Commons Sense

House of Commons · General Debate

Budget Changes

21 March 2016 · 67 other contributors

Opened by John Martin McDonnell Lab Hayes and Harlington

Summarised by AI from the official record, so it can contain mistakes.

At a glance

John Martin McDonnell raised concerns about budget changes in the House of Commons. A government minister responded. Other MPs also contributed.

Key points

  • The Government has withdrawn parts of the Budget and accepted amendments due to public outcry.
  • Cuts to personal independence payments for disabled people were initially proposed to fund tax cuts for the wealthiest.
  • The budget now faces a 4.4 billion deficit after halting the proposed cuts.

How the debate unfolded

MPs spoke in turn to share their views and ask questions. Here's what each person said.

Opened the debate

John Martin McDonnell Lab Hayes and Harlington

The debate is in absolute chaos with the Government having withdrawn parts of the Budget and accepting amendments. The initial announcement of cuts to personal independence payments for disabled people was made to fund tax cuts for the wealthiest, which has caused significant distress among disabled individuals and their families. The budget now faces a £4.4 billion deficit after halting these cuts.

Other contributors (67)
  • David Gauke Con South West Hertfordshire

    The Government is delivering on its long-term economic plan through the Budget, which includes reducing income tax for more people, supporting small businesses and encouraging investment. This Budget has been approved by the British public and delivers growth, employment creation, deficit reduction and future prosperity.

  • John Martin McDonnell Lab Hayes and Harlington

    The Government's decision to cut personal independence payments for disabled people is indefensible. The proposed cuts are disproportionately impacting poorer working-age households with children. There needs to be clarity on which other vulnerable groups might face budget cuts, as this could further widen the fiscal gap.

  • Kenneth Clarke Con Ripon and Rural

    A Chancellor should prioritise medium-term national interest when preparing a Budget. The current approach of providing popular spending commitments while failing to control Budgets may lead to economic instability similar to that experienced by Greece, Italy or the UK under Gordon Brown.

  • Stewart Hosie SNP Dundee East

    Given the expected changes to last week’s Budget announcements, there should be a requirement for a supplementary corrective Budget. This is not just a quick statement; it warrants significant scrutiny and debate.

  • Yvette Cooper Lab Pontefract, Castleford and Knottingley

    The Chancellor's decision to cut personal independence payments is causing considerable distress among disabled people. There needs to be transparency regarding the revised Budget scorecard without these cuts.

  • Edward Garnier Con Harborough

    Thanking the Minister for £3.5 million provided by the Chancellor to the Samaritans to assist military personnel suffering from mental health issues.

  • Chris Leslie Lab Nottingham East

    The Minister must accept there will be a serious problem with the votes on Budget resolutions tomorrow due to changes made. He asks how embarrassed the Minister is today.

  • David Gauke Con Spelthorne

    Responds that there are no votes on personal independence payments in the Budget resolutions, and criticises Chris Leslie for not knowing this fact.

  • Stephen Hammond Con Wimbledon

    Praises the small business rate relief measures, stating they have been widely welcomed by the Federation of Small Businesses because they promote growth and employment.

  • David Gauke Con Spelthorne

    Agrees with Stephen Hammond, noting that there has been strong support from small businesses for the Budget's content and emphasises the Government's commitment to them.

  • Tim Farron Lib Dem Westmorland and Lonsdale

    Critiques the Chancellor's absence and his Budget policy, highlighting that it will leave the richest 10% better off while potentially punishing the disabled. He suggests scrapping the fiscal charter.

  • David Gauke Con Spelthorne

    Responds by noting that under current policies, the highest earners are paying more than half of all tax revenues, which would not have been possible had they stuck with the inherited system in 2010.

  • James Morris Con Hendon

    Supports the Government's policy and suggests that it aligns with what the British people want: a focus on growth, employment, helping low-income earners, and investing in healthcare and mental health issues.

  • David Gauke Con Spelthorne

    Agrees with James Morris, stating that last May, the British people endorsed their long-term economic plan and they must stick to it.

  • Helen Goodman Lab Bishop Auckland

    Questions whether local authorities will be fully compensated for the reduction in business rates as promised by Department for Communities and Local Government Ministers, suggesting another budget shortfall of £1.7 billion.

  • David Gauke Con Spelthorne

    Asserts that local authorities will indeed be compensated for the reduction in business rates.

  • Philip Davies Con Shipley

    Supports the Chancellor's efforts to balance the budget, but suggests ending the ring-fencing of the international aid budget as it limits other Departments' spending flexibility.

  • David Gauke Con Spelthorne

    States that fulfilling the 0.7% target for international aid is a manifesto commitment and cannot be changed.

  • George Howarth Lab/Co-op Knowsley

    Questions the length of time for which the current economic plan can realistically be called 'long-term'.

  • David Gauke Con Spelthorne

    Reiterates that the Government has turned around the economy, delivering record employment levels and a forecasted fastest-growing major western economy in 2014 and beyond.

  • Chris Philp Con Croydon South

    Asks if spending on disability payments will increase by £2 billion over the past five years, and further £1 billion over the next five years.

  • David Gauke Con Spelthorne

    Confirms that spending has increased significantly for disabled people despite inheriting a large deficit in 2010.

  • Tasmina Ahmed-Sheikh SNP Ochil and South Perthshire

    Asks the Minister to apologise on behalf of all disabled individuals affected by recent turmoil over benefit support and seeks clarity on future plans for them.

  • David Gauke Con Spelthorne

    States that spending has increased for disabled people, and indicates the Secretary of State will make a statement shortly regarding Government policy in this area.

  • Nadhim Zahawi Con Stratford-on-Avon

    Points out that the shadow Chancellor previously promised to not play politics with disability benefits issues if the Government revisited their policies, and asks for agreement on treating this seriously.

  • David Gauke Con Spelthorne

    Responds sceptically about the opposition's past assurances of non-politicisation.

  • Rachel Reeves Lab Leeds West and Pudsey

    Questions whether the Red Book still forms the basis for the Budget, and if so, confirms that a £4.4 billion cut to disability benefits remains in place.

  • David Gauke Con Spelthorne

    Asserts that the Government's plans are on course to deliver a budget surplus by the end of Parliament, which would not have been possible under Labour’s approach.

  • Mark Spencer Con Sherwood

    Asks if the Financial Secretary will continue supporting small businesses and those generating jobs for others.

  • David Gauke Con Spelthorne

    Affirms support for small businesses, stating that they are crucial to economic recovery and job creation.

  • Hywel Williams PC Arfon

    Asks about the details of the north Wales growth field announced in the Budget.

  • David Gauke Con Spelthorne

    Indicates that the Government will engage with Welsh authorities but suggests a Conservative government would be best for the future of the Welsh economy.

  • Simon Hoare Con North Dorset

    Praises the Chancellor and Treasury's steadfast stewardship over six years, supporting small businesses, motorists, local brewers, pubs, and job creation.

  • David Gauke Con Spelthorne

    Agrees with Simon Hoare, stressing that the Government has turned around the economy and brought public finances under control after inheriting a mess in 2010.

  • Stephen Timms Lab East Ham

    Questions whether the Financial Secretary can respond to an allegation suggesting the Chancellor views disability benefit claimants as non-voters, allowing for unrestrained cuts.

  • David Gauke Con Spelthorne

    Responds by noting that spending on disability living allowance and personal independence payments has increased since 2010, contradicting the allegation of cutting at the expense of disabled people.

  • Robin Walker Con Erewash

    Asks if the Government remains committed to halving the disability employment gap alongside current policies.

  • David Gauke Con Spelthorne

    Agrees with Robin Walker and confirms that this issue will be addressed in a statement by the Secretary of State later.

  • Ian Lucas Lab Wrexham

    Asks who from the next generation might succeed the Chancellor as per his claim that it is a Budget for them.

  • David Gauke Con Spelthorne

    Responds by questioning Ian Lucas on whether this is his best effort at criticism.

  • Bob Blackman Con Harrow East

    Suggests that reducing the welfare bill should focus on job creation rather than punishing those dependent on benefits.

  • David Gauke 015:30:00

    Responded to multiple questions regarding the Budget, affirming plans for small business rate relief and tax threshold changes. Emphasised the importance of reducing the deficit and controlling public finances.

  • George Kerevan 015:30:00

    Asked about the frequency of future Budgets, suggesting it might be weekly based on recent pace, though David Gauke dismissed this notion.

  • Kevin Foster 015:30:00

    Noted the irony of an urgent debate delaying a Budget announcement and inquired about the influence of long-term economic planning over short-term thinking.

  • Rachael Maskell Lab Co-op York Central

    Asked for clarity on when the official Budget schedule will be published.

  • Paul Scully 015:30:00

    Inquired about the certainty of positive measures in the Budget, such as small business rate relief and tax threshold increases.

  • Chuka Umunna 015:30:00

    Critiqued past borrowing practices and challenged the Government on its approach to welfare changes affecting disabled people.

  • David Morris 015:30:00

    Praised measures supporting self-employed individuals, noting previous Labour party policies did less in this regard over 13 years.

  • Mark Durkan 015:30:00

    Expressed condolences for a local tragedy and questioned the Government's approach to economic planning amid frequent Budget changes.

  • David Burrowes 015:30:00

    Highlighted support for tackling homelessness, including significant funding allocations.

  • Shabana Mahmood Lab Birmingham Ladywood

    Questioned the justification for retaining a substantial cut to capital gains tax amid lower growth and productivity forecasts.

  • Richard Graham 015:30:00

    Highlighted positive outcomes from Government policies, such as job creation and disability support initiatives.

  • David Anderson 015:30:00

    Suggested that regional allocations in the Budget might be driven by political considerations rather than national interest.

  • William Wragg 015:30:00

    Compared the current Government's responsiveness to previous administrations, highlighting changes made during the Conservative government.

  • Nicholas Dakin Lab Scunthorpe

    Asked for clarification on missing funds from the Budget and when the Chancellor would reveal where these funds are found.

  • David Rutley 015:30:00

    Acknowledged the Government's record in tackling unemployment and creating apprenticeships as a demonstration of their commitment to improving life chances.

  • Mary Creagh Lab Coventry East

    Quoted former Minister Duncan Smith’s criticism of welfare changes for disabled people within the Budget, questioning their defensibility.

  • Steve Brine Con Southampton Test

    The shadow Chancellor's financial discipline is not lasting long as speakers have promised to spend more money without detailing how to finance it. The Government has allocated £2 million for a new children’s hospital in Southampton, which will greatly benefit young people and is separate from party politics.

  • David Gauke Con Spelthorne

    The strong economy managed by the Government over six years allows steps such as funding the NHS properly. The deficit must be controlled, but it should not be done on the backs of the poor.

  • Ian Blackford SNP Ross, Skye and Lochaber

    The SNP agrees with cutting the deficit and controlling debt without hurting the poor. However, with disability cuts and future budget cuts, combined with tax breaks for corporations and income thresholds, does the Minister believe we are all in this together?

  • Nigel Huddleston Con Droitwich and Evesham

    The top rate of income tax is 45% today. It was 40% for 99.3% of the previous Labour Government's tenure, with about 4 million basic rate taxpayers now exempt from paying income tax under the Conservatives.

  • Barry Gardiner Lab Brent North

    The Chancellor lacks courage in failing to show how he proposes to meet his fiscal targets. This discourtesy renders us incapable of properly examining the Budget.

  • Lucy Frazer Con South East Cambridgeshire

    Investing in education is one of the best ways to improve life chances for able-bodied and disabled individuals. The £1.6 billion investment set out in the Budget will help the next generation get the best start in life.

  • Debbie Abrahams Lab Oldham East and Saddleworth

    Cutting £4.4 billion from disabled people through personal independence payments is unfair when they are twice as likely to live in poverty, while at the same time giving tax breaks in corporation and capital gains taxes.

  • Rebecca Pow Con Carmarthen East and Dinefwr

    The Government's help for self-employed people through business rates or national insurance contributions demonstrates that they understand what makes the economy work and benefits many more people.

  • Stephen Doughty Lab Co-op Cardiff South and Penarth

    Over 7,000 disabled individuals in Cardiff and the Vale of Glamorgan will be affected by the cut to personal independence payments. The Chancellor's absence is noted as he does not apologise for these cuts and does not explain how the £4.4 billion black hole will be filled.

  • Craig Williams Lab Pontypridd

    The Cardiff city deal delivered by this Budget contrasts with Labour's centralising approach in Wales, welcoming business rates relief and localism. The Welsh Assembly Government should follow the lead of empowering businessmen and women.

Government Response

The Government is committed to supporting disabled benefits, increasing investment in disability support and maintaining spending increases since 2010. The economy is growing faster than other advanced economies, with wages rising and the deficit reduced by almost two-thirds. Provides extensive responses to various questions, defending government policies and challenging opposition criticisms. Responded to numerous questions about the Budget's contents and the Government's economic policies. Defended measures such as small business rate relief and tax threshold changes while emphasising the need for fiscal responsibility. The strong economy managed by the Government over six years allows steps such as funding the NHS properly. The deficit must be controlled, but it should not be done on the backs of the poor. An independent Scotland would face a significant deficit due to oil price changes. Every day we hear proposals from Labour to oppose spending items or tax cuts—more borrowing and borrowing.

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