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Ways and Means
28 October 2021
Lead MP
Ed Miliband
Debate Type
General Debate
Tags
TaxationEmploymentBusiness & TradeBenefits & Welfare
Other Contributors: 55
At a Glance
Ed Miliband raised concerns about ways and means in the House of Commons. A government minister responded. Other MPs also contributed.
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 Labour leader criticises the government's budget, stating that it fails to address low growth, stagnant wages, and high living costs. He emphasises that real wages are set to fall next year due to inflation, tax hikes, and cuts in universal credit, while businesses face increased costs without adequate support from the government.
Ed Miliband
Lab
Doncaster North
The Labour leader criticises the budget for failing to address economic issues such as low growth, stagnant wages, and high living standards. He highlights the Chancellor's failure to reverse cuts in universal credit, arguing that this will make life harder for millions of working families. Additionally, he points out the government's lack of support for businesses facing debts from COVID-19 and supply chain crises.
Richard Fuller
Con
North East Bedfordshire
The Conservative member acknowledges that the budget seeks to balance public finances by asking those with broader shoulders to bear more responsibility, rather than increasing borrowing.
Eleanor Laing
Con
Uxbridge and South Ruislip
Order. Will the hon. Gentleman please refer to the right hon. Member for Doncaster North (Edward Miliband) as the right hon. Gentleman, not “you”? When someone says “you” in this House, they mean the Chair. We have to start getting that right; it is unprofessional not to.
On the right hon. Gentleman’s comments about credibility, I have sat on two north-east Labour councils, Darlington Borough Council and Durham County Council. When the Conservatives were in charge in Darlington, Labour wanted the target to be 2030. When Labour was in charge in Durham, it wanted the target to be 2050. Is there consistency in Labour party policy or not?
My right hon. Friend will recollect our discussions about the tremendous success of the warm zones project at the turn of the century. We went door to door, day in, day out, to install thousands of measures that saved consumers a tremendous amount as well as reducing emissions. Does he agree that we need that systematic approach if we are going to crack the problem?
Kwasi Kwarteng
Con
Spelthorne
Stressed the success of government interventions in supporting businesses and the economy during the pandemic. Highlighted that unemployment remained low despite initial predictions. Emphasised growth rates outpacing expectations and noted the OECD's prediction for UK economic recovery as fastest among G20 nations. Rejected Labour's criticism on national living wage increase, advocating for a higher-wage, higher-productivity-based economy. Discussed the net zero agenda through initiatives like the Jet Zero Council, aiming to lead in low carbon emission aviation.
Catherine West
Lab
Hornsey and Wood Green
Condemned government support measures as insufficient for businesses struggling with debt repayment from pandemic loans and concerns over rising energy costs. Questioned the Secretary of State on how many businesses would face closure this autumn due to financial strain.
Wera Hobhouse
Lib Dem
Bath
Challenged the government's commitment to climate action, noting that the recent Budget did not mention it despite the declared importance of addressing the climate emergency.
George Freeman
Con
Mid Norfolk
Responded to interventions, stating that there are no plans for nationalisation.
Ed Miliband
Lab
Doncaster North
Asked the Secretary of State when help would be available for energy-intensive industries and what kind of assistance it would entail.
Challenged the right hon. Gentleman for not taking action despite discussions about supporting energy-intensive industries in his constituency, suggesting that he should engage seriously with Ofgem to address these issues.
Richard Fuller
Con
North Bedfordshire
Defended the Secretary of State's prudence against the Labour Front Bench's criticism regarding haste and caution with business funding, especially considering a Serious Fraud Office review.
Jim Shannon
DUP
Strangford
Asked for details on how hydrogen can benefit every part of Great Britain and Northern Ireland in advancing the country.
Alison Thewliss
SNP
Glasgow Central
The Budget represents a continuation of austerity policies that heap misery on the most vulnerable. The Chancellor's actions are compounding the cost of living crisis with high inflation, energy and poverty crises. The cuts to universal credit and rise in national insurance will further impact low-income families. The Government's policy choices like cutting bank profits tax surcharge and maintaining the two-child limit for benefits are political decisions. Brexit is cited as a significant factor leading to a 4% hit on GDP, affecting businesses and increasing energy costs. The UK government’s budget underfunds Scotland in comparison with England, with no recourse for local needs such as infant feeding support or childcare services. Additionally, the Chancellor's tax breaks on short flights and sparkling wine are criticised for being at odds with the need to address climate change issues.
Andrew Jones
Con
Harrogate and Knaresborough
The hon. Member for Harrogate and Knaresborough highlighted the positive aspects of the recent Budget, focusing on its impact on low-paid work, business rates, alcohol duty, and levelling up initiatives in his constituency. He mentioned the change to the universal credit taper from 63% to 55%, which will result in a tax cut of £2.2 billion and make individuals an estimated £1,000 better off per year. The national living wage increase to £9.50 an hour was also welcomed as it benefits approximately two million workers across the country. He noted that cutting business rates by 50% for hospitality, retail and leisure businesses would help these sectors recover from pandemic challenges. Additionally, he emphasised the importance of infrastructure investment and skills policy for levelling up, stressing the need to adapt to a digital economy and move towards net-zero emissions.
Gerald Jones
Lab
Merthyr Tydfil and Aberdare
Mr. Gerald Jones criticises the UK Budget for its lack of focus on Wales, particularly concerning flood damage reparations after Storm Dennis estimated at over £150 million. He expresses disappointment in the Government's reluctance to engage with the Welsh Government regarding coal tip safety issues and highlights the 59 tips in serious categories D and C in Merthyr Tydfil alone. Jones also calls for a shared responsibility between the UK and Welsh Governments for addressing coal mining legacy, urging the Treasury to step up and stand by its responsibilities. He questions the capacity of the Government to manage funding effectively given delays with the levelling-up fund and community renewal fund approvals. Additionally, he expresses scepticism about the Government's ability to manage applications to the shared prosperity fund due to previous issues. Jones also raises concerns over HS2 benefiting England more than Wales and inquires if the Treasury will consider the Welsh Affairs Committee’s recommendations for Barnett consequential share of HS2 costs for Wales. Finally, he criticises the Budget's failure to address fuel cost increases and rising living standards inequality.
Newton Abbot
The Chancellor's Budget measures are a response to challenging economic times, with increased taxes and investment in public services. Anne Marie Morris supports the positive impact of these measures on her rural constituency's tourism sector and low-wage workers, but emphasises the need for a clear plan for social care funding. She highlights business rate cuts for leisure and tourism, tax relief for cultural institutions, support for families through childcare provisions and start for life programme, school funding increases, and initiatives aimed at lifelong learning and skills development. Morris also calls for more flexible use of funds provided to local authorities.
Mary Glindon
Lab
Newcastle upon Tyne East and Wallsend
The hon. Member highlighted the disappointment of her constituents regarding the lack of support for green industries on the Tyne, despite Teesside receiving preferential treatment from the Chancellor. She praised local community projects but expressed concern over the absence of long-term strategies to support levelling up in the north-east. The speaker warned about rising inflation and increased taxes affecting low-income families and public sector workers, citing the resignation of Northumbria’s police and crime commissioner due to unfair pay offers. She emphasised the need for extra funding from the Chancellor to cover public sector wage rises. Data revealed that real wages had fallen over a decade, with thousands in North Tyneside relying on universal credit, many working but not benefiting fully from taper rates. She pointed out significant cuts to local government funding and called for early certainty regarding three-year financial settlements for councils.
Kerry McCarthy
Lab
Bristol East
The hon. Member intervened by referencing the Office for Budget Responsibility's document, which suggested that freeports primarily alter economic activity location rather than boost overall growth, implying that activities would be displaced from one area to another. This intervention reinforced concerns about areas like Bristol missing out on potential benefits as a result.
David Mundell
Con
Dumfriesshire, Clydesdale and Tweeddale
Mr. Mundell highlighted the importance of levelling up initiatives and criticised the Scottish Government for not adequately supporting rural areas in Scotland. He supported the Chancellor's announcement to freeze fuel duty and introduced a £150 million fund to help small businesses recover from the pandemic, while also noting the increase in the UK block grant to support public services in Scotland by £4.6 billion. Mr. Mundell stressed that smaller and rural local authorities need more support when it comes to submitting bids for levelling up funding. He concluded by discussing the importance of addressing malnutrition through international cooperation.
Jamie Stone
Lib Dem
Caithness, Sutherland and Easter Ross
Mr. Stone agreed with Mr. Mundell's point that remote areas of Scotland face similar issues to those in the south of Scotland regarding resource allocation by the Scottish Government.
Ms. Thewliss suggested that Mr. Mundell discuss the potential loss his constituency might suffer from the cancellation of a proposed bridge project with the Secretary of State for Scotland.
Catherine West
Lab
Hornsey and Friern Barnet
Ms. West praised Mr. Mundell’s emphasis on nutrition issues in developing countries, highlighting the importance of maintaining momentum in global health efforts such as malaria control and neglected tropical diseases.
Marion Fellows
SNP
Motherwell and Wishaw
The Chancellor’s Budget statement is failing real people, especially those with disabilities. The increase in the living wage will be denied to workers under the age of 23. Pensioners who have worked hard all their lives have been denied a triple lock on their pension, leading to an 18% rise in pensioner poverty. Reducing the taper on universal credit does not balance the cut of the £20 universal credit uplift or address rising living costs. The SNP has called for viable statutory sick pay but it remains inadequate and excludes many low-paid workers. Disabled people are especially let down, with their financial situation worsening due to increased cost of living. Inflation is set to rise, increasing misery for millions. There is no mention of help for energy-intensive industries or a plan for steel in this Budget. The Chancellor has reduced tax on prosecco and cut the levy paid by banks instead of addressing the needs of vulnerable people.
Don Valley
The Budget will help constituents in Don Valley and across Doncaster, particularly with the announcement of a 50% business rates cut and additional funding for family hubs. Doncaster has secured money from round 1 of the levelling-up fund, which could attract more private investment and coincide with a new hospital being built. The increase in research and development spending to £22 billion by 2026 will support priorities such as artificial intelligence and ignite the green industrial revolution. This budget supports levelling up by creating industries out of net zero funds, future fund, R&D tax credits regime, providing quality jobs across the country, not just in the south-east. The Budget confirms continued support for the lifetime skills guarantee and a new £500 million Multiply programme to help people retrain and skill up at any age.
Alex Cunningham
Lab
Stockton North
Criticises the Chancellor's Budget, stating it is underwhelming and does not address the cost-of-living crisis adequately. Emphasises that real household disposable income growth will be only 0.8% per year over five years. Mentions local financial statistics indicating high personal debt in Teesside and reduced support for people in financial crisis. Critiques promises about freeports, stating they do not lead to new jobs or economic growth. Highlights the need for longer-term support for energy-intensive industries facing unsustainable costs. Calls for systematic and long-term investment controlled at a local level, especially for health inequalities and building a new hospital.
Kerry McCarthy
Lab
Bristol East
Supports Alex Cunningham's critique of freeports, stating they contribute nothing to overall economic growth and merely redirect resources from one area to another. Emphasises the need for a comprehensive strategy that benefits all areas rather than isolated announcements.
Richard Fuller
Con
North Bedfordshire
Richard Fuller argued that the Budget was fair and thoughtful, reflecting the views of his constituents. He highlighted support for rural bus services, active travel networks, and special educational needs provision in North East Bedfordshire. He also noted concerns about high taxes and the need to reduce them. Additionally, he emphasised the importance of public sector efficiency, especially in health care, and raised questions about the accounting of public sector pensions. He concluded by asserting that the Conservative party is committed to delivering quality public services, reducing taxes, and promoting work.
Jessica Morden
Lab
Newport East
The Government's actions, such as awarding contracts without due diligence, have wasted taxpayers' money. The removal of the £20 universal credit uplift is hurting families already struggling with rising costs and energy bills. There was no support for soaring household energy bills or action on climate change in the Budget. Steel industry needs investment but received nothing from this budget despite its potential role in a green recovery.
The speeches criticising the Budget have been overly negative without acknowledging the difficult circumstances under which it was compiled. Public approval of the Budget is positive, with over 50% approving and only 17% disapproving. Labour lacks economic credibility due to past failures in managing finances.
Catherine West
Lab
Hornsey and Friern Barnet
While the exact position is not provided, Catherine West rose during Tom Hunt's speech indicating she likely intended to counter some of his points or ask a relevant question regarding Labour’s economic credibility.
Anna McMorrin
Lab
Cardiff North
The Budget did not tackle the emptying of supermarkets and escalating cost of living, nor did it address café and restaurant struggles or court delays for rape victims. It ignored energy costs, real wage falls, and tax burdens on workers and businesses. Tax cuts went to banks, air passenger duty was reduced, and large corporations like Amazon received significant tax breaks, while working people struggle daily. There were no plans for climate investment despite COP26, missing opportunities to address the huge energy efficiency crisis and protect working families from high costs.
Paul Howell
Con
Sedgefield
Discussed infrastructure and education focusing on small businesses in Sedgefield. Welcomed changes to duty supporting pub sector, highlighting benefits for local pubs and socialising. Emphasised the importance of 'levelling up' for communities often overlooked, encouraging businesses to consider social impact. Mentioned Newton Aycliffe's levelling-up bid and investment opportunities like HS2 and the north-east space hub at NETPark. Advocated for preserving BTECs alongside T-levels and welcomed UTCs promoting technical skills. Highlighted potential railway projects such as Ferryhill station to connect jobs in Teesside, urging fair consideration of council funding formulae.
Barry Gardiner
Lab
Brent West
The Budget is the result of 11 years of austerity and under-investment, leading to flatlining wages and unprepared public services. The tax take from the people of this country is higher than any Government since the war, yet economic growth will slow to a sluggish 1.3% with debt standing at £2.2 trillion. The deficit has risen significantly under Conservative leadership despite promises to eliminate it by 2015. There is an extraordinary tension between No. 10 and No. 11 over fiscal conservatism versus sunny optimism, reflecting fear of the electorate. The Government's relaxation of the public sector wage freeze contrasts with a £4 billion clawback on universal credit for the poorest in society. The Budget lacks direction and prioritises tax cuts for banks while working families face higher taxes. Infrastructure investment is insufficient compared to Labour's manifesto commitment. The Chancellor missed an opportunity at COP26 by not addressing climate change effectively through his budget decisions, such as incentivising fossil fuel investments and supporting air travel over rail.
I am extremely proud of the Budget despite its challenges, and I will have the opportunity to explain why later in the debate.
Kieran Mullan
Con
Bexhill and Battle
I strongly believe that it is not just for the Government to fix every problem and tackle every challenge. I welcome the introduction of family hubs, further funding for parenting support, more support for adopted children and their families, and the continuation of the holiday activity programme. Single-parent families and those with three or more children are much more likely to be living in poverty; hence, we need greater attention paid to these factors. Emphasis on the first 1,001 days is also welcome as it supports early intervention for children's development. The Opposition focuses too much on financial security rather than supporting people to become better parents and ensuring their children have emotional security and self-belief. Financial security is important but lifting families out of poverty requires focusing on other factors such as work support, childcare costs reduction, child maintenance enforcement, and job opportunities. I welcome the changes made to universal credit and minimum wage to encourage more people into work and keep them there. Levelling up initiatives are crucial for spreading opportunity evenly around the country. The Government's approach contrasts with Labour’s stance on taxing the rich without a clear plan on how to fund their spending commitments. We must be careful about real economic risks, especially after the pandemic, and trust in the Conservatives’ understanding of the economy.
Ben Lake
PC
Ceredigion Preseli
Emphasises the themes of climate change, cost of living crisis, and levelling up. Expresses concern over the lack of detail in the net zero strategy and questions its effectiveness. Highlights that real household disposable incomes are expected to grow by only 0.8% over the next five years due to low wage growth and rising costs, with particular emphasis on Wales where gross disposable household income is already lower than the UK average. Acknowledges welcome steps but criticises removal of the uplift from universal credit. Supports removal of cap on public sector pay but questions its impact in rural areas like Ceredigion. Highlights concerns about fuel duty freeze and national insurance contributions, suggesting measures to support small businesses and high streets. Proposes investment in retrofitting homes for energy efficiency.
Lucy Allan
Con
Telford
The hon. Member Lucy Allan thanked the Chancellor for supporting businesses during the pandemic and praised Mr John Ellis, a publican in her constituency, for his advocacy. She congratulated the Chancellor on the Budget's measures to support families and incentivise work, praising universal credit as an effective tool for helping people back into work. She highlighted Telford College’s role in delivering skills training across various sectors and thanked the Chancellor for levelling-up funding to Telford. She expressed caution about NHS recovery costs and advocated for wise spending on tackling backlogs rather than expensive projects. Lastly, she urged recognition of progress despite challenges.
Jamie Stone
Lib Dem
Caithness, Sutherland and Easter Ross
Expressed concern over the reduction in UK armed forces personnel numbers, particularly in the British Army. Highlighted fears about potential recruitment issues if the army shrinks to a critical mass. Criticised the 1.4% cut in Defence spending over the next four years as dangerous and potentially leading to inflation given current global economic conditions. Raised concerns about the impact of inflation on household bills and special needs education assistance for children. Mentioned worries about how Barnett consequentials might not adequately support more rural areas compared to central belt regions.
Stephen Timms
Lab
East Ham
I congratulate the shadow Chancellor on her assured response to yesterday’s Budget statement, highlighting the poor record on growth over the past 11 years and advocating for abolishing business rates due to their ineffectiveness in the current economic climate. The Government has failed to address fundamental reforms despite repeated promises since 2010. Businesses are currently being ignored by Ministers who seem to disregard their concerns post-Brexit, while Labour provides a more receptive platform. The weak growth record is compounded by rising living costs and falling real wages, making the public increasingly receptive to alternatives next spring. The tax burden, especially through national insurance increases, disproportionately affects working families. While I welcome the reduction in universal credit taper and work allowance increase, these measures do not help unemployed or disabled individuals who have lost £20 a week in support. Support for unemployment has reached its lowest level since 1911, raising questions about fairness and adequacy of social security. The Department for Work and Pensions has seen significant budget cuts leading to issues with state pension delivery, modernisation needs, and urgent investment requirements for outdated systems.
Pontypridd
The speaker criticises the Government's handling of state pensions, particularly for miners and '1950s women'. She highlights the cost of living crisis caused by tax rises, cuts to universal credit, and a lack of support for small businesses. She notes the irony of the Chancellor announcing billions in investment while cutting essential welfare benefits. She also raises concerns about funding for coal tip safety in Wales, highlighting that despite cross-party requests for help, no long-term financial commitment was made. The speaker welcomes some local funding announcements but criticises the overall budget's impact on Wales. She also urges the Government to be bolder in their commitments towards parental leave and childcare support.
Grahame Morris
Lab
Easington
Congratulated his colleague on their speech and expressed solidarity with colleagues from Wales regarding unsafe coal tips. He criticised the Chancellor for not addressing the mineworkers’ pension scheme injustice, stating it is miners' own money. He focused on cancer services access issues, declaring an interest as vice-chair of the all-party parliamentary groups on cancer and radiotherapy. Morris highlighted a petition signed by over 53,000 people and another with over 370,000 signatures demanding urgent investment in the cancer workforce ahead of the Budget. He emphasised that before the pandemic, there were significant waiting times for cancer services, which have worsened due to staff leaving following the pandemic response. Morris supported the emphasis on cancer diagnostic services but called for clarity on spending and equal boost in treatment services and workforce investment. He urged for a nurse cancer training fund with an investment of £124 million to train 3,300 specialist nurses.
Rachael Maskell
Lab Co-op
York Central
In the Budget, there was no mention of a medical research charity partnership fund proposed by the Association of Medical Research Charities. The budget announcement reveals economic fragility due to poor pandemic management and mismanagement. Inflation could rise to 5% or more, disproportionately affecting the poorest. York's food banks are seeing increased use as £20 is cut from working tax credits and universal credit payments for thousands in her constituency. Housing issues such as rising prices, rents, dampness, overcrowding are worsening. A wealth tax would help redistribute income but was not proposed by the Government despite calls for it. Staff shortages in hospitality need to be addressed alongside transitioning towards better jobs. Care sector staff shortages are also pressing down on NHS services, requiring urgent action from the Government. On business rates, sticking plasters do not solve long-term issues; a tax reform is needed that looks at profit and turnover rather than property value alone. Support for local authorities to run good services was lacking in the budget, leading to potential cuts and increases in council tax. Sure Start programme cuts are exacerbating problems for families. The funding announcement for family hubs lacks context of previous cuts to Sure Starts. The National Railway Museum received funding reannounced but more investment in York is needed. BioYorkshire initiative for a green new deal was not mentioned, despite potential benefits. Environmental concerns were largely ignored by the Chancellor, who failed to address carbon budget issues alongside economic policy. Overseas development aid and green transition support were suppressed until 2024-25, adding to global challenges.
Catherine West
Lab
Hornsey and Friern Barnet
She criticises the government's handling of the pandemic, pointing out that a large number of people remain on benefits despite the creation of new billionaires during the crisis. She highlights waste in government spending and the economic impact of both the pandemic and Brexit, noting reduced GDP growth and trade with European partners. Catherine West raises concerns about the tax burden on low-income earners due to the jobs tax increase and expresses doubt about the effectiveness of recent tutoring initiatives without addressing overall educational funding needs. She argues for more investment in training and adult education, citing expert recommendations. Concerning local businesses and high streets, she calls for a review of business rates and action against bank closures, suggesting that banks should provide ATMs as compensation. Additionally, Catherine West suggests the government could use COP26 as an opportunity to make further announcements benefiting constituents.
Jim Shannon
DUP
Strangford
Mr. Shannon expressed gratitude to the Government for assistance during the covid crisis, acknowledging the economic support that helped businesses survive. He described the Budget as a 'curate’s egg': good in parts. He highlighted positive aspects of the Budget such as funding for community diagnostic centres and respiratory health initiatives, welcoming the £350 million investment to create 40 new centres offering early diagnostic tests closer to patients’ homes. Additionally, he praised the reduction in air passenger duty for regions like Northern Ireland and the allocation of £1.6 billion through the Barnett formula to support Northern Ireland's regional needs. However, he was disappointed by the removal of the £20 uplift in universal credit and the lack of an increase in the child benefit cap.
Pat McFadden
Lab
Wolverhampton South East
The Chancellor's admission that taxes will rise to their highest levels since the early 1950s due to low economic growth under the Conservative government is a significant issue. Since they came to office, economic growth has averaged just 1.8%, compared to 2.3% in the previous decade. This poor record of economic growth is forcing the Chancellor to raise taxes, which will cost households £3,000 more than when the Prime Minister came into office. The long-term effect of low growth is far greater than the impact of the pandemic, leading to a vicious circle of rising inflation and stagnating incomes. There was no plan for economic growth in the Budget, particularly concerning education where funding per pupil only gets back to its 2010 level after years of neglect. Moreover, there were missed opportunities such as ditching the industrial strategy and failing to deliver a comprehensive transition plan for net zero.
Edward Miliband
Lab
Doncaster North
Critiques the Government's investment record over the past decade, noting economic stagnation and lack of growth.
McFadden
Lab
Wolverhampton South East
Questions Labour's economic stability and credibility, highlighting more than £400 billion in spending commitments without a clear revenue plan. Also notes concerns about increased taxation under the Government's plan.
Barry Gardiner
Lab
Brent North
Discusses investments over the past 11 years, stagnation and lack of growth. Criticises the impact of fuel costs on low-income families.
Alison Thewliss
SNP
Glasgow Central
Questions the effectiveness of the national living wage increase and suggests it does not adequately support families.
Jessica Morden
Lab
Newport East
Calls for a cut to VAT on fuel bills, criticising the Government's lack of action in supporting people with gas bills.
Anna McMorrin
Lab
Cardiff North
Raises concerns about the impact of fuel costs and VAT cuts on low-income families.
Ben Lake
PC
Ceredigion
Welcomes national living wage increases and public sector pay rises but questions the overall support for education.
Gerald Jones
Lab
Merthyr Tydfil and Rhymney
Discusses funding issues, particularly mentioning coal tip legacies and financial needs in Wales.
Pontypridd
Questions the fairness of devolved block grants for addressing pre-devolution legacy costs like coal tips.
Government Response
The Budget supports people and businesses, increasing the national living wage, reducing the universal credit taper rate, freezing fuel duty, supporting education and skills development. It also provides tax cuts for businesses through measures such as a new 50% relief on eligible retail properties and cancellation of planned increases in business rates.
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