Budget Resolutions

Tom Hayes Excerpts

Wednesday 26th November 2025 Commons Chamber

[Sir Jeremy Hunt]

I recognise that the hon. Gentleman’s concern about child poverty is sincere; I just have a totally different view as to how to reduce child poverty in this country. I think financing people to have ever larger families will mean more children growing up in poverty, not fewer. The evidence for that is that under the previous Conservative Government, we had a million fewer children growing up in workless households, and child poverty in absolute terms fell. The hon. Gentleman needs to look at that evidence.

The price we are paying for this mushrooming welfare bill is rising taxes which are already starting to destroy growth: 180,000 fewer payroll jobs in the last year; unemployment up, inflation up and interest rates higher than they would have been. The tragedy is that absolute poverty—which, as I said, fell under the previous Conservative Government—is now likely to rise under Labour as jobs vanish and welfare rolls soar.

[Tom Hayes (Bournemouth East) (Lab)]

I grew up in poverty. One in four children in Bournemouth, the town that I represent, is growing up in poverty. I can tell the right hon. Gentleman that growing up in poverty is not a good thing. It is an awful thing for the life chances of the child, an awful thing for the family who care for them and an awful thing for the community that wrap their arms around the child. Does he acknowledge that he is ignoring the future costs of child poverty? I used to run mental health and domestic abuse services, and I can certainly tell him that when children grow up in poverty and then, later in life, cannot find the education, training and support that they need because of their trauma as a child, they cause extra costs for public services that we then have to meet. Does he not agree that we should be preventing those future costs?

[Sir Jeremy Hunt]

I absolutely agree with the hon. Gentleman, but I profoundly disagree on the way the Government are choosing to do that. By expanding the welfare bill and expanding the number of large families living in poverty, they are making the root causes of poverty worse and not better.

The Chancellor says that there is a growth plan, but it was very difficult to discern it at all in today’s Budget. We know, for example, that raising public sector productivity to private sector levels would add 0.4% to annual GDP growth. We know that proper planning reforms would add 0.4%, that proper welfare reform would add 0.3% and that getting energy bills down properly would add 0.3%. We know that AI could dwarf all that, according to Microsoft and Accenture, potentially adding 1% a year.

We got none of that today. Instead, we had a Government arriving in office saying that they wanted “Growth, growth, growth” without knowing how they were going to get there. Growth needs a plan, not a soundbite, and it is that lack of a plan—or even a guiding philosophy—that has resulted today in a Budget that damages growth, damages investment, damages jobs and, most tragically of all, damages opportunities for young people, of whom there will shortly be a million not in employment, education or training.