(1 month ago)
Commons ChamberThis Labour Government came to power with so many promises. The Chancellor promised to kick-start economic growth, and not to increase the taxes of working people. Now that Labour is in government, I am afraid that it is doing the exact opposite. If it can be taxed, the Chancellor will tax it—an electric car, a holiday, or even a taxi home after a night out. I am afraid that the Chancellor and those on the Government Benches are completely out of touch on how the economy works.
The statistics speak for themselves. Unemployment has surged across the United Kingdom: 19% more people are without a job since this Labour Government came to power, and almost 100,000 jobs have been lost in hospitality. The Government inherited inflation that was bang on the Bank of England’s targets; now, it has almost doubled. That is why there is a cost of living crisis out there in the real world. Economic growth is going in the wrong direction; forecasts have been revised downward next year, and are predicted to be lower in every remaining year of this Parliament. That is this Chancellor’s record and her legacy.
In advance of this Budget, there was wild speculation about what the Chancellor would present and endless rumours of more tax rises—kite flying by the Treasury. How can we expect any business to plan or invest for the future if the rules of the game continue to shift in this way? Of course, the situation is a whole lot worse in Scotland, where the SNP Government have made us the most highly taxed part of the United Kingdom.
I will focus my speech on two choices that this Labour Government made in the Budget. The first is the family farm tax. Yesterday I met farmers from across the United Kingdom who came to protest against this Labour Government’s decision to introduce the family farm tax. I was disappointed that I did not see many, if indeed any, Labour Members taking the time to speak to the farmers outside Parliament. I was utterly disgusted at the last-minute cancellation by the Metropolitan police—perhaps this Government were involved, too—of the farmers’ rally in Whitehall yesterday.
Farmers are devastated by the Chancellor’s decision not to reverse this cruel tax. It is not that they do not want to pay their fair share; they already do, and they are a vital part of our economy, protecting our countryside, rural communities and food security. They simply cannot afford to pay it. I entirely agree with the comments of the hon. Member for Gower (Tonia Antoniazzi), who is sadly not in her place just now, but who highlighted very clearly the anguish facing many farmers, not just in her constituency, but in mine and across the United Kingdom. I deeply regret the fact that Ministers have their hands over their ears, and are refusing to listen to the plight of our farmers.
John Cooper (Dumfries and Galloway) (Con)
My hon. Friend is delivering a searing indictment of this Budget. Does he agree that the intention of the farm tax may have been to take in multimillionaire so-called “slipper farmers”, but in rural constituencies like his and mine, it is hitting tenant farmers?
My hon. Friend is absolutely right. The intention may have been to force overseas investors, trust funds and others out of the farming sector, and to attack big landowners, but the tax is doing the complete opposite: it is destroying the family farm sector, forcing tenant farmers out, and seriously impacting on our food security ambitions.
The family farm tax is yet another promise broken by the Chancellor, who gave no indication before the last election that Labour would introduce it. The supermarkets agree: Tesco, Sainsbury’s, Morrisons, the Co-op, Marks & Spencer and many more have expressed their concern about how the tax will impact farmers and our nation’s capacity to produce our own food. I grew up on a farm, so I understand this. The consequences of the Chancellor’s failure to reverse this cruel tax will be catastrophic for our rural communities.
Two weeks ago, I visited dozens of small businesses across the Scottish Borders—corner shops, greengrocers, butchers, manufacturers, gift shops and many more. The same issue came up at almost every single one: the extremely tough business conditions just now. The jobs tax is forcing many of them to delay hiring decisions, or even lay off staff, and the additional red tape is forcing good employers to jump through totally unnecessary hoops. The average cost of a member of staff has surged by almost £1,000 a month, thanks to the jobs tax and the Government’s Employment Rights Bill. To make matters worse, because of the state of the economy, customers have less to spend on goods and services. It is all adding up to be an economic nightmare.
The Chancellor’s decisions are pushing our economy into a tax doom loop: higher taxes will fund more spending, which harms our economic growth and— surprise, surprise—means that the Chancellor receives lower revenue, and so once again comes back to ask for more tax rises.
(3 months, 4 weeks ago)
Commons ChamberI will pass on my hon. Friend’s comments to my colleagues in Croydon, who are keen to work with her and the other MPs there. In the summer, the Secretary of State announced further funding of £45 million for our eight youth guarantee trailblazers. That will ensure that in London, as in the rest of the country, our young people get the choices and chances that they deserve.
John Cooper (Dumfries and Galloway) (Con)
The Government have committed to significant measures to counter welfare fraud, error and debt. This is the biggest package of such measures in recent history, and the Office for Budget Responsibility has estimated that it will deliver an additional £9.6 billion of savings over the next five years. The package is underpinned by our Public Authorities (Fraud, Error and Recovery) Bill, which contains a range of new powers to enable us to keep pace with offenders who exploit the social security system.
John Cooper
I think we can all agree that fraud strikes at the heart of the system, kicking away its underpinnings. I hope that the Government will undertake a zero-tolerance approach, unlike in Scotland, where we recently heard that £36 million of benefit money paid out in error is now not to be recovered. Does the Minister agree that that is deeply unfair to taxpayers?
The hon. Gentleman tempts me to encroach on what are legitimately policy questions for the Scottish Government. The policy of this Government is clear and set out in the Bill, but I am grateful to the Cabinet Secretary for Social Justice for continuing to work with me constructively to make the Bill as workable as possible, with alignment where possible, such that if we end up diverging we are still able to ensure that this Parliament does everything it can, and the Scottish Government do everything they choose to do, to bear down on fraud and error.
(7 months, 2 weeks ago)
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Torsten Bell
That was a characteristically punchy and accurate contribution by my hon. Friend, and that is the difference between this Government and some of the Opposition parties: we want to see Britain succeed. We are investing in Britain’s success, and in the long run it will be higher investment, higher growth and higher wages that will turn round the long 15 years of stagnation.
John Cooper (Dumfries and Galloway) (Con)
The Daily Mail has said in its coverage of the accord today that industry leaders have warned that the Government must deliver a pipeline of investment opportunities to meet the new targets. What faith can savers have that this Government can deliver on that given that they touted GB Energy as a fantastic investment vehicle when in fact it is a damp squib?
Torsten Bell
Savers can have lots of confidence, because the pipeline is already being delivered: solar farms approved; onshore wind happening after being banned for years under the Conservatives; the national grid actually being built out for once; homes being built right across this country, and being opposed by Conservative MPs right across this country. The pipeline is happening, because this country is building once again.