Budget Resolutions

Jim Shannon Excerpts

Monday 1st December 2025 Commons Chamber

[Ed Miliband]

Let me make a bit more progress. My second point is about public spending. In the spending review and the Budget, my right hon. Friend the Chancellor made the crucial decision not to return to austerity. She could have made a different choice and cut public services—I think that is what Conservative Members would go back to doing—but we know the impact of that approach from the last 14 years. This is about the living standards of millions of people across our country who cannot buy their way into private health care or private schools. This can be hidden by the smokescreen that Conservative Members want to put up, but the Chancellor has made the incredibly important decision to invest in the future. That has enabled the Government to cut NHS waiting lists by more than 200,000, roll out free breakfast clubs in schools, expand free school meals, fund the expansion of free childcare, and announce the biggest boost to investment in social and affordable housing in a generation. Conservative Members are back to austerity.

[Jim Shannon (Strangford) (DUP)]

I thank the Secretary of State very much for what he is saying, but on the £150 energy dividend for people across the United Kingdom, the Red Book lacks detail about how the policy will work in Northern Ireland. Perhaps he could indicate whether the support will be £150 in Northern Ireland, as it will in England. We must ensure that people receive the same in Northern Ireland as they do on the mainland.

[Ed Miliband]

The hon. Gentleman asks an important question; let me write to him with the detail on his point. We want as many people as possible across our country to benefit from this policy. By making different choices from those made in the past, my right hon. Friend the Chancellor is able to invest in the long term. She is delivering the highest levels of public investment that this country has seen in four decades.

--- Later in debate ---

[Rushanara Ali]

I fully agree with my hon. Friend. That is why it is vital that we rebuild our public services and invest in our national health service, to ensure people are able to contribute to our economy.

We also inherited a mountain of debt, with the previous Conservative Government having borrowed £1.5 trillion between 2010 and 2024. The fact is that austerity, Brexit, covid and Tory economic mismanagement have left our economy in peril, and our constituents are suffering the consequences in the form of rising prices and flatlining wages. For the poorest and most disadvantaged, the cost of living crisis has been a daily struggle for years. The Trussell Trust distributed approximately 60,000 food parcels in the 2010-11 financial year. By 2024-25, the number had risen to 2.89 million. This is the poisoned inheritance that my right hon. Friend the Chancellor is tackling, so of course she had to make tough choices with the hand that she had been dealt.

The decisions made in this Labour Government’s second Budget to lift 450,000 children out of poverty, help families with the cost of living and enable record investment to be made in our NHS will help a great many children. In my constituency, the scrapping of the two-child cap will lift more than 6,000 children out of poverty.

[Jim Shannon]

Will the hon. Lady give way?

--- Later in debate ---

[Gavin Robinson (Belfast East) (DUP)]

It is a pleasure to participate in this Budget debate. I am reminded that in 2005, whenever Tony Blair was seeking re-election for an historic third term as Prime Minister, he celebrated the fact that this country had enjoyed 40 quartiles of economic growth. If anyone cares to think about that, they have to realise that that economic growth commenced two years before he commenced as Prime Minister. I say that because often in this Chamber all we get from our Government is complaints about what the Opposition could or should have done when they were in government, and an Opposition who chide the Government for some of the choices and pressure that they face. However, there are those of us in the Chamber—and, more importantly, in the country—who can look clearly at some of the economic challenges and missed opportunities.

It has been right in this debate that we have heard that a Government who promised not to raise tax on working people raised £40 billion in last year’s Budget. It is right to reflect that this year, having said that that was a one-off, £26 billion will be raised from this Budget. It is right to reflect on the pressure that that is putting on ordinary people up and down this country. It is right to reflect on the numbers who did not pay tax and who will pay tax—5 million additional taxpayers over the course of five years—and on middle earners in this country, 5 million more of whom will pay a higher rate of tax over those five years. Those are choices that the Government brought forth and that people in this country will have to pay for. This debate on the cost of living should lead to the same questions around threshold freezing or two-child limits.

[Jim Shannon]

In Northern Ireland we have 440,000 children, and 103,000 of them are in poverty. By abolishing the two-child cap, this Government have ensured that those 103,000 children will be lifted out of poverty. The potential is there to do that. Does my right hon. Friend agree that abolishing the two-child cap takes those children out of poverty and makes their lives better?

[Gavin Robinson]

As my hon. Friend knows, we have campaigned on the removal of the two-child limit. We did not agree with the limit; we do not think it is right, and we think it is immoral for families to be placed in that position. We opposed it when it was introduced, and we oppose it today.

When considering the cost of living, let us reflect on the fact that within two years—by 2027—the state pension will be taxed because of frozen thresholds? It will be taxed in 2027, 2028, 2029, 2030 and 2031 because of choices by this Government. We recognise that pensioners should be entitled to and need pension credit to supplement that, but if their sole income is the state pension, it will be taxed, unlike pension credit. That cannot be right, but it is what has been delivered through the freezing of thresholds.

I am happy to engage with the Northern Ireland Office—I am pleased to see the Secretary of State for Northern Ireland here—about some of the challenges that we face in Northern Ireland. I recognise the additional £370 million through Barnett consequentials, although that is not one year’s addition; it covers a period of years with but £2 million in one of those years. The Secretary of State knows that the challenge this year for our Executive is £400 million—that is the current pressure. What is the one thing missing from the Red Book’s section on Northern Ireland? It is any challenge to the Executive; it is any mention of the fiscal framework and those negotiations that need to take place.

I lament the fact that there was praise for our Minister for Finance in Northern Ireland last week, when he talked about the need for revenue raising in our Province but then went on to rule out every significant aspect of revenue raising. Politically, they are not in that space, yet we have to share power with them. That is wrong. I lament the fact that we have partners in government who say, “We need more fiscal devolution; we need more powers in Northern Ireland”, yet they have manifestly failed to use the powers at their disposal. That cannot continue, and I say that there is a role for national Government in those negotiations.

We welcome that there is a potential £150 of support for energy bills in households across this United Kingdom, but there is no detail in the Red Book—my hon. Friend the Member for Strangford (Jim Shannon) asked the Secretary of State about that earlier, but he was unable to answer. This measure is coming in in April 2026, yet all we have is a notional offer from the Government to support the Executive in creating a system. Can we have confirmation as to whether annually managed expenditure will be made available to ensure that every household in Northern Ireland will be entitled to £150 on the same basis as in England and Wales? Will that extend to oil boilers? We heard about £130 for gas boilers, but 70% of homes in Northern Ireland are fuelled by crude oil.

I hope the Government will respond to those challenges today, because I do not want to be sitting in four or five months’ time with constituents in Northern Ireland saying, “What of that offer of £150?”, only to find that the support has not been there through AME or through central Government negotiations.

On pensions, I welcome the decision taken to provide an index-linked rise to pensions from 1997, but the Deprived Pensioners Association has highlighted that it is only prospective, not retrospective. It has asked for retrospective index-linked pensions and arrears, because far too many pensioners from 1997 and onwards have had their economic wellbeing curtailed in this cost of living crisis, because of the Government’s failure to introduce this change. It must be retrospective, and I would look forward to that coming about.