Budget Resolutions

Josh Fenton-Glynn Excerpts

Thursday 27th November 2025 Commons Chamber

[Sir Mel Stride]

My hon. Friend is precisely right. I have set out the iniquitous impacts of the reduction of the national insurance threshold on younger people, as well as the impact that the Employment Rights Bill will have by increasing the risks of employing younger people. That is self-evident and obvious, and businesses are saying it over and over again. If an employer is put in a position where he is faced with a young person who has no career track record, and the Government’s legislation says that on day one the employee can take that employer to a tribunal for unfair dismissal—a claim that may get clogged up for two years, and for which the lawyers advising the employer will probably conclude that he should give in and pay out, even if the merits of the case do not warrant it—that is a recipe for higher youth unemployment. It is simple; it is basic economics.

Look at the taxes in the Budget placed on rental income. Do Labour Members not realise that that will lead to higher rents and fewer properties on the market? Do they not understand that if the family home is taxed, we will catch a lot of people who may be asset rich but are income poor? I suppose the solution will be to allow that liability to roll up and be paid on death—yet another death tax at the hands of this Government.

What is all this pain and taxation paying for? In large part, it is paying for more welfare—it is as simple as that. Scrapping the two-child cap is a mistake and it is unfair, because those who are paying taxes, working hard and doing the right thing have to take tough choices as to whether they can afford a larger family or not. It is quite right and proper that those who are on benefits should face similar choices.

[Josh Fenton-Glynn (Calder Valley) (Lab)]

I am sure the right hon. Gentleman is aware that the majority of people impacted by this uplift, and two-thirds of children in poverty, have a parent in work. The false dichotomy of those in work and out of work is simply incorrect, and as a former Minister in the Department for Work and Pensions, he should know that.

[Sir Mel Stride]

I have already set out the fact that this Government’s ruinous taxation policy, including in the Budget yesterday, is to load up taxes on people who are in work, many of them not high earners. The impact of that tax is the reason why the OBR has concluded that for every year of this forecast, real household disposable income—in other words, the cost of living issues people are facing—will deteriorate compared with the forecast back in spring. The Labour party is making poverty worse by making sure that work does not pay to the degree that it should.

The other point to make is about inflation. If the Government run a policy of borrowing vast amounts of money and spending half a trillion pounds over and above the plans that they inherited across this Parliament— that was added to by more than £100 billion just yesterday—we should not be surprised if inflation is the highest in the G7, or if the International Monetary Fund says that it will be the highest in the G7 next year. What does high inflation, particularly on food, do to poverty? It drives poverty up, and therein lie the answers that the Government need to think about.

There is an alternative, which is to get on top of and control Government spending and to do the responsible thing. Our golden rules is that at least half of those savings should go towards driving down the deficit and the debt, but we would then have capacity to drive down taxes as well. That is exactly what we set out at our conference: £49 billion of savings, and £23 billion of savings on welfare. Thanks to the solid commendable work of my hon. Friend the shadow Work and Pensions Secretary, we have found those savings, and it is a tragedy that the Government—[Interruption.] The Parliamentary Secretary to the Treasury says, “What are the savings?” The savings are £23 billion on welfare—[Interruption.] It is a number. As a member of the Treasury team, he should be familiar with numbers, but clearly he is not.

We will be bringing down the welfare bill, and the savings are clear. I direct the Parliamentary Secretary to the Treasury to the paper from the Centre for Social Justice, which makes it clear—[Interruption.] Well, it is rather better than the Resolution Foundation stuff that he produced, I have to say. The paper from the Centre for Social Justice makes it clear that by changing the gateways into longer-term sickness and health benefits, which we did when we were in office—[Interruption.] If the hon. Gentleman stops jabbering and starts listening, he might actually learn something, and that might be for the good of his party and this country.

When we were in office, we made reforms to the work capability assessment that, according to the OBR’s own scoring, would have seen 450,000 fewer people going on to those benefits. We were making a real difference in arresting the rise of the welfare bill. What did the Government do on coming to office? They scrapped those measures on day one. They then came forward with their own proposals—[Interruption.] I hope that when the Parliamentary Secretary to the Treasury gets to his feet later he will address this, and talk us through what happened to his Government’s attempt to control the welfare bill. It got smashed into a million pieces on the rocks of his own Back Benchers—that is what happened. That is the tragedy of much of this Budget: the economics are being driven by the internal politics of the Labour party. We have a Prime Minister and a Chancellor whose position is now so precarious that they have to bob up and down like a cork on the tide when it comes to making policy at the whims of Labour Back Benchers.

There is a certain melancholy about this Budget. It is like groundhog day; an old song, with the words seared into the collective mind. A socialist anthem for all time:

“That for he who has, then that must be taken away.

For he who has not, then to him must be given.”

That is not on the basis of any measure of fairness, as suggested in the topic for debate today, but rather on a fundamental misunderstanding of basic economics. Economics is about resources, of course, but it is also about incentives. To he who has, I say this: if you work hard we applaud you, and we will incentivise you to work harder still, recognising your contribution to the common good. To the vulnerable we say this: we are there for you. But to others who have not we say this: here is not a hand out, but the means for improvement.

For the socialist, Madam Deputy Speaker, distribution is all, and the means are never sufficiently willed. The eternal lesson—also the lesson of this Budget—is that that path leads all to be diminished. An economy laden with debt, with Government spending spiralling still and taxation touching skyward, will never burn bright. The whole will never grow. It is not enough—it will languish. That is how the dreams of millions perish. Yesterday, the lingering flickers of hope died.

--- Later in debate ---

[Josh Fenton-Glynn (Calder Valley) (Lab)]

This Budget comes at a crucial time for the country and this Government. I say that because I am not blind to the public mood. It is a mood that calls for more change and, fundamentally, I think that only the Labour party can deliver the change that we need.

To understand the decisions we made in the Budget, Members must bear in mind what we inherited. The economy was a cupboard left not only bare by Liz Truss, but with broken hinges and no remaining shelves because of the decade and a half of austerity that preceded her. This Labour Government were not elected because the last lot had done a good job; we were elected because there was a mess. Throughout our whole electoral mandate at the last election was the message that we should make things better: we should improve the cost of living, support poorer children, and fix our public services, from roads to the health service. Changing Government takes time. I am one of the many alumni of local government in this place, and I never thought I would dream of the speed of action and the immediacy of decision making that we can get in a townhall.

I will speak briefly about supporting businesses such as those in Calder Valley, and lifting children out of poverty. I welcome the Government’s work to transform business rates relief and protect our high streets. Retail, hospitality and leisure are central to our communities in Calder Valley. In Calderdale, 3,200 businesses will benefit from lower rates. When we talk about this change, we are talking about the clothes shop in Brighouse, the café in Hebden Bridge, the pub in Todmorden and the curry house in Elland. They are places that keep our towns alive and bring people together.

Just as our high streets are vital to our community life, our manufacturing is vital to so much else in our nation and our national security. In Calder Valley we are proud of our manufacturing—we are known to some across the country as “valve valley”, and I promise I will make that name stick in this place. Those businesses are ready to contribute to Britain’s national interest and security. The Chancellor’s commitment to changing procurement laws, so that when national security is at stake we support skilled jobs in our country, is common sense.

SMEs in Calder Valley also welcome the fact that apprenticeships will now be free, which will help them to secure the next generation of British manufacturing. However, apprenticeships are not just jobs; they are opportunities and a sense of pride for so many families.

I have talked about business, but I will also talk about the heart of the Budget. I thank the Chancellor for removing the two-child benefit cap. I know from my time working at the Child Poverty Action Group, at Oxfam on UK poverty, and at Church Action on Poverty that this change is one of the most significant steps we can take to reduce child poverty. Measures in this Budget will lift half a million children out of poverty. Children growing up poor are less likely to succeed at school, twice as likely to be obese, and more likely to suffer from poor health throughout their life. As adults, they earn less. The vandalism of the rapacious rise in child poverty under the last Government will echo through generations. This country had the largest rise in child poverty among high-income countries between 2013 and 2023, with deep poverty rising by 67%. That is the legacy of Conservative Members.

The need could not be clearer. In Calder Valley, 5,624 children were living in poverty in 2023-24, compared with 4,317 in 2014-15. That is a rise of more than 1,000 on the Tories’ watch, and behind every one of those numbers is a kid who deserves a fair chance, and a parent fighting to get it for them. Nearly 2,000 children in Calder Valley will have their lives made better because of this Budget, but it is not just one measure; it is a strategy—free breakfast clubs in schools, the expansion of subsidised childcare, and a higher minimum wage. That will make our country stronger into the future, but there is more work ahead. Families need certainty that support will continue, and businesses need confidence that investment in British industry will be matched by action, skills and infrastructure.

This Budget is a turning point, and a signal that Britain is ready to move beyond austerity and neglect towards fairness, opportunity and prosperity. Above all, it is about trust—trust that the Government will stand for families when times are hard, trust that investment in British industry will mean real opportunities for towns such as mine, and trust that fairness, not austerity, will guide our decisions. That will build confidence in our system, our Government, and in our country as a place to live, invest and prosper.

[Andrew Lewin (Welwyn Hatfield) (Lab)]

rose—