Budget Resolutions

Catherine McKinnell Excerpts

Wednesday 26th November 2025 Commons Chamber

[Catherine McKinnell (Newcastle upon Tyne North) (Lab)]

I would normally extend the courtesy of saying that it is an honour to follow the hon. Member for Angus and Perthshire Glens (Dave Doogan), but that speech was all a bit dreich.

I have reflected hard on this Budget, as it is the first since I left my role in the Government as Minister for School Standards. As the first Labour Minister for 14 years, I focused relentlessly on more teachers in classrooms, more support for struggling schools, pay rises that teachers deserve, an inclusive school system, and curriculum reform to transform the life chances of every child. Believe me, I would have given anything to have found a few million, or indeed a few billion, behind the Government sofa, had there been that chance when making some of those decisions, and I suspect the Chancellor has known exactly how that feels over the past few weeks.

To scrutinise public spending and to draw on those experiences of making tough decisions in government about how we spend the public’s money were among the reasons I joined the Public Accounts Committee. I have enjoyed our deep dives, examining how public services are delivered, where schemes fail, making sure that lessons are learned, and ensuring that we spend every pound in the best way possible. Just last week, we looked at clinical negligence—an area with a staggering £60 billion of accumulated liabilities. We have a golden opportunity to cut those costs and deliver better care at the same time, so I encourage the Chancellor to read our report when it lands, because it might come in handy for next year’s Budget.

[Peter Prinsley (Bury St Edmunds and Stowmarket) (Lab)]

Does my hon. Friend acknowledge that the cost of clinical negligence claims in maternity services is now greater than the cost of maternity services?

[Catherine McKinnell]

I share those concerns, as I know does the right hon. Member for Godalming and Ash (Sir Jeremy Hunt). We have cross-party interest in making better use of those resources. I thank the Chancellor for her comments about the infected blood contamination scheme, which is proudly delivered from my constituency in Newcastle upon Tyne North. The team there are incredibly proud of the work they are doing, and they will be proud of the announcement that the Chancellor made today.

Working people in Newcastle are feeling worn down by the cost of living. We know that everybody is feeling the squeeze—it is relentless and it is grinding, and I know the Chancellor knows that too, and has sought in the Budget to deliver on that promise of a better life for a hard day’s work. Many measures in the Budget will deliver that, such as the freeze in rail fares, extending the bus fare cap, measures on fuel duty, frozen prescription charges, and the cut in household energy bills.

I also know that the Chancellor cares deeply about children trapped in poverty, too often in families that are working hard and doing their best. I saw those stories at first hand on the Government’s child poverty taskforce. The driving force behind the crisis is the two-child limit. In the north-east alone, tens of thousands of children living in poverty will be lifted out of that by today’s announcement. The limit is both economically foolish and morally wrong, which is why charities and businesses in the north-east have been calling for it to be scrapped. Poverty comes at a price—a price in NHS bills, educational failure, and wasted potential. I strongly welcome the Chancellor’s decision to scrap that limit today.

[Lizzi Collinge]

On that point, will my hon. Friend give way?

[Catherine McKinnell]

I am afraid that I cannot give way because the time will keep running down. Scrapping the limit is just the start and it has to happen in the context of wider welfare reforms that ensure that every child grows up in a home where work pays and where families can thrive.

The mention of home brings me to council tax. There are deep-rooted inequalities in Newcastle. Just yesterday, I looked up two properties that are for sale: there was a lovely 1,600 square feet, five-bedroom house in Newcastle Great Park for £420,000, and a grade II listed former church in Knightsbridge in London of over 12,000 square feet, with seven bedrooms and a swimming pool, selling for £35 million. If I asked my constituents, “Who should pay more council tax?”, it is pretty obvious what the answer would be, yet incredibly my constituents will pay £75 more in council tax than that household in Knightsbridge. While I welcome the Chancellor’s announcements about council tax, I urge the Exchequer Secretary to go further and to review council tax bands, especially how new properties in all the new estates that are growing around the country are assessed.

Turning briefly to the new powers for mayors on overnight stay levies, of course people flock to the north-east for good reason—our history, culture, stunning coastlines and the friendliest people they will ever meet. It is only fair that tourists help to fund the infrastructure that they use and enjoy when they stay, so I understand why mayors welcome this power and want to decide about it at a local level, so the amount is not just set in London but in every region, according to what works. However, that levy has to be proportionate and not have an unfair knock-on hit on small businesses, because if those businesses go under, we will lose jobs, vibrancy and what makes the north-east special.

Our hospitality sector is under incredible pressure. I know that it is busting a gut to turn a profit and that every cost could be the one that breaks them, so while I welcome the higher wages in this Budget, we have to listen to some of the concerns raised by the Resolution Foundation. We do not want to discourage businesses from hiring, and especially not young people who want to take their first step on the job ladder.

Finally, on electric vehicles, I appreciate the changes announced on pay per mile, but the affordability of electric vehicles remains a barrier to some who want to buy one and to do the right thing. Many workers have access to salary sacrifice schemes to help make the switch, but teachers in academy schools are still unable to access a scheme, because it was put on pause by the Treasury. I want to take the opportunity to make a plea that the Treasury sort out this impasse once and for all. It would be a win-win for teachers and the electric car scheme.

To conclude, the goal is clear: a country where hard work pays, the cost of living is brought back under control, public services thrive and child poverty is history. Every pound of public money matters, because we know that it has the potential to transform lives. That is what people rightly expect of this Government, and I know that is the future that the Chancellor is working to deliver and why she has announced this Budget.