Conduct of the Chancellor of the Exchequer

Dave Doogan Excerpts

Wednesday 10th December 2025 Commons Chamber

[Sir Mel Stride]

I just ask the hon. Gentleman what he thinks the effect of increasing taxes on hard-working people does for poverty. Any economist will say it drives poverty up.

There is also the question of the farm tax, with the changes under the inheritance tax regime. In the run-up to the general election, the Secretary of State for the Environment, Food and Rural Affairs, then in his shadow position, looked the National Farmers Union president Tom Bradshaw in the eye and said that, at least on that count, farmers had nothing to fear from a future Labour Government. Well, that lasted about five minutes before they changed and the Chancellor changed her position. That will cause untold misery to farmers up and down our country. It will mean that farms that have been passed down generation to generation over many years will now fall into the tax net and potentially have to be broken up.

[Dave Doogan (Angus and Perthshire Glens) (SNP)]

We know that there are serious questions over this Chancellor’s alleged experience in the financial services sector. We can see that she has no experience in either industry or commerce. Perhaps the worst of her detriments, however, is her clinical lack of empathy, seeming totally unable to connect cause and effect. That is why she has allowed the disastrous—

[Madam Deputy Speaker (Caroline Nokes)]

Order. May I respectfully remind the hon. Member that comments need to be about what is in the substantive motion and not wider matters?

[Dave Doogan]

Indeed. In terms of that conduct and those decisions that have been made, that is most evident in the egregious family farm tax—a betrayal of the producers of our food, no less—and the, let us call it, management of market-sensitive information before the Budget, which had a material effect on the economy of these islands.

[Sir Mel Stride]

The hon. Gentleman makes excellent points, and I will come to the issue of the market-moving effects of some of the comments made by the Chancellor. On the point that he rightly raises about the impact on people’s lives, these are real jobs. These are people struggling with real businesses. These are farmers getting up early in the morning, going out, working and doing what they know to be right, yet they are weighed down by the decisions taken by the Government.

Labour said that it had no intention of means-testing the winter fuel payment. There was no mention of it in its manifesto during the last general election, yet within a very short period of time, that is precisely what it did. Before Labour Members get excited about excluding millionaires and multimillionaires from those payments, the reality is that about 80% of pensioners living below the poverty line were impacted by that decision, which would have only entrenched and driven up poverty.

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[Dave Doogan]

I did not expect the Minister to give way. He says that energy bill payers in the UK are now £150 better off, forgetting that energy bills are currently almost £600 higher than Labour promised they would be at the election. Ofgem has come in with an additional £108 for infrastructure charges. Energy bills will go up again in January and again in April. Does he want to reflect on what he has said? Is that really the record on which he is standing?

[James Murray]

I am unclear whether the hon. Gentleman supports our £150 off energy bills and our extra £150 off for those 6 million households on the lowest income. That will benefit people right across the UK with the cost of living challenges they face. We know that that is what matters to people right across Britain.

Instead of focusing on what this Budget means for people across Britain, we heard the shadow Chancellor’s comments on a motion that focuses so much on process. While I accept that process is very important, it has been covered extensively in recent weeks—indeed, most recently by the Chancellor in the Treasury Committee this morning—so let me put on record our response to the motion and to the comments that the shadow Chancellor made about process.

Let me begin by again addressing the speech that the Chancellor made on 4 November. When the Chancellor addressed the country that morning, her purpose was simple: to give the British people an honest sense of the circumstances we were facing and the principles that would guide her as she took decisions at the Budget. She wanted to highlight the challenges that our country was facing and her priorities in the face of those challenges, and that is exactly what she did.

Following the OBR’s review of productivity—the review of the impact of 14 years of the Conservatives being in power—the Chancellor knew that we faced a downgrade. To understand the scale of the impact, members of the Opposition need only to consult the Budget document. There, they will see that the OBR’s productivity review, which covered the Conservatives’ time in office, reduces

“the amount of revenue the OBR expects the government to collect by around £16 billion in 2029-30.”

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[Daisy Cooper]

I am grateful to my hon. Friend for making that point. I agree with him: transparency is critical. On transparency, we Liberal Democrats think that it is time to overhaul this entire process. Colleagues will know that when Sweden faced a similar crisis in its Budget process in the 1990s, it overhauled the process, and it now has a system in which a draft Budget is published. There is a lot of time for it to be debated, and amendments can be tabled by Opposition parties before the process is concluded. The public would welcome such transparency; it would then be incumbent on the Government and all Opposition parties to set out how they would fund their pledges, raise revenue and manage Government spending.

These debates over the last few weeks have raised questions about the role of the OBR, and I want to put it on the record that we Liberal Democrats think that we should keep the OBR. It plays an important role as an independent organisation that can scrutinise the Treasury, but there is scope for more democratic accountability, and to tease out the divergence between forecasts by the OBR and the Treasury.

I am slightly perplexed to see that the Opposition day motion focuses on process, not policy, and that it promotes spin over substance. This Budget has levied stealth taxes on households and on our high streets, and has fundamentally failed to galvanise growth. Maybe it is obvious to people at home why the Conservatives have not tried to focus on the substance: because those stealth taxes were started by the Conservatives and have been carried on by Labour. The Conservatives failed to fix the business rates system, and Labour has not taken forward fundamental change. It is clear that both parties continue to refuse to go for growth with Europe.

My hon. Friend the Member for North Norfolk (Steff Aquarone) asked a very reasonable and legitimate question about why the Treasury has not said whether it will provide funding for dental training places in his county and for his constituents. That was a legitimate question to ask, so I was disappointed that the Minister tried to say, in response, that we have not supported his tax rises, when we Liberal Democrats have repeatedly, over the last year and more, set out the different ways in which we would raise taxes, including by reforming capital gains tax, looking at other taxes and a windfall tax on the big banks, as recommended by the Institute for Public Policy Research and endorsed by independent economists. We have also set out how getting a customs union with the European Union would boost public finances by £25 billion a year. [Interruption.] I understand that the Minister and those on the Treasury Bench who are chuntering right now may wish to level their accusation at the Conservative party, but that does not stack up when talking to the Liberal Democrats.

[Dave Doogan]

Is the hon. Lady as frustrated as I am to hear the normally temperate Chief Secretary to the Treasury chuntering, “Do you agree with our taxes?”, as though there is only one way to raise fiscal revenues, and as though if we do not agree with Labour, we have got it wrong? That would be ironic, because there are many ways to raise taxes. Is she, like businesses across Scotland, concerned that this Government have taken £66 billion out of the real economy, with no care for what that will do to growth?

[Daisy Cooper]

I am concerned about the impact of this Budget on businesses, and particularly about business rates.

We have been very clear that we are trying to be a party of constructive opposition. In last year’s Budget, it was clear that the jobs tax would raise £10 billion, once we had adjusted for spending, for rebates for the NHS and education, and for changes to behaviour—not the £25 billion that the Government claimed. We set out a number of proposals that could have raised that £10 billion. We Liberal Democrats welcomed the Government raising remote gaming duty in this Budget, because that was in our manifesto at the last general election. I absolutely agree with the hon. Member for Angus and Perthshire Glens (Dave Doogan) that there are other ways of raising taxes, and we hope that the Government look at some of our proposals, including our ideas for reforming capital gains tax, which would be a fairer way of raising revenue. It would raise more money from the 0.1% of the population who are super-wealthy.

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[Chris Vince]

I thank my hon. Friend, but I must disagree with him, because my next point was to say, in all sincerity, that I am a little bit disappointed with the Opposition motion, which I feel is particularly targeted at an individual. I recognise that the motion is about the Chancellor’s position and does not name her, so there is an attempt to talk about the role that she holds, rather than the individual. However, I just do not like the way that the motion singles out a particular person. I think it could have been worded in a way that made it more about the Budget process—but that is my view. I say that because I feel very strongly about the importance of political debate, but as I hope the Opposition have seen, I always try to avoid political attacks on individuals, and to be honest, the motion makes me feel uneasy.

[Dave Doogan]

I share the hon. Gentleman’s appreciation of the fact that the motion is about the post and role of a Minister, not about a local MP and a person. However, while he is dishing out sympathy and empathy, can I encourage him to think of his constituents and mine who are disabled, who thought for the longest time that they were going to lose their livelihood until the Government U-turned on that policy? Can I encourage him to worry about family business owners, who now have no idea how they will afford to pass their local growth-generating business on to the next generation—not to mention farmers, who are now scared to die?

[Chris Vince]

I thank the hon. Gentleman for his intervention. I do not think I could ever be accused of being devoid of sympathy. I became an MP because I genuinely and passionately care about making a positive difference to people’s lives. In fact, as Members across the House know, I previously worked in the charity sector and as a teacher. I got involved in those jobs because I wanted to make a positive difference to people’s lives.

One of the big things in the Budget—before I go completely off my speech—is the scrapping of the two-child cap. I recognise the concerns raised by Opposition Members about increased welfare spending—although, it went up on their watch too—but when I am presented with the statistic that over 1,000 young people will be taken out of poverty as a result of that policy, I find it very difficult to ignore.

On a lighter note, I would like to state—there will be collective relief across the House—that no members of my immediate or extended family have ever worked for the Treasury or the OBR. That said, like many Members across the House, particularly on the Labour Benches—I am glad that the deputy leader of the Liberal Democrats, the hon. Member for St Albans (Daisy Cooper), mentioned this too—I value the work done by the OBR and, in particular, its independence. Of course, as many Members have mentioned, it is extremely disappointing that the OBR’s “Economic and fiscal outlook” was prematurely accessed by external users before the Chancellor’s speech on Budget day. I am really pleased that the OBR responded to that very quickly. In its own words:

“It is also important to note that the EFO contains market-sensitive information, i.e. information that is not public and could have a material impact on financial markets. This is why, in the run-up to the delivery of the Budget, any leaks concerning the OBR’s forecasts, whether accurate (as in this case) or inaccurate, whether inadvertent (as in this case) or deliberate, are to be greatly deplored.”

This is a good Budget for residents and families in Harlow, with rail fare freezes; prescription fee freezes; additional investment in our local NHS, which I have covered previously, and which had sadly been neglected; a rise in the minimum wage; a rise in the state pension—yes, a brief mention of my mother, who is delighted—and, for the vast majority of residents in Harlow who do not own a property worth over £2 million, no increase in tax.

We saw in 2022 what happens when the OBR is bypassed in the Budget-setting process, but we must ensure that the IT that backs up this non-departmental public body is fit for purpose and that such mistakes do not happen again.