Louie French
Main Page: Louie French (Conservative - Old Bexley and Sidcup)Department Debates - View all Louie French's debates with the HM Treasury
(3 days, 16 hours ago)
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Peter Fortune (Bromley and Biggin Hill) (Con)
After a summer of rumoured tax rises, my constituents are deeply concerned. They are already paying more, because Labour broke its promise to freeze council tax, broke its promise not to increase national insurance, and broke its promises to first-time buyers, small businesses and farmers. Thanks to the Chancellor’s anti-business policies, growth forecasts are collapsing, borrowing costs are sky-high, and our national finances are shot.
Instead of looking at its reckless decisions, Labour is now calculating the best way to raise taxes, and my constituents are worried that the Chancellor is eyeing up their family home. In Bromley and Biggin Hill, on the edge of Greater London, homes are expensive. The average house price is well over half a million pounds, and there are rumours that the Government may scrap the private residence relief, which would be devastating. It would slap my constituents with an average £33,000 tax bill when they sell their family home. If someone has scrimped and saved, and been lucky enough to see the value of their home go up, they should not be handed a punitive tax bill. It only serves to knock working people back down when they are trying to get ahead.
Mr Louie French (Old Bexley and Sidcup) (Con)
Residents in Bromley, like those in Bexley, have been hit by the Mayor of London’s 77% increase in his share of council tax since he took office, alongside various driving taxes. Does my hon. Friend agree that this increase in property taxes would be the straw that broke the camel’s back for many residents?
Peter Fortune
I agree that the Mayor of London, Sadiq Khan, is causing residents in Bromley and Bexley real financial hardship. However, I in no way believe that this will be the final straw—the final way that the Mayor of London can find to damage my constituents and those of my hon. Friend. I am sure that he has plenty more straws, and a lot more camel to lay them on.
As I was saying, scrapping private residence relief would be irresponsible and economically ruinous. Imagine if somebody bought a house in Bromley in 2010 for £350,000. Today, it would cost somewhere in the region of £550,000. If they wanted to move to a new area for work or to be closer to family, without that relief, the tax bill would be somewhere in the region of £50,000. That eye-watering bill would stop people moving and wreck the housing market. That is why I urge others to support the motion, which rules out any further reckless tax rises. Working people cannot afford to keep bailing out Labour.
Laurence Turner (Birmingham Northfield) (Lab)
It is a pleasure to be called in this debate, even if I must start by questioning the wisdom of the Opposition’s decision to bring forward today’s motion. After all, the memories and consequences of their so-called mini-Budget are still fresh—the culmination of Liz Truss’s economic policies, which the present Leader of the Opposition said were “aspirational and inspirational”. Their dreams became our constituents’ nightmares—to say nothing of the Conservatives’ failure to pass renters’ rights reform, which this Government are now putting through, or of their dreadful record on wages, which left people in my constituency with £300 a month less, after inflation, every month.
It cannot be reasonably denied—although the Conservatives have tried—that the incoming Government faced a bedevilled inheritance last July. For all the sound and fury, there is little mystery about this now. As Richard Hughes, the chair of the OBR, told the Treasury Committee:
“When we had a high-trust relationship with the Treasury those things were being well managed, and managed within the total. That system very clearly broke down… there was about £9.5 billion-worth of net pressure on Departments’ budgets, which they did not disclose…which under the law and under the Act they should have done.”
What a disgraceful set of affairs, and decisions that awaited the Government on public sector pay had been ducked and delayed until after the election.
We need to be clear about this: Conservative Ministers already knew the recommendation of the schoolteachers review body. They also knew that the recommendations of each pay review body tend to be similar. Why were those recommendations delayed, given that the pay year started not in July or even at the beginning of the pre-election period, but in April? It was because Conservative Ministers and their Departments submitted the remit letters and their evidence late.
As the Office of Manpower Economics said in its 2022 efficiency review:
“The work of the PRBs is demand led and essentially non-negotiable—departments set the remits and timetables.”
There we have it: the additional cost was always coming, and the only reason why it came seven months into an election year was because Conservative Ministers were content for it to be so delayed. Today Opposition Front Benchers claim that they would have rejected the recommendations, but not once has any Opposition Member had the courage to say how much less they would have paid nurses, paramedics, teachers, police officers and armed forces personnel in each of our constituencies.
Are any Opposition Members able to enlighten us today? No. The reality is that they want the investment that means 25,000 fewer people are on a University Hospitals Birmingham waiting list compared with last year, and which is almost doubling the free school meals entitlement in my constituency of Birmingham Northfield, but they do not support a single measure to pay for it. We should be clear in saying that strong public services create value. Businesses and working people in all our constituencies need roads, schools and hospitals that are resourced and decent.
Laurence Turner
The hon. Member tempts me to get drawn into a discussion to which, in one minute and 30 seconds, I do not have enough time to do justice. Of course we need a bin service that is fit and decent—I have spoken about that many times in this House.
What my constituents did not need were the sharpest cuts in resourcing of any unitary authority in the entire country, coupled with the sharpest increases in council tax, and those were signed off by Conservative Ministers. I have in front of me the impact assessment of the 10% council tax increase from January last year, which says:
“The decision for Ministers across Government, as No. 10 and HMT clearance will be needed, is whether to grant these increases.”
That is the legacy of the hon. Member’s party for my constituents: the highest spending cuts and the highest tax rises. The last thing they need is a return to the failed approach of the Conservatives, who deserve to be reminded of that every time they bring such a debate to this House.