Roger Gale
Main Page: Roger Gale (Conservative - Herne Bay and Sandwich)Department Debates - View all Roger Gale's debates with the HM Treasury
(2 days ago)
Commons ChamberOrder. It has become apparent already that if we are to get everybody in, we will have to set a formal time limit. After the next speaker, I will put in place a six-minute time limit. If there are a lot of interventions, which will of course add time, it will be reduced smartly to five minutes and possibly even to four minutes.
Yes, it had to come, and I am relieved that there is a cleavage. Where I diverge with them is on a wealth tax. I see that we are in a state—the UK is not a country—where poverty levels among our children are rising in every country in the UK except Scotland. In Scotland, it costs us £150 million a year—it will be £200 million by the end of the decade—to mitigate Westminster’s mismanagement of child poverty.
We cannot say that it is somehow punitive for people with assets of more than £10 million to attract an annual, modest rate on those assets. That is reflective of the highest tax burden that ordinary people have paid since the second world war—incidentally, I say to Conservative colleagues that that was the case before the election. The Labour party has just knocked that into the stratosphere with its misadventure.
There has been no talk anywhere in this Chamber today about Brexit. I remember the Prime Minister—what was she called? Theresa May. She was asked repeatedly, “What does Brexit mean?” She said, “Brexit means Brexit,” which is as nebulous as it sounds. In 2025, we now know what Brexit means. It means enduring child poverty and flatlining growth, no matter who is in charge of the Treasury in the United Kingdom. It means a common purpose between Labour and the Conservatives to have a neurotic policy on immigration. It means pale imitations to substitute for EU programmes, such as substituting Erasmus with the pointless Turing scheme, or EU structural funding and other funding with “levelling up.” It means a permanent drag on business.
The further we get from covid, the more we see that the fundamentals that are wrong with this economy are due to Brexit. The Minister, in his summing up, will doubtless say—
Of course they go out to work. I believe that my right hon. Friend the Chief Secretary to the Treasury answered that point earlier in the debate, but I thank the hon. Lady for her intervention.
To add to my list, non-dom status is being largely scrapped, capital gains taxes have increased, and stamp duty on second homes now starts at 5%. These measures help raise the revenue that is required for massive public investment, benefiting working people, not making them worse off. The clue is in the name of our party—Labour. We are the party of work. We are also the party of getting our country, our economy and our public services working.
As such, I ask Opposition Members to look forward to the summer recess with optimism in their hearts. Do not let the doom-mongers and gloom-mongers fill their hearts, for change has already begun. That change is made possible by my right hon. Friend the Chancellor’s Budget and by the spending review. We are fixing the NHS —we promised 2 million additional NHS appointments in our first year, and have delivered 4 million. Waiting lists are down by 260,000, and 1,900 more GPs have been recruited. We are putting more money into people’s pockets; we have boosted the minimum wage for 3 million workers, and wages grew more in our first 10 months than over a whole 10 years under the previous Administration, testifying to the Conservatives’ incompetence and weakness when they were in government. We are fixing the foundations of our economy, with four interest rate cuts, three trade deals and business confidence at a nine-year high. In the first quarter of this year, UK growth was the highest in the G7. We are tackling childhood poverty, opening the first 750 free breakfast clubs, and expanding free school meals. In one day, this Government took action to take 100,000 children out of poverty.
I now turn to the motion in front of us, which implies a reversal of revenue-raising policies worth over £20 billion a year. If Opposition Members oppose the measures we have taken, which of the investments I have just mentioned would they reverse? Is it the free breakfast clubs? Is it the investment in the NHS, with shorter waiting lists, or is it the extra police? Perhaps more pertinently, given the title of today’s debate, how would they pay for it? The Chancellor is not ducking difficult decisions, and I am confident that if people observe her actions, they will see that she and this Labour Government were correct. I call it a “zoom out and dial down” approach. If people zoom out and look down, they will see that the challenges we face as a country—on tax, and on reform of many kinds—require us to take action. If they dial down the endless noise of discontent, whipped up by social media and sometimes in the media and by our political opponents, they will observe a country whose people have—
This is the Government who got trade deals that the Conservative party failed to do, and saved hundreds of thousands of jobs. Are you saying that you would not have signed those deals? Are you saying—
Order. I am not saying anything. Please address the Chair.
The Government have not seen a success. Where we have seen tariffs imposed on the economy, the Government have not reduced them. There is a competitive disadvantage as a result of what we are seeing in the global economic climate. When Labour governs, Britain suffers.
There are two fundamental macroeconomic problems facing this country. One is productivity, and the second is mass immigration, which has displaced investment in domestic skills. The Budget did nothing about those, and yet the tax system could be used to address both.
Order. The right hon. Gentleman is very experienced. He should have been here at the start of the debate if he wanted to intervene.
I thank the hon. Member for giving way. He is the third consecutive Conservative Member to stand up and speak, but I have yet to hear what proposals his party wants to bring in to raise revenue or what services it wants to cut. In my contribution, I made a conscious effort to set out three constructive proposals for the Treasury to consider, and I challenged Conservative Members because there was a dearth of—
I am sure that the Government Whips were watching the hon. Gentleman and making a note that he will be in line for a job, and I saw the Minister quaking in his boots at the thought of those bizarre recommendations. The point is that the Labour Government do not realise that all these tax increases are hitting the many hard-working businesses across every constituency represented in this House. Shame on the Government for bringing them forward.
No matter how elaborate the rain dance or how impressive the Government press releases, growth will not come, precisely because of the decisions that the Chancellor has taken. We need a reset; we need a new direction; we need to limit spending so that we can cut tax, not consistently raise it. Until the Government realise that, I am afraid for all the family businesses up and down the country, which are being penalised time and again by this Labour Government.
Hard-working families and business owners in Bognor Regis, Littlehampton and our villages are feeling the squeeze as never before. Labour stood on a manifesto promise not to raise taxes for hard-working people, yet at the very first opportunity, in the autumn Budget, they raised employers’ national insurance. This is a tax on job security and job creation. It is a tax on growth and a tax on ambition.
The jobs tax—one of the Chancellor’s flagship failures—has wrecked business confidence. It has made it more expensive to hire workers, stagnated the jobs market and threatens countless job losses and business closures. It falls on top of the Employment Rights Bill, which signals the return of 1970s-style employment laws that will further stifle growth, as well as the family business tax, higher business rates and higher wage bills. In small coastal towns like Bognor Regis and Littlehampton, where over 90% of local businesses have fewer than 10 employees, every cost increase and every job loss is keenly felt. Across our constituency, families, small businesses, hospices such as St Wilfrid’s and charities at the heart of our communities face an impossible position.
In their short time in government, Labour has become the party of taxation. The Chancellor has backed herself into a corner, and more tax hikes are undoubtedly on the horizon. That is why I thank the Leader of the Opposition for tabling this important motion. Working people in Bognor Regis and Littlehampton and the businesses, charities and hospices that employ them need to be defended from this Government’s tax raids, and that is what I intend to do—to stand up for the people of Bognor Regis and Littlehampton today, tomorrow and throughout this Parliament.