Autumn Statement

Debate between Debbie Abrahams and Jeremy Hunt

Wednesday 22nd November 2023 Commons Chamber

[Jeremy Hunt]

I thought my right hon. Friend might ask a question of that ilk. I would gently say to him that not just the OBR found that its forecasts were wrong; nearly every commentator as well as the Bank of England and the International Monetary Fund did too. I am pleased to say that, in every single case, they have found the British economy has outperformed their expectations.

[Debbie Abrahams (Oldham East and Saddleworth) (Lab)]

I also welcome the increase in social security uprating by September’s inflation rate, but I agree with the Chair of the Select Committee, my right hon. Friend the Member for East Ham (Sir Stephen Timms), that it is the bare minimum. I am incredibly concerned about the proposals for a workfare approach. The Chancellor will be aware that Errol Graham weighed four and a half stone when he was found in his flat, having starved to death. That was because there had been no contact from Department for Work and Pensions officers and he had not been able to respond, so they just stopped his support. Given this, and given that so many Secretaries of State for Work and Pensions have said that we do not have a statutory safeguarding duty, what is the estimate of the number of social security claimants who will die as a consequence of these measures?

[Jeremy Hunt]

I know that the hon. Lady would not ask me to comment on an individual case, but I say to her that what we are introducing is not workfare; it is support to help people into work. We are spending £2.5 billion over the next five years to help more than 1 million people. We think that that is the route out of poverty and away from dependency.

Economic Growth

Debate between Debbie Abrahams and Jeremy Hunt

Tuesday 14th November 2023 Commons Chamber

[Jeremy Hunt]

I simply say that we did not just build on that reform but improved it massively more than Labour proposed, because we turned it into the national living wage, which is far more generous than the original minimum wage.

[Debbie Abrahams (Oldham East and Saddleworth) (Lab)]

According to the House of Commons Library, in 2022 the tax burden on the lowest income decile was 25.5%. On the top income decile, it was 12.5%. Is that fair?

[Jeremy Hunt]

Because we believe in a progressive tax system, we introduced the changes that I just outlined, which mean that people on the lowest legal wage are getting 25% more after tax. That is a significantly bigger increase than for people on higher deciles.

One of the main things the shadow Chancellor mentioned was her amendment on the OBR. I understand the political game of trying to draw attention to the mini-Budget, but she should know that the OBR is already legally required to publish two forecasts a year, as will happen under this Government at successive autumn statements and spring Budgets. Today’s proposal is dangerous because, despite what she says, it would hamper the Government when acting in an emergency, as we did in the pandemic. I will tell her why. Instead of taking decisive action, Governments would feel obliged to enter a 12-week process with the OBR in case the outcome of the independent process that she advocates made any crisis worse by highlighting a significant loosening of the fiscal rules.

What is most extraordinary about the amendment is that, at the same time that the shadow Chancellor tries to claim the mantle of fiscal responsibility in this House, only this morning she briefed the papers that she wants to unfreeze income tax thresholds—a £9 billion commitment—and make full expensing permanent, which is a £10 billion commitment. That is all without an OBR forecast in sight. That kind of irresponsibility from Labour is exactly why we set up the OBR in the first place.

This is an argument not just about jobs and work but about poverty. Labour tried to eradicate poverty by tinkering with the benefits system and Gordon Brown’s tax credits. We all remember the “poverty plus a pound” idea, whereby if someone just below the poverty threshold is given £1, they are somehow magically lifted out of destitution. Instead, the Conservative Government have reduced the numbers in absolute poverty after housing costs by 1.7 million people by making work pay and by reducing the number of children living in workless households, because they are five times more likely to be in absolute poverty than households in which the adults work. Making work pay is a moral duty and not just an economic necessity, as only Conservatives understand.

Mortgage Charter

Debate between Debbie Abrahams and Jeremy Hunt

Monday 26th June 2023 Commons Chamber

[Jeremy Hunt]

I am happy to give my hon. Friend that reassurance. I will continue to talk not only to the lenders but the regulators, who I am meeting later this week, to see if there are any areas at all where price reductions that should be passed on to consumers are not being passed on. I hope to update the House further.

[Debbie Abrahams (Oldham East and Saddleworth) (Lab)]

I will put aside the fact that the Chancellor did not answer my right hon. Friend the Member for Leeds West (Rachel Reeves) on what happens to the 1 million people who are outside the 85% of mortgage providers, or why we have higher borrowing costs than France, Germany and Ireland. Some 9,200 families are affected by the increase in interest rates and the mortgages they are paying. We know, for example from the prompt payment codes, that voluntary codes have a limited impact, so who will monitor the compliance of the code? How many people will have to be disappointed by their lender before the Chancellor puts it in statutory form?

[Jeremy Hunt]

It is generous of the hon. Lady to put aside so many things. I will also put aside the fact that Labour opposed the powers that would have meant the mandatory imposition of the charter on the banks and lenders would have been possible. What I will say to her is that the charter will be monitored by the Financial Conduct Authority. It will take appropriate action if it thinks that banks and lenders are in breach of their statutory duties.

Oral Answers to Questions

Debate between Debbie Abrahams and Jeremy Hunt

Tuesday 21st March 2023 Commons Chamber

[Debbie Abrahams (Oldham East and Saddleworth) (Lab)]

T9.   OBR analysis of last week’s Budget has shown that there will be no real-terms growth in public services in 2023-24 and just 1% in 2024-25. Given the recent Patriotic Millionaires UK survey showing that more than seven in 10 millionaires want to have a fair tax on their wealth—by wealth, we are talking about £10 million of investable assets—will the Chancellor look at this?

[Jeremy Hunt]

What I say to the hon. Lady, whom I greatly respect, is that we did a lot for public services in the autumn statement, including a £3 billion increase in the annual schools budget and an £8 billion increase in the annual health and care budget. We are always focusing on public services, and we do support a progressive tax system.