Finance (No. 2) Bill

Nigel Evans Excerpts

2nd reading
Wednesday 17th April 2024 Commons Chamber

Second Reading

[Mr Deputy Speaker (Mr Nigel Evans)]

The reasoned amendment in the name of Drew Hendry has been selected.

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[Neale Hanvey (Kirkcaldy and Cowdenbeath) (Alba)]

The amendment in my name sought to address the failure of the Bill to bring in tax measures to ensure the continuation of oil and gas activity in Scotland, including at Grangemouth oil refinery. Almost 90% of levy revenue comes from Scotland, but there is precious little by way of investment in that part of the economy. A good example of that is the UK Government’s denial of £80 million to save Grangemouth, while at the same time signing a loan guarantee of £600 million for INEOS, for activity in Antwerp and Belgium. According to the response to a written question from my hon. Friend the Member for East Lothian (Kenny MacAskill), the UK Government have not even assessed the potential supply of that activity.

[Mr Deputy Speaker (Mr Nigel Evans)]

Order. Come on—ask a question.

[Neale Hanvey]

Can the Minister not see the perversity of spending Scottish revenue abroad while jobs in Scotland are wilfully put at risk by this Government?

National Insurance Contributions (Reduction in Rates) (No.2) Bill

Nigel Evans Excerpts

2nd reading
Wednesday 13th March 2024 Commons Chamber

[Gavin Newlands]

The hon. Member mentioned the green deal. I have hundreds of constituents who were essentially screwed under the 2010 Government’s green deal with the Lib Dems. Rogue builders were allowed to screw them out of thousands of pounds. The Government have done nothing for my constituents. What does he have to say about that?

[Mr Deputy Speaker (Mr Nigel Evans)]

Order. Mr Newlands, you are incredibly intelligent. Maybe next time you will think of a different way of expressing that.

[Steve Double]

I am not sure what the hon. Member’s intervention has to do with the Bill, but I am sure that all his constituents who are in work will welcome the 4% cut in national insurance. The Scottish National party has raised taxes to their highest level anywhere in the United Kingdom, so I am sure that his constituents will be grateful for the Bill.

Like my hon. Friend the Member for Aberconwy (Robin Millar), I represent a constituency with a higher-than-average number of pensioners. Some of them have been in touch with me questioning why, as far as they could see, there was nothing in the Budget for them. Clearly, cutting national insurance does not affect them because they do not pay it. We have to remember that the Government have kept the triple lock commitment. Pensioners rightly had a 10% rise in their pensions last year. I was one of those who fought hard in the autumn of 2022 to ensure that we kept that commitment. Next month, they will rightly get a further 8.5% rise in their pensions. When those measures are combined, pensions will have gone up by 18.5% over two years, which is a significant rise. We have rightly kept our promise to pensioners. It is in that context that the Government have now rightly focused on supporting people in work and in jobs, which is very welcome.

We have to set this Bill and the 2% cut that it delivers in the context of the 2% cut that we made in January and the fact that, because of our careful management of the public finances and the economy, inflation is coming down and the green shoots of growth are back in our economy. For those reasons, we are able to make the decision to cut national insurance. I am happy to vote for the Bill this evening.

[Mr Deputy Speaker (Mr Nigel Evans)]

To start the wind-ups, I call Tulip Siddiq.

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[Nigel Huddleston]

As the hon. Member will be aware and as the Chancellor outlined, based on current spending assumptions, total departmental spending will still be £86 billion higher in real terms by 2028-29 than at the start of this Parliament. If he was listening to the debates earlier this week, he will be aware that we will increase spending in real terms by 1% during the forecast period.

The hon. Member and others have raised points about fairness and making sure that we look after the most vulnerable in society, which is of course something we are committed to. Distributional analysis published alongside the spring Budget shows that the typical household at any income decile will see a net benefit in 2024-25 as a result of Government decisions made in the autumn statement—and, indeed, from the autumn statement 2022 onwards—and that low-income households will see the largest benefit as a percentage of income.

We have mentioned many times our commitment to the national living wage. It will soon increase by 9.8% to £11.44, which is expected to benefit around 2.7 million workers. It is important to stress that from April, a full-time national living wage worker’s take-home pay will be 35% greater in real terms than it was in 2010, due to successive increases in the national living wage and changes to personal tax rates and thresholds.

To respond to a few other comments made by right hon. and hon. Members, my right hon. Friends the Members for Witham (Priti Patel) and for Wokingham (John Redwood) both gave excellent speeches, in which they not only championed workers—including the self-employed—but highlighted the fact that we have to operate in a particular context. As has been mentioned many times today, we are in a difficult financial situation because of a global pandemic that hit the global economy, which was followed by the invasion of Ukraine and the significant impact it had on inflation around the world.

The question, as my right hon. Friend the Member for Wokingham pointed out, is how much higher taxes would be if Labour had been in charge. Throughout the pandemic, the Government received a lot of support from Members on both sides of the Chamber. That was completely right, but many Members were calling for even greater intervention and even longer lockdowns, which would potentially have done immense damage to the economy.

Some hon. Members raised the contributory principle. In our ambition for further reductions in national insurance, we will make sure that the future tax system has the right mechanism for establishing entitlement to contributory benefits, including the state pension. My right hon. Friend also mentioned the rise in the VAT threshold, which is really important. It will go from £85,000 to £90,000, which means that 28,000 fewer small businesses will be registered for VAT. My hon. Friend the Member for Ruislip, Northwood and Pinner (David Simmonds) highlighted this Government’s record on jobs in creating 800 jobs a day and in significantly reducing youth unemployment, of which we can all be proud.

My hon. Friend the Member for Aberconwy (Robin Millar), who raised many important points in his speech, pointed out the rather irresponsible scaremongering we have heard today from those on the Labour Front Bench relating to spending on pensions and the NHS. The Opposition should be well aware, especially if they wish to form a Government, that the money raised by NICs does not determine the amount going to the NHS and state pensions. We have announced increasing funding to the NHS and we are uprating state pensions by 8.5% this year, as I have mentioned. We on these Benches can tolerate a decent debate—we are fairly robust— but we will not tolerate irresponsible scaremongering, especially when targeted at the most vulnerable in society, purely to try to take political advantage from making up policies that do not exist. I hope that at some point the Opposition will either get some economic competence or apologise for that.

This really important Bill delivers tax cuts for over 29 million working people. A yearly saving of over £450 for the average worker will result from this Bill alone. Taken together with the cuts to NICs at the autumn statement, it will be worth over £900 per year for the average worker. This will benefit households throughout the United Kingdom and in every single constituency represented in this place. However, here we are again, and in nearly three hours of debate, we have heard nothing but doom and gloom from the Opposition. How disappointed they must have been this morning to hear that the economy has grown. While I am not pretending for one minute that everything is perfect—as I have said, our constituents and the country have been through a very challenging time—it is important to recognise, welcome and applaud success, especially if a party wants to lead a country, champion trade abroad and attract investment. What a terrible advert for the UK we have heard from the Opposition today, who are completely lacking in confidence and ambition for our economy and our workers.

The national insurance cuts we are debating reward work and will provide a further boost to the economy. We are turning a corner, and the plan is working. While we want to put more money back into people’s pockets, the Opposition want to take more out, and while we take every opportunity to talk the country up, they take every opportunity to talk Britain down. The choice is very clear: a plan for growth and a brighter future with the Conservatives, or no hope, no clue and no plan with the Opposition. I commend the Bill to the House.

[Mr Deputy Speaker (Mr Nigel Evans)]

Should there be a vote on the amendment, 10 minutes will be allowed, and if there is then a vote on Second Reading, eight minutes will be allowed.

Question put, That the amendment be made.

National Insurance Contributions (Reduction in Rates) (No. 2) Bill

Nigel Evans Excerpts

Committee of the whole House
Wednesday 13th March 2024 Commons Chamber

[Mr Nigel Evans in the Chair]

[The Second Deputy Chairman of Ways and Means (Mr Nigel Evans)]

I remind Members that in Committee of the whole House they should not address the Chair as Deputy Speaker. They should please use our names when addressing the Chair. Madam Chair, Chair, Madam Chairman or Mr Chairman are also acceptable—I think I have been called all of those at some stage.

Clause 1

Reduction in rates

Question proposed, That the clause stand part of the Bill.

[The Second Deputy Chairman]

With this it will be convenient to consider clauses 2 and 3 stand part. I will take the selected new clauses as a separate debate after the clause stand debates.

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[The Second Deputy Chairman]

That was marginally longer, as the hon. Gentleman said. I call Kirsty Blackman.

[Kirsty Blackman]

Thank you very much, Mr Chair—hopefully that is an acceptable form of address to use. I want to speak about the Bill in general and some of our concerns about it. The reality is that this is the wrong measure at the wrong time, as I said on Second Reading.

Earlier, the hon. Member for Hampstead and Kilburn (Tulip Siddiq) spoke about her concerns about the SNP’s policies on oil and gas. She says that we are not putting workers first. Unfortunately, the Labour party’s plans for green investment in energy mean that 100,000 jobs will be lost in Scotland, which is very clearly not putting workers first—unless it is only workers in England who count—given that the money will go on nuclear power.

On the details of this Bill, the reality is that public services are creaking and really struggling. I have spoken to the Electoral Commission, which is concerned about whether it will even be able to deliver elections properly, given that mandatory voter ID has been introduced. The commission was able to co-opt people from other areas in order to ensure that all the recent by-elections were run properly. Will the Minister make it absolutely clear that if there is a general election this year—which there almost has to be; there certainly has to be one in the coming financial year—local authorities will have enough money and people to be able to deliver and service those elections? Will they have enough resources to be able to do that?

The 2022 autumn statement allocated more money to the NHS for 2024-25 than this Budget allocates, so it is a bit of a cheek for any Conservative Member to stand up and say that the Government are putting more money into the NHS. They are putting less money into the NHS than they proposed in autumn 2022. The consequentials that arise from the increase this year are actually less than the in-year consequentials that the Scottish Government had for the NHS in this current year, so it is a very minor increase, because it only works out to in-year terms—[Interruption.] Does the Chief Secretary to the Treasury, the right hon. Member for Sevenoaks (Laura Trott) want to intervene? It is ridiculous for the Government to say, “This extra money is going into the NHS” when it is demonstrably less than they intended to spend on the NHS back in autumn 2022.

The Bill is going to make changes to the national insurance rates, and those changes will disproportionately impact higher earners. The Minister was slightly disingenuous when he said that the changes represent a higher percentage for people on lower incomes. Yes, but that is significantly less money. A band 2 worker in the NHS will be getting a £341 reduction in their national insurance rate. An MP in this House will get four times that. How is it fair that somebody in this House who is, in the main, not struggling to make ends meet will get £1,300 when someone working in the NHS will get only £300?

NHS workers have seen exactly the same increase in their energy bills as we have. They have seen exactly the same increase in council tax—actually, no, they have seen a much higher increase in their council tax bills if they live in England compared with those who live in Scotland. They have seen the same 25% hike in food prices. Given that those on lower incomes spend more money on food proportionately than those on higher incomes, that 25% inflation in food prices disproportionately hits families who are earning less. Therefore, we need to give even more to those families, rather than saying, “Well, it’s a higher percentage of your income so you’re okay. You’ll be fine with £340, but those people who are earning 85 grand a year standing in the House of Commons deserve £1,300.”

The hon. Member for Norwich South (Clive Lewis) made a very good speech on this change, and as he said, it is the essence of trickle-down economics in action. The Government are hoping that if rich people get richer and inequality increases, those people at the bottom of the pile will somehow magically get richer as well. There are much better ways to do this. One of the worst things about this whole situation—apart from the fact that Labour Members are unwilling to oppose it—is the decimation of public services that will result from it. The fact is that we have had 14 years of austerity and that is set to continue. People are going to lose out on vital services. The NHS is absolutely vital. Every one of us has had some sort of interaction with the NHS, yet the Government are setting themselves up for decades of pay battles with staff members because they will be unable to give the pay uplift that people deserve. They are setting us up for the decimation of those services.

I mentioned in my Budget speech last week that £1 billion-worth of cuts have been made by local councils to arts funding. That means children cannot access arts education, cannot go to a local theatre with reduced-price tickets from their local council, and cannot access all these extra things. People are struggling to access the most basic services because local authorities are creaking at the seams, yet the UK Government’s priorities are to allow a 4.99% increase in council tax and to ensure that higher earners get £1,300 whereas those on the minimum wage of £11.44 an hour who work 20 hours a week see absolutely no benefit.

[James Murray]

I beg to move, That the clause be read a Second time.

[The Second Deputy Chairman of Ways and Means (Mr Nigel Evans)]

With this it will be convenient to consider new clause 2—Review of effects of frozen thresholds—

“The Treasury must lay before the House of Commons within three months of the passing of this Act a report which sets out its forecasts of the change to the number of people paying national insurance contributions as a result of the thresholds for payment of national insurance remaining frozen over the period 2023/24 to 2027/28, rather than rising in line with CPI.”

[James Murray]

As I made clear in the previous debate, we support the national insurance reductions that the Bill seeks to deliver. However, the Chancellor followed the announcement of these reductions in last week’s Budget speech by pulling a rabbit out of his hat that, frankly, left us shocked and deeply concerned.

The Chancellor closed his Budget statement by committing the Conservative party to an unfunded £46 billion tax plan. It is quite incredible, and it tells us everything we need to know about the state of the Conservative party that he would use his last Budget before the general election to promise a plan that leaves a £46 billion hole in the public finances, that puts family finances at risk, and that raises the prospect of higher tax bills for pensioners across the country.

People across Britain are still paying the price for the reckless and unfunded tax plans in the disastrous mini-Budget, so it beggars belief that the very top of the Conservative party—the Prime Minister and the Chancellor —now want to go into the general election with an unfunded tax plan even greater than we saw in the autumn of 2022. We know just how damaging and irresponsible the Conservatives’ unfunded tax plans are for the British economy and for families across the country. Yet for a week now, and in Parliament today, Ministers from the Prime Minister down have been unable to say how this £46 billion tax plan will be funded.

People deserve answers. Are the Conservatives planning to increase taxes, including on Britain’s 8 million taxpaying pensioners? Are they planning to increase borrowing? Are they planning to cut our vital public services to pay for their £46 billion black hole? Ministers are refusing to answer, so our new clause 1 will force them to do so.

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[Mr Alistair Carmichael (Orkney and Shetland) (LD)]

Thank you for calling me, Mr Evans—surely it is long overdue that it should be Sir Nigel, but we will go with Mr Evans for today.

I stand to move new clause 2 in the name of my hon. Friend the Member for Richmond Park (Sarah Olney). Hon. Members will see that the effect of new clause 2 would be fairly short in its compass. It would compel the Treasury to report to this House its forecasts of the change to the number of people who are set to pay national insurance contributions as a result of the thresholds for payment remaining frozen until 2028, instead of increasing in line with the consumer prices index, which would be the case otherwise. The Chancellor and other Ministers have spoken today about the pride the Government take in what they are doing. In the interests of transparency, the Government should have no difficulty accepting new clause 2. I am sure it is merely an inadvertent omission that those measures are not part of the Bill already.

It is apparent that comments made by the Chancellor, the Prime Minister and others about the idea of abolishing national insurance altogether have started a debate, as we have seen this afternoon. It is a substantial commitment to make—£46 billion—and we do not yet know where that money would come from. That is maybe not the novelty that it used to be, certainly before the mini-Budget. However, it offers us an opportunity to think a little bit about the nature of national insurance as a tax, because it is quite distinct in its composition and operation.

In practical terms, functionally, national insurance is more or less like any other tax, in as much as money is paid into the Exchequer and fills the coffers, and then is spent as the Government or Governments see fit—in relation to health, policing, transport, Ministers’ legal fees or whatever else it is going to be.

As a matter of intent and purpose, however, national insurance is identifiably different from the other taxes we pay. More than any other levy, it is the symbol of our shared obligations—what we owe each other as a society and as communities in support throughout our lives. The point of national insurance is that we pool and share resources geographically and generationally. We pay our stamp on each payslip, trusting that, when the time comes for us to retire, someone else will continue to pay taxes that will fund our pensions.

Let us remember that the roots of this tax are in Lloyd George’s Budget, and that the introduction of national insurance came with the introduction of the pension. That is why we have the legacy of the link between national insurance and pensions, which was pointed out by the hon. Member for Denton and Reddish (Andrew Gwynne) in an intervention. That is significant. These are matters that must be clarified before we undertake a change of this sort.

At the heart of any healthy liberal democratic society, there is the idea that we have lasting obligations to one another. We have obligations to those we know, to those we do not know, to generations that are older than us, and to those who are yet to be born. We can be bound by policies with which we disagree, and sometimes we must pay taxes for things that we dislike or that we feel we do not need. That is the system in which the national insurance contribution has a demonstrably significant and different impact than other taxes. It is part of the tapestry of government and public life in this country.

This is perhaps just pulling at a thread, but the Minister and, indeed, people in all parts of the House would be well advised to consider exactly what they may be unravelling by pulling at this thread. Full transparency from the Government on the effect of freezing national insurance contributions in the way that has been proposed should be an important part of this debate as it proceeds.

[The Second Deputy Chairman of Ways and Means (Mr Nigel Evans)]

Thank you very much. Can someone from the Liberal Democrats inform the Chair who their tellers will be, as their amendment has been selected for a separate Division?

[Nigel Huddleston]

As I mentioned earlier, the impact of policy and any changes to policy will be subject to the usual public scrutiny, including from the OBR on costs. It is therefore not necessary to produce additional reports. I will not play into the hands of the Opposition today by commenting further on their scaremongering. I refer the shadow Minister to the answer that I gave earlier, which I thought was quite clear. I am sorry that he is incapable of understanding the difference between an ambition and a policy, but the rest of the House seems to understand it. Hopefully, he will catch up at some point.

Question put, That the clause be read a Second time.

Budget Resolutions

Nigel Evans Excerpts

Tuesday 12th March 2024 Commons Chamber

[Several hon. Members rose—]

[Mr Deputy Speaker (Mr Nigel Evans)]

Order. I remind Members not to refer to current Members by their names, but to do so by their constituency or office.

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[Yvonne Fovargue (Makerfield) (Lab)]

There are things to welcome in the Budget when it comes to helping people struggling with hardship and debt, but they are more about tinkering than about providing solutions to the underlying problems. I welcome the extension to the household support fund, which is distributed by local councils and is a crucial lifeline for desperate families, but it is only for six months. That is wholly inadequate given the scale of the problem.

Increasing the repayment period for households on universal credit that take out budgeting advances from 12 months to 24 months is clearly helpful, especially for those struggling to make ends meet or coping with an emergency, but that still leaves millions of people on universal credit subject to unaffordable deductions from their benefits to repay other Government debts. Those deductions from an amount of money that is frankly too little to live on in the first place cause real hardship.

We have to put those small changes in the context of a cost of living crisis that is affecting millions of people. StepChange says that two in five people are currently struggling to keep up with household bills and credit commitments, and its advisers regularly speak to clients struggling to meet even the most basic needs, such as getting a healthy meal and keeping the heating on. They are also increasingly seeing people on negative budgets, which means that they do not have enough income to meet their necessary outgoings, let alone put towards paying off their debt. A new report published today by Christians Against Poverty highlights that and the fact that many people lack credit, but I am not sure the Government recognise the problem as well as those charities do. That is why people need more help with the fundamentals, such as council tax and energy bills. Where is the much-needed council tax support scheme and a social tariff for energy? Those changes would make a real difference.

We also need major changes to the kinds of debt solutions that advice agencies can offer. The announcement of the scrapping of the up-front £90 application fee and the uplift to the vehicle value to qualify for debt relief orders is a start, because debt relief orders were a real barrier to those in financial hardship who had to find £90 before they could even deal with their debts. The statement on financial vulnerability is welcome, but it is estimated that an extra 556,000 debt relief orders will be applied for—a 75% increase on 2023. The statement asserts that individuals will be put in contact with free debt advice where appropriate, so my question to the Chancellor is: where will the extra money come from to pay for the additional debt advice? The free advice sector is already overloaded. Debt advisers are working beyond their capacity and suffering burnout, and many are leaving the sector, despite their commitment to it. More and sustained funding is urgently needed.

Enough with tinkering around the edges. We need a system of simple and straightforward debt solutions, and we must ensure that people, including those on negative incomes, are always able to access the solution that best suits their needs. One part of the solution has to be to reduce creditors’ reliance on bailiffs, whose fees, which rose substantially last year in the middle of a cost of living crisis, are simply added to people’s debts, making them less and less affordable. Bailiffs are often part of the problem, not the solution. We have to encourage creditors—including public sector organisations, the Government and local authorities—to embrace a fairer and more effective system that prioritises affordable payment plans over the seizure of goods.

Of course, we need to prevent people from falling into debt in the first place, so we must look at the issues more holistically. The causes and solutions are complex. Many people affected by debt have multiple categories of debt, spanning lots of regulatory regimes. That complexity is replicated across Government and Whitehall, and laws and regulations span several Departments. For example, the regulation of “buy now, pay later” firms, which is far too delayed—I was really sorry to see that it appears to have been kicked into the long grass—is the preserve of the Treasury. Bailiff fees are an issue for the Ministry of Justice, and prepayment meters are the responsibility of the Department for Energy Security and Net Zero. The Department for Work and Pensions looks after deductions from universal credit, and rent arrears are dealt with the Department for Levelling Up, Housing and Communities—and that is not a complete list. Actually, all those Departments need to work together, and any policies need to have a financial inclusion impact assessment. That would stop many of the policies that are pushing people into more hardship and debt.

This may sound a little strange, but I am looking to introduce a ten-minute rule Bill to regulate e-scooters that use lithium-ion batteries, which will come under the Department for Transport. This is a financial inclusion matter, because it is often the cost of living that causes people to search for cheap bargains online that turn out to be anything but and are actually dangerous.

I will not pretend to have all the answers to the complex issues, but I do know that we have to have a joined-up approach to solving them. Far too many people in our country are struggling with what seems like hopeless debt, and they gain little from the tinkering and short termism of this Budget.

[Mr Deputy Speaker (Mr Nigel Evans)]

I call Angus Brendan MacNeil.

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[Several hon. Members rose—]

[Mr Deputy Speaker (Mr Nigel Evans)]

Order. Sarah Olney will be the last speaker to have seven minutes, and we will then go to six minutes. Hopefully we can keep it at six minutes, if my maths is any good—I will be in the Chair then anyway, but we will see.

[Sarah Olney (Richmond Park) (LD)]

After years of economic chaos, unfair tax hikes and now Rishi’s recession, this desperate Budget is yet more evidence that the Conservative Government—

[Mr Deputy Speaker]

Order. The ruling was made earlier: we must not make reference to anybody’s Christian name or surname if they are current, serving Members. The hon. Lady is incredibly intelligent and I am sure she will find another way of making the point that she wishes to make.

[Sarah Olney]

Thank you, Mr Deputy Speaker. I apologise.

For millions of families and pensioners facing soaring mortgage and rent payments, skyrocketing energy bills and eye-watering food prices, the proposals announced by the Chancellor last week will barely touch the sides: no real help with the cost of living; no plan for economic growth; no real support for our NHS and public services; and no end to this Conservative barrage of stealth taxes. Is this really the best the Government have to offer? Thanks to this Government, the British public have endured the biggest fall in living standards since the 1950s, and more and more people across the country, including in the Chancellor’s constituency, are rightly saying that enough is enough. Instead of more empty promises, what they want is a general election as soon as possible, to get this tired Government out of Downing Street and get our country back on track.

In a veiled attempt to deceive the British public, the Chancellor seems desperate to convince people that he is cutting taxes. However, over this year and next, someone on average earnings will still be £383 worse off due to the Government’s freeze on the tax-free personal allowance. On top of that, they are already enduring higher energy bills, food costs, and rent and mortgage payments, all thanks to this Conservative Government. Meanwhile, the Government have left our public services stretched to breaking point. The Liberal Democrats have been calling on the Chancellor to end this crisis, particularly in our NHS, which is on its knees.

On doorsteps across the country, people tell us time and again how they cannot get a GP appointment, an ambulance on time, or see an NHS dentist. This is clear in places such as Molesey and Thames Ditton, where people are increasingly concerned that they are unable to see a doctor, and with GPs saying they have been left in the lurch by the Government. Despite the hard work of local doctors, the situation in Surrey has become dire after the Government slashed funding for GPs in real-terms by £9.2 million. That is also putting a huge strain on local hospitals, including St Peter’s Hospital in Chertsey, and Kingston Hospital in my constituency, which are paying the price for this Conservative Government’s failure properly to fund our health service.

The crisis facing our hospitals is also being felt in south London, where St Helier Hospital has been left to crumble, with no sign of the investment promised by the Government. A&E and maternity services are now at risk of closure, which could see up to 50,000 residents displaced for healthcare should further funding not be given. The situation in our health service is so bad that it is now hurting our economy, with more than 2.8 million people unable to work due to a long-term health condition.

The increase in economic inactivity since the start of this Parliament is estimated to have cost the taxpayer around £3 billion this year alone, and all because this Conservative Government have failed to fund our NHS and social care properly. Instead of properly addressing the crisis, the Chancellor merely plugged a hole that he had blown in the NHS budget in the first place. That is why the Liberal Democrats have called on the Government to deliver serious investment for our NHS, recruit more GPs, fix our cancer services, bring down waiting lists, and help people get the quality care they so desperately need.

I was, however, glad that the Government made positive steps on the issue of child benefit—something of great importance to my constituents in Richmond Park. The raising of the threshold at which child benefit can be accessed is welcomed by the Liberal Democrats, as is the proposed consultation on introducing a household-based system to determine eligibility, rather than basing it on individual incomes. I pay tribute to the work of my colleague, my hon. Friend the Member for North East Fife (Wendy Chamberlain), who has campaigned tirelessly on this issue and introduced a Bill on that subject a couple of weeks ago. I encourage the Government to go further to review how the high-income child benefit charge works, to ensure that hard-working families do not continue to incur excessive fines through no fault of their own.

I was also glad that the Chancellor listened to the concerns of the theatre industry, particularly those of the Society of London Theatre and UK Theatre, regarding theatre tax relief. Current higher rates of theatre tax relief have played a pivotal role in enabling UK theatre to be world-leading and innovative, which will enable bigger, bolder programming that helps nurture talent pipelines and reach more audiences. I now urge the Government to keep working with our creative industries, both in theatre and in other sectors, to help enable them to grow and continue to display the outstanding talent that we have in the UK.

Liberal Democrats welcome some measures in the Budget, but it simply does not go far enough. The Chancellor could have stood up last week, proposed a fair deal for the British people and taken steps to get our economy growing again. Instead, he gave us more of the same: another underwhelming set of announcements from this Conservative Government, who are out of touch, out of ideas and nearly out of time. He could have cancelled this unfair stealth tax and raised the tax-free personal allowance; he could have reversed tax cuts for the big banks and put in place a proper windfall tax on fossil fuel giants to help fund our public services; and he could have presented a serious strategy to stimulate economic growth by reforming business rates and developing an industrial strategy, as was done by the Liberal Democrats in government. Instead, he chose to appease his Back Benchers in a desperate attempt to save his party and maybe even his own seat.

It is clear that the British public will not be fooled by the Chancellor’s deception. Right across the country, voters are sick and tired of this Conservative Government, and are ready to vote for change at the next general election.

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[Navendu Mishra (Stockport) (Lab)]

I will start by talking about housing, because it is the issue that I receive the largest amount of correspondence on. In 2019, the Conservative Government committed to build 300,000 homes a year by the mid-2020s. We are now well into 2024 and the Government do not look anywhere near reaching the target, nor does the Budget contain measures to improve progress in that regard. In Stockport borough, Conservative and Liberal Democrat councillors voted against participation in the Greater Manchester spatial framework in 2020, depriving Stockport council of funds and co-ordinated support to build more houses. Now, a Liberal Democrat-controlled council is building far fewer homes than are needed, and progress towards a local plan for housing has been painfully slow.

In January this year, the waiting list for social housing in Stockport borough was 5,995 households. Sadly, as of this week, the figure stands at a staggering 6,400 households. In Stockport, 2,300 households filed applications for homelessness assistance in 2022-23: a 22% rise on the previous year. In November last year, 137 households were in temporary accommodation, with 29 families in hotels. The council’s forecasted spend on temporary housing is due to top £500,000 this financial year.

I am also concerned by the increase in buy-to-rent developments in Stockport, which are where a wealthy institutional investor will buy the entire property—often an apartment block—with the properties only available to rent rather than to buy. I have tabled a number of written parliamentary questions on the matter due to the impact that such developments have on increasing average rental rates in the area and the negative impact they sometimes have on our community fabric. I will continue to press on that, because I do not think that the Government have a grip on the housing situation. As I said, I continue to receive large amounts of correspondence from constituents struggling with housing issues on a daily basis. The harsh reality is that the Conservative Government have failed the people of Stockport and those across England when it comes to comes to housing.

I also want to talk about cuts to local schools in my constituency. Data released recently by the National Education Union showed that the Government’s funding decisions have resulted in 70% of maintained schools in England facing real-terms cuts since 2010. That includes 66% of maintained primary schools and 88% of maintained secondary schools. In my constituency, 84% of schools have less funding in real terms than they did in 2010 due to Government cuts. That equates to a loss in per-pupil funding of £392 and a total change in school spending power of £3.2 million for all the children in my constituency. The worst affected primary in my constituency, Bridge Hall Primary School, has suffered a loss in real-terms per pupil funding of £1,752 and a loss in overall spending power of almost £340,000. The worst impacted secondary school, Stockport Academy, has seen a loss in real-terms per pupil funding of £1,528 and a change in its overall spending power of almost £1.5 million. After 14 years of cuts, an extra £12.2 billion is needed to restore school spending power to 2010 levels, repair crumbling school buildings and tackle the SEND crisis that our children are facing.

I also want to mention the rise in prescription charges and the impact that has, often on low-income people and deprived communities. The prescription charge exemption list is outdated and unfair and does not reflect the reality of many people living with long-term medical conditions. The Prescription Charges Coalition is calling on the UK Government to review that outdated exemption list, with support from the Health and Social Care Committee to achieve that change. While the extension of the household support fund is welcome, 80% of those surveyed by Parkinson’s UK in 2023 did not even know it existed. What steps are the Government taking to inform those who need it most and to ensure that people with such conditions have that support?

Finally, may I mention the good work of the Campaign for Real Ale in supporting local pubs? I have a fantastic range of pubs, hospitality businesses and brewing institutions in my constituency, but sadly we have lost 25% of the pubs in my constituency since 2010. As I am sure you are aware, Mr Deputy Speaker, our pubs make up a big part of our community fabric, and when a pub closes the implications are much wider than just the range of establishments available. The Government have sadly failed to deliver the long-term change needed to the business rates system that unfairly penalises bricks-and-mortar businesses such as pubs.

I have tabled a number of written and oral questions on this issue since my election in 2019, but sadly I do not see any change in Government policy. We have an award-winning distillery in my constituency: Stockport Gin. I recommend you try it, Mr Deputy Speaker; it will soon be stocked in the Strangers Bar. Robinsons of Stockport, an iconic brewery business going back to the 1940s, and others have been campaigning for reform to the business rates system. I hope that the Government will pay attention, because losing valuable institutions like our long-standing pubs is a loss to the community and the nation. I will end it there. Thank you for calling me to speak, Mr Deputy Speaker.

[Mr Deputy Speaker (Mr Nigel Evans)]

I look forward to you buying me a pint—of anything, quite frankly.

Finance Bill

Nigel Evans Excerpts

Report stage
Monday 5th February 2024 Commons Chamber

[James Murray]

I begin by wishing His Majesty the King the very best for a speedy recovery. My colleagues and I are thinking of him and the royal family at this time, and we wish him a swift return to full health.

Throughout consideration of the Bill, the Opposition have made it clear that it contains a number of measures for which we have been calling for some time. For instance, we welcome the Government finally making full expensing permanent after so many years of chopping and changing capital allowances; we have made it clear that we will maintain that policy if we win power this year. We have also made it clear that we will maintain the system of R&D tax credits introduced by the Bill—again, after so many years of this Government chopping and changing the design of the scheme. In both cases, that is because we prize stability and predictability for businesses; they have made it clear to us that they value that greatly.

We know that providing certainty is a critical factor in boosting business investment and economic growth. If Labour won the next general election, we would put that certainty and stability at the heart of our approach in government by publishing a road map in the first six months, setting out our business tax plans for the whole Parliament. We have set out our approach to full expensing and to corporation tax, so I am disappointed that the Minister was not able to give us a clear guarantee that the Conservatives will maintain full permanent expensing and cap corporation tax at 25% for the whole of the next Parliament. Businesses can have confidence, however, that both of those commitments are locked in with Labour.

Of course, there are provisions in the Bill of which we have been critical, not least the fact that it freezes tax for passengers flying around the UK on private jets, while hiking taxes for everyone else who is flying economy or business class. Also, the Government admit that some provisions will need to be returned to and corrected. That is a far from ideal position to be in before a Bill has even become law. We know this is the case because, towards the end of last month, HMRC admitted that the way in which the Government have legislated to remove the lifetime allowance has

“created unintended consequences for members with multiple pension schemes”.

HMRC says that further legislation will be necessary to fix three areas in schedule 9 relating to the abolition of the lifetime allowance. That clearly indicates rushed legislation that runs the risk of creating problems for all involved. The legal firm Wedlake Bell, for instance, has said:

“The proposed new tax regime replacing the LTA at breakneck speed from 6 April 2024 is very risky for all parties including trustees, administrators, members and indeed HMRC itself.”

More widely, our concern with this Bill, as with the autumn statement it followed, is that the Conservatives cannot hide or move on from their 14 years of economic failure. Those 14 years of failure have left economic growth languishing and people across Britain worse off. Last November’s autumn statement for growth was the 11th attempt at an economic growth plan from the Conservatives. The truth is that the Conservatives are incapable of getting our country back on track. We need a general election so that Labour can offer the change and the plan that families and businesses across Britain need.

[Mr Deputy Speaker (Mr Nigel Evans)]

I call the Chair of the Treasury Committee.

--- Later in debate ---

[Mr Deputy Speaker]

I call the SNP spokesperson.

Cost of Living Support: Carshalton and Wallington

Nigel Evans Excerpts

Thursday 11th January 2024 Commons Chamber

[The Economic Secretary to the Treasury (Bim Afolami)]

I congratulate my hon. Friend the Member for Carshalton and Wallington (Elliot Colburn) on securing this debate. He is an asset to his constituents, who I am sure are pleased to be represented by him in the admirable way he has done so this evening. He is decent and has a clever mind, but most importantly he has a good heart, and that heart is in Carshalton and Wallington.

I think all of us in this place recognise the difficult times through which the people of this country, and indeed people around the world, have lived over the past couple of years. We have had the covid pandemic, Putin’s illegal war in Ukraine, and long-gathering inflationary clouds that have created a perfect storm for us all, but particularly for vulnerable people. However, this Government and this country have consistently fought back—against the virus, alongside our Ukrainian friends and, critically, from the perspective of the Treasury Benches, against the economic headwinds. As my hon. Friend outlined, this Government have provided one of the largest support packages in Europe over the past two years, in contrast to the damaging actions taken in his area by the London Mayor and my hon. Friend’s local Liberal Democrat council.

Some 11,300 households in Carshalton and Wallington were eligible for means-tested cost of living payments this financial year, and 8,500 individuals were eligible for the disability cost of living payment. Those households —my hon. Friend mentioned 30,500 properties in his constituency—along with all their neighbours, would have been eligible for the energy price guarantee, the £400 energy bills support scheme and the £150 council tax rebate, along with fuel and alcohol duty cuts. Energy support alone has paid for almost half of the typical family’s energy bill from October 2022 to June 2023 through both the energy price guarantee and the energy bill support scheme.

It is in part thanks to those measures that growth and real incomes have been stronger than expected this year—not just stronger than expected by the Office for Budget Responsibility, but stronger than expected by international economic forecasters. Inflation has also come down significantly to less than half its 2022 peak, and in November it fell to 3.9%, which is the lowest rate in over two years. Again, that was not forecast by the OBR or international forecasters. I do not deny that the outlook for real incomes remains challenging—it remains very challenging for many people, particularly vulnerable people in my hon. Friend’s constituency and across the country—as does inflation, but that is why we announced further support in the autumn statement in November to support the most vulnerable.

The Government will raise local housing allowance rates to the 30th percentile of local market rents in April 2024. In plain English, what does that mean? It means that 1.6 million low-income households will be better off to the tune of about £800 on average in 2024-25. Some, particularly Opposition Members, often say that that is not a lot of money, but I can tell the House that, for those 1.6 million low-income households, it is considerable support that they will welcome, as they will in my hon. Friend’s constituency.

The Government will also uprate all working-age benefits in full by the September 2023 consumer prices index rate of 6.7%, which is considerably higher than inflation, to make sure that working-age people on benefits are supported properly. That is 3 percentage points higher than forecast earnings for 2024-25 and, again, it will help support the most vulnerable while inflation continues to fall, with 5.5 million households on universal credit gaining £470 on average in the 2024-25 financial year.

My hon. Friend mentioned in his speech that 15,000 of his constituents are over 65, and we are maintaining the triple lock in support of those people and pensioners across this country, who have helped to build this country and have worked hard over years gone by. The basic state pension, new state pension and pension credit standard minimum guarantee will be uprated in April 2024 in line with wage growth of 8.5% in the usual reference period. In 2024-25, the full yearly amount of the basic state pension will be £3,750 higher in cash terms than in 2010 or, to put it more simply, £995 more —almost £1,000 more—than if it had been uprated by prices alone.

That comes on top of cost of living payments this year that are helping more than 8 million households on eligible means-tested benefits, 8 million pensioner households and 6 million people across the UK on eligible disability benefits. For individuals needing further support, local authorities in England continue to provide support through the household support fund, which is backed by £1 billion of funding. This allows local authorities up and down England to provide crisis support for the vulnerable households that need it the most, such as through supermarket or food bank vouchers. This means that, from 2022 to 2025, total support to help households with the cost of living will be over £100 billion—£104 billion—at an average of £3,700 per UK household.

However, I and the Government know that relatively short-term help is not enough. The only sustainable way to help vulnerable people in this country, including in my hon. Friend’s constituency, and to improve the living standards is to build a more prosperous future while remaining fiscally responsible. The best way to do that is to grow the economy and get more people into better paid jobs.

On growing the economy, this is not the time for more statistics, but I will say this: taken together, the measures in the autumn statement and the 2023 Budget represented the biggest upgrade in the GDP forecast that the Office for Budget Responsibility has ever scored. That shows the Government’s commitment to and delivery of a growing economy, which gives us all a better future.

When it comes to getting people into better paid jobs, from 1 April 2024, the Government are increasing the national living wage by 9.8% to £11.44 an hour for eligible workers aged 21 or over. That represents an increase of more than £1,800 in the earnings of a full-time worker on the national living wage and will benefit over 2.7 million low-paid workers. Just this month, employees’ main national insurance contribution rate has been cut by about 17%—that is, cut from 12% to 10%—and from April the main rate of class 4 national insurance for self-employed people will be reduced similarly, from 9% to 8%. That tax cut is worth £9 billion a year and is the largest ever cut to employee and self-employed national insurance.

The OBR expects that the measures announced at the spring Budget and autumn statement, taken together, will support nearly 200,000 additional people into work by the end of the forecast period. We do not do this for academic reasons or for fun; we do this because we know that giving people more of their own money—allowing them to keep more of their own money—improves their living standards, and we can do this while increasing funding for public services. Despite the difficulties of the last couple of years, over the course of this Parliament public services will benefit from the public purse by an increase above inflation of over 3%. We are doing this while supporting public services, while bringing down the deficit and bringing down the debt, and we can do all of it because of our careful management of the economy. That will benefit the vulnerable people in my hon. Friend’s constituency of Carshalton and Wallington and people across the country.

These measures underscore the Government’s unwavering commitment to supporting households up and down the country. We firmly believe that the key to a prosperous future lies in creating opportunities for everyone. The boost to the national living wage and the historic reductions in national insurance contributions are powerful tools in driving employment. Getting more people into work is not just good for them; it is good for our economy and for improving living standards, and it is clear evidence of a Government who have been willing to act to the tune of over £100 billion over the last three years. By putting more money into the pockets of hardworking people, we are not only bolstering their financial wellbeing but fuelling economic growth.

As always, we need to balance support for households with fiscal sustainability. The economic position remains challenging. We continue to keep options under review as we take tough decisions to drive down debt, drive down inflation and increase prosperity in every part of the United Kingdom. These are complex issues that affect all our constituents, wherever we call home.

I thank all hon. Members, but particularly you, Mr Deputy Speaker, because you are very kind, and my hon. Friend the Member for Carshalton and Wallington. He cares deeply for his constituents for whom he is a brilliant advocate in this place, and it is an honour to respond to him today.

[Mr Deputy Speaker (Mr Nigel Evans)]

Thank you for your kind words.

Question put and agreed to.

Finance Bill

Nigel Evans Excerpts

2nd reading
Wednesday 13th December 2023 Commons Chamber

[Sarah Olney (Richmond Park) (LD)]

The Liberal Democrats do not support the Bill. It is a deception from the Government after years of unfair tax hikes on hard-working families.

The Conservatives talk about tax cuts, but there are no tax cuts. The autumn statement maintains the Government’s unfair stealth taxes through the freezing of tax thresholds, dragging millions of people into a higher band or into paying tax for the first time. Changes to national insurance rates will not even touch the sides after years of tax hikes and spiralling mortgages. Thanks to the Conservatives’ decision to freeze tax thresholds, next year someone on a typical salary of £35,000 will pay an extra £400 in tax, and someone earning a middle income of £65,000 will pay an additional £1,200. Meanwhile, the typical mortgage will go up by £220 per month. Nobody is better off after years of this Conservative Government.

Worse still was the deafening silence on health in the autumn statement. The Government should be using any additional tax revenue to tackle the crisis in our NHS, to give people the quality of care they deserve and to let more people return to work to grow our economy. We cannot fix the economy without fixing the NHS. OBR growth forecasts have been halved, largely because people are waiting for NHS treatment. It is a no-brainer that we need to treat the millions of people on NHS waiting lists and allow them to return to work, but this Conservative Government simply do not care.

The Bill offers nothing to households struggling amid the cost of living crisis. It fails to introduce a proper windfall tax on the super-profits of oil and gas producers. That revenue could be used to fund energy support for the most vulnerable, such as doubling the warm home discount and launching a proper home insulation scheme. It could also be used to invest in British farmers, to bring down food prices for the long term.

The Bill fails to reverse tax cuts for big banks, a measure that could fund support for vulnerable mortgage holders and renters. Worst of all, it takes none of the vital steps we need to grow the UK economy, such as launching an industrial strategy, reforming business rates and the apprenticeship levy, and reducing trade barriers for small businesses.

As other hon. Members have highlighted, the creative industries are a major driver of the UK economy and the Liberal Democrats are committed to ensuring their continued success. The Finance Bill has some implications for theatre tax relief, which plays a crucial role in enabling the development of new theatre productions. UK Theatre and the Society of London Theatre have raised concerns to the Treasury about these implications, which could damage how this essential relief operates. I urge the Treasury to work with representatives from the creative sectors to address these concerns and provide clear guidance on changes to the administration of theatre tax relief introduced in this Bill.

While the Liberal Democrats support of certain measures within the Bill, such as the extension of full expensing, we cannot support any legislation that arises from such a deceptive and unjust autumn statement. Ultimately, the Office for Budget Responsibility says living standards are forecast to be 3.5% lower in 2024-25 than their pre-pandemic level, which is the largest reduction in real living standards since official records began in the 1950s. Households across the country are crying out for real support from this Government, as well as action on the cost of living crisis and investment in our NHS, but all we have heard is more stale announcements that show just how out of touch the Conservative Government are.

[Mr Deputy Speaker (Mr Nigel Evans)]

I now have to announce the results of today’s deferred Divisions.

On the draft Representation of the People (Overseas Electors etc.) (Amendment) (Northern Ireland) Regulations 2023, the Ayes were 325 and the Noes were 154, so the Ayes have it.

On the draft Equality Act 2010 (Amendment) Regulations 2023, the Ayes were 464 and the Noes were 11, so the Ayes have it.

On the draft Representation of the People (Overseas Electors etc.) (Amendment) Regulations 2023, the Ayes were 324 and the Noes were 186, so the Ayes have it.

[The Division lists are published at the end of today’s debates.]

--- Later in debate ---

[Sir Robert Syms (Poole) (Con)]

I agree with a lot of what my right hon. Friend the Member for Witham (Priti Patel) said. I was in this House for 13 years of Labour Government. Twice a year, we had the autumn statement and Budget, and all taxes were reviewed. In not one of those fiscal statements did they change the arrangement for non-doms. Why? Because it brings in more money. I am therefore shocked at the criticism from those on the Labour Front Bench of their Chancellors when in government. What we have with the Opposition is the politics of the magic money pot. The magic money pot is called non-doms, and the Opposition think that it will pay for everything. It will not; because such people are internationally mobile, they will move. The best things to tax are things that do not move, such as property. People can move, and we will not get sufficient money in as a result.

The Government have done a lot of good things. Putting up the triple lock is the right decision to look after pensioners, but those who pay tax might, because their pension will go up, pay more tax. Putting up the living wage is a good thing, because we want a higher-paid economy, but as lower-paid workers’ pay goes up, they pay more tax. It is one of the features of the modern world that those in the most successful and highest-paid economies tend to pay more tax. Although the overall tax burden, because of the freeze, has gone up, we need to reverse that, and we have started the process in the autumn statement.

The Government have set out a good long-term plan, which is essentially based on increasing the incentives for business to invest. We have a problem in Britain on productivity. One way of getting productivity up is to get pay up and investment in machinery and equipment up. If we can do that, we can pay for the public services that we all want, on both sides of the House, in terms of better education, a better health service and better outcomes. However, that requires getting productivity up. One of the problems since 2008 has been that Britain has struggled with productivity. Whatever we do, whether it involves incentives, higher pay, or credits for research and development, if it gets productivity up, that has to be a good thing.

I welcome an awful lot of what is in the autumn statement, but we should not look at it as one event; it is part of a series of events brought in by the Chancellor that mean that our national debt is falling over the plan. Our yearly deficit looks like it will be in the 3% range rather than the 4% range. Even the trade gap looks like it is improving. Our economic situation does not look too bad, and when we look over the channel to the EU and the eurozone, our problems seem rather less than theirs, with some of those countries going into recession.

I, too, saw today’s GDP figures. I would caution against any flash estimate of GDP. The monthly figures bounce around. I spent six weeks on a Finance Bill Committee during the days of the coalition when every day those on the Labour Front Bench talked about the double-dip recession, which was revised away six months later. The key point is to do the right things for the economy, get productivity up and get the economy growing, and the other things will come right. They will certainly come right when a lot of data is in. Even the three-monthly GDP data is based on something like a quarter of the stats. It is constantly updated over years and months. We should not be too fixated on short-term figures.

One reason I think the economy will grow over the next 12 months is that living standards have gone from falling to rising. That means that ultimately the British consumer ought to come to the rescue of the British economy and get it growing, if the Government can keep a stable economic situation, and pay continues to outstrip inflation, which I am very optimistic about. Brent crude has fallen under $75, which means that gas prices are now barely above where they were before the invasion of Ukraine. That has improved since the autumn statement. Petrol prices are falling again. This morning, the 10-year bonds interest rate was under 4%. That is a sign that the pressure now is to lower interest rates. The overall Government economic policy is not only to balance the books and reduce taxation in terms of national insurance, which will help 29 million people, but to get interest rates down so that, when people come to refix their mortgages, they can do so at a more reasonable rate. Good progress has been made, but we will not be free with one bound; it will take Budgets, statements and steady persistence. That means not giving in to every request for extra spending, however worthy they are individually. I commend those on the Treasury Bench and the Chancellor of the Exchequer. He has put together a good package, and I look forward to what will happen in March.

Before I sit down, I will pay tribute to a Labour Chancellor, Lord Alistair Darling of Roulanish, who was a very modest but very competent man. He faced what would be anybody’s nightmare in the Treasury, with banks collapsing. I think that history will treat him well for his management of the economy at that very difficult time. He is missed by this House and I am sure the other place will miss him too.

[Mr Deputy Speaker (Mr Nigel Evans)]

I echo that tribute to Alistair Darling. I was in the House with him for many years. He was a great politician and an excellent Chancellor of the Exchequer.

David Simmonds will make the last Back-Bench contribution. We will then move on to the wind-ups. I anticipate at least one Division.

[David Simmonds (Ruislip, Northwood and Pinner) (Con)]

It is a pleasure to speak in this debate, having been here to listen to some incredibly insightful and useful contributions from so many colleagues. I will endeavour not simply to repeat those excellent points, but to focus on some additional ones that have been raised in the course of the debate. My hon. Friend the Member for West Worcestershire (Harriett Baldwin), the Chair of the Treasury Committee, touched on something that is not in the autumn statement, but that I am sure those of us on the Government Benches will wish to seek further assurances about from Ministers: the tax on education proposed by the Opposition.

I represent a constituency in which there are five independent fee-paying schools, which have certainly been in contact with me to raise their concerns about the Opposition’s proposal. Every secondary school that serves my constituency, including the state-funded ones, is an independent school, because they are all academies. Every special educational needs and disability school that serves my constituency is an independent school, including those that have never been part of the state sector but came into existence as charitable organisations with a view to providing specialist SEND services. There are even stables in this country that provide equine therapy to non-verbal autistic children that, because they serve more than one child, are registered as independent schools with Ofsted.

The implications of the proposed policy, which it is said would raise £1.7 billion, would be additional VAT on fees paid by local authorities up and down the land and, more significantly from the Exchequer’s perspective, to bring a huge amount of VAT within scope of being reclaimed by that wide variety of institutions. I hope that Ministers will state with great clarity that it remains the policy of this Government that we support the excellence in our incredibly diverse independent sector, which includes both SEND and state-funded education.

We have been challenged to say what has been the biggest achievement of the Government in the past 13 years. For me, it is the thing that forms the backdrop to this Finance Bill and to my right hon. Friend the Chancellor’s autumn statement: the transformation in the number of people in our country who earn their own living through work. The Office for National Statistics data shows an incredibly clear trend in youth unemployment. Under the last Conservative Government, it was falling and falling; once Labour took office, it began to rise. Since this Government took office in 2010, the rate of youth unemployment has halved. That makes an incredible difference to both the financial wellbeing and, most importantly, the mental and physical health of our young people. It gives people prospects. It gives people hope. It means all our citizens have a stake in the economy of our country.

The same trends are replicated elsewhere. I remember what it was like as an employer trying to engage with the incredibly complicated systems under the last Labour Government, in which so many people were disincentivised to work—especially women who wanted to work part time and fit that around bringing up children. The changes in policy—particularly universal credit and really good childcare offers—have transformed the ability of people in this country to access the workforce over that period. While that has not always meant that those individuals are much better off, the fact that they are able to earn their own living and take pride in having a stake in our economy is incredibly important.

There are particular reasons why this Bill strikes me as important. I would like to develop the point made by my hon. Friend the Member for Amber Valley (Nigel Mills) about tax avoidance stop notices. I have a number of constituents who have been affected by the loan charge over the past few years, and it particularly concerns me to hear from them that, in some cases, they are still being contacted by businesses trying to sign them up to schemes of the kind that have already got them into significant financial trouble.

I enormously welcome the fact that the Government are taking steps to make sure that that behaviour can be brought to an end and that we do not see any more of our constituents trapped in financial situations not of their own making as a result of the marketing of organisations that should know that, while what they are doing is theoretically and perhaps technically within the law because a loan is free of tax, if it is not a genuine loan and not to be repaid during the person’s lifetime, it should be considered part of their remuneration for the purposes of taxation. I welcome the step that the Bill makes in that respect.

The second thing I particularly welcome is the abolition of the lifetime allowance charge. I have heard from a very large number of professionals across my constituency, especially in the NHS, but also in other types of businesses in the private sector. The impact of the lifetime allowance has been the loss of highly experienced staff from those organisations. These are generally people in their 50s and 60s who are at the peak of productivity and have an enormous amount to give, but face a financial cliff edge and are forced by that limit to make a decision to leave a career that, in many cases, they love and enjoy and in which they have much to contribute. In the NHS in particular, the change will enable experienced GPs, surgeons and consultants to return to the workplace or continue working at a higher level than they would have been able to in other circumstances. For that reason, it will benefit our public services enormously, both in productivity and by ensuring that waiting lists, which are already beginning to fall, come down much faster.

Let me turn to some of the measures designed to support our small businesspeople and the self-employed. In politics, the loudest voices in debates about the economy are often those of large corporations with substantial, well-funded public affairs departments. However, we also know from the ONS that around 70% of people employed in the UK economy are in an enterprise with fewer than five staff. The voices of those small businesses, which are the bedrock of our economy, are not heard collectively as often as the voices of big international businesses.

The measures to simplify and reduce national insurance for small businesspeople and the self-employed are enormously welcome, and not just because of the money that they put in people’s pockets—it is important for us to remember that point. We heard some scoffing and comments of “big deal” from the Opposition when the reductions in class 2 national insurance contributions were mentioned, but the reductions represent about a quarter of what most households in the UK spend on Christmas, or a significant contribution to a child’s school uniform, a summer holiday or maintaining the car. All of those things make a small difference individually and a big one collectively. They send a message to our lower-income but entrepreneurial people that we are a Government who are on their side and keen to get off their backs.

I will finish with two suggestions. The first—to develop again a point made by my hon. Friend the Member for West Worcestershire—is to tackle some of the cliff edges in our tax system. The abolition of the lifetime allowance charge is one example of that. It is clear that around the £100,000 income level—that is a significant sum of money, but one typically earned by many of the public sector professionals on whom services such as the NHS, GP practices and schools depend—many of the benefits of extra earnings begin to be withdrawn. The situation in which two earners on £99,000 a year, with a joint income of £198,000, can continue to enjoy the benefits of tax-free childcare, but if one earner goes to £100,001 a year, those benefits are completely withdrawn, creates a significant marginal tax rate for professionals with children.

I have heard from a number of constituents who work in public sector bodies, particularly the NHS, that they have had to scale back their hours or decline to take on additional waiting list initiative work funded by the Government because the impact of that cliff edge is so financially significant for them. Of course, we see the same impact at that point from the pensions taper. I suggest to my Front-Bench colleagues that, as we think about the public sector productivity strategy, we need to consider how to take out some of those cliff edges so that the people we are asking to work and contribute more, and who are in a position to make a transformational difference to some of our public services, have good financial incentives to do so.

Finally, the OBR has been mentioned a few times in the debate. There is a degree of controversy about whether it is the correct body to provide a view about the sound financial management of our national finances. Having spent a lot of time in the local government sector, it is striking to me that it is a legal requirement for councillors making decisions in any of our local authorities to have before them the financial and legal implications of the decision, whereas in this House we usually decide on policies in a crowded debate with a big row about what we should do and then, sometimes months later, have a scantily attended debate at which the financial implications of the policy are debated and agreed. We do not take the financial implications and the policy decision together. I suggest that Ministers should consider whether, in order to emphasise the sound financial management approach of a Conservative Government, in addition to statements such as those about compliance with the requirements of the European convention on human rights, we should seek to ensure that every Government policy and paper on which this House makes a decision states what the financial implications of that decision might be.

Coming back to the point about VAT on school fees, I will make a forecast: should there be a change of Government, we will find ourselves back in the position that we were in under Gordon Brown. The announcement will be, “We want to spend the extra £1.7 billion that we have assumed, but we can’t actually raise that in taxes because the policy doesn’t work in practice, so we’ll borrow it,” and the £28 billion will become £29.7 billion. In addition, the non-dom money will not be forthcoming, so the Government will say, “We’ll assume how much that might be when we get around to tackling that and add that on to the borrowing as well.” That is the reason why under Gordon Brown we spent something like 10% more in every year than we raised in tax revenue. As a measure to prevent future Governments from running our finances into the ground again, let us make sure that we have that clarity of financial rigour in the decision making of Parliament, so that when Members cast our vote, we all understand the implications for taxpayers of the policies on which we are making decisions.

[Mr Deputy Speaker (Mr Nigel Evans)]

I call Tulip Siddiq to begin the wind-ups.

Autumn Statement Resolutions

Nigel Evans Excerpts

Wednesday 22nd November 2023 Commons Chamber

[Several hon. Members rose—]

[Mr Deputy Speaker (Mr Nigel Evans)]

Order. I am trying not to put a time limit on speeches, but as Members can see, we have 10 speakers and 100 minutes left, which roughly equates to 10 minutes each. If Members do not go wildly over that, we can get everybody in and with equal time.

Economic Growth

Nigel Evans Excerpts

Tuesday 14th November 2023 Commons Chamber

[Beth Winter (Cynon Valley) (Lab)]

The King’s Speech is yet another lost opportunity to deal with the cost of living crisis, the climate catastrophe and the scandalous underfunding of public services in my country of Cymru, Wales, and across the UK. This Government’s priority remains tax cuts for a wealthy minority of the type that crashed the economy last year, which the shadow Chancellor’s amendment today seeks to prevent. As the TUC has said:

“The UK is stuck in a Conservative doom loop”—

which amounts to—

“low growth, terrible living standards, and repeated doses of austerity.”

Our distorted economy is still able to deliver millions of pounds to a few at the top, just so long as millions at the bottom accept living on a few crumbs here and there.

The King’s Speech did nothing to deal with those problems. On pay, the Government should have pledged to legislate so that they always deliver pay rises for public sector workers that at least match inflation and provide pay restoration. We must ensure that our hard workers do not receive real-terms pay cuts again and that their salaries match real value in society. The Government must address that issue and do that in the autumn statement. On social security, we need payments to rise, but we hear that the Government plan to make new savings. They are reportedly planning to cut £4 billion from health-related benefits, which will, according to more than 100 disability organisations, plunge disabled people into poverty and could lead to unnecessary deaths. On energy bills, we have heard the Energy Secretary tell us the oil and gas stunt in the speech will not

“necessarily bring energy bills down”.

What we should be doing is cutting out the vast waste of shareholder dividend payments and restoring energy provision to the public sector.

Unlike the hon. Member for Delyn (Mr Roberts), who spoke earlier, I strongly believe that we need more devolution in Wales. We need a fair needs funding settlement, devolution of the Crown Estate and the £5 billion owed to us in consequentials from the HS2 England-only project—I could go on.

I want to focus my final comments on public sector funding. The Welsh Government have announced in recent weeks that they have to find savings of £600 million to balance their budget and maintain health spending. That is solely down to UK austerity and a Conservative economic agenda that harms our Welsh economy, Welsh public services and the living standards of Welsh people. One in four people in Wales are eating smaller meals or skipping meals altogether. Almost 3 million people in Britain are using food banks. As usual, it is the poorest in society who are paying the highest price, which is why I am supporting our local TUC in organising a hunger march later this month. Communities such as mine in Cynon Valley and across Rhondda Cynon Taf organised the first hunger march to London back in 1927, and it is a sad reflection on, and indictment of, our society that we are having to do the same again in 2023.

The impact of repeated rounds of austerity and the extractive nature of the economy means that there is a need and a desire to look at new economic models, at integrated community-based economic and social development. In Wales, this is being done under a vision of “Cymunedoli which translates as “communitisation” and is similar to community wealth building.

Cymunedoli is an economic model that ensures that communities own and manage their resources and labour, rather than being exploited for the benefit of others, as has long been the case throughout Welsh history. A fair, inclusive, prosperous and sustainable economy is created for the benefit of everyone, through generating and retaining wealth within local communities. The examples of cymunedoli that are being pursued in Wales are successful: local investment in jobs, paying for local training, paying local suppliers and staff, and finances recycled and retained within the local community, rather than extracted. We need to see more of that.

The Tory Government have spent 13 years cutting services and creating a cost of living crisis. That has to stop now and we need the Tories out. Diolch yn fawr.

[Mr Deputy Speaker (Mr Nigel Evans)]

Those who have participated in the debate should aim to be in the Chamber for about 6.30pm.

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[Navendu Mishra (Stockport) (Lab)]

I congratulate my hon. Friend, the new Member for Mid Bedfordshire (Alistair Strathern), on an excellent and important maiden speech. I hope he will continue to serve the people of Mid Bedfordshire for many years to come.

I want to talk first about housing, because that is the issue on which I receive the most casework in my constituency inbox. In recent years we have seen an escalation of section 21 notices, extortionate increases in private rents and a general increase in household costs. It is vital that the Conservative Government end the freeze on local housing allowance.

I am also extremely concerned about the level of homelessness, the demands on social housing providers in Stockport, and the financial demand on my local authority of meeting emergency and temporary housing costs. Stockport has seen a significant increase in homelessness: more than 2,300 households sought assistance from the council in 2022-23—an increase of 22% on the previous year—and, sadly, I see that trend becoming worse.

Stockport is the best place to live in England, but private rents have shot up in recent years. The housing emergency is now a full-blown crisis; it is placing those on low incomes in a very difficult place, and the Conservative Government are failing them. A constituent contacted me recently because her rent had shot up from £600 to £900 per month, causing her immense financial hardship. That rent increase seems entirely unreasonable. She now faces an eviction via section 21 notice from a home she has lived in for 15 years, at a time of her life when she should feel secure and comfortable in her own home.

The current housing emergency cannot be fixed overnight, but ending the freeze on the local housing allowance would have an immediate impact on those in need ahead of another difficult winter for the nation. People deserve the security and opportunity to get on in life, but under the Conservatives the foundations of a good life are crumbling. Homeowners face eye-watering mortgage rates, young people are struggling to get on the housing ladder and the dream of home ownership has been snatched away from so many people who are stuck paying unaffordable private rents. Labour’s plan for secure homes will put an end to the Tories’ housing emergency, and we support fundamental reform of the private rented sector.

I also want to cover NHS waiting lists. I recently spoke to a constituent regarding her mother, who is in a care home. In Stockport, unfortunately, the wait for an assessment by NHS continence services is 31 weeks, which is far too long. My constituent, whose mother is 90, contacted me in distress regarding the very long period of time her mother had to wait to get an assessment. I am told that the assessment should take no longer than 12 weeks, but in this case it took 31. That is a very serious matter and I will write to the Department of Health and Social Care about it.

There are almost 8 million people on NHS waiting lists in England. The Prime Minister promised to cut those waiting lists, yet last month they rose to a record high of 7.7 million people, meaning that one in seven people are currently waiting for NHS treatment. That is simply unacceptable.

I recently wrote to all NHS-registered dental practices in my constituency, asking them whether they had any availability for registration for NHS treatment. In my local hospital, Stepping Hill, 365 patients had to visit A&E over the past year to get emergency treatment for tooth decay. We are in a crisis. I thank the British Dental Association for the work it is doing on this issue, but the Government have forgotten about NHS dentistry and it needs fundamental reform. From the letters and emails I have had from dentists in my constituency, I know the service is underfunded and people who cannot afford dental treatment simply do not get it; they have to do DIY dentistry at home, which is very dangerous.

On local government funding, Stockport Metropolitan Borough Council—my local authority— has delivered over £140 million in savings since 2010. It is also facing further savings of £44 million by 2027-28. The current cost of living crisis, caused by the Conservative party, is having a severe impact on my constituents and on people across the borough of Stockport. The council needs much greater funding certainty from central Government, and the national local government funding settlement falls short. I call on the Treasury to address that urgently.

I will finish with a comment about Respect for Shopworkers Week, which is this week. We have seen a significant rise in physical and verbal attacks and threats against shop workers. The Union of Shop, Distributive and Allied Workers—my trade union, as a former retail worker—is campaigning on that issue, and the Government need to bring in legislation to address it.

We need a general election now so that we can replace this tired Government.

[Mr Deputy Speaker (Mr Nigel Evans)]

This will be the last Back-Bench contribution before the wind-ups.

--- Later in debate ---

[The Chief Secretary to the Treasury (Laura Trott)]

It is an honour to participate in the debates following the first King’s Speech for more than 70 years. I thank all hon. Members who have contributed to this debate, including the hon. Member for Bristol North West (Darren Jones) both for his warmish welcome and for his remarks. He and I are both quite new to our posts, and much as we might disagree quite fundamentally on major topics such as taxes and spending, I am sure he agrees that it is a privilege to be closing today’s debate.

During my time at the Department for Work and Pensions, I saw at first hand the impact that Government decisions have on people, and the hugely positive effect that work has on households and regions. I will continue to hold that understanding as I take on my new role, and I look forward to working with Members across the House to make sure that the economy grows, that the wealth spreads, and that the Government are responsible and restrained with the public purse strings. I am sure the hon. Gentleman recognises, as I do, that the Chief Secretary’s job is a vital one that shows a clear difference between our two parties, and I am sure we will have robust discussions in the months ahead. I very much look forward to those opportunities.

We live in a changing world. Even since this Government set out their previous legislative agenda in 2022, we have seen huge upheavals. Putin’s appalling war in Ukraine has now dragged into another year of suffering and brave defiance; the terrorist actions of Hamas in the middle east have caused unspeakable suffering in Israel and Gaza; and all the while, the spectre of inflation haunts the globe, as the financial echoes of Putin’s war, covid-19 and the global financial crisis continue to ring out. What will work to address them is the careful, deliberate efforts that this Government are pursuing, which we will continue in the Chancellor’s forthcoming autumn statement. This is what the Government have done ever since we came to power, and this is what the King’s Speech does now.

Before I turn to the measures in the King’s Speech, it is worth taking a look at what this Government have already achieved. We came to power with a duty to tackle what was then the worst recession since the second world war: 2.5 million people were unemployed and 1.4 million were stuck on out-of-work benefits. What has changed since 2010? Unemployment is down by 1 million people, and 1.7 million have been able to lift themselves out of poverty thanks to a new living wage.

While many in the EU are experiencing a recession, here in the UK, as my right hon. Friend the Member for North Somerset (Dr Fox) regularly points out, since 2010 we have grown faster than France, Germany, Italy, Spain, the Netherlands and Japan, and our recovery from the pandemic has been one of the strongest in the G7. We have grown our economy by 65%, and cut our emissions by almost 50% since 1990. Perhaps most impressive of all, we have done this while slashing our borrowing by 70% between 2010 and the start of the pandemic. This is what a Conservative Government deliver.

Here I should consider the amendment in the name of the Leader of the Opposition and the shadow Chancellor, the right hon. Member for Leeds West (Rachel Reeves), although I will be brief as Opposition Members did not cover it much. If their amendment had been in force in 2020, we surely would have found ourselves in a much worse position. It would have hampered the Government from acting in an emergency, as we did during the pandemic, because instead of taking decisive action to support people and businesses up and down the United Kingdom, we would have been forced into a 12-week process with the OBR before we were able to deliver any support whatsoever. I am sure even Opposition Members would recognise that that is not an optimal outcome. Indeed, the Opposition seem to have put forward a plethora of new spending commitments today prior to an updated OBR forecast, which I would suggest is not in the spirit of their own amendment.

Turning to some of the measures mentioned today, the shadow Chancellor criticised the lack of action on the cost of living, yet did not once mention inflation. It is up there with the right hon. Member for Doncaster North (Edward Miliband) forgetting the deficit. Getting inflation down is the ultimate solution to the cost of living pressures we face. It requires disciplined, unglamorous work, which means keeping inflationary spending down. There was not one proposal in the shadow Chancellor’s speech to address it. It is true that she did not mention the deficit-busting, inflation-producing £28 billion of borrowing in her speech, but that is another Labour policy well overdue for a U-turn.

Key to driving non-inflationary growth will be boosting trade. The Brexit zombies on the SNP Benches fail to recognise the potential of the trade deals we have with the rest of the world. My right hon. Friend the Member for North Somerset and my hon. Friends the Members for Crawley (Henry Smith) and for Burnley (Antony Higginbotham) know the benefits that our open, international, free trading stance will bring. Deals such as the CPTPP with the fastest-growing economies in the world will deliver the clear benefits of Brexit, and we should be talking them up, not down.

Indeed, there was too much talking down in the debate today. The hon. Member for Birmingham, Selly Oak (Steve McCabe) asked who is better off. I will tell him who is better off: the 1.7 million people who have been taken out of poverty since 2010, the 200,000 pensioners taken out of poverty, those helped by the 40% drop in youth unemployment, those for whom it now pays to go out to work, children learning in schools that are more likely to be good or outstanding and, as my hon. Friend the Member for West Worcestershire (Harriett Baldwin) said, the low-paid, the number of whom has dramatically fallen since the national living wage was introduced. Since 2015, the proportion of people on low pay has halved.

My right hon. Friend the Member for Middlesbrough South and East Cleveland (Sir Simon Clarke), with whom I hope to engage a lot as I hugely respect the work he did as Chief Secretary to the Treasury, pointed out the dramatic impact that a Conservative Government and a Conservative Mayor, the brilliant Ben Houchen, have had on Teesside. He talked about Labour’s legacy there as one of mediocrity and failure, and he is right. With steelmaking back, carbon capture and storage, and a new net zero power station, this is levelling up in action, and that is what a Conservative Government deliver.

Turning to growth and supply side reform, which lots of people have mentioned today, at the spring Budget we announced a comprehensive employment package designed to remove the barriers that are preventing people from getting back into work. This is the welfare reform that was called for by my hon. Friend the Member for Waveney (Peter Aldous) and others. At the autumn statement, the Government will announce a package of long-term measures, creating an investment economy by unlocking business investment.

I welcome the remarks by my hon. Friend the Member for Stoke-on-Trent South (Jack Brereton) about the digital network Bill and the importance of broadband. I am glad to have heard the hon. Members for Lancaster and Fleetwood (Cat Smith) and for Walthamstow (Stella Creasy) bring up childcare. This is an important measure for growth as well as the right thing to do, and I hope that they welcome our £200 million investment. I do not think that the hon. Member for Lancaster and Fleetwood is in her place, but I note her remarks on sodium valproate and will make sure that they are fed into the Health team. That was very important.

On the supply side, many Members, including my hon. Friends the Members for Burnley, for Burton (Kate Kniveton) and for Hastings and Rye (Sally-Ann Hart), the hon. Member for Paisley and Renfrewshire North (Gavin Newlands) and my hon. Friend the Member for Stoke-on-Trent South, talked about the importance of transport in their local areas and of protecting consumers travelling by air.

Housing has been brought up by a number of Members. We are on track to deliver the 1 million houses over this Parliament, and the Chancellor is looking at what more we can do to support planning reform, particularly on infrastructure. I was slightly incredulous to hear the Opposition talk about boosting housing when they have just blocked a measure that would have added 100,000 much-needed homes. Being in opposition is as much about what to support as it is about what to oppose, and that was a mistake. However, I welcome the Opposition’s support, albeit grudging, for the Renters (Reform) Bill and the leasehold Bill.

Before I close, I should mention the brilliant maiden speech by the hon. Member for Mid Bedfordshire (Alistair Strathern), whose beautiful constituency we have all been seeing a little bit too much of recently. It was a gracious and accomplished maiden speech that spoke to his decency in the way he conducted the campaign. I wholeheartedly agree with him that there is nothing better than to represent the place in which one grew up. It is the world’s greatest privilege. This place, across the House, does an enormous amount of good. I hope and expect that the family, colleagues and friends that he brought along today were proud to see his excellent speech, and I look forward to further contributions.

We are taking the actions that will make this country better. The King’s Speech aims to push the UK into the spotlight on the international stage, embracing our role as a champion of global free trade, open for business and investment from around the world. Just look at our decision to scrap HS2, a one-route project where the right decision was postponed and kicked down the road as costs mounted up. The £36 billion that we are saving by cancelling HS2 will be reinvested to deliver Network North, improving journeys and infrastructure between and within the towns and cities of the north and the midlands, instead of just giving the people of the north a quicker way to move south.

The legislative agenda cuts through the noise of those who want to talk Britain down, who speak freely about our challenges but are tight lipped on solutions, and provides clarity, certainty and stability for those who need it most.

The last years have not been easy; the coming ones will offer their own challenges. I understand those who want to wish those truths away, but this Government’s instinct is to treat the public like adults. It is important that the public understand the challenges that we face, so that they can understand the changes we have made to safeguard their future. This Government’s legislative agenda recognises that, balancing the delivery of both security and opportunity. The Government have a track record and a long-term plan to do just that, and I am hugely proud to play my part as Chief Secretary to the Treasury.

That is why we will deliver licences for fresh oil and gas fields, continue to work to halve inflation and bring forward the trade Bill, cementing our place in the comprehensive and progressive agreement for trans-Pacific partnership, locking in long-term rights for UK firms to do business in the fastest growing region of the world.

None of this is easy. These decisions involve tough trade-offs, but because of our history of delivery and our long-term plan for the future captured in this King’s Speech, I know that the Government can achieve their aims for this country and help every part of the country to reach its potential. I commend the Loyal Address, unamended, to the House.

[Mr Deputy Speaker (Mr Nigel Evans)]

For those who are a bit rusty on King’s Speech procedure, I hope to assist. I will put only the amendment in the name of the Opposition today. Other questions will be put tomorrow.

Question put, That the amendment be made.

Mortgage and Rental Costs

Nigel Evans Excerpts

Tuesday 27th June 2023 Commons Chamber

[Several hon. Members rose—]

[Mr Deputy Speaker (Mr Nigel Evans)]

Order. There are three more speakers before the winding-up speeches, which I expect to start at about five past four, and I expect two Divisions after that. I ask any Members who have taken part in the debate and are not present to make their way to the Chamber now.

--- Later in debate ---

[Matt Rodda (Reading East) (Lab)]

I would like to speak in favour of the motion. Time is pressing, so I will touch briefly on the scale of the problem facing the UK.

It is fair to say that many families—indeed, up to 7.5 million—face a very difficult challenge at present because of the increase in interest rates and the effect on mortgages. As we have heard, it has been calculated that that increase means around £2,400 extra on household mortgages every year, which is £1,000 more than the increase in mortgages in the United States.

The situation affects both buyers and renters, because landlords put up rents as well, but the Government are proposing only a voluntary scheme, which obviously falls well short, and about 1 million families are likely to be missed by this inadequate measure. Earlier, the Shadow Chancellor set out a much more effective scheme, which I obviously commend to the House.

Given the lack of time, I will move on swiftly and speak about how the Government’s mortgage bombshell is affecting local residents in Reading and Woodley. This crisis is making what is already a difficult housing situation far worse for local people in our part of Berkshire. We have had high house prices and rents for some years, given the shortage of supply and many other related housing matters.

To give colleagues a taste of the situation locally, terraced houses in Reading town centre can sell for as much as £300,000, so these are quite expensive properties. There is also a real shortage of property and a large waiting list for local authority properties. For a family house, the price may be as much as £600,000 or £800,000, so we are already talking very large amounts of money. As I said, renters face additional problems. We have an issue with dangerous cladding not being removed in some cases, as well as issues with leaseholders and landlords. There are, therefore, serious problems in our area, and that is on top of the national problems facing families, which I mentioned earlier. Colleagues from across the House have also mentioned the 20% rate of food inflation and the UK inflation rate being the worst in the G7.

I would like to point out some of the problems facing individual constituents. Without giving away too many personal details, perhaps I could just give a flavour of the problems involved, and I hope the Chief Secretary will reflect on them. One constituent—a gentleman called Peter—is in a good job. He has a young family, with two children, and they live in a three-bedroom house. They face an increase of £800 a month in their mortgage, and they simply do not know how they will cope.

Another constituent, Donna, who lives in a flat in Reading town centre, faces a £400-a-month increase. Again, that is an absolutely incredible increase in what she has to pay for her home. Sadly, she is one of many residents locally who have been affected by the cladding scandal and by delays in removing various types of dangerous cladding. She is already under enormous pressure because of the emotional stresses and strains of having a flat with cladding problems. In addition, she now faces this enormous extra increase in her payments. She is self-employed and has a small business. Imagine how this feels to her. This truly is a dreadful crisis.

I realise that time is limited, and I hope my hon. Friend the Member for Stockton North (Alex Cunningham) can get in shortly, but I ask the Chief Secretary to report back to the Chancellor just how dire the situation is and how it is affecting people up and down the country—both my residents and those of colleagues from across the House. I also urge him to think about the five-point plan outlined by the shadow Chancellor, which has been well researched and well received across the industry.

[Mr Deputy Speaker (Mr Nigel Evans)]

Alex Cunningham is the final speaker.

[Alex Cunningham (Stockton North) (Lab)]

I well remember 1979, when mortgage interest rates soared under Thatcher’s Tory Government as the Bank of England base rate hit 17%. Those who were buying homes at the time knew all about it. My wife Evaline and I, both in relatively well-paid professional jobs, had moved home a couple of years before and, like many others, had maximised our mortgage to secure the house we wanted for our growing family. Little did we know that the cost of our mortgage would almost double in a couple of years.

My elder son John says he remembers Evaline and I regularly sitting at the table to go through our finances, often robbing Peter to pay Paul, while realising that Peter would still have to be paid with plenty of interest on top. Yes, the anxiety goes well beyond mortgage holders; it affects the whole family. Like many homeowners today, we contemplated selling up and moving to a smaller home, but the reality was that we would not only have lost our new home; we would not have been any better off.

I have huge sympathy for people today who are seeing their mortgage costs go through the roof, largely because the Tories crashed our economy by making some extremely daft decisions when our economy was still trying to cope with the double whammy of Russia’s illegal war against Ukraine and our exit from the European Union. We had it tough when our costs doubled, but today’s Tory mortgage bombshell is so much worse.

Moneyfacts data suggests that the typical rate of a two-year fixed-rate mortgage has increased to almost 6%, almost double the rate of a year ago, and the Resolution Foundation estimates that 6.5 million households will be affected by the post-mini-Budget rise in mortgage rates by 2026. Other huge consequences emanate from the Government’s decisions. This week, economists warned that there is a real risk of job losses and potential recession. The latest forecast for economic growth suggests that the UK is struggling to get out of the slow lane, with growth of just 0.2% forecast for the year.

On Sunday, I watched the Prime Minister ducking and diving under quite simple questioning from the BBC’s Laura Kuenssberg, and it sickened me that he had the nerve and the gall to tell mortgage holders to hold their nerve. He lives just down the road from me, and I wonder if he would like to sit down with a few of my constituents whose fixed-rate deals are coming to an end within the next few weeks. One of them faces an increase from just short of £800 a month to £2,600 a month. I would like the Prime Minister to outline how that constituent should hold their nerve and retain their home.

That same constituent, like everyone else, is not only seeing their mortgage go through the roof. They must also cope with a near 20% increase in food prices, which according to the Office for National Statistics is the greatest hike in 45 years. That can be added to the extra burden of council tax increases across the country, as local authorities collect the Government’s social care levy because the Tories have so drastically underfunded social care in recent years.

What are the numbers on Teesside? In Stockton North, 8,900 families face an increase of £1,400 this year. The pain is the same across the Tees valley, with 11,900 families in Stockton South paying £1,800 more, 9,000 families in Darlington paying £1,400 more, 7,200 families in Middlesbrough paying £1,200 more, 9,300 families in Middlesbrough South and East Cleveland paying £1,700 more, and 8,000 families in Redcar paying £1,500 more.

The Tory mortgage crisis has other wide-ranging impacts. The Government’s failure to build sufficient homes over the last decade has led to limited supply and forced prices up, making it more difficult for people to get on the housing ladder. We also see developers putting some projects on hold and scaling others back. The Government’s housing figures, published today, show that affordable housing providers have stalled or stopped schemes, as they are experiencing what they say is a “perfect storm” of build cost inflation, rising labour costs, material unavailability, building remediation issues and a duty to support tenants through the cost of living crisis. Developers cutting the number of homes they are building will have an inevitable impact on jobs not only in the building sector but across the supply chains that support it.

We could go on forever about the excess profits being made by the banks, as they cash in on higher interest rates, but that appears to be fine by the Government. Now that times are good again for the banks, they need to do so much more. They should concentrate on helping their customers instead of their share price and their bottom line. I wish I could be confident that they will all act, but I am not. It is down to the Government to take action to compel them to do so.

[Mr Deputy Speaker (Mr Nigel Evans)]

We now come to the wind-ups.

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[Andrew Griffith]

I always make a point of not commenting on the markets, in whichever direction they move. The responsibility of Government is to act and the responsibility of this Government is to deliver. We will control what we can control and the markets will do what they do.

The mortgage charter lays out that there will be a minimum 12-month period—I believe that is double the Opposition proposal, but I am happy to take an intervention on that—from any first missed payments before any repossession action is taken. It is important that our constituents understand that these measures offer comfort to those who are understandably anxious about the impact of higher rates on their mortgages and provide support for those who would get into financial difficulties. More broadly, the mortgage market itself remains robust and, because of the actions the Government have taken over the past 13 years, the average homeowner remortgaging in the past year had close to 50% loan to value, indicating that most have considerable equity in their homes.

Help for mortgage holders, but help for savers too: this Government are committed to ensuring that people are supported to save and can access a wide range of competitive savings products. The current range of options available to savers includes some of the highest rates that we have seen in recent years on both instant access accounts and the more relevant fixed-term products, which represent a better apples-to-apples comparison with fixed-term mortgage rates. The top instant access savings rates currently on the market offer around 4.2% and the top one-year fixed rate is much closer to the mortgage rate at about 5.8% annual equivalent rate.

Tackling inflation remains the Prime Minister’s and this Government’s No. 1 priority, and it will remain so until it is tamed. Allowing inflation to go on at the current rate or to grow higher would be the biggest threat to our collective economic security. While we continue on our fight to fight inflation, we will also do what British public expect; we will look at how we can grow the economy over the long term, improve productivity and ensure that no communities are left behind. We continue to take forward supply-side policies to increase the productive capacity of this economy and encourage workers back into work, including rolling out the largest ever expansion of free childcare. All that will set us up for greater productivity.

Let us contrast that with the Lib Dem plan to pile on to inflationary pressures an unfunded £3 billion a year. That is eclipsed only by Labour’s £28 billion a year—Interruption.] Labour Members do not want to hear it; they are talking among themselves. The IFS said that Labour’s £28 billion plan would cause interest rates and inflation to rise. Paul Johnson said that

“additional borrowing both pumps more money into the economy, potentially increasing inflation, and also drives up interest rates.”

That really would be a Labour mortgage bombshell.

In this barmy weather, those thinking of taking a summer holiday should remember that Labour’s economic policy has more flip-flops than the average surf shop: national insurance, corporation tax, the pensions cap, North sea gas, and, yesterday, shelving reform of high street business rates. The fact is that no Labour Government have ever left office with unemployment lower than when they came to power. As my hon. Friend the Member for Stourbridge (Suzanne Webb) reminded us, the note left by Labour’s Chief Secretary to the Treasury in 2010 said, correctly: “I’m afraid to tell you there is no money left.”

This Government are taking action on the economy. We are taking the tough decisions to bear down on inflation, we are supporting the vulnerable, we are helping the economy to grow, and, as the amendment states, we are helping mortgage holders with our new mortgage charter.

[Mr Deputy Speaker (Mr Nigel Evans)]

To inform the House, I shall put the main Question first. Should it be negatived, I will then put the Question on the amendment.

Question put (Standing Order No. 31(2)), That the original words stand part of the Question.

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[Sir Chris Bryant (Rhondda) (Lab)]

Further to that point of order, Mr Deputy Speaker. I do not want to comment on whether there is an appropriate sanction, because I am the Chair of the Committee on Standards, but the tweet that the right hon. Member for Romsey and Southampton North (Caroline Nokes) referred to says that several Conservative Members

“voted against the motion and in support of the grooming and mutilation of children”.

I suggest that that is incitement of violence against those Conservative Members and Opposition Members who voted against the motion. It is probably also actionable, and if any Conservative Members want to pursue that course of action, I will stand with them.

I wonder how we ensure that we protect the privileges of this House, namely freedom of speech. I would protect the freedom of speech for the Member for North West Leicestershire (Andrew Bridgen) to be able to say what he did in debate, though I thought it was absolutely abhorrent and despicable. It also chills my bones, as I suspect it does yours, Mr Deputy Speaker, because it feels as if a new section 28 is being introduced by the back door for trans people, just as we used to have for lesbian and gay people. How do we ensure that freedom of speech is guaranteed for the whole House and that we are not abused for doing our job properly?

[Mr Deputy Speaker (Mr Nigel Evans)]

I thank the right hon. Member for Romsey and Southampton North (Caroline Nokes) for her point of order and the forward notice of it and Sir Chris Bryant for the further point of order. While we do have privilege to speak as we wish in this House and rules to ensure that that freedom is used responsibly, what a Member says or retweets outside the House is not a matter for the Chair. Nevertheless, Members should remember that moderation is desirable outside the Chamber as well as within it, especially when criticising Members for their conduct in parliamentary proceedings. I am sure that this is not the last we will hear of this particular matter.