(5 days, 20 hours ago)
Commons ChamberI thank the hon. Lady for that passionate intervention. The best way to get people out of poverty is through work. To the point made by the hon. Member for Stoke-on-Trent Central (Gareth Snell), the record of the last Government was exemplary. We had 4 million more jobs, and 800 new jobs every day under the last Conservative Government.
Josh Fenton-Glynn (Calder Valley) (Lab)
Were I not sat in a different place, I would be feeling déjà vu, because this appears to be the same debate that we had on the Budget just a week or so ago when I pointed out to the right hon. Gentleman that the problem we have is that two thirds of children growing up in poverty have a parent in work, when it was a third before the last Government got in. Will the right hon. Gentleman, who is a former Secretary of State for Work and Pensions, like to, first, apologise for that and, secondly, reflect on why work was not a route out of poverty under his Government?
I just ask the hon. Gentleman what he thinks the effect of increasing taxes on hard-working people does for poverty. Any economist will say it drives poverty up.
There is also the question of the farm tax, with the changes under the inheritance tax regime. In the run-up to the general election, the Secretary of State for the Environment, Food and Rural Affairs, then in his shadow position, looked the National Farmers Union president Tom Bradshaw in the eye and said that, at least on that count, farmers had nothing to fear from a future Labour Government. Well, that lasted about five minutes before they changed and the Chancellor changed her position. That will cause untold misery to farmers up and down our country. It will mean that farms that have been passed down generation to generation over many years will now fall into the tax net and potentially have to be broken up.
(6 days, 20 hours ago)
Commons ChamberIn its spring statement, the OBR was clear that productivity was coming in lower than forecast, and it was clear that it was reviewing that over the summer. The numbers that the OBR has since published showed that in the final pre-measures forecast the fiscal headroom was just over £4 billion. I was clear in my speech on 4 November that I did not want to reduce the headroom; I wanted to increase it. I increased it to bring back the stability that is much needed in our economy after 14 years of Conservative government.
Josh Fenton-Glynn (Calder Valley) (Lab)
The child poverty strategy published last week sets out the steps that we are taking to support families now, as well as the building blocks that we are putting in place for the long term. We will lift 550,000 children out of poverty by removing the two-child limit and through other measures, including the expansion of free school meals.
(2 weeks ago)
Commons ChamberThe right hon. Gentleman and I disagree about the role of the OBR. We value its role in a transparent and robust fiscal framework. Madam Deputy Speaker, during this debate Richard Hughes has offered his resignation. May I put on record, on behalf of the Government, our thanks to him for his dedication to public service?
Josh Fenton-Glynn (Calder Valley) (Lab)
It strikes me that much of the criticism from the Opposition Benches is rooted in the decision to increase funds to raise the headroom. I know that forecasts are a job for the OBR, but given that it is busy at the moment, could my right hon. Friend advise me on what the likely impact on the markets would have been of having headroom of just £4 billion?
My hon. Friend is right to draw attention to the fact that, had I been here today defending a headroom of £4 billion or less, it would have been a completely impossible task. This Government are determined to ensure that we increase headroom to give us greater stability. By increasing it to £21.7 billion, we have done just that.
(4 weeks ago)
Commons ChamberUrgent Questions are proposed each morning by backbench MPs, and up to two may be selected each day by the Speaker. Chosen Urgent Questions are announced 30 minutes before Parliament sits each day.
Each Urgent Question requires a Government Minister to give a response on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
Like the hon. Member, I regret the fact that there is always noise and speculation ahead of a Budget, but I am not going to add to that speculation here in the Chamber today. Our focus as a Government is to build the strong foundations that our economy needs, because that is the way to secure Britain’s future.
Josh Fenton-Glynn (Calder Valley) (Lab)
I am often put in mind of that scene in “Casablanca” where the official expresses surprise at gambling taking place in the casino when I hear Conservative Members say that briefing might have taken place. Perhaps in 2017, when the key stamp duty measure in that Budget was leaked, the right hon. Member for Central Devon (Sir Mel Stride) was equally surprised, as he was then the Financial Secretary to the Treasury. While there is always briefing, I am sure the Minister agrees with me that the job of the Chancellor is to get the best deal for this country.
Order. That is a toughie that one, and I think we know the answer. It is the worst patsy question so far. I call Steve Barclay.
(1 month ago)
Commons ChamberIf the hon. Gentleman looks at absolute poverty after housing costs, he will find very significant reductions for children, pensioners and across the piece during the vast majority of our time in office.
Dan Tomlinson
One of the things that has changed is that Conservative Members seem to have found £47 billion down the back of the sofa and are coming forward with plans that are not deliverable, just like they did when they were in government. They have done the job of a losing Opposition—we have been there in the past—whereby numbers used in opposition are not serious or credible. We all know where that ends up.
The Conservatives said recently that they would slash taxes and pay for it with £47 billion of fairyland spending cuts. For context, that is the equivalent of firing every police officer in the country. Of course, I am not saying that they will do that or that they have joined the “defund the police” brigade, but what would they do? We do not really know, because all we have is a menu without a price list.
Josh Fenton-Glynn
One unexplored area we could look at to raise some of the money we need is selling the brass neck of the Conservatives on the commodities market. Having cheered when Liz Truss delivered her mini-Budget, they now have the gall to lecture us about fiscal responsibility.
Dan Tomlinson
And the Conservatives have the gall to lecture us about managing the public finances well. They say that they want to cut civil service numbers. Between 2016 and when the Conservatives left office, there were 130,000 more civil servants. The former Member for Uxbridge and South Ruislip and former Prime Minister said that he would cut civil service numbers by 91,000; they then went up. In October ’23—when the Opposition spokesperson, the hon. Member for Grantham and Bourne (Gareth Davies), was in my role—the right hon. Member for Godalming and Ash (Sir Jeremy Hunt) unveiled an immediate cap on civil service numbers and pledged to cut them by 66,000; they then went up. Between May 2022 and July 2024, the numbers went up in every single quarter. I am not sure that the public would leave the Conservatives’ restaurant at all satisfied if they bought the items on their menu, because everything they have promised does not seem to turn into reality.
I will conclude, Madam Deputy Speaker.
(4 months, 4 weeks ago)
Commons ChamberI thank the hon. Member for his thoughtful question. We are doing a number of things. First, we are working at pace with the FCA to ensure that targeted support is in place by the end of the tax year and in time for the new ISA season in April next year. We are looking at the risk warnings and at the industry-led campaign on advertising the opportunities of investing. We are doing all that we can. It is good that hon. Members on different sides of the House are supporting us.
Obviously, different people will be at different stages in their journey through life. People who are retired may not want to invest in the stock market. I can understand that, from their perspective, they need more readily available cash, but if people who are younger or middle aged—I do not know where I fall in those categories—[Interruption.] Thank you. If people can even put a small amount away, they can invest in their future. It concerned me recently when a report suggested that many people did not know that their pensions were invested in the stock market and that that is how they get better returns in their retirement. We need to run a huge campaign with the private sector to educate people about the opportunities and to give people the confidence to invest. At the end of the day, it will obviously be down to people about how they choose to invest.
Josh Fenton-Glynn (Calder Valley) (Lab)
I welcome the Leeds reforms today. Like many of the best things, they started in West Yorkshire—[Interruption.] I see Conservative Members are still chuntering from a sedentary position. The reforms underline the important point that financial services are not just the preserve of the City of London, but of communities around the country, including many of my Calder Valley constituents who work for Lloyds Bank. Does the Minister agree that one of the most important things we can do to grow the economy is to focus on things that this country does well, including our financial services?
That is absolutely right. We were at Lloyds Banking Group yesterday in Leeds, and Lloyds employs thousands of people in Leeds and the wider region. There are some great opportunities in not only the establishment firms, but, as my hon. Friend the Member for Mid Derbyshire (Jonathan Davies) said, some of these new firms outside of London that are growing and providing innovative products. I was recently in Scotland talking to a group of fintechs about the support they are getting to work closely with some of the banks in Scotland to drive further investment into fintechs. That collaboration between the more established players and new players is positive to see.
(8 months, 1 week ago)
Commons ChamberThe Prime Minister’s plan for change sets out our ambitious but achievable target of clean power by 2030. The clean power action plan demonstrates the significant investment requirements to reach that target, including in renewable infrastructure, and the actions that we will take to facilitate that. We have already taken action to remove the de facto ban on onshore wind in England, approved major solar projects and delivered a record-breaking renewables auction.
Josh Fenton-Glynn (Calder Valley) (Lab)
The last Government left 4.5 million children in poverty, but, like many colleagues, I am alarmed that the impact assessment of the spring statement suggests that that number will rise, not fall. Will the Minister tell me when we can expect the results of the child poverty taskforce? Will they be delivered in time to influence decisions in the spending review?
My hon. Friend knows that the Government are committed to reducing child poverty and that we will be bringing forward a child poverty strategy later this year. It will look at levers that support households to increase their income, such as supporting parents into secure employment, supporting progression in the labour market and considering social security reforms. I confirm that the work of the taskforce is feeding into the spending review.
(11 months, 4 weeks ago)
Commons Chamber
Josh Fenton-Glynn (Calder Valley) (Lab)
The hon. Gentleman makes an important point about the problems in the social care market. However—this is a point I have made before—a lot of that is owing to the fact that nothing has been done since Andrew Dilnot’s report in 2011. Perhaps the hon. Gentleman could point to where he has spoken out about that in the past.
Robin Swann
When I was Minister of Health in Northern Ireland—for four years—I looked to the Dilnot report, and I tried to introduce parts of it there because of the differential that exists: in our system, health and social care services are the overall responsibility of the Department of Health. I know what point the hon. Member may have been trying to make, but I think he failed to make it directly in that intervention. The impact of not only the Dilnot recommendations but the introduction of employers’ national insurance contributions on those services would actually run counter to anything that Dilnot was recommending, because he was talking about a funded, integral part of domiciliary care as part of the health service, which we already have, but that would put pressure on our health services at the moment.
(1 year ago)
Commons Chamber
Josh Fenton-Glynn (Calder Valley) (Lab)
My constituents would be surprised that there is no tax exemption on tampons, which are used by close to 50% of society, yet there is a tax exemption for VAT on private schools, which are used by less than 5% of the country. Does my hon. Friend not agree that it is a mark of the priorities of Conservative Members that they are so quiet about the former but not the latter?
My hon. Friend is right to point out that decisions on VAT reliefs are political choices. Indeed, the Opposition are showing which side of that choice they land on when it comes to education; through their new leadership, they are choosing to prioritise a tax break for private school fees over investment in state education. That is a political choice. I am very happy to stand behind where we are on that side of the debate.
I will turn to some of the clauses in detail. The changes made by clause 47 will remove the VAT exemption from which private schools currently benefit on the education, vocational training and boarding they provide. Let me be clear: this policy does not mean that schools must increase fees by 20%, and the Government expect schools to take steps to minimise the increases for parents. Schools can reclaim VAT paid on inputs and make efficiency savings to minimise the extent to which they need to increase fees. Many schools have already committed publicly to capping fee increases at 5% or absorbing the full VAT costs themselves.
We are about the 100% of pupils. We are not trying to divide and rule like the Labour party.
I will make a little progress, if the hon. Gentleman does not mind.
Sadly, this cruel tax, which is being imposed midway through the academic year, will damage the education of thousands of pupils. It is sadly typical of the ideological approach that we have seen the new Government take on education, where they are trashing the record of schools, pupils, teachers and governors over the past 14 years when we rose up the international league tables.
My right hon. Friend makes a typically salient point. I agree, in particular about the lack of congratulations. The Education Secretary was not prepared to congratulate the head of Michaela school, which is the best performing school in the country.
Putting VAT on independent schools will particularly hurt those parents on modest incomes who are saving to send their children to a school that they think will best serve their needs. None of those parents is getting a tax break. They are also contributing to funding places in the state system, whether or not their child takes one up. The clause excludes the teaching of English as a foreign language, education at nursery and higher education courses from the new tax, but the Government have already crossed the line. They are taxing education and learning for the first time. Will the Minister rule out widening the scope of the education tax to include university fees, for example?
The Opposition are deeply concerned about the impact the tax will have on pupils with special educational needs, small rural schools, faith schools and schools taking part in the music and dance scheme. We have consistently warned of the damage it will do to young people’s education, and we voted against the measures in the Budget resolutions. New clause 8, in the name of my right hon. Friend the Member for Central Devon (Mel Stride), the shadow Chancellor, would require the Chancellor, within six months of the Act being passed, to make a statement to Parliament on the impact of the changes on those groups in particular, as well as the music and dance scheme. That is needed because there is such a wide gap between what the Minister is telling us and what the limited impact assessment is saying, and what all hon. Members who are actually talking to schools and parents know will be the case.
Josh Fenton-Glynn
The shadow Minister talks about talking to schools. I have spoken to schools in my constituency for many years, and I am sure he has spoken to the schools in his. The “School Cuts” website tells us that North West Norfolk has seen a £2.2 million cut in its state schools since 2010. Perhaps he could point to the record where he spoke out against those cuts.
I am grateful to the hon. Gentleman. If he checks the record, he will see that the level of per pupil funding actually increased over the last 14 years. I congratulate the schools in my constituency that have just received good ratings from Ofsted—a number of them have done so.
Josh Fenton-Glynn
Norfolk county council, which covers the area that the shadow Minister represents, has a housing waiting list of 1,341 homes sought. That is up 400 since he was elected in 2019. If the new clauses are about reviewing the impact of actions, perhaps he could take a moment to review the impact of the last Government’s actions, which saw the housing waiting list increase in his constituency?
I am grateful for the hon. Member’s interest in my constituency. He intervened on me earlier to talk about education in North West Norfolk.
I do not doubt the figures. I simply note that King’s Lynn and West Norfolk borough council, which is the council for my constituency, has met the housing need target it was set. Thousands of homes are being built in and around King’s Lynn, which will be a mixture of tenures—to rent and to buy. One of the big blockers is that the Government have not yet approved schemes that the previous Government were committed to—schemes for the roads and infrastructure needed to bring that housing online. I hope that the Minister will take that up with her colleagues, because if the Government are to meet their target of building 1.5 million homes, they need councils to deliver. That means funding the infrastructure. I am grateful to the hon. Member for enabling me to make that point.
We are concerned about the increased cost of private rent and a decreasing supply of rental properties due to this latest tax increase. New clause 6 would require the Chancellor to publish an assessment of the impact of the increased stamp duty rates on the private rental sector within six months of the Bill passing into law.
(1 year ago)
Commons Chamber
Andy MacNae (Rossendale and Darwen) (Lab)
As someone who lives on a farm, which is surrounded by farms, and whose family has farmed, and diversified, for generations, I add my voice to all those who have paid tribute to farmers for the crucial role they play in our economy. Many other hon. Members have said it more eloquently than I can, but let us all recognise the vital role of farms in our economy.
In common with colleagues, I met with farmers in the post-Budget period. Frankly, I was expecting a pretty hard time and there were some robust discussions, but they were also civil, constructive, informative and understanding. I pay tribute to the farmers and the NFU representatives who took that approach to the discussions. What most surprised me was how quickly the discussions immediately pivoted to the sense of anger, abandonment and betrayal that arose from the past 14 years, which have decimated the industry.
Fellow Members have described in detail—the hon. Member for Westmorland and Lonsdale (Tim Farron) described the situation particularly well—the betrayal of Brexit, the spiralling energy and feed prices, the spiralling land costs, and the terrible trade deals that opened the doors to poor-quality imports, which undermined the very farming markets that Conservative Members claim to value. As we have heard already, that dire management resulted in over 12,000 farms and agribusinesses going out of business since 2010. That is a terrible, shocking, shameful legacy. For Conservative Members to now present themselves as the champions of farmers is outrageous. They have used the word “arrogance”, but that is what they have displayed—a refusal to reference, understand or learn from their own history and failings.
Josh Fenton-Glynn (Calder Valley) (Lab)
Conservative Members talk about being friends of the farmers but for the past 14 years they were not. It shows how little they care that only 18% of their parliamentary party is present for a debate that they have called—[Interruption.] Only 21 out of 120 Conservative Members.
Andy MacNae
It is amazing; one of my colleagues talked about “the green fields opposite” in reference to the empty Conservative Benches.
Given that background, it is no surprise that farmers are angry, worried and feeling vulnerable. I associate myself with the remarks made by the hon. Member for Tiverton and Minehead (Rachel Gilmour), who called for calm and sense in the debate. Emotive language, designed to sow fear and cause concern is irresponsible at the very least, so let us try to keep to the facts and keep things calm and reasonable.
The focus of Conservative Members seems to be family farms, but the phrase “family farm tax” immediately creates a sense of fear and targeting, which is completely wrong. With some sensible tax planning, £3 million of assets can be exempt. Many speeches have glanced over the importance of gifting rights. Let us take the scenario of a family farm, in its truest sense, that is to be passed between generations. Surely, gifting rights are a massive opportunity to avoid all inheritance tax and remove the sense of fear that Conservative Members are trying to create. Most of the rest of the country has to do that simple estate planning by default.
Staffordshire is the largest dairy-producing county in the midlands and across the county we have 9,600 people working on farms. Four hundred and thirty-two of those farms are in my constituency, and they are an incredibly important part of the fabric of the area. So many of my constituents who listened to the Budget were genuinely shocked. They were shocked because they took it at face value when the Labour party said that there would not be any changes in inheritance tax for agricultural land. They listened and they believed.
I know—I always like to believe the very best of people—that the Ministers on the Front Bench from the Department for Environment, Food and Rural Affairs would have fought for that position, but this policy was a diktat from the Treasury. In my experience, there is a tendency for the Treasury to do that to many Departments. That diktat has meant a change in position, and one that has a severe impact on many people’s lives. If there were a factory in Staffordshire employing 9,600 people and its future viability was in jeopardy, Ministers would be rallying to its support. Members across the House would be saying, “Let us do something to save these jobs and save these livelihoods.” But that is not the case here.
I will, of course, give the hon. Gentleman the opportunity to burnish his potential to be that Parliamentary Private Secretary in DEFRA that I know he is so desperate for on any occasion.
Josh Fenton-Glynn
Why is the right hon. Member so dismissive of DEFRA, which is a fine Department whose work those of us who believe in the countryside value? I wonder why he was not so loud when 875 agribusinesses in his region closed in the last 14 years.
All the while I have been a Member of Parliament, I have fought for my farmers, and I will continue to do so.
I invite the Minister for Food Security and Rural Affairs to the next Staffordshire agricultural show as my guest. I will happily take him around, and he can look for farmers who are in favour of the Government’s policy. He can talk to my farmers. There are 446 farmers in the Stafford constituency, which neighbours my own, who I imagine will have a very similar view to that of farmers in my constituency: that this policy will put them out of business. If I take the Minister around the Staffordshire agricultural show, he might meet some of the 351 farmers from the neighbouring Lichfield constituency. Let him see how many of them believe that his policy will help them to grow their businesses.
A family business, whether it is a farm or a manufacturing business, invests not just for five years but for a generation and more. The Government’s policy will drive large financial institutions to own much more of our land—not local farmers who are invested in the community and care about the villages and towns that serve them. This policy is already having an impact. Many businesses that supply farmers are already seeing a significant drop-off in orders, whether it is people who supply agricultural machinery, people who supply seed or many more. I urge the Minister, who I believe comes to this House with a good heart, to look at the wider impact that the policy will have on our countryside, and at how it can be changed and improved.
The Labour party says that it wants to capture the large landowners—the James Dysons. I have a great deal of confidence that such people will be able to find different arrangements that mean that their wealth will never be touched, but many small farmers, who have worked hard all their lives to build something that they can hand on to their children, will be impacted. I fear for them, and I urge the Government to put the dogma of party politics to one side and really think of the impact that the policy will have on the lives of so many farmers who are trying to do the right thing for this country and our countryside.