tax on job security and job creation. It is a tax on growth and a tax on ambition.

The jobs tax—one of the Chancellor’s flagship failures—has wrecked business confidence. It has made it more expensive to hire workers, stagnated the jobs market and threatens countless job losses and business closures. It falls on top of the Employment Rights Bill, which signals the return of 1970s-style employment laws that will further stifle growth, as well as the family business tax, higher business rates and higher wage bills. In small coastal towns like Bognor Regis and Littlehampton, where over 90% of local businesses have fewer than 10 employees, every cost increase and every job loss is keenly felt. Across our constituency, families, small businesses, hospices such as St Wilfrid’s and charities at the heart of our communities face an impossible position.

In their short time in government, Labour has become the party of taxation. The Chancellor has backed herself into a corner, and more tax hikes are undoubtedly on the horizon. That is why I thank the Leader of the Opposition for tabling this important motion. Working people in Bognor Regis and Littlehampton and the businesses, charities and hospices that employ them need to be defended from this Government’s tax raids, and that is what I intend to do—to stand up for the people of Bognor Regis and Littlehampton today, tomorrow and throughout this Parliament.

[Mr Deputy Speaker (Sir Roger Gale)]

I call the shadow Minister.