Budget Resolutions
Debate between Angus Brendan MacNeil and Darren Jones(1 month, 2 weeks ago)
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Darren Jones
I would like the hon. Gentleman to explain that to the public. Given that the Conservative party makes promises at every single election and fails to deliver them, I think the public have the same question in mind.
Moving on to the confusion about this being a tax-cutting Budget, the Budget documents confirm that the United Kingdom has the highest tax burden in 70 years, and that burden rises each and every year for the next five years under the Conservatives, so overall, taxes are going up, not down. Figures from the Office for Budget Responsibility show that for every 10p extra in tax paid by working people, the Conservatives give only 5p back. That is why the public see the measures as a pre-election giveaway by the Conservatives—but it is no giveaway at all, given that successive Conservative Chancellors have taken double what they now promise to give back.
This is bad news, and not just for those already paying taxes. Tax thresholds are being frozen for the next five years, which will increase the tax take overall by an additional £40 billion, so 3.7 million people, including pensioners, who are not paying tax at all will do so by 2028-29 under the Conservatives. The tax burden is going up; Conservative Ministers are taking more in tax than they say they will give back; and more people will pay tax after this Budget, so I have to ask: why are Conservative Ministers calling this a tax-cutting Budget at all?
May I gently point out that the Scottish National party is just as bad? In Scotland, the SNP has increased taxes on working people, so that even the low paid pay more in tax in Scotland than they would in England, yet the SNP campaigns against the windfall tax on the big oil and gas companies. Are SNP Members really putting oil and gas company tax cuts ahead of tax cuts for working people?
Darren Jones
I was waiting for an intervention from the SNP. Is the hon. Gentleman an SNP Member?
Angus Brendan MacNeil
I am not in the SNP, but I do like a bit of accuracy and proof. The reality is that those earning under £28,000 are not paying more tax. The hon. Gentleman’s reference is a straight lift from an article in the Holyrood magazine. It was a very good article otherwise, but on that little bit, it was not very accurate at all.
Darren Jones
I read the article on the BBC, which I can assure the hon. Gentleman is a pretty reliable source of information. If the SNP wants to tell teachers and nurses earning £28,000 a year that they are high earners, I encourage it to do so in the general election coming up this year.
Labour first called for a windfall tax on the profits of oil and gas companies in January 2022. The Conservatives finally agreed to introduce the energy profits levy in May that year, though there were significant holes in the Government’s approach. Since then, Labour Members have been pressing Ministers to close them. Ahead of the general election, we have set out our plans for an energy profits levy if we win. We will increase the levy to the same rate of tax as in Norway, end the windfall tax investment allowances, and maintain the levy until the end of the next Parliament, with a statutory sunset clause, if there continue to be windfall profits. We have set out our plans now to give those operating in the North sea as much certainty as possible when making future investment decisions. To give further certainty, I can put on record today that we fully support an energy security investment mechanism, and we will therefore support Budget resolution 18 today.