Budget Resolutions

Charlotte Cane Excerpts

Monday 1st December 2025 Commons Chamber

[Charlotte Cane (Ely and East Cambridgeshire) (LD)]

I, too, welcome the Chancellor’s decision to remove the two-child benefit cap. I was proud to stand on that policy from the Lib Dem manifesto, because it will lift at least 350,000 children out of poverty. It will go a long way to helping families with the cost of living, but it is no good if the Chancellor gives with one hand and takes away with the other.

My local councillors are still waiting to hear how the new crisis and resilience fund will work and how much funding they will receive. It will replace the household support fund, from which they currently pay for the school holiday food vouchers. The new scheme should be in place from April 2026, so the councils are now finalising their budgets for that financial year without knowing if they have the funding needed to continue with the vouchers. I hope the Chancellor will soon confirm to councils that the funding will be provided and increased in line with demand.

[Mr Hussain]

Does the hon. Member agree that, in working-class towns such as Blackburn, where years of under-investment have taken a real toll, only targeted, needs-based funding will bring down the cost of living and lift real economic growth?

[Charlotte Cane]

I actually think we need both. Lifting the two-child benefit cap is really important.

I was also disappointed that there was no help for farmers in the Budget. The Chancellor is maintaining the inheritance tax, which will destroy many family farms in Ely and East Cambridgeshire and across the country. The Government have abolished the fruit and veg aid scheme from this month, removing much-needed support with the capital costs of increasing productivity and accelerating innovation. The Chancellor increases farmers’ costs, the Home Office restricts their seasonal workforce and the Department for Business and Trade signs trade deals that allow unfair competition, but the Chancellor did not give even a small gesture of help to farmers in this Budget.

I visited Christmas fairs this weekend in churches that need hundreds of thousands of pounds’ worth of repairs. People told me of their worries about the listed places of worship grant scheme, which is currently funded only to March 2026. That grant covers the VAT costs of repairs, meaning that fundraisers only have to raise the cost of those repairs, not the additional cost of VAT. I hope the Chancellor will confirm sufficient funding for the Department for Culture, Media and Sport for that scheme to be continued and increased back to previous levels.

We know that we are struggling to provide good-quality social care. This impacts too many elderly, disabled and vulnerable people who are not getting the support they need. It also impacts kinship carers, many of whom are disgracefully hounded to repay so-called overpayments of carer’s allowance, yet this Budget does not invest in social care. I met publicans in Ely and East Cambridgeshire last week who were very disappointed that there was no cut in VAT for hospitality businesses in the Budget. As their costs go up, for staff, supplies, fuel, duty—you name it, their costs go up—they have to increase their prices, and then they have to add 20% VAT to those increases, so a meal costed at £25 will have another £5 of VAT added to it. Reducing the rate of VAT would reduce those businesses’ prices and encourage more customers.

These are all matters that people in Ely and East Cambridgeshire have asked me to raise in this debate in just the few days since the Budget. They are things that make businesses and individuals struggle with inflation and the cost of living, and the Budget has not addressed them. The Chancellor told us of the difficult choices she had to make in this Budget, but it did not tackle the main problem, which she herself has identified: our relationship with Europe. If she negotiated a new customs union with Europe, as well as a youth mobility scheme to create new opportunities for our young people, she could fill the £90 billion-a-year black hole left by the Conservatives’ catastrophic Brexit deal. People are going to have to pay higher taxes for less public services because the Chancellor and this Government will not cure that £90 billion Brexit black hole.