Budget Resolutions and Economic Situation

Andrew Lewin Excerpts

Wednesday 28th October 2026 Commons Chamber

[Andrew Lewin (Welwyn Hatfield) (Lab)]

This is a Budget that supports those who need it most through the winter and that ask the banks, which are on course to make record profits, to make a greater contribution. Crucially, it backs young people with the ambition to own their own home and to build a business.

There is lots to reflect on. As the newest member of the Treasury Committee, I intend to get into the detail in the weeks to come, but I will start with the international context. It is crucial that we have an honest debate in this House and in the country about the impact that context has on all of us. It is true that we are spending billions more on debt interest than was projected just a few months ago, but that is not because of extra borrowing by this Government; it is because of the global spike in inflation caused by the war in the middle east. It is also the case that the IMF has praised our Government for taking decisive action on deficit reduction. However, in the 21st century no country and no economy can stand alone.

[Mike Wood]

The hon. Gentleman will be aware that a key part of the deficit reduction strategy—according to the Red Book—is a reduction of 2% a year in the annual spend on mainstream schools after 2028-29. Will he go into the next general election promising that in his manifesto?

[Andrew Lewin]

It is news to me that I will be writing the manifesto, but I am always open to a promotion. Our spending review will cover all elements of spending on public services, but this is a Government who have backed public services, unlike the Conservative party.

In a more uncertain world, it is imperative that the UK lives by our values. I have been going through the Red Book, and—this is on page 103—the single biggest increase in investment announced today is in our defence, to fund the defence investment plan. That is a very important statement of intent at such an uncertain time for our country, Europe and the world, which is further demonstrated by the package of £10 billion for additional support in loans to Ukraine.

Before the Budget speech, I was pleased to hear the Prime Minister reassert how important it is to him that we have a stronger economic trading relationship with the European Union. Also—I will be honest—I am slightly pleased by how much it upset the hon. Member for Harwich and North Essex (Sir Bernard Jenkin), because that means we are going in the right direction. It is a sad state of affairs that the Conservative Party has drifted so far away from mainstream business opinion that they are saying they will not countenance any improvement in our deal with the European Union. That is why people in areas such as mine, Welwyn Hatfield in Hertfordshire, are no longer voting Conservative.

[Graham Stuart]

It is not that we do not wish to see a better deal with the EU. After we left, every day in government was about trying to get the EU to be more reasonable, and that is always a good endeavour. I think the fear—the hon. Gentleman would probably recognise this—is that we have a Government who thought it was a good idea to negotiate the giving away of British sovereign territory somewhere far away and then pay tens of billions of pounds for the privilege. They are not the people we want representing us in Brussels, are they?

[Andrew Lewin]

I think the right hon. Member is talking about the issue of the Chagos Islands, which has absolutely no bearing on the speech that I am making today, but if the Conservative party wants to hold to its position that the current deal with the EU is a good one, I will take that debate any day of the week.

[Max Wilkinson]

Will the hon. Gentleman give way?

[Andrew Lewin]

I will not give way now, but I may do so later. [Interruption.] I am keen to make some progress.

Closer to home, in Welwyn Hatfield, 35,000 households will benefit from the £100 direct payment to help with energy bills this winter. The ending of standing charges on gas bills will particularly help those in smaller homes and flats, and it is unquestionably the right thing to do. I was also pleased, earlier in the week, to see the announcement about the warm homes plan, with low and zero interest rate loans for people who are able to make energy improvements to their properties, and cheaper public charging for electric vehicles. That is an all-round energy package that I believe we can support.

Let me now say a little about the national health service, which has not featured in the debate as much as it might have. Waiting lists have fallen sharply since the election of this Government, and ambulance response times in my region in the east of England have improved markedly in the last year. There is a great deal more work to do—there is no question about that—but this improvement has only been possible because of the investment made in this and previous Budgets. It is striking that £37 billion more is being spent on the NHS under this Government than was spent by the Conservatives.

[Dr Danny Chambers (Winchester) (LD)]

It was slightly disappointing that the Budget made no commitment to restoring the mental health investment standard. There is an economic imperative in that as well. Millions of people are on waiting lists for mental healthcare, but if we could get them off waiting lists and back into work, that would help to grow the economy. Does the hon. Gentleman agree that we should restore that mental health investment standard?

[Andrew Lewin]

Mental health support is hugely important—I absolutely recognise that. One of the things that this Government are doing is introducing mental health professionals in every school. I am sure that Members from across the House have had conversations with constituents and seen young people struggling terribly. There is more to do, but we are making progress.

[Damian Hinds (East Hampshire) (Con)]

Will the hon. Gentleman give way?

[Andrew Lewin]

I am going to make some progress.

Today the Chancellor has asked the banks to contribute more via a surcharge, and it is really important that we look at the context in which we are having this discussion. I looked at the figures, and all the major banks that operate in the UK are on course for record multibillion-pound profits. That often happens in cycles in which there are high interest rates, so it is the case that banks can make a contribution via the surcharge and still have an exceptionally good year.

I have to say that I am surprised by the Conservatives. If they want to have an election, whenever it may come, in which they go around saying, “We oppose a slight increase in the surcharge on the banks,” they will find themselves on the losing side of that argument.

In the years to come, we need our entrepreneurs and young people to succeed, which is why I was so pleased to learn of the founders’ relief scheme for British entrepreneurs this afternoon. It is a statement that we will back people with the vision and ambition to build a business here.

I will let you in on a secret, Madam Deputy Speaker: the first conversation that I had with our new Prime Minister in Parliament—actually, the first one was about cricket, but the second was more substantive—was about housing and home ownership. I said to him directly that it is so important that we as a Government make the case for giving people the opportunity to get on the housing ladder, especially those who cannot rely on support from the bank of mum and dad. That is why I am so pleased by the announcement of the Your First Home equity loan scheme this afternoon. It has the potential to change thousands of lives in my constituency and many more across the country. The introduction of a 2.5% deposit means that people living in Hatfield or Welwyn Garden City have a chance of getting on the housing ladder with a deposit well under £10,000, bringing it into reach for many more people.

[Iqbal Mohamed]

I welcome the Government’s announcement that they will reduce the deposit for first-time buyers. Does the hon. Gentleman agree that the price of housing is so extortionate that, on today’s average wages, someone with a 25-year mortgage will never, ever pay off the debt accrued? Mortgages will end up lasting 30, 40 or 50 years, and young people who get on the housing ladder will end up paying for the rest of their lives. They may not have paid off their mortgages before they retire.

[Andrew Lewin]

The housing crisis is a multifaceted problem. We have to build more homes of all tenures, but Your First Home is a really important part of driving demand, particularly because young people who are renting at the moment are paying more than they otherwise would if they could get a foot on the ladder. That is why the deposit scheme will make such a difference.

If you need extra support with energy bills this winter, it is coming. If you run a small high street business, business rates are coming down. If you are an entrepreneur, risk will be rewarded and your tax bill will come down in the future. If you are striving to buy your first home, this Government are on your side. The world remains unstable and we are not immune to it, but this is a Budget that I believe can give confidence to people in Welwyn Hatfield and across the country.

[Several hon. Members rose—]