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Budget Resolutions and Economic Situation
15 March 2023
Lead MP
Keir Starmer
Debate Type
General Debate
Tags
Economy
Other Contributors: 47
At a Glance
Keir Starmer raised concerns about budget resolutions and economic situation in the House of Commons. Other MPs contributed to the debate.
How the Debate Unfolded
MPs spoke in turn to share their views and ask questions. Here's what each person said:
Lead Contributor
Opened the debate
The Chancellor's Budget downgrades growth forecasts, shows a failure to address long-term challenges, and leaves the country in a state of managed decline. The UK economy is lagging behind competitors with lower investment and poor wage growth. Despite positive rhetoric, the Budget fails to provide meaningful solutions for working people facing cost-of-living crises.
Keir Starmer
Lab
Holborn and St Pancras
The Chancellor's Budget is a failure that can be measured by stagnant growth, higher taxes, and broken public services. It shows no ambition or purpose for the future of Britain, leaving it lagging behind other G7 countries with lower investment rates.
Harriett Baldwin
Con
West Worcestershire
Welcomes the Chancellor's focus on reducing inflation and debt. Highlights the importance of measures like extending fuel duty freeze and capping household energy costs to help manage inflation. Emphasises the need for productive work to support non-inflationary growth.
Stewart Hosie
SNP
Dundee East
The UK economy under the current government has deteriorated significantly since Brexit, with issues such as economic inactivity and high debt interest payments. The Chancellor's approach to reducing economic inactivity is seen as harsh towards Universal Credit claimants. There are concerns about weakening regulation, tier 1 capital, and returning the banking system to risk. Measures addressing long-term issues proposed by both the CBI and TUC were not sufficiently tackled in the Budget. Some measures, like changes on prepayment metres and support for local charities, are welcomed but seen as insufficient given the broader economic context. There is a call for reversing Brexit to address labour shortages and for more serious engagement with green economy initiatives. The current approach to nuclear energy is criticised as financially risky and not genuinely sustainable.
Priti Patel
Con
Witham
Welcomed the Chancellor's Budget and acknowledged the challenges faced by Treasury Ministers in balancing different interests. Emphasised that the key test for any Budget is whether it ensures a robust framework for sound money, maintaining fiscal stability and enabling private sector growth. Highlighted the importance of reducing tax burden to encourage business investment and economic growth. Supported measures announced on pensions, lifetime tax allowances, and childcare as vital labour market reforms. Endorsed the freeze in fuel duty as beneficial for motorists and businesses amidst high inflation. Called for wider infrastructure investment, particularly focusing on Essex's road network.
Meg Hillier
Lab Co-op
Hackney South and Shoreditch
The Chancellor's Budget is criticised for failing to address the real issues facing people today. Meg Hillier emphasises that wages are lower than in 2010, growth slower than G7 nations, fraud and error under COVID schemes reaching billions of pounds, and local enterprise partnerships lacking accountability. She welcomes support for leisure centres, prepayment metre changes, and scrapping LEPs but stresses the need for rigorous spending control on defence budgets. Hillier highlights issues faced by pubs due to high energy bills and rent increases, arguing that a 11p reduction in duty is insufficient. Childcare changes are welcomed but concerns about quality and ratios raised. Housing crisis in her constituency with long waiting lists and severe overcrowding is highlighted as a fundamental problem not addressed by the Budget. Issues regarding pension lifetime allowances and working poverty among children are also discussed.
Caroline Lucas
Green
Brighton Pavilion
Ms Lucas intervenes to question the impact of the fuel duty freeze on emissions, noting that it has led to a 5% increase in emissions and billions lost for the Treasury. She suggests looking at a wealth tax as an alternative solution.
Rosie Winterton
Lab
Rother Valley
Ms Winterton emphasises the importance of adhering to the guidance given by the Chairman of Ways and Means, which was for seven-minute speeches. She calls on colleagues to be mindful of this advice.
George Howarth
Lab
Dartford
Mr Howarth highlights two problems with the Budget: a 5.7% fall in real incomes over the next two years and recent real wage falls by about 3.2%. He welcomes measures to boost productivity but questions their efficacy given the ongoing cost of living crisis.
John Redwood
Con
Wokingham
Welcomes measures to help people into work, including more and cheaper childcare, support for the disabled, improvements in tax and benefits system. Criticises increase in business taxation on profits from 19% to 25%. Emphasises need for lower corporation tax rates and incentives for investment. Cites examples of Ireland and USA lowering taxes to attract investments. Highlights complications caused by price controls, windfall taxes, carbon taxes, and subsidies in the energy sector.
Angela Eagle
Lab
Wallasey
Economic performance under Tory rule has been poor, with the UK economy expected to shrink by 0.2% this year and anaemic growth forecast for next year. Real wages are below where they were 18 years ago, and a stealth tax through freezing income tax thresholds will reduce take-home pay and exacerbate the cost of living crisis.
Tooting
I welcome the Chancellor’s commitment to helping families with childcare costs, supporting our NHS through tax reform, and encouraging business investment. However, I highlight specific tax traps for doctors and suggest a review of family taxation policies to address inequalities faced by single-earner couples. Additionally, I urge the Treasury to consider moving towards a system that provides more choice in childcare options for families while also delivering an economic boost through changes to VAT thresholds and corporation tax.
Sarah Olney
Lib Dem
Richmond Park
I criticise the Chancellor's failure to offer immediate help with energy bills and other cost-of-living issues, pointing out that mortgage costs, food prices, and energy expenses are all rising under this Government. I argue against piecemeal reforms in childcare and pension rules, stating they do not address the core economic challenges of high unemployment due to NHS waiting lists. The Liberal Democrats advocate for better-funded free childcare, higher wages for care workers, and an end to unfair taxes penalising earnings growth.
Kevin Foster
Con
Torbay and South Devon
Today’s Budget comes at a challenging time globally, with the Chancellor focusing on cutting inflation to help ease pressure on family budgets. Kevin Foster welcomes the extension of the energy price guarantee to July and the abolition of premium charges for prepayment metre users. He also supports the freeze on fuel duty and the extension of free childcare to one and two-year-olds, noting that it will encourage more people into work. Foster appreciates the changes made regarding doctors’ tax allowances but wishes the Chancellor had gone further in some areas like including a 12th investment zone in the south-west. He acknowledges the positive change seen in Torbay's Government funding announcements over the last eight years and hopes for continued delivery of levelling-up projects, particularly with the announcement that it will be a levelling-up partnership area.
Seema Malhotra
Lab Co-op
Feltham and Heston
The Chancellor's Budget fails to improve real household income, with a forecasted fall of 5.7% in the next two years. Seema highlights that support for mortgage prisoners was neglected and the non-dom tax status remained unaddressed. She criticises cuts to highways maintenance budgets and suggests that there is good progress on childcare but notes it as playing catch-up with Labour's initiatives. Emphasising optimism and ambition, she advocates a serious plan for stability and growth, highlighting the importance of consistent industrial policy for business confidence and investment. Seema criticises the lack of substantial green policies and support for small businesses, stating that the Government is failing to provide adequate assistance in transitioning to net zero.
Tobias Ellwood
Con
Bournemouth East
Emphasises the importance of addressing issues like the cost of living crisis, increasing business investment to boost economic growth, and invigorating the labour market. Supports measures such as extending energy price guarantees, freezing fuel duty, expanding childcare support, and increasing pension allowances. Criticises lack of VAT reduction for the hospitality industry.
Rushanara Ali
Lab
Bethnal Green and Stepney
Critiques the Chancellor's approach as attempting to fix past damage rather than focusing on future investment and growth. Highlights economic issues such as flatlining UK growth, shrinking household incomes, rising mortgages, and low business investment. Advocates for rapid investment in a green economy and genuine levelling up across the country.
Craig Mackinlay
Con
Castle Point
Congratulates the Treasury team on the Budget, particularly for getting people back into work through pension changes. Expresses concerns about rising corporation tax and dividend tax allowances. Criticises scrapping of advanced corporation tax in 1997 leading to a £250 billion damage to pension funds. Advocates reconsideration of reducing tax-free dividends to £500 by highlighting the impact on retired taxpayers and potential fines through unexpected changes.
Sammy Wilson
DUP
East Antrim
Welcomes some measures in the Budget but criticises increased personal income taxes, corporation tax rise exceeding investment incentives, rising business rates, and negative economic growth forecasts. Emphasises that high taxation hinders economic growth. Supports freezing fuel duty to reduce inflation and help businesses. Suggests that a tax-free allowance for childcare would be more flexible than current proposals. Raises concerns about EU interference in Northern Ireland's ability to apply tax-free zones due to EU state aid laws.
Mary Robinson
Con
Cheadle
Welcomed the Budget, highlighting investments in infrastructure such as £8.26 million for a new Cheadle railway station and £4.4 million for an eco business park. Emphasised the importance of creating jobs through investment zones, innovation clusters, childcare support, and carbon capture initiatives. Called for improvements in skills training and urged fast-tracking Northern Powerhouse Rail to connect northern towns and cities. Advocated for integrated ticketing systems and supported devolved powers with robust scrutiny.
Margaret Hodge
Lab
Barking
Ms Hodge argues that the Budget of 2023 is a missed opportunity, criticising its failure to address public service neglect and child poverty. She points out that public sector pay has been cut by 4.3% since the financial crash, with police officers taking home 13% less in real terms than they did in 2009. Additionally, she highlights growing hospital waiting lists, increased rough sleeping, and the highest tax burden since World War II. She criticises the proposed childcare measures for being underfunded and ineffective, stating that Labour's Sure Start programme spent £4,100 per child compared to the government’s proposal of £2,670 per one or two-year-old. Ms Hodge also mentions scandals regarding tax collection inefficiencies, HMRC prosecutions, and Government waste on projects such as HS2.
Alun Cairns
Con
Vale of Glamorgan
The Chancellor's budget brings stability and confidence to the UK economy. Despite challenges from the pandemic and geopolitical tensions, the UK will avoid a technical recession according to OBR forecasts. Inflation is predicted to fall significantly by year-end due to deflationary policies. The UK has outperformed France, Italy, and Japan economically since 2010. Energy cost measures like prepayment metre changes and fuel duty freeze are welcomed, benefiting hard-working families and small businesses. The Chancellor's childcare proposals should be followed in Wales too. Investment incentives for energy security and carbon capture are also positive steps towards a simpler taxation system.
Steve McCabe
Lab
Selly Oak
The Chancellor's performance was smug, ignoring the economic chaos caused by previous Tory mismanagement. The budget offers little new support for small high street businesses and does nothing about business rates. Most initiatives are late and will not address current issues. Universal support measures may harm existing social welfare programmes like Access to Work. Fuel duty and energy cost freezes are minimal relief. Pension plans benefit the wealthy, ignoring income inequality. Tax reforms targeting capital gains and non-doms could raise significant revenue. The budget is self-congratulatory, failing to tackle homelessness, crime, NHS issues, and public distrust.
Nickie Aiken
Con
Cities of London and Westminster
The Chancellor's Budget has shown vision and pragmatism, focusing on reducing inflation, growing the economy, and cutting debt. It extends the energy price guarantee to £2,500 for a further three months, providing crucial support to millions of households. The speech also highlights the importance of reforming the welfare system to remove barriers for disabled individuals and long-term sick people returning to work. Additionally, it supports measures for childcare, which will give working women more flexibility in choosing what is best for them and their families. It further mentions the simplification of the tax system for small businesses as well as a plea for VAT-free shopping for overseas visitors.
Dawn Butler
Lab
Brent East
The Chancellor's Budget misses crucial opportunities to support hard-working people and local businesses. The Office for Budget Responsibility predicts that real household income will fall by 5.7% over the next two years, yet there is no significant announcement on public sector workers' pay or capital gains tax reduction. She also calls for improvements in energy bill relief for businesses, reform of the apprenticeship levy to make it easier and cheaper for employers to recruit talent, and re-introduction of VAT retail export scheme. There's a need for additional funding towards housing stock refurbishment and local housing allowance rates increase to help tackle homelessness.
Jacob Rees-Mogg
Con
North East Somerset
Rees-Mogg criticises the OBR's approach and highlights the Thatcher era’s reduction of tax burden from 33.9% to 27.4% between 1981-1995, contrasting this with a rise in tax burden since 2010. He argues for cutting corporation tax similar to Ireland, suggesting low rates lead to higher revenue.
Bill Esterson
Lab
Sefton Central
Esterson criticises the Budget as short-term and lacking in long-term business support. He highlights issues like low investment levels, high energy bills, and shortages of supplies affecting businesses. He emphasises Labour's commitment to industrial strategy, renewable electricity generation, insulation projects, and EV infrastructure, stating that such plans are supported by investors and businesses.
Robin Walker
Con
West Worcestershire
Welcomed the Government's efforts to tackle inflation and cost of living pressures, noting the £94 billion package set out in the Budget. Emphasised the importance of addressing childcare affordability and the extension of 30-hour childcare offers for disadvantaged one and two-year-olds. Highlighted investments in early years education as a 'win to the power of four' and praised the Chancellor's commitment to investing in this area, although called for further consideration on business rates reform. Also mentioned the need for more investment in post-16 further education provision and welcomed smaller Budget announcements such as £3 million for supported internships and £11.5 million for Ukrainians to access language programmes.
Claire Hanna
SDLP
Belfast South and Mid Down
Welcomes many of the measures announced, but notes that they are likely to commence in 2024 when the current government may not be in power. Criticises the lack of an Executive in Northern Ireland to implement initiatives such as those related to childcare. Emphasises the need for serious reform in childcare to support families and tackle educational inequality. Commends the proposed allocation of £40 million for further and higher education but expresses disappointment over the loss of European social fund funding affecting charities and third sector organisations. Urges investment in community resilience and alternative leaders regarding paramilitarism. Points out the missed opportunities on reinstituting the universal credit uplift or addressing the two-child limit. Calls for a new beginning politically and economically through the Windsor framework.
Natalie Elphicke
Con
Dover
The Chancellor's Budget supports families and businesses with measures such as the fuel duty freeze, expansion of free childcare for young children, focus on older workers, skills development, and job support. In Dover and Deal, average wages have risen, unemployment has fallen, and youth unemployment has decreased since 2010 under Conservative leadership. The council's levelling-up funding will create a new creative and digital skills campus with investment in port and road infrastructure. Despite these positive outcomes, the speaker is concerned about the slowdown in house building due to economic conditions, as highlighted by the OBR forecast predicting a decline of 10% in house prices and a reduction in property transactions. The speaker calls for increased support for the housing sector, including discounted Public Works Loan Board funding for councils to build social housing and unlock pension funds for investment.
Judith Cummins
Lab
Bradford South
The Budget's promise of £80 million over five years through investment tax zones is underwhelming compared to the potential benefits of Northern Powerhouse Rail, which could support an integrated urban area larger than Birmingham and create more than 600,000 jobs. The speaker urges other employers to follow PwC's example by tapping into the skilled workforce in Bradford. Despite positive developments such as improved attendance and attainment through School-Home Support's work with families and schools, there has been a growing education attainment gap between the richest and poorest over the past five years of Conservative leadership. A strong levelling-up bid could use Odsal stadium redevelopment as a catalyst for regeneration; however, despite Bradford being identified as the UK’s number one levelling-up opportunity, the Government decided against investing in Bradford.
Peter Aldous
Con
Woodford
Praises the Chancellor's measures to support businesses, individuals, and the economy post-covid but highlights that there is still more work needed for long-term economic growth. He supports the energy price guarantee scheme and calls for continued review of support for vulnerable groups like disabled people with neurological conditions. Aldous urges further reform of business rates and fiscal regime for the energy sector to ensure investment stays in the UK. He also emphasises the need for a skills revolution and highlights specific levelling-up projects such as funding for Lowestoft seafront regeneration, while expressing disappointment over the lack of investment zones in East Anglia.
Gareth Thomas
Lab Co-op
Harrow West
The Budget offers thin pickings for most UK citizens, with no wage growth in the past 13 years and record falls in living standards. The Chancellor has not brought forward a bolder package to address slow economic growth; other G7 countries have seen faster growth in exports to world's largest economies. There is little support for public services which are heavily stretched due to underfunding, leading to long waits for GP appointments and A&E services. In Harrow, there is a need for more investment in schools and police services as well as training additional medical staff.
Nigel Mills
Con
Watford
Mills acknowledges significant policy announcements in the Budget, including fuel duty freeze, energy price guarantee, childcare changes, pension tax reforms, and full expensing for capital spend. He supports these measures but raises concerns about extending the energy crisis support beyond next winter unless necessary, questioning the complexity of current childcare schemes, and suggesting a review of the tax regime for pensions to better incentivise savings. Mills also welcomes support for swimming pools and nuclear investment, urging action on small modular reactors.
Ruth Cadbury
Lab
Brentford and Isleworth
This Budget fails to invest in public services, address the cost of living crisis, support businesses adequately, and plan for the future. Real household incomes are set to fall by 5.7% over the next two years due to Conservative policies. Many businesses, especially family-owned ones, face high energy costs and delays in crucial decisions. The business rates system is outdated and unfair, hindering growth. Lack of an industrial strategy means UK firms miss out on green technology investments. Pausing HS2 and cutting budgets for walking and cycling contradict efforts to reduce congestion and achieve net zero. There is a need for consistent planning around infrastructure for economic growth. Free childcare places for one and two-year-olds are welcome but must be properly funded.
Giles Watling
Con
Clacton
Welcomes the doubling of care relief threshold and £200 million for potholes repair. Emphasises extension of tax relief for theatres to support struggling arts sector. Argues that low taxes and fiscal diligence underpin growth, noting soaring energy bills due to Putin’s war. Suggests outdated business rates and council tax reforms are necessary. Advocates temporary levy on companies profiting from pandemic as a step towards correcting social injustice.
Chris Evans
Lab Co-op
Caerphilly
Evans criticises the Government's response to the cost of living crisis, highlighting the impact on families and essential costs such as energy bills and food prices. He mentions that energy bills remain a significant challenge for many households, particularly those with lower incomes, while food prices have increased due to global supply disruptions from Russia and Ukraine. Before the current crisis, there was an increase in food bank usage and child poverty rates. Evans calls for targeted support for the hardest-hit households and investment in skills, infrastructure, and business finance to rebalance the economy.
Barry Gardiner
Lab
Brent West
Welcomes some aspects of the Budget, such as childcare and prepayment metre action. Criticises the Chancellor for taking credit for delayed policies proposed by Labour MPs. Raises concerns about the economy working primarily for wealthy individuals while neglecting low-income families. Supports enterprise but calls for a green filter on R&D tax credits to align with net zero objectives. Expresses worry over household disposable income decline and criticises the lack of environmental focus in the Budget.
Matt Western
Lab
Warwick and Leamington
Highlights his previous warnings about inflation, which were dismissed by the then Prime Minister and Chancellor. Criticises the current economic situation as the weakest in the G7, with low growth and high inflation. Welcomes some aspects of the Budget, such as enterprise zones around universities and measures on energy price guarantees but criticises the impact on real wages and mortgages. Questions the benefits for the super-wealthy in pension changes and calls for a coherent industrial strategy to address issues like higher energy bills and support for small businesses.
Dave Doogan
SNP
Angus and Perthshire Glens
Critiques the Westminster Budget, highlighting its minimal benefits for Scotland. Argues against cuts to red diesel rebates affecting construction inflation, suggests increasing the public sector mileage rate from 45p to around 60p, critiques UK defence spending compared to Germany's commitment, welcomes amendments on alcohol duty but urges more comprehensive measures for pubs, and outlines Scotland’s economic achievements under devolution.
Warrington North
Thirteen years of Tory Government have seen a sustained fall in living standards across my constituency, accelerated by the disastrous mini-Budget and the Truss mortgage premium. My constituents in Warrington have frankly had enough of a cost of living crisis made in Whitehall. It is no longer just those on the lowest incomes who are feeling this hurt, but many who would previously have considered themselves comfortable on the kind of salary on which they could once have raised a family. We have seen widespread industrial unrest as the pay and living standards of our junior doctors, nurses, posties, lecturers, railway workers, barristers, police and others have been squeezed, while the Government try to balance the books on their backs. The OBR reports that living standards are expected to fall by 6% this fiscal year and next, as inflation outstrips growth—the largest two-year fall since ONS records began. At my weekly surgeries and my doorstep surgeries across Warrington North, the picture is a depressing one. This Budget does not meet the ambition that we have for our town or for the country.
Kenny MacAskill
SNP
Na h-Eileanan an Iar
There is always something commendable in a Budget, but the overall effect is concerning. The support for carbon capture and storage is welcome, yet questions remain regarding its implementation in Scotland's North Sea. Issues with prepayment metres were not addressed adequately before winter arrived. Renewable energy sources like hydrogen or long-duration battery storage are missing from the announcements despite significant turbine capacity being turned off due to lack of grid capacity. Wealth distribution in society remains uneven, with Scotland experiencing a stark contrast between energy richness and fuel poverty. The social tariff for vulnerable populations is yet to be delivered, highlighting that support for the poorest has not been prioritised. Energy wealth is being used by the UK to benefit the rich while Scotland's people are left bereft. The country sends 35 terawatts of energy southward now but will send even more in the future (124 terawatts by 2030), exacerbating fuel poverty issues for Scots.
Karin Smyth
Lab
Bristol South
Welcomes measures on prepayment metres and some support for suicide prevention, but criticises the lack of ambition in the Budget. No provisions are made for young people or disadvantaged backgrounds regarding housing help or apprenticeship reform. The Government failed to meet their promise to fix social care with over 150,000 deaths due to delays in state provision. The fuel duty cut is welcome for those facing cost-of-living crises but falls short of addressing broader issues like childcare provider collapses and the lack of support for a functioning transport system crucial for productivity and tackling climate change in Bristol South.
Rachael Maskell
Lab Co-op
York Central
The Government's 13-year tenure has led to a significant decline in productivity, growth at the lowest level among G7 countries, and the economy being isolated. The recent six months have been particularly hard on families, businesses, and communities with 13.4 million people living in poverty. Sanctioning regimes are becoming more severe and ill people are being forced into work. Health workers, teachers, care staff, and others who kept society running during tough times face a pay squeeze unprecedented since the early 1800s. Household budgets will fall by 5.7%, affecting 5.1 million people with stealth taxes. The economic impact of Brexit is £100 billion in lost output per year, and political instability further damages Britain's global reputation and ability to attract investment. With NHS struggling due to lack of staff, the housing market favouring the wealthy, and the energy prepayment scandal affecting the poorest, there are no significant measures in the Budget to address these issues or to boost house building. The announcement on childcare is positive but insufficient without a workforce plan ensuring fair wages for those working in the sector. The speaker highlights missed opportunities such as the Great British Railways competition, BioYorkshire project, and York Central investment site, which could have led to job creation, economic growth, and environmental benefits. However, these initiatives are delayed or ignored due to political expediency and lack of support from the Government.
Brighton Kemptown
Critiques the recent Budget as a continuation of austerity policies, pointing out that it fails to address childcare costs, business rates, energy bills, and green investments. Highlights issues such as regressive taxes on small businesses, lack of support for pubs due to high business rates, and failure to bring down energy bills. Argues that only 30% of the poorest households own a car, while 90% of the richest do, making fuel tax freezes beneficial for the rich but not for the poor. Also mentions missed opportunities in social care funding and education support.
Pontypridd
Raises a point of order regarding the Secretary of State's response to questions about the use of TikTok on Government officials' devices, expressing concern that there may have been an inadvertent misleading statement.
Responds to Alex Davies-Jones by reminding Ministers of their responsibility to correct any inadvertently incorrect statements made to the House as quickly as possible.
Sammy Wilson
DUP
East Antrim
Raises a point of order about a statutory instrument related to the Stormont brake that is scheduled for next Wednesday, seeking clarification on its legislative basis.
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