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Ways and Means
16 March 2023
Lead MP
Rachel Reeves
Debate Type
General Debate
Tags
TaxationForeign Affairs
Other Contributors: 49
At a Glance
Rachel Reeves raised concerns about ways and means 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 reality of yesterday’s Budget is clear: long-term growth downgraded, household incomes falling, public services on their knees. Families are facing the biggest hit to living standards since records began. The only surprise was a huge handout to the richest 1% of pension savers. Yet again, working people and businesses—the key to our economic success—have been put at the bottom of the pile. Labour believes that the tax burden must be shared fairly. That is why I have announced today that Labour will reverse the changes to tax-free pension allowances. The Government’s policy to give tax cuts to the wealthiest 1% is unravelling before our eyes, as Paul Johnson from the Institute for Fiscal Studies and the Resolution Foundation have highlighted.
Roger Gale
Con
Herne Bay
Responded briefly but did not provide a full contribution.
Tan Dhesi
Lab
Slough
This Budget will not do a great deal for my Slough constituents who are really struggling to make ends meet and pay their bills, apart from a big tax cut for the very richest in our society. My constituents will have the highest tax burden and the biggest drop in disposable income since the second world war inflicted on them.
Alex Cunningham
Lab
Stockton South
Our country has some amazing assets and opportunities to invest in green industries of the future, but we see a lacklustre plan from the Tory Government. The measures announced by the Chancellor will not be a major boost to such industries.
Iain Stewart
Con
Milton Keynes South
The right hon. Lady rightly points to the great innovation, research and development that is happening in British companies. The measures announced by the Chancellor will help discount research and development for such industries.
Mel Stride
Con
Central Devon
The Budget provides £3.5 billion investment to boost workforce participation, focusing on disabled people, older workers, parents and carers, and individuals looking for employment or working low hours. The measures include extending work support for those with health conditions, improving pension tax system provisions for older workers, enhancing childcare support, and providing more intensive jobcentre support for those seeking employment.
Chris Stephens
SNP
Glasgow North East
Asked if the measures in the Budget would increase or decrease sanctions over the next 12 months. The Secretary of State did not provide a direct answer but emphasised that sanctions are appropriate under certain circumstances and should be applied judiciously.
Grahame Morris
Lab
Easington
Asked about historical injustices to mineworkers, specifically regarding the Mineworkers’ Pension Scheme. The Secretary of State did not address this directly but acknowledged the complexity and noted that the measures aim at broader support for high earners.
Rachel Reeves
Lab
Leeds West and Pudsey
Called for a targeted scheme for doctors as an alternative to the proposed reforms. The Secretary of State did not specify how many doctors would benefit but emphasised that the reforms aim at retaining highly skilled individuals in the NHS.
Tan Dhesi
Lab
Slough
Criticised the Budget's pension reform as disproportionately benefiting the wealthy, citing the Resolution Foundation’s conclusion: 'The more you think about this policy, the worse it is.' The Secretary of State did not directly address these criticisms but reiterated the importance of supporting skilled individuals in the NHS.
Bury South
Noted that the Chancellor’s childcare proposals would take effect too late for some current parents with young children. The Secretary of State did not provide specific measures but acknowledged the concerns and emphasised the transformative potential of the proposals.
Stephen Timms
Lab
East Ham
Asked about maintaining a focus on the disability employment gap, indicating scepticism towards an arbitrary target number. The Secretary of State did not provide specific details but acknowledged the importance of reducing this gap through targeted measures.
Chris Stephens
SNP
Glasgow North East
Highlighted delays to the Access to Work scheme as a barrier to employment for disabled individuals. The Secretary of State did not provide specific plans but acknowledged the importance of addressing these issues and improving access to support services.
Chloe Smith
Con
Norfolk North
Expressed support for the progress being made and encouraged employers to rise to the challenge, noting that all the support laid out represents an opportunity for employers.
Chris Stephens
SNP
Glasgow South West
Critiqued the Budget as benefiting the rich at the expense of the poor. Pointed out the Government's failure to publish a review on food bank usage, criticised increased sanctions, and questioned the lack of costed plans to eliminate the need for food banks. Criticised the employment support package and childcare reforms. Mentioned strikes in public services due to underfunding.
Supports the Budget, highlighting its focus on employment and addressing labour shortages. Points out that three-quarters of UK companies struggle with labour shortages and urges businesses to consider nearly 9 million economically inactive people as potential employees. Emphasises the importance of investing in health and skills for a strong workforce, advocating for universal design to ensure inclusivity. Welcomes reforms outlined in the 'Transforming Support' White Paper aimed at improving trust and transparency in welfare systems and setting new disability employment goals.
Ellie Reeves
Lab
Lewisham West and East Dulwich
The economy under the Conservative government has failed ordinary working people. Wages are flatlining, inflation is soaring, mortgages and rents are unaffordable, public services are being rolled back, and schools, hospitals, and local authorities lack resources despite increasing demand. The mini-budget has crashed the economy and failed to address windfall profits from oil and gas giants. Labour would prioritise a fairer tax system, investment in future industries like clean energy, and support for public services.
Welcomed the Budget's availability of capital allowances for manufacturing but criticised it as only half a policy regarding childcare. Highlighted that many mothers return to work due to financial necessity or societal pressure rather than desire, and questioned whether GDP accurately measures national wealth. Proposed a transferable tax allowance system to support families where one parent chooses to stay at home to care for children, similar to systems in other countries like France.
Stephen Timms
Lab
East Ham
Conservative Chancellors have a tendency to provide substantial tax cuts for the wealthiest while increasing taxes on ordinary people, and this Chancellor has decided to give another £1.2 billion in pension tax relief to the wealthiest 1%. I welcome the adoption of Select Committee recommendations supporting childcare costs within universal credit but am concerned about the lack of detail regarding health and disability policies outlined in the White Paper. I support testing proposals for Personal Independence Payment (PIP) reforms, including specialist assessment matching and PIP assessments recording with an opt-out option. I also urge a clear target on reducing the disability employment gap and improved training for work coaches to better assist disabled jobseekers.
The Budget demonstrates positive economic impact despite challenges, with unemployment at near 50-year lows and predictions of reduced inflation and growth. £94 billion in support is aimed at cost-of-living pressures, including extending free childcare to children aged nine months to four years and up-front universal credit payments for childcare costs. The pension tax rule changes are welcomed as they address the issue of experienced GPs and hospital doctors retiring early due to high taxes. Further action is needed on regulatory climate improvements for AI and medicines approval, along with a focus on public sector pay increases and wider tax reductions as the economic situation improves.
Clive Efford
Lab
Eltham
Critiques the Chancellor's speech for being overly lengthy and lacking substance. Highlights issues such as rising energy bills, mortgage costs, and stagnation of household incomes due to Conservative policies. Emphasises the NHS crisis and criticises tax cuts for the wealthiest 1% while public services suffer. Calls for wealth taxation measures like a 1% tax on wealth above £10 million and equalising capital gains with income tax rates. Supports reforming non-dom status and expanding national insurance contributions to address inequality.
Richard Drax
Con
South Dorset
Defends the Chancellor's decision to scrap the pensions allowance, stating it will help retain key workers like doctors and police chiefs. Expresses concern over tax pressures on low-income earners and criticises Labour for proposing myriad new taxes and higher existing ones. Opposes raising corporation tax from 19% to 25%, arguing it harms job creation and investment. Urges encouragement of domestic energy investment amid concerns about foreign supply dependence. Advocates for a thorough appreciation of defence needs to address global instability.
Lindsay Hoyle
Speaker
Chorley
The Speaker congratulated Ashley Dalton on her maiden speech, especially for acknowledging her predecessor.
Iain Stewart congratulated Ashley Dalton and welcomed the Budget's announcements regarding East West Rail, local transport improvements in Milton Keynes, and additional powers to mayoral combined authorities. He also praised measures to encourage institutional investment in infrastructure and the creation of new investment zones as steps towards economic growth.
Andrew Western
Lab
Stretford and Urmston
The Chancellor's budget speech is bold but flawed, as the economy will shrink by 0.2% this year while other G7 countries forecast growth. The Government's approach to basic fairness is poor, with pension changes benefiting only the wealthiest 1%, and real living standards are at their lowest since records began. The Government has no plan for economic growth or public services.
Welcomes this Conservative Budget, highlighting that employment in Darlington has increased by 11.3% over the past year, and civil service jobs have been advertised locally. Supports measures to extend childcare and abolish the work capability assessment for disabled people. Welcomes investments in local businesses like Cummins and carbon capture and storage clusters in Tees Valley. Praises local organisations aiding employment and recognises specific initiatives supporting people into work.
Bury South
The Budget was a missed opportunity for the Government to address issues faced by workers, health inequalities, and economic growth. It failed to provide adequate support for public sector workers and did not tackle court backlogs or health problems such as dentist shortages. The Chancellor's actions on alcohol duty and prepayment metres are appreciated but insufficient given the challenges. The UK has low business investment rates compared to G7 countries. Childcare costs are too high, with many parents relying on debt just to cover it. Tax cuts for higher earners do not help those struggling with living costs. Nurses and junior doctors earn less than baristas in Pret, and waiting times in healthcare are increasing.
The hon. Member's view is that the Budget focuses on tackling inflation and addressing long-term economic challenges rather than being a failure as portrayed by Labour Members. The criticism of tax changes for higher earners does not reflect the reality; it allows individuals to retain more of their earnings, incentivizing longer working hours and contributing to the economy. The private sector's role in wealth generation is crucial and should be championed. While acknowledging the need to support public services, overemphasis on wage demands could lead to job cuts in private businesses. Success stories from her constituency highlight thriving local industries and new investments in hydrogen-powered trucks.
Kate Osborne
Lab
Jarrow and Gateshead East
The Government has failed the majority in this country, keeping us in a vicious cycle of economic and political failures. The spring Budget promises more of the same, failing Jarrow constituents. Pensioner poverty is up, child poverty is up, fuel poverty is up, and real wages are down. Small businesses were once again neglected, with more going to London and south-east than north. Despite strong bid for South Tyneside, it was rejected by Government. The Budget serves the most wealthy in society, with £9 billion in tax cuts to corporations and £6 billion in cuts to fuel duty.
Mary Foy
Lab
City of Durham
The Budget does not resolve the cost of living crisis faced by constituents. For more than 12 years, people in Durham and north-east have suffered due to austerity politics. Child poverty is high, food bank use has rocketed, and NHS waiting times are record-breaking. There is nothing for cost of living crisis, housing crisis or public services crisis. The Chancellor wants stricter sanctions regime for disabled people but not proper investment in minimum wage, scrapping fire and rehire and taxing the rich.
Ronnie Cowan
SNP
Glasgow North West
Mr Cowan highlighted the positive impact of employment on health, crime rates, education outcomes and life expectancy. He criticised the Government's stance on green industries, particularly their support for nuclear energy rather than genuine green solutions like carbon capture. He proposed that the UK should invest in hemp production as a sustainable alternative to petrochemicals, which could create jobs, reduce environmental damage, improve health through clean building materials, and act as a long-term carbon sink. Mr Cowan noted that hemp had been promoted by King Henry VIII for its industrial uses and argued for government support through licensing to foster growth in this sector.
Taiwo Owatemi
Lab
Coventry North West
Welcomed the Government’s suicide prevention support for those with poor mental health but expressed concern over lack of additional funding for NHS services. Emphasised the importance of supporting veterans, acknowledging their sacrifices. Criticised the current government's approach as papering over economic failures rather than addressing underlying issues such as unemployment and underfunding in further education colleges like in Coventry. Stressed the need for fundamental reforms to jobcentres and support for community groups. Advocated for localizing employment support by engaging with communities, supporting training costs, shorter apprenticeship courses, and a wider range of apprenticeships. Highlighted Britain’s economic decline since 2010 with low productivity growth and wage stagnation. Criticised the government's handling of the cost of living crisis which affects ordinary families, disabled people, and pensioners in Coventry. Called for measures to help women back into work and address the care crisis affecting elderly relatives. Raised concerns about childcare support, pointing out the need for immediate assistance rather than long-term promises.
Rachel Hopkins
Lab
Luton South and South Bedfordshire
The Budget fails to address the living standards of constituents in Luton South who earn £2,000 below the UK average yearly wage. The freeze on income tax thresholds since 2022-23 means that typical households will be £1,100 worse off by 2027-28. Furthermore, the Government’s lack of support for businesses, particularly in the automotive sector, hinders efforts to transition towards manufacturing electric vehicles and meeting climate targets.
Tan Dhesi
Lab
Slough
The Budget does not provide adequate solutions for the cost of living crisis affecting Slough. Constituents are concerned about paying bills, earning fair wages, and affording homes. The Chancellor’s announcements on childcare and pensions are insufficient, with a £1 billion tax cut prioritising high-earning individuals rather than those in need. The Government's lack of ambition is evident through their underfunding of vital services like local councils, leading to issues such as crime, NHS waiting lists, and housing shortages.
Grahame Morris
Lab
Easington
Council tax is fundamentally unfair and should be replaced with a proportional property tax. The system taxes based on the 1991 valuation of homes, not ability to pay, leading to poorer households paying more for less services compared to wealthier areas. Replacing council tax would cut costs by £6.5 billion annually and could save poorer households up to £900 a year. This aligns with levelling-up objectives but was ignored in the Budget.
Catherine West
Lab
Hornsey and Friern Barnet
The tax burden is at its highest in 75 years, affecting families and high streets negatively. Local authorities have seen a 40% funding cut since 2010. Public services are strained; schools are struggling with energy costs and special educational needs support delays. The Chancellor's announcements on childcare and mental health support are too late for current issues, delaying much-needed assistance until 2026.
Alex Cunningham
Lab
Stockton North
Criticises the Government's Budget, stating it does little to help struggling families. Points out that the UK will be the weakest economy in the G7 this year and wages are worth less than they were 13 years ago. Welcomes the Chancellor’s allocation of up to £20 billion for carbon capture but lacks detail on its implementation. Supports investment zones and calls for them to actually deliver jobs as promised previously. Highlights that small businesses received fewer benefits from the Budget and criticises measures proposed by the Government to help people with poor health back to work, calling them ill-designed and poorly thought out. Emphasises the need for addressing health inequalities in Stockton and building a new hospital there. Criticises the rise of child poverty since the Tories came to power and calls for a general election to test the Government's plans.
Kirsty Blackman
SNP
Aberdeen North
She criticises the Conservative approach to spending, tax and Budget policies, highlighting the desperation of constituents due to high energy bills. She calls for a more substantial reduction in energy prices beyond a freeze, an increase in the minimum wage to address in-work poverty, reinstatement of the universal credit uplift introduced during the pandemic, and encourages immigration to boost employment. She also discusses the negative impact of Brexit on NHS staffing and expresses concern over the hostile environment created by policies such as the Illegal Migration Bill.
Mark Hendrick
Lab Co-op
Preston
He supports the introduction of a windfall tax on oil and gas producers, albeit with criticism for the disparity in taxation between renewable energy sources and traditional ones. He highlights the profits made by Shell and BP in 2022 and argues that such figures exacerbate the struggles faced by ordinary people. He welcomes commitments to renewable energy and carbon capture and storage but expresses bemusement at the lack of support for social enterprises and co-operatives in the Budget.
Jonathan Reynolds
Lab Co-op
Stalybridge and Hyde
The Budget lacks ambition on net zero and industrial strategy, failing to compete with international initiatives like the US Inflation Reduction Act and EU Net-Zero Industry Act. The UK faces challenges such as job cuts from Ford in Essex, British Steel in Scunthorpe, and AstraZeneca choosing Ireland over Cheshire. Labour proposes an industrial strategy that works in partnership with industry to keep Britain competitive, rather than random pots of money or endless changes to the corporation tax and investment regime.
Grahame Morris
Lab
Easington
Asks Jonathan Reynolds about the benefits for left-behind areas, particularly in former mining communities, from implementing recommendations to return the investment fund and full miners’ pension scheme surplus to retired miners and their widows struggling with cost of living crisis.
Catherine West
Lab
Hornsey and Friern Barnet
Agrees that without reforming housing, there can be no real growth. Points out issues in the private sector, lack of social homes, and mortgage crisis created by the last Budget.
James Cartlidge
Con
South Suffolk
The Chancellor delivered a Budget for growth, providing stability and sound money to spur economic prosperity. The speech emphasised measures such as addressing labour shortages, public sector pay deals, and tax changes. It also highlighted the extension of occupational health subsidy pilot schemes, returneeship policies, and boot camps for over-50s. Cartlidge criticised opposition members for making up policy on the fly and undermining aspiration. He praised colleagues for their contributions and acknowledged the challenges faced in balancing the books while supporting those with low incomes.
Tan Dhesi
Lab
Slough
Intervened to clarify that the shadow Secretary of State's statement about doctors referred specifically to a scheme for them, not for everyone.
Asked why in-work poverty is rising if the Government claims to be doing so much for the poor and questioned the use of food banks by 40,000 civil servants working for the Government.
Alex Cunningham
Lab
Stockton North
Acknowledged support for carbon capture and storage but asked if the government is committed to further investment in this area.
Alistair Carmichael
Lib Dem
Orkney and Shetland
Asked for clarity on the Government's stance regarding the use of TikTok by government officials, particularly in light of a statement made earlier and a subsequent post by the Secretary of State for Energy Security and Net Zero.
Rosie Winterton
16:45:00
Responded to Alistair Carmichael's point of order, stating that it is not within the Chair's remit to rule on the issue of TikTok usage by government officials and suggested that any further feedback should be directed to relevant Departments.
Edward Davey
Lib Dem
Kingston and Surbiton
Raised a point of order to correct inaccurate details provided in his earlier statement about Jean, a case highlighted due to long ambulance delays. He clarified that Jean did not pay for parking and did not die within the first hour of arriving at the hospital.
Rosie Winterton
16:45:00
Acknowledged Edward Davey's point of order, thanked him for promptly correcting the record regarding Jean's case, and expressed appreciation for his transparency.
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