PARLIAMENTARY DEBATE
Topical Questions - 29 October 2024 (Commons/Commons Chamber)

Tomorrow I will present my first Budget. It will be a Budget that fixes the foundations of our economy and delivers on the promise of change. It will turn the page on low growth and will be the start of a new chapter towards making Britain better off. It will mean more pounds in people’s pockets, an NHS that is there when they need it, and businesses creating wealth and opportunity for all.

I commend the Chancellor for recently outlining investment in social housing, but in the interim the Joseph Rowntree Foundation has stated that the previous Government’s decision to freeze local housing allowance rates will push 80,000 private renters on housing benefit, including 30,000 children, into deep poverty during this Parliament. Will the Chancellor now consider unfreezing the allowance and relinking it to the actual cost of local rents, so that those families can keep their heads above water?

My hon. Friend makes a really important point, which I think is familiar to all of us in our communities, about the cost of housing outstretching people’s incomes. In our manifesto we committed to building 1.5 million new homes, including social housing, which is so important and can give security to people who would otherwise be left in insecure housing in the private rented sector.

As this is his farewell question time, let us now come to the shadow Chancellor.

This are indeed our final exchanges in the House, so before tomorrow’s fireworks I wish the Chancellor well for the future in her role. There has been a lot of common ground between us. For example, before the election she said that raising employers’ national insurance was a jobs tax that would take money out of people’s pockets. I very much agree with her on that; does she agree with herself?

The right hon. Gentleman knows better than almost anyone else that there a was £22 billion black hole in the public finances. That will require difficult decisions, but even in those circumstances we will do everything in our power to protect the incomes of ordinary working people, so we are committed to ensuring that no working people will see higher taxes in their payslips after the Budget.

We all know why the Chancellor is inventing this fictitious black hole. Thirty times this year, before the election, she promised not to raise tax, and now she is planning to present the biggest tax-raising Budget in history. More consensually, however, as this is our final exchange, I welcome her announcement last week of a £2.3 billion loan for Ukraine. Does she agree that the strongest signal of resolve that we can send to Putin is a commitment to spending 2.5% of GDP on defence, and does she understand why so many people are worried by the fact that she has yet to do so?

I have always respected the right hon. Gentleman, but I think it is important for us not to deny the seriousness of the situation that we face with the black hole in the public finances. Combined with the lashing out at independent economic institutions, it suggests that he has more in common with Liz Truss and Kwasi Kwarteng than perhaps we thought. I watched my party lurch towards an ideological extreme and deny reality, and we spent years in opposition as a result. The shadow Chancellor risks taking his party down the same path.

I thank the hon. Gentleman for his question. I went to school in the ’80s and ’90s, and I was taught in portacabins because there was not enough room in my school. I know how important it is that children are taught in proper facilities. We will set out more details of our capital investments at the Budget tomorrow.

My hon. Friend is right to point out the opportunities for improvement. As the Chancellor set out in her July statement, prevention will be at the heart of this Government’s new approach to public service reform. That will be set out in the spending review in the coming months.

Building the homes that our country needs is a top priority for this Government. In our manifesto, we committed to build 1.5 million homes in this Parliament, including social housing, so that people have access to secure and affordable accommodation and that every family have a roof over their heads. We will set out more details on all of this in the Budget tomorrow.

The Government recognise the significant pressures that all councils are facing. We are looking at consolidating funding streams for local authorities into the local government finance settlement, and we will work towards implementing our commitment to a multi-year financial settlement.

I thank the hon. Gentleman for his question. This is an issue that resonates right across the House, with so many of us hearing terrible stories at our surgeries about the lack of support for some of the most vulnerable children in society. I know that it is a priority for the Education Secretary too, and we will set out more detail on departmental settlements in the Budget tomorrow.

Eighty-two per cent of those who have seen Labour take away their winter fuel payment are either below the poverty line or within £55 a week of it. How can the Government justify this, when they are not even allowing a freedom of information request from the Financial Times to be responded to? They are hiding the figures from the people.

We are not hiding the figures. If I had had the chance, I would have said that 455,000 pensioners are paying the higher rate of tax and that 39,300 are paying the additional rate. Many wealthy pensioners have said to me that they do not need the winter fuel payment—[Interruption.] The right hon. Gentleman says that, but there are a number of—

Order. I think the Minister has answered the question. I call Emma Foody.

My hon. Friend is right to draw attention to the disastrous impacts of the Conservative mini-Budget just over two years ago, which is still having an impact on people’s lives as they pay higher mortgage bills. This Government have committed to return sustainability to the economy and to working with business to reform our planning system, our pensions system and our skills system. We have already brought in £63.5 billion of private sector investment to grow our economy in all parts of the country and deliver the jobs and better wages that constituents in Cramlington and right across the country need to see.

Small business owners are working people, and they are some of the hardest-working people that I know. The Labour party struggled to define them over the weekend, but does the Chancellor agree that any rise in fuel duty, which the Conservatives froze or cut for 14 years, would be a tax on those hard-working people or those hard-working small business owners?

The previous Government factored into their forecasts an increase in fuel duty this year. I will set out our plans in the Budget tomorrow.

The Chancellor launched the landmark pensions review in July, which I am leading and which is looking at measures to drive more UK pension investment into the UK economy, boosting growth but also improving pension savers’ outcomes. I know that there is interest in this agenda across the House.

Countryside Alliance research shows that rural households spend up to £800 a year more on fuel than urban households, so further to the question from my hon. Friend the Member for Meriden and Solihull East (Saqib Bhatti), will the Chancellor protect rural communities in the Budget tomorrow?

The hon. Gentleman is urging me to comment on the Budget, but he will have to wait until tomorrow.

This Government have inherited a Britain that is now the most unequal country in the G7 bar America. The UK’s 50 richest families own 50% of the country’s wealth, and our tax system exacerbates this inequality with unfair loopholes that benefit those who have wealth rather than those who go to work. What steps—

Order—[Interruption.] No, these are topical questions and I decide.

In South Devon, the average house price is now 14 times the average salary, at £425,000. What measures is the Chancellor taking to ensure that rural and coastal areas, such as the South Hams, which face huge digital and transport connectivity problems, will be included in measures to boost economic growth?

Our commitment to build 1.5 million homes is about ensuring that all our constituents get the chance to have a roof over their head, including in rural areas, with more social housing as well so that people can have a secure tenancy. The hon. Lady is also right to raise the issue of digital connectivity, and we will be setting out more details on infrastructure investment in the Budget tomorrow.

“Buy now, pay later” is attractive to young people who are trying to survive on zero-hours contracts with irregular hours. What assurances can the Chancellor give me that the coming regulations will protect this group from problematic debt?

The proposed regulations will drive high standards of conduct among “buy now, pay later” firms, ensuring that consumers receive clear information and have access to strong protections. Our proposals will also allow the Financial Conduct Authority to require “buy now, pay later” firms to carry out affordability checks, ensuring that firms lend only to borrowers who can afford to repay.

During the last election campaign, Labour candidates across Somerset said that a Labour Government would cut energy bills by £300. Will the Chancellor set out the timescale for fulfilling that promise?

I thank the hon. Gentleman for his question, and I note the number of Labour MPs we now have in Somerset and across the south-west of England. We will set out more detail in the Budget tomorrow, but our commitment to investing in home-grown energy will boost our energy security, create good jobs here in Britain and begin to reduce people’s bills, as will our programme to better insulate homes, which the previous Government failed to do.

A hundred councils in England have come together to call for five key changes to unlock much-needed investment in new council homes. They will welcome the news of £500 million of additional grant and changes to the right-to-buy rules, but one issue they also raise is housing revenue account debt and finance. Will Treasury Ministers look specifically at debt allocations and how HRA debt is accounted for, to unlock much-needed investment in council homes?

Councils’ housing revenue accounts are a significant part of local authority finances, and it is therefore not right to exclude them from our fiscal rules, but I reassure my hon. Friend that this Government’s commitment to deliver 1.5 million new homes will be delivered.

However “working people” is defined, does the Chancellor not accept that people on low incomes and part-time employees who earn up to £300 a week should be exempt from paying income tax?

We will set out details of our tax policy in the Budget tomorrow, but this Government have made a commitment to working people that we will not increase their income tax, their national insurance or the value added tax they pay.