Opposition Day: Taxes

Proposed by Sir Mel Stride

I beg to move, That this House calls on the Government to control public expenditure in order to keep the promise made by the Chancellor of the Exchequer at the Confederation of British Industry conference on 25 November 2024 that, after the last Budget, the Government would not raise taxes; and fur… I beg to move, That this House calls on the Government to control public expenditure in order to keep the promise made by the Chancellor of the Exchequer at the Confederation of British Industry conference on 25 November 2024 that, after the last Budget, the Government would not raise taxes; and further calls on the Government not to break its manifesto commitment that it would not increase National Insurance, the basic, higher or additional rates of Income Tax or VAT. Right at the centre of this motion is the single word “trust”—the trust that Labour Members lost with the British electorate. They lost it when they promised not to put taxes on farms, and did so; when they said they would not be means-testing the winter fuel payment, yet did; and when they said they would not be putting up taxes left, right and centre, but did exactly that when they came into office. Indeed, in their own manifesto there were around £7 billion of tax increases, which by the time of the first Budget translated into some £40 billion of additional taxes. Of course, much of that related to employer national insurance—a clear breach of the Labour party manifesto. Do not take my word for it. Take the word of Paul Johnson, the former head of the Institute for Fiscal Studies, who said that that particular tax increase was a “straightforward breach” of the Labour party manifesto. The Chancellor also said that she would not take decisions that would affect working people, yet we know from the figures released just yesterday that unemployment is at a five-year high. There are 180,000 fewer jobs on payrolls on her watch. Some sectors are particularly badly impacted. Some 90,000 jobs in hospitality have been destroyed, which particularly affects the youngest people in our country, who are desperate to get on the first rung of the career ladder but are deprived of that opportunity by Ministers. After that calamitous Budget, there were further pledges and further promises from the Chancellor. She said to the Treasury Committee: “we are not going to be coming back with more tax increases”. She said on Sky News that she had “wiped the slate clean”. On 25 November, at the CBI’s annual conference, she said: “I’m not coming back with more borrowing or taxes.” There has been little of that language of late, and I think we all know why. At the October Budget, the Chancellor said something else that was telling and extremely important. It is worth my repeating it in full. It relates to her clear pledge not to extend the freeze in the personal allowance under the income tax regime. She said: “I have come to the conclusion that extending the threshold freeze would hurt working people. It would take more money out of their payslips. I am keeping every single promise on tax that I made in our manifesto, so there will be no extension of the freeze in income tax and national insurance thresholds”. —[ Official Report , 30 October 2024; Vol. 755, c. 821.] When the Minister comes to the Dispatch Box, will he reconfirm that solemn pledge the Chancellor made in the last Budget? [ Interruption. ] He could intervene now—that is true. We know that the Chancellor has messed up the economy, yet now, only about a year into the Government, we are already into the blame game. The Chancellor made an extraordinary and rather confusing address to the nation recently in No. 10 Downing Street, in which she sought to blame everybody for this fiasco except herself. She blamed Brexit. She blamed Donald Trump. And when it came to future downgrades of productivity by the Office for Budget Responsibility, she even had the temerity to blame those of us on the Conservative Benches—blaming the past for the future. I was half expecting her to blame world war two or the great war, or the Boer war, or perhaps the battle of Hastings, which surely, with the harrying of the north, must have scarred our economy and must still be being felt 1,000 years later.

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