Budget Resolutions

Paul Davies Excerpts

Monday 1st December 2025 Commons Chamber

[Paul Davies (Colne Valley) (Lab)]

It feels like a lifetime since 2022, when a Prime Minister and a Chancellor gambled with our economy. They put Britain in hock to the bond markets, sent mortgage rates soaring and plunged millions of families into hardship. That reckless approach left deep scars that our communities still bear today. Contrast that chaos with what my right hon. Friend the Chancellor has delivered in her Budget. Instead of instability, we have security; instead of ideology, we have investment. She has put money into the NHS, backed innovation, supported start-ups, and stood shoulder to shoulder with the British public during a cost of living crisis created by the Conservative party. Under the last Government, the country spiralled downwards towards despair. Today, we are reversing that and creating hope for the future.

The cost of living remains the single biggest concern for my constituents. It was the first issue they raised with me ahead of the Budget, which is why I welcome the practical steps in the Budget that will make a tangible difference to everyday life: £150 off energy bills, a freeze on NHS prescription charges, a freeze on rail fares for the first time in three decades, alongside a cap on bus fares, the national living wage moving up to £12.71 an hour, the state pension increased by 4.8% from April 2026, the two-child benefit cap scrapped, and expanded free school meals and breakfast clubs. These changes will ease the pressure on families and commuters alike.

I very much welcome the rise in the national minimum wage and national living wage, giving full-time workers an annual boost of around £900. One of my biggest asks of this Budget was action on the two-child limit. I came into politics to eradicate child poverty, and the measures announced in the Budget to lift children out of hardship are hugely welcome. The decisions of the last Tory Government pushed more than 900,000 children into poverty. That was an absolute disgrace. I am proud that this Labour Government are reversing that damage.

I reject the notion that those who need state support are somehow irresponsible or on the take. The real scandal is the number of parents who are in work yet still in poverty. Let us be very clear: we cannot simply stand to one side and allow those children to suffer the ravages of poverty. That was the reality of the two-child cap and its abhorrent rape clause. Ending that injustice is the right thing to do. In my constituency of Colne Valley, ending the cap will benefit around 1,520 children. That, alongside the expansion of breakfast clubs, such as the one at Scapegoat Hill primary school, will transform life chances for young people in my area.

As I said earlier, this Budget is about not ideology but investment. It is about investment in all our people, in particular our young people, who all deserve the best start in life, fair access to good jobs and career opportunities. This is not the blinkered ideology that we have seen from the Tories and Reform, but Labour values embedded in fairness and equality of opportunity, so that it does not matter where people are born and who to. Everyone deserves a real and tangible share in the successes of this country, so I am proud to support this Budget, particularly the lifting of the two-child cap, which will make a huge difference to so many of my constituents and many more across the country. This is a Budget that is anti-poverty and pro-children, and that is surely something we can all get behind.