Stamp Duty Land Tax

Connor Naismith Excerpts

Tuesday 28th October 2025 Commons Chamber

[James Murray]

I would say to everyone who works in building homes that Labour is the party that is getting on with building: we are making changes to the planning system to get those homes build. Despite his attempt to make a link to my previous comment, I notice that the right hon. Gentleman did not address that fact that this motion is entirely half-baked. It is a genuine shame for British politics that we have an Opposition who think that they can put forward a motion like this for serious debate in the House of Commons. To be fair, the Conservative party is steeped in centuries of being in Opposition and in Government, but it has become deeply unserious by putting forward motions such as the one today. The motion simply says that the Conservatives’ plan to abolish stamp duty is “to reduce public expenditure”; that it is—that is the sum of their plan.

[Connor Naismith (Crewe and Nantwich) (Lab)]

The Minister is right to say that the Opposition have not been clear about how they would fund this tax cut, but there are some clues. The shadow Chief Secretary to the Treasury, the hon. Member for North Bedfordshire (Richard Fuller), told a fringe event at the Tory party conference that we should look at the Australian system of state pensions and “essentially” a means-tested state pension. Does my right hon. Friend share my concerns that under the Tories the state pension would be under threat?

[James Murray]

My hon. Friend is right to point out that the state pension would be under threat were the Conservatives to win the next general election. He is also right to draw the House’s attention to comments made by Conservative Members at their party conference. They may think that people are not listening to what they say at those conference fringe meetings, but we get the reports so we know exactly what they said.

From their recent conference, we know that they think that they can find some £47 billion through cuts to public spending, as the shadow Chancellor said, but let us look at the detail. At least half of those fantasy savings come from a welfare plan that amounts to a menu with no prices: a list of measures that the Conservatives say will raise £23 billion in total, but with no breakdown whatsoever of how. In June last year, just as they were on their way out of Downing Street, they said that they could cut £12 billion from the welfare bill. Now they have doubled that without explanation. Frankly, if the shadow Chancellor thinks that he has any credibility on this matter, he is sadly mistaken. He is far from the best person to make this argument, given that he personally oversaw the biggest increase in benefits spending in decades during his time as the Secretary of State for Work and Pensions.

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[Connor Naismith]

The hon. Gentleman said that this tax cut would benefit everybody. Can he tell me how it would benefit people who do not currently pay it because their property is not worth enough?

[Saqib Bhatti]

First of all, it would increase mobility in the housing market. As my right hon. Friend the Member for North West Hampshire (Kit Malthouse) stated in an incredibly eloquent speech, it would also mean that the construction industry and all the peripheral jobs would start to mobilise. It would create economic growth—I suspect that the figure of £1.2 billion is probably a bit of an underestimate, and that abolishing stamp duty would actually create more growth. We are talking about creating jobs, making people wealthier and being aspirational for the aspirational, whereas Labour Members are talking down a credible policy that would put money on the table for some of our poorest people. Ultimately, abolishing stamp duty would mean that more and more people are able to get on to the housing ladder.

Let us face it: the Government are not going to meet their housing targets. It is already quite obvious that they are massively behind, and it will not be possible to meet their targets. They are killing off aspiration and confidence in the economy, and house builders will not want to meet the targets—unless, of course, they are met with huge subsidies. The question I have for those on the Government Benches is this: given the current economic situation, how much representation have they made to their Chancellor about introducing growth principles and cutting taxes so that people have more money in their pockets? The answer will be none, because that is not happening.

The hon. Member for Loughborough (Dr Sandher) said that he was not making an argument for not cutting welfare, but he did not put a figure on the table. We know that the welfare bill is ballooning, and it started ballooning post covid. We intervened during the pandemic, which had to happen. We saved a £2 trillion economy, we saved businesses and we saved jobs. We did all those things—sometimes with the support of those on the Opposition Benches and sometimes without, I am sad to say—to save the economy. Of course, all of that comes with a cost. It is now right that we look forward to make sure that we are putting proposals on the table that help grow the economy and, by the way, help the Chancellor to get out of this mess. I want her to do better, because right now I have constituents who are struggling, who are anxious and who are worried. Her policies, backed by those on the Labour Back Benches, have contributed to higher inflation and a higher cost of living. These are all consequences that they backed by walking through the voting Lobbies.

There is a Budget coming. Although Labour Back Benchers may be talking in silos, the Government are already briefing the papers about all the taxes that will rise. They talk about “serious Government”, but they are not talking seriously about the cuts that they will have to put on the table, because the Chancellor knows that the moment she does that, it will be her Back Benchers who stab her in the back. That is her fundamental conundrum, because she also has to placate the bond market, where we have highest bond yields. I see Labour Members shaking their heads, but that is the reality of what Back Benchers are dealing with. We are putting good proposals on the table that would mean that young families who want to get on the housing ladder—[Interruption.] I am happy for the hon. Member for Hitchin (Alistair Strathern) to intervene if he wants. No? I was offering him an opportunity, because I was getting distracted by his chuntering.

The reality is that most serious economists, such as Dan Neidle and those at the Institute for Fiscal Studies, have said that stamp duty is a bad tax. In fact, the hon. Member for Swansea West (Torsten Bell), who I hear has been instrumental in writing the Budget, has talked about stamp duty being a “bad tax”. We all agree on that, so we have put a funded policy on the table that the Chancellor is going to need. Surely this is something that we should all take seriously, because the Government will need answers. I suspect we will come back to that.

A lot has been made of the Chancellor’s fiscal rules. The Chief Secretary to Treasury said that they are “ironclad”, and I suspect they are until the next ones. We have a golden rule. In the spirit of rules, the Leader of the Opposition has created a golden rule, which is that for every £1 saved, half will go to cutting our national debt. Surely we can all get behind that. When the interest on our debt is something like £100 billion a year, surely we can get behind that. When the Chancellor is borrowing more month after month to meet everyday spending, as is obviously happening, we should get behind that rule.

The last point I want to make is about the cliff-edge argument. As my right hon. Friend the Member for North West Hampshire mentioned, we had the window during covid. I was one of those on the receiving end of not being able to buy a house at that time. I was looking for a house for my new family, and houses were going quickly because people were trying to beat the cliff edge at the end of the stamp duty window. This proposal is not the same, because this gets rid of such a window, and it means that more and more people will be able to buy houses.

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[Connor Naismith (Crewe and Nantwich) (Lab)]

I start by acknowledging a point that many Members across the House have made. Many of us would not defend the principle of stamp duty; indeed, if it did not already exist, it is hard to believe that we would invent it. However, that is not the question before us today. If we are to decide to abolish stamp duty, we must say how we will pay for it, and we have to justify that decision as a priority above all the other decisions that we might make on what to do with that money.

[Rachel Gilmour (Tiverton and Minehead) (LD)]

We Liberal Democrats accept that property taxes must be reformed—arguably, radically so—but I struggle with the Conservatives, who governed for years without substantial reform, now promising to abolish stamp duty with no credible plans to pay for it. Where is the money coming from? Is the magic money tree being re-rooted?

[Connor Naismith]

The hon. Member is right to point out that the Conservatives had 14 years in government. Now they are in opposition, they want to talk about all the magical savings that they could make. Why did they not do it when they were in government? It is too little, too late. As I was saying, if you decide that you want to do this, you have to tell us how you will pay for it, and justify that priority over all the other priorities.

[Rachel Taylor]

Does my hon. Friend agree that what has locked young people out of the housing market over the last 14 years is not the existence of stamp duty, but the astronomical rise in house prices? They have gone from being around three times a first-time buyer’s income to more like 10 times in constituencies like mine and his.

[Connor Naismith]

I completely agree. The most common reason I hear from my constituents for their inability to get on the housing ladder is that astronomical rise in house prices.

[Saqib Bhatti]

Will the hon. Gentleman give way?

[Connor Naismith]

I will make some progress. The motion tells us everything we need to know about the priorities of the Conservative party today. In the context of the vast majority of options that we could choose to pursue, this is a regressive tax cut, funded once again by cuts—cuts that they will not be brave enough to specify with any credibility. Reckless with our public finances, reckless with our public services, and utterly out of touch with the realities facing working families in constituencies like mine in Crewe and Nantwich.

[Saqib Bhatti]

The hon. Member uses the word reckless. Has he heard the news that the OBR has said the Chancellor will have to find another £7 billion to £9 billion due to the fall in productivity? Therefore her black hole has just got bigger.

[Connor Naismith]

I thank the hon. Member for that intervention. Look, we will await the Budget to see the OBR’s forecasts, but I will take no lessons from the party opposite on economic credibility. They are the party of Liz Truss, which dragged this country into the economic abyss.

We know that Tory austerity and a lack of investment in our country’s infrastructure are part of the story of why our economic growth and productivity have never recovered since the financial crash in 2008. It seems like the Conservatives want to take us right back to the beginning of that 14 years of chaos, failure and decline. I think my constituents would say no, frankly. What is worse, the Conservatives cannot even tell us with any credibility where the cuts would fall. We have seen this playbook before. They have no credible plan to pay for their promises, just vague talk of savings from the very services that our communities rely on—our schools, NHS and local infrastructure. The Tories have some cheek to come here and talk about home ownership when they manifestly failed to build the homes that our country needs because they presided over a broken planning system that they did nothing to reform.

As I mentioned earlier, my constituents have not forgotten what Liz Truss’s mini-Budget did to their mortgage payments. During the election campaign, I spoke directly with families in Crewe and Nantwich who had seen their monthly costs soar overnight. I distinctly remember speaking to a man who told me that his mortgage payments had risen by £1,000 a month and that he had been forced to sell his home as a result. If we want to examine the reality beyond the rhetoric of the modern day Conservative party’s record on home ownership, it is that: failure to deliver, soaring prices and broken dreams.

[Rebecca Smith (South West Devon) (Con)]

The hon. Member talks about broken dreams, but no Government Member has spoken about the hard-working families in the middle—not the ones struggling to buy their first home and not the so-called rich people at the top who in the Government’s world this will benefit, but the hard-working families, who he has no doubt spoken to, who cannot buy a property with an additional bedroom for their growing family because of stamp duty. As my hon. Friend the Member for South Northamptonshire (Sarah Bool) referenced, that stamp duty is the difference between the price of the home they wish to buy and the dream of actually succeeding in doing so.

[Connor Naismith]

It was those families in the middle who suffered most at the hands of Liz Truss’s mini-Budget, so I would expect Conservative Members to apologise to those families in my constituency for their record on the economy over the past 14 years.

Compare all that with what Labour is delivering in government. We are getting Britain building, and not just the homes we need. In Crewe and Nantwich, we are getting a new hospital at Leighton, the new youth zone in Crewe town centre, a new history centre and many more things that our community will benefit from. The choice ahead at the Budget is clear: stick with Labour’s plan for national renewal or return to the chaos and cuts of the past, whatever shade of blue that comes in. Labour chooses a fairer economy, one that works for working people and rewards them. That is what we are building in Crewe and Nantwich and across Britain. The people of Crewe and Nantwich deserve better than unfunded tax cuts and economic instability. They deserve a Government that invest in the future, protect their services and build a Britain for all.

Regional Growth

Connor Naismith Excerpts

Wednesday 4th June 2025 Commons Chamber

[Darren Jones]

I thank my hon. Friend for his leadership of the all-party group and for, alongside his colleagues and the mayor, making such a powerful case for investment in his region. There will be further announcements at the spending review next week, and in the infrastructure strategy and the industrial strategy, which will show how this Labour Government are investing in regions like his to improve people’s life chances, irrespective of where they choose to live or work.

[Connor Naismith (Crewe and Nantwich) (Lab)]

I welcome the announcements today. Finally, we have a Government who are willing to match rhetoric with action when it comes to investment in the north and the midlands. The Network North so-called plan, announced under the Tories, was pitched as an attempt to compensate northern communities for the loss of High Speed 2. My constituents were somewhat surprised that there was not a single mention of Cheshire in that so-called plan. What assurance can my right hon. Friend give that towns outside mayoral areas, as well as city regions, will see the benefits of crucial infrastructure investment?

[Darren Jones]

My hon. Friend rightly points to the frustration of his constituents with the failed promises of the previous Conservative Government. This Labour Government—working with him, the brilliant Labour MP for his constituency—are making a difference. At the Budget last year, the Chancellor changed the fiscal rules to tax the wealthiest, and we are investing money in transport across the country, which will benefit not only those in combined authorities, but those in the broader travel-to-work region. Further announcements for towns and villages will be made next week at the spending review.

Growing the UK Economy

Connor Naismith Excerpts

Wednesday 29th January 2025 Commons Chamber

[Darren Jones]

I am sure the hon. Member shares my view that we can achieve growth through our net zero plans. These things are not an either/or. For example, the announcement of this Government supporting investment in Heathrow and in the sustainable aviation fuel sector will stimulate investment in net zero technologies and industry in the UK. This can be a win-win for the economy and the environment.

[Connor Naismith (Crewe and Nantwich) (Lab)]

I welcome my right hon. Friend’s statement, which I think demonstrates a real commitment by this Government to take the shackles off our economy. I particularly welcome his commitment to a 10-year transport infrastructure plan. As well as the measures already announced to boost connectivity across the Pennines and elsewhere, will he commit to continuing to see what can be done to address connectivity and capacity challenges north of Birmingham arising from the cancellation of HS2?

[Darren Jones]

Those are exactly the issues that Departments are now considering as they submit bids to the Treasury in the spending review. As we move into those negotiations in March, we will have to look at the best growth potential and what we can get delivered on what timeframe. We will be able to confirm those plans in the coming months.

Oral Answers to Questions

Connor Naismith Excerpts

Tuesday 3rd December 2024 Commons Chamber

[Jonathan Hinder (Pendle and Clitheroe) (Lab)]

13. What steps she is taking to introduce permanent reductions to business rates for high street retailers.

[Connor Naismith (Crewe and Nantwich) (Lab)]

17. What steps she is taking to introduce permanent reductions to business rates for high street retailers.

[Jade Botterill (Ossett and Denby Dale) (Lab)]

24. What steps she is taking to introduce permanent reductions to business rates for high street retailers.

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[James Murray]

My hon. Friend is absolutely right about the importance of small, independent businesses in his constituency, and I am sure his sentiment is shared by Members across the House. Through our reforms, we are setting out to make sure that those properties with a rateable value of £500,000 or more pay so we can have a permanent tax cut for high street business. This category includes the large distribution warehouses used by online businesses, which will make sure that those online businesses make a fair contribution to ensuring that our high streets are the success we all want to see.

[Connor Naismith]

Ahead of Small Business Saturday, I congratulate St Martha Greek taverna in Nantwich on being the first winner of my Crewe and Nantwich small business of the month competition. Small businesses on our high streets, such as St Martha, regularly highlight business rates as a significant challenge, so what steps is the Minister taking to ensure that they can continue to thrive?

[James Murray]

May I extend my congratulations to St Martha Greek taverna in Nantwich? Given the time, I am feeling a bit hungry now that we are talking about food. I reassure my hon. Friend that our plans to reform the business rates system would see a permanent tax cut for retail, hospitality and leisure businesses. While I do not know exactly the details or the rateable value of the property in question, I am sure properties like that would be eligible for the cut. It is crucial that we support those much-loved local businesses. I am glad he is doing all he can to champion them, and I look forward to my invite.

Finance Bill

Connor Naismith Excerpts

2nd reading
Wednesday 27th November 2024 Commons Chamber

[Connor Naismith (Crewe and Nantwich) (Lab)]

I congratulate my hon. Friend the Member for South Derbyshire (Samantha Niblett) on a fantastic maiden speech. I am sure that her expertise in the tech sector will be an asset to this place.

I welcome the ability to contribute to the debate on the Finance Bill. I am wholly supportive of the measures announced in the Budget that form the legislation. After 14 years of Conservative mismanagement of our economy and the country, the public spoke on 4 July and gave a clear mandate to repair the dire circumstances we found ourselves in that left my constituents footing the bill.

The electorate knew and showed at the ballot box that they were in dire need of a grown-up Government that would not shy away from the hard decisions. We have heard many contributions from Opposition Members setting out the things they do not like about the Budget. If they support the benefits of the Budget, we have not heard much about how they would fund those measures or what they would cut.

My constituents voted for a Government who would finally ensure, after years of failure, that we would grow our economy, lower the tax burden on working people and restore the fantastic public services that once upon a time made this country a world leader. My constituents understand that there are difficult decisions to be made. They know that government is about making choices and deciding what country we want to be in the future. They made their decision at the ballot box, doing away with the Conservatives.

My constituents chose to no longer be a country with crumbling roads, a country that dipped in and out of recession, a country with low investment ultimately steered by the hands of the Conservatives in a chaotic fashion that clobbered their living standards. They voted for Labour, and with that they decided that they wanted to live in a country with monumental investment in its national health service, which will reduce waiting lists—we are already seeing the benefits of that—and rebuild key hospitals such as Leighton hospital in my constituency. They want to be in a country where their work is rewarded fairly and where minimum wage increases will put £1,400 a year into their pockets. Not only that; they want to live in a country—

[Madam Deputy Speaker (Caroline Nokes)]

Order. I am going to make the request that I have made at least twice—this could be third time or the fourth. Please can Members debate the Finance Bill’s Second Reading, which is what we have on the Order Paper this afternoon? This is not a general debate on the Budget. We debated the Budget several weeks ago and we cannot keep covering old ground.

[Connor Naismith]

My apologies, Madam Deputy Speaker. I am about to move on to points covered by the Finance Bill.

My constituents want to live in a country that levels the playing field and ensures that working families have as much opportunity at all stages of their life, regardless of their postcode or their background. That is why I support the Government’s decision to end VAT relief on private schools, aiming to equalise educational opportunities. I know that many families work hard to send their child to private school, but I have never met a constituent who does not work hard just to make ends meet, and their children also deserve the very best education that our country can provide. [Hon. Members: “Hear, hear!”] Conservative Members say “Hear, hear!” but we do not often hear them advocating for state schools.

[Simon Hoare (North Dorset) (Con)]

As a former state school pupil with three daughters in a state school, let me assure the hon. Member that, despite the caricature that sometimes he and others like to paint, not all Conservative Members are privately educated. I say to him quietly that it is not a choice of either/or; we want to see excellence and choice in education right across the board. It is not one against the other.

[Connor Naismith]

I thank the hon. Member for making that intervention. He says that it is not a choice between one and the other, but for 14 years under the previous Government we heard his side talk about state schools having to make difficult decisions and tighten their belts. As the husband of a state schoolteacher, I know that our state schools were severely underserved by the previous Government. The money generated by ending the VAT relief on private schools will be vital to recruit the 6,500 more teachers that we need in our state schools and to roll out free breakfast clubs across the country, to ensure that no child in education goes hungry.

[Damian Hinds]

Does the hon. Member know how many additional teachers were recruited in the last Parliament without putting VAT on private education? Does he know how many breakfast clubs are already in state schools in this country? There are thousands of them, thanks to the national school breakfast programme.

[Connor Naismith]

We have heard lots of contributions from the Opposition Benches about the fantastic record of the previous Government, but that does not stand up to the lived reality of our constituents. That is exactly why we saw the result that we had in the general election. The sooner Opposition Members come to terms with that result, the better.

[Paul Holmes]

Will the hon. Member give way?

[Connor Naismith]

I am sorry, but I have given way several times already.

I welcome the Government going even further in the Bill to level the playing field and ensure that those with the broadest shoulders take the heaviest burden. That is why we need the legislation to close loopholes such as the non-dom status, change the furnished holiday lettings tax regime and provide more resources to HMRC to tackle the tax gap. That will help us address the financial black hole that the Conservative party clearly had no regard for, claims does not exist and has failed to apologise for. The Bill will allow us to fix what the Leader of the Opposition admitted today were broken foundations. I believe that the Government’s Budget and the Bill will be a vital starting point on a long road to recovery for this country. I commend the Government for their work and support this Bill’s progression through the House.

VAT: Independent Schools

Connor Naismith Excerpts

Tuesday 8th October 2024 Commons Chamber

[Connor Naismith (Crewe and Nantwich) (Lab)]

You might imagine, Madam Deputy Speaker, that members of the Conservative party would understand how out of touch they are on these matters, given that they were so roundly rejected by the electorate in July. However, unsurprisingly, they have demonstrated perfectly that nothing has changed, and it is business as usual as they leap to the defence of tax breaks for private education. This Government believe in equality of education for all our children, and this policy is designed for the betterment of 93% of the UK school population. Only 7% of children in the UK go to a private school—a far smaller proportion than in the most recent Conservative Cabinet, 65% of which, it is believed, were privately educated. Perhaps that tells us something about why we are debating this matter today.

Conservative Members campaigning against the Government’s policy couch it as an attack on the aspiration of hard-working parents. Perhaps they need to be reminded that the warehouse workers, cleaners, shop workers, carers, nurses and teachers in my constituency are also aspirational for their children. They work just as hard to provide the best opportunities for their children. It is offensive in the extreme for the Conservatives to suggest otherwise, and to suggest that they are less deserving of support from this Government.

I accept that a consequence of this decision may be that some people will no longer be able to send their children to private school, as schools might choose to recoup the cost of VAT through increases to fees. However, we should acknowledge the fact that private schools have implemented above-inflation increases to their fees year on year in recent times—over 20% in real terms since 2010—and this has had a minimal impact on children moving into the state sector. I say directly to parents: should our ambition not be that they could send their child to a fantastic state school that has the teachers and resources it needs to deliver the education their child deserves, and where they can excel both academically and culturally by mixing with children from a wide range of backgrounds and experiences that reflect the society in which we live?

The Conservative party was quite keen to promote and exacerbate a two-tier approach to the education of our children during its term in government—a system in which it is only state-educated children who have to accept tough choices and shoestring budgets. We have schools where the ceilings are propped up by scaffolding, schools where teachers are forced to buy basic school supplies out of their own pay packets, and schools where the workload and conditions have become so dire that teachers are leaving in droves.

I am delighted that we now have a Government who do not believe that state schools alone should be asked to make difficult choices—a Government who will end the tax break for private schools and invest the £1.3 billion that that choice will generate into our state schools, which educate 93% of our children. That is why I will be voting against the Opposition motion and in favour of state education.

[Madam Deputy Speaker (Ms Nusrat Ghani)]

I call John Milne to make his maiden speech.