Finance (No. 2) Bill

Harriett Baldwin Excerpts

2nd reading
Tuesday 16th December 2025 Commons Chamber

[Gareth Davies (Grantham and Bourne) (Con)]

It is a pleasure, as always, to respond on behalf of His Majesty’s official Opposition. I thank Members across the House for their contributions to the debate, in particular those on the Conservative Benches, and notably my hon. Friend the Member for Keighley and Ilkley (Robbie Moore), who has been a ferocious champion of farmers not just in Yorkshire but across the country. He also spoke well about the family business tax and his business, Fibreline, which has been adversely impacted. My right hon. Friend the Member for Beverley and Holderness (Graham Stuart) sought to give those on the Labour Front Bench a maths lesson, although I am afraid it is a little late for that and entirely futile.

I enjoyed very much the speech by the right hon. Member for Orkney and Shetland (Mr Carmichael). I enjoyed his A. A. Milne reference almost as much as I enjoyed the unexpected mention of Tinder. Of course, when it comes to politics, I encourage everybody to swipe right. [Laughter.] I thought I would give it a go.

Let me highlight how prominent the family farm tax has been in this debate and acknowledge the contributions from the hon. Members for Penrith and Solway (Markus Campbell-Savours) and for Scarborough and Whitby (Alison Hume), who spoke well, speaking out against their own party’s policy when it comes to farmers. That is not an easy thing to do, but it is the right thing to do, and we appreciate it.

For my part, I am struck by a sense of déjà vu. Here we are again, with another Finance Bill that targets working people’s pockets while failing on the Government’s No. 1 mission of economic growth. This Finance Bill is actually double the length of Labour’s first Finance Bill, and I fear it will bring double the pain to the British public. Last year we had the now infamous Halloween Budget, which scared the living daylights out of business, and this year we have the nightmare-before-Christmas Budget, which is essentially finishing off the rest of the country. This Bill feels less like a carefully wrapped present and more like something hastily stuffed into a stocking at five minutes to midnight, with the receipt missing and the instructions written in a different language. We were promised a gift to working people, but what we have instead are higher burdens and lower incentives.

[Dame Harriett Baldwin (West Worcestershire) (Con)]

My hon. Friend is making a fantastic speech, with some very colourful analogies, but if I may be prosaic, is it not the case that the Office for Budget Responsibility has not scored a single impact on growth in the overall Budget?

Conduct of the Chancellor of the Exchequer

Harriett Baldwin Excerpts

Wednesday 10th December 2025 Commons Chamber

[Dame Harriett Baldwin (West Worcestershire) (Con)]

I am the former Chair of that Committee, Madam Deputy Speaker, but I appreciate the chance to make a couple of additional points.

My right hon. Friend the Member for Central Devon (Sir Mel Stride) set out an extensive case. In the speech I made right after the Budget, I mentioned that shenanigans had happened with regard to the Budget. I think we are beginning to find out a bit more about what those shenanigans were. The OBR has published a full analysis of the error that led to it publishing the Budget before it was delivered by the Chancellor.

On 1 December, the chair of the Office for Budget Responsibility rightly resigned for that technical breach. I think he showed real leadership, and I thank him for his service. However, it has distracted us from a much more serious breach that happened. The Chancellor clarified this morning in evidence to the Treasury Committee that there are, apparently, two categories of leaks from the Treasury: authorised leaks and unauthorised leaks. We are going to hear a report from the permanent secretary about the unauthorised leaks, but I think the authorised leaks also need focus.

Let us face it: this all started in the run-up to the general election, when the Chancellor promised many, many times not to raise taxes. Then, in what was probably one of the greatest robberies since Ronnie Biggs and the great train robbery, she managed to increase taxes by £40 billion a year in her first Budget, before increasing them by a further £26 billion a year in this recent Budget.

[Sean Woodcock]

Will the hon. Lady give way?

[Dame Harriett Baldwin]

I would love to, but I am going to try to really race through what I have to say.

There is a track record here of saying one thing and then doing another. What we see is a revealed preference from our Chancellor for tax hikes. She was unable to deliver the welfare reforms she sought, and she has been unable to deliver much in the way of savings from any Department, so she is always going to go for tax hikes. We have seen that in her behaviour, despite her assurances to the contrary.

I just want to point out how damaging all this speculation has been to decision makers in the British economy. These authorised leaks have led to changes in behaviour across the UK economy; people have made real-world, real-life decisions. Now we know that at every fiscal event during this Parliament the Chancellor will have a default position to tax more: to tax homes more; to tax cars more; to tax pensions more; to tax savings more; to tax jobs; to tax the farm that farmers want to pass on to their children; to tax anything she can justify.

That is the lasting legacy of this period of shenanigans, selective leaking and manipulating behaviour. I believe it has done lasting damage to our Chancellor, and we are right to condemn her conduct today.

[Several hon. Members rose—]

OBR: Resignation of Chair

Harriett Baldwin Excerpts

Wednesday 3rd December 2025 Commons Chamber

[James Murray]

My hon. Friend is absolutely right to point to some of Professor Miles’s comments yesterday. There has been a lot of discussion in this place about the £4.2 billion headroom identified in the forecast by the OBR on 31 October and what, in our view, that implied about the fiscal situation. Professor Miles said that the

“£4 billion in the pre-measures forecast is not inconsistent with the sentiment that this is a very challenging fiscal position.”

It is because of that fiscal position that we made the choices that we did.

[Dame Harriett Baldwin (West Worcestershire) (Con)]

I welcome the fact that the Minister has just confirmed a leak inquiry is under way at the Treasury, and I will be paying close attention to that inquiry. Richard Hughes was an outstanding public servant, and he was truly independent. Will the Minister confirm that the person the Chancellor nominates to this position has to be endorsed by the Treasury Committee? Will he commit to someone of equal independence and stature being nominated to this position?

[James Murray]

As the hon. Lady will know, the process is now under way for an external recruitment of a new chair of the OBR. The normal process will be followed in terms of the Chancellor making the appointment and the Treasury Committee being involved. The hon. Lady mentions that I have confirmed the leak inquiry today; I have confirmed it again today, but I mentioned it in my remarks to the House yesterday.

Office for Budget Responsibility Forecasts

Harriett Baldwin Excerpts

Monday 1st December 2025 Commons Chamber

[James Murray]

My hon. Friend is right to point out that the OBR plays a critical role in the Budget process and an important role in the robust and transparent fiscal framework that underpins our approach in government. Indeed, the first Bill passed by this Government included the fiscal lock, which prevents the sidelining of the OBR that the previous Government did, causing chaos for people across this country.

[Dame Harriett Baldwin (West Worcestershire) (Con)]

The leak of the Office for Budget Responsibility’s economic and financial forecasts on Wednesday was obviously shocking, and it has rightly come up with a swift and complete report on how that happened. The partial information and the leaks from the Treasury over the many months in the run-up to the Budget were, in my opinion, equally shocking, and they caused real-life choices to be made in the economy and dampened confidence. Will the Chief Secretary to the Treasury therefore commit to an equally thorough and equally rapid leak report to be presented to this House?

[James Murray]

As I said earlier, the Government take the Budget process and our responsibilities to this House very seriously. As the hon. Lady is aware, the permanent secretary has committed to keeping all aspects under review to ensure the integrity of the Budget process.

Budget: Press Briefings

Harriett Baldwin Excerpts

Monday 17th November 2025 Commons Chamber

[James Murray]

My hon. Friend is absolutely right that our priority is to take the right decisions to provide stability and secure foundations for the long-term future of this country. It is true that we inherited a mess from the Conservative party. Indeed, the Office for Budget Responsibility is now looking at the previous Government’s record on productivity. We have been clear that we will not let the mistakes of the previous Government determine this country’s future. We will take the right decisions for the future of this country.

[Dame Harriett Baldwin (West Worcestershire) (Con)]

The speculation was inflamed by the Chancellor herself giving a speech at the press conference. Surely one of the most damaging pieces of speculation in the media was that there might be an exit tax on wealthy people fleeing the country. That has only just been ruled out, but many, many people have fled in the interim. There has been a real cost to the Exchequer from all the speculation, so will the Minister confirm that there will be a leak inquiry?

[James Murray]

As I made clear, I am not going to comment on the ongoing Budget process, nor am I going to engage in speculation about Budget measures. I note that this urgent question is about speculation, which I am not engaging with. It is actually Conservative Members who seem to be fanning the speculation, and I would discourage them from doing that.

Oral Answers to Questions

Harriett Baldwin Excerpts

Tuesday 4th November 2025 Commons Chamber

[James Murray]

The work that my right hon. Friends the Chancellor and the Prime Minister have been doing with Europe is all about taking down trade barriers where they get in the way of our national interest and economic growth. That is our priority, as well as cutting bureaucracy for businesses here in the UK.

[Dame Harriett Baldwin (West Worcestershire) (Con)]

The Chancellor justified at the Dispatch Box what a working person is. Will she reiterate at the Dispatch Box now what she said to the British public during the general election campaign, which is that her forthcoming Budget will not raise taxes on working people?

[Rachel Reeves]

We will set out all our Budget measures at the Budget.

Stamp Duty Land Tax

Harriett Baldwin Excerpts

Tuesday 28th October 2025 Commons Chamber

[Sir Mel Stride]

As usual, my right hon. Friend makes a characteristically poignant point.

There is another act of damage that this Government have created: some of the most successful high net worth wealth creators in our country have simply gone; they have left. It is estimated that 16,000 have gone over the time that this Government have been in office. Socialists will say, “Who cares? Good riddance!”, but they should dwell on the fact that the tax paid by those 16,000 people is probably equivalent to between a third of a million and half a million people on average earnings. Hard-working people up and down our country are paying the price of Labour’s policies.

There are choices; it does not have to be like this. We can reduce taxes if we get on top of and control Government spending. At my party’s conference, we set out £47 billion-worth of savings across Government, including £23 billion in savings across the welfare budget. What did the Government do when they tried to tackle the welfare budget? They showed us that this is a Dad’s Army of a Government with a Captain Mainwaring of a Chancellor. They are no match even for the rabble behind them.

We know that we need to have responsible tax cuts. That means that they need to be funded and they need to lean into growth. That is why we have announced that, were we in government, we would be abolishing stamp duty on primary residences. It is one of the worst taxes in our tax system. The OBR states that a 1% increase in stamp duty would lead to a decrease of between 5% and 7% in the number of transactions, yet on this Government’s watch, the stamp duty due on a home valued at £300,000 will have doubled during their time in office.

[Dame Harriett Baldwin (West Worcestershire) (Con)]

The shadow Chancellor is making a powerful speech. Is he aware that recently in the Treasury Committee we were given evidence by a range of tax specialists, all of whom endorsed abolishing stamp duty?

[Sir Mel Stride]

Yes, and I thank my hon. Friend for the excellent work that she has been doing on the Committee, particularly when she chaired it in the last Parliament.

Financial Services Reform

Harriett Baldwin Excerpts

Wednesday 16th July 2025 Commons Chamber

[Emma Reynolds]

I could not agree more with my hon. Friend. We are intent on building the 1.5 million homes that we promised at the election. I remind the chuntering hon. Gentlemen on the Opposition Front Bench that even before the Planning and Infrastructure Bill, the OBR scored the first stage of the planning reforms as the largest increase in GDP by the end of the scorecard of any non-fiscal lever in its history.

[Dame Harriett Baldwin (West Worcestershire) (Con)]

The Economic Secretary may want to have a look at Hansard and make sure she got the right soundbite on the record about the 10 months of wage growth and the comparison. My understanding is that wage growth was indeed slow after the financial crash. We tried to compensate for that by increasing personal allowances, but wage growth has bounced back since the pandemic. She may want to correct the record if that is the case.

On the reforms, which have migrated from Edinburgh down to Leeds, the Treasury Committee will scrutinise the implementation. Is it her vision that they should be implemented over the next year, before the next Mansion House speech, rather than on the 10-year basis of the strategy as she outlined?

[Emma Reynolds]

I refer the hon. Lady to page 63 of the strategy, which is very useful. It sets out an ambitious timeline for implementing the reforms that the Chancellor set out at the Mansion House last night and in Leeds yesterday morning, and shows her that we have already taken action to implement some of the decisions we took in November last year, such as introducing the private intermittent securities and capital exchange system. PISCES is a new private intermittent securities market that is open for business, and for which we legislated in May. That demonstrates how we are working at pace. Other things will take a little longer, and her extensive experience in this place and in government means that she will understand that some of those things require primary legislation. However, she will see through the two-page summary at the back of the strategy how we plan to implement the reforms at pace to unleash the potential of the financial services sector.

Government Performance against Fiscal Rules

Harriett Baldwin Excerpts

Monday 7th July 2025 Commons Chamber

[Darren Jones]

I agree with my hon. Friend that we have had four interest rate cuts under this Government which is good for mortgage holders and renters. Wages have increased faster than costs for the first time in many years, and the Chancellor has been able to invest billions of pounds in our country while keeping markets stable. That is the consequence of stability in our economy and in our politics and the fact that we are implementing our fiscal rules in the way we said we would.

[Dame Harriett Baldwin (West Worcestershire) (Con)]

With all due respect to the Chief Secretary, the Chancellor really should be here to answer this urgent question because the financial markets are extremely concerned about her wellbeing—the financial markets which, by the way, are asking for a 10-year yield now that is considerably higher than after the Liz Truss Budget. It is really important that the bond markets, which are aware of the hole in the Government’s finances, know how the Government are going to act, because otherwise we will see further fleeing of the millionaires and the wealth creators and the businesses whose investment we rely on for growth in this country.

[Darren Jones]

I am not entirely sure what the question was, but I think the hon. Lady is exhibiting that she has learned some lessons from her party’s performance when she was last in government. Maybe she could share that with her Front-Bench colleagues in due course.

Spending Review 2025

Harriett Baldwin Excerpts

Wednesday 11th June 2025 Commons Chamber

[Rachel Reeves]

I thank the Chair of the Energy Security and Net Zero Committee for that question. Warm homes are a big part of our plan to tackle the cost of living crisis, and the money that we have put into the warm homes plan today will mean that millions more homes can be retrofitted with better boilers, insulation and solar panels. On average, that takes £600 a year off people’s bills not just for one year, but for every year to come. My hon. Friend is absolutely right. What we have done today is set out a five-year package of capital investment, because it is crucial that the industry is able to plan for the future and that young people are therefore willing to train up and businesses are willing to invest in apprenticeships. That is why on all of our capital spending, including the warm homes plan, we have set out a five-year plan.

[Dame Harriett Baldwin (West Worcestershire) (Con)]

My constituents in Tenbury Wells are seeking funding for a flood defence scheme. They will have listened very closely to the Chancellor’s remarks today to hear her mention flood defence capital spending, yet it was not mentioned in her speech. Can she confirm that the capital that will be allocated in the spending review period to flood defences will be as high in real terms as it was in the previous Parliament?

[Rachel Reeves]

The hon. Lady knows that we increased money for flood defences in the spending review in autumn last year, because we knew that there was no time to waste. We have already increased that flood defence spending, in addition to what the previous Government were spending.