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Budget Resolutions
27 October 2021
Lead MP
Rachel Reeves
Debate Type
General Debate
Tags
EconomyEmployment
Other Contributors: 42
At a Glance
Rachel Reeves raised concerns about budget resolutions 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 shadow Chancellor critiques the government for its failure to address rising inflation at an all-time high of 9% and stresses the need for a clear plan that prioritises public services and supports workers during the cost-of-living crisis.
Rachel Reeves
Lab
Batley and Spen
The shadow Chancellor critiques the government for its failure to address rising inflation at an all-time high of 9% and stresses the need for a clear plan that prioritises public services and supports workers during the cost-of-living crisis.
Rishi Sunak
Con
The Chancellor highlights significant investments in infrastructure and job creation initiatives, arguing these measures will support economic recovery, reduce inflation over time, and ensure long-term prosperity for all.
Rachel Reeves
Lab
Leeds West and Pudsey
Families, businesses, and public service users are struggling due to the Chancellor's policies. The Budget cuts taxes for banks while increasing them for working people. There is no plan to address NHS waiting lists, community policing issues, or educational disparities. The economy has grown at a lower rate under Conservative leadership compared to Labour, leading to less funding for public services. The Government's handling of the pandemic and current economic challenges have weakened the UK economy further. The tax system is unfair, with working people bearing a heavier burden. There are wasteful projects and cronyism within the Government. While there are some welcome measures like increases in national minimum wage, they do not address the cost-of-living crisis adequately.
Mel Stride
Con
Central Devon
I broadly welcome the Budget, which is the first my right hon. Friend the Chancellor has delivered in what we might call the second phase of this crisis. In the first phase, between the sharp contraction and recovery, the Chancellor did a remarkable job supporting jobs despite criticism from Mel Stride's Committee. Now, the Chancellor faces sustainable economic growth with record-high debt at £2.2 billion and elevated deficit compared to historical measures. The OBR forecast shows stronger growth this year at 6.5%, compared to previous forecasts of just 4%. However, interest rates pose a significant risk as a 1% rise could lead to a £23 billion increase in debt servicing costs. Mel Stride emphasises the need for prudent fiscal planning and highlights positive measures such as reducing the bank surcharge and adjusting the universal credit taper rate from 63% to 55%. He also discusses inflation, labour market changes, skills development, immigration control, and business investment opportunities.
No extracted contribution text available for this contributor yet.
Ian Blackford
SNP
Ross, Skye and Lochaber
Mr. Blackford criticised the Chancellor for his proposed tax cuts on domestic flights despite COP26 climate conference approaching, arguing it contradicts with their commitment to tackle global warming. He also condemned the Budget's failure in compensating pensioners and families who are facing a cost-of-living crisis due to previous tax rises and welfare cuts. Mr Blackford stressed that the Chancellor’s measures were insufficient, calling for reversal of universal credit cut and introduction of emergency energy payments to help those struggling with soaring energy bills.
Peter Bottomley
Con
Worthing West
Mr Bottomley acknowledged the extra £4.5 billion going to Scotland and praised the Chancellor for imaginative help provisions before year-end, particularly regarding universal credit. He also supported expanding holiday provision and activities for children through child benefit increases rather than additional service provision. Mr Bottomley noted that the SNP leader's lengthy speech had taken up time, but felt his own contribution was brief due to this. He welcomed extra attention to the first 1,001 days of life and reiterated support for the 0.7% GNI commitment on overseas aid, suggesting a gradual increase from 0.5%. He expressed concern about leaseholders facing excessive bills for cladding remediation and called for a forum with relevant parties to address this issue. Mr Bottomley thanked the Chancellor for reducing draught beer tax and business rates relief in Worthing, which has mature businesses and people. He also highlighted the work of Dan Humphreys, who provided quiet but effective local government leadership.
Meg Hillier
Lab Co-op
Hackney South and Shoreditch
The budget lacks detail on the levelling-up agenda and fails to address housing affordability issues for many constituents. It also neglects street homelessness, dangerous cladding remediation, local government cuts, and teacher salaries despite promises of improvements.
Angela Eagle
Lab
Wallasey
Supports Meg Hillier's critique of the NHS Test and Trace spending, noting that 20% of the NHS budget was spent without clear outcomes or effectiveness measures.
Kevin Hollinrake
Con
Thirsk and Malton
Disagrees with Meg Hillier's assertion about new money for housing, citing an additional £1.8 billion announced in the Red Book for housing supply and brownfield regeneration.
Theresa May
Con
Maidenhead
The economy is recovering faster than predicted, with growth and employment exceeding expectations. The Chancellor's budget includes measures such as lifting the public sector pay freeze, increasing the national living wage to £9.50 per hour, and cutting the universal credit taper rate significantly. However, concerns remain about sustained economic growth, particularly given the forecast of lower-than-normal rates of increase in public spending versus GDP growth. The need for a green industrial revolution is acknowledged but requires cross-Government action including education reform to prepare young people for future jobs. There are also challenges related to NHS and social care funding, with emphasis on maintaining long-term plans and ensuring efficient use of resources.
Caroline Lucas
Green
Brighton Pavilion
The Chancellor's approach to the climate emergency appears insufficient; more investment is needed in the net zero review to scale up green jobs. Current policies, such as making car driving cheaper and short-haul aviation less costly, send mixed signals about environmental priorities. A test measuring every spending decision against its climate impact would ensure alignment with climate goals.
Nick Brown
Lab
East Durham
Mr. Brown expressed his agreement with the opening speaker, acknowledging the unprecedented fiscal situation and the high levels of borrowing and debt. He welcomed some measures in the Chancellor's speech but was sceptical about others, particularly regarding social care funding for local government. He supported changes to the universal credit interface but noted that more could be done to address the marginal tax rate issue. Concerning inflation, he quoted Margaret Thatcher’s stance on its destructive nature and suggested that the Government should respond temporarily to high gas prices by reducing VAT on fuel bills. Mr. Brown also discussed child poverty levels in his constituency and the lack of emphasis on the northern powerhouse initiative. He questioned the need for family hubs when Sure Start had previously been effective, and he emphasised the importance of climate change action.
Chris Grayling
Con
Epsom and Ewell
Praised the Chancellor for his handling of employment during the pandemic, noting that unemployment has risen to 5.4% but remains lower than expected given the economic challenges faced at the start of the crisis. Emphasised the importance of productivity, innovation, and automation in addressing labour shortages rather than relying on mass immigration. Highlighted the benefits of leaving the European Union for deregulation and competitiveness. Called for continued support in areas such as renewable energy to combat deforestation and climate change. Urged the Chancellor to adhere to low taxation and free enterprise principles.
Praises the Chancellor's and Government's efforts during the pandemic in supporting lives and livelihoods. Highlights support for the leisure and hospitality sector, investment in R&D, and universal credit taper changes that benefit those in work. Emphasises commitment to providing every family with support to give their baby the best start for life.
Meg Hillier
Lab Co-op
Hackney South and Shoreditch
Questions Andrea Leadsom about the abolition of the Sure Start programme, which aimed to provide comprehensive early years support. Asks whether Leadsom now regrets voting for its abolition.
Sammy Wilson
DUP
East Antrim
The Chancellor has delivered the Budget in difficult economic circumstances. Sammy Wilson believes that it is important to reduce high levels of debt and decrease tax demands on people and businesses. He welcomes the national living wage increase and reduction in universal credit taper but expresses concern over the 55% marginal rate for those moving from low-paid jobs to higher-paying ones. Wilson also highlights the challenges facing those in low-paid or medium-income jobs due to rising energy prices and taxes. He is pleased with the additional funding for Northern Ireland, though he notes that it falls short compared to Scotland and Wales in terms of percentage increases. Additionally, Wilson welcomes initiatives such as a digital hub project in Cushendall and extra money for the Dundonald Ice Bowl, but raises concerns about hospitality rates discounts and excise duty changes affecting alcohol in Northern Ireland due to EU excise regulations.
John Redwood
Con
Wokingham
Growth is essential for overcoming pandemic damage, delivering economic optimism, and levelling up. The speaker criticises the Treasury's current growth policy as largely public sector-led and calls for engaging the private sector more effectively. He also raises concerns about taxation of small businesses and self-employed individuals, energy supply constraints, and regulatory issues hindering private sector performance. The speaker disagrees with the Chancellor over tax rates, arguing that lower taxes are needed to promote faster growth. Additionally, he notes significant discrepancies in official forecasts and urges the Government to review its growth policies. Finally, Redwood welcomes additional funding for health and education but emphasises the need for productivity improvements.
Angela Eagle
Lab
Wallasey
The Chancellor's speech reflects arrogance, complacency and delusion with the cost of living increasing, taxes rising, poverty escalating, and hardship spreading. The combined Budget and spending review arrives at a critical juncture due to grim circumstances such as Brexit chaos, soaring prices and shortages caused by a botched deal and deadly complacency about the virus leading to one of the highest death tolls in developed nations. Additionally, there is significant economic damage and self-inflicted wounds by government failures like universal credit cuts that have pushed millions into poverty without adequate compensation.
Robert Jenrick
Reform
Newark
The Chancellor's stewardship of the economy is acknowledged positively, with emphasis on making work pay through changes in the universal credit taper rate and increases in the national living wage. Robert Jenrick also highlights concerns about inflation, public spending, and the size of the state, suggesting a need for reform within the NHS and an improvement in productivity to sustain economic growth. He endorses the Budget's focus on infrastructure and skills development but expresses worry about increasing tax burdens and the balance between private sector competitiveness and public expenditure.
Christine Jardine
Lib Dem
Edinburgh West
The Chancellor's budget fails to address the cost of living crisis, with tax hikes and broken promises. Christine Jardine emphasises the need for funding in education catch-up classes due to the pandemic, highlighting that a lack of investment could result in £46,000 in lost earnings over children’s lifetimes. She criticises the Chancellor's priorities, noting that he has spent more on reducing the price of prosecco than on aiding children's futures. Jardine also points out low school spending per pupil and a high tax burden under this Government. The speech further addresses issues with universal credit increases and minimum wage hikes, which have been offset by national insurance hikes, leaving many without adequate support during winter. She criticises the £900 million tax cut for banks compared to NHS staff facing similar financial challenges.
Mike Wood
Con
Kingswinford and South Staffordshire
Emphasised the economic importance of pubs and brewing, which support over 900,000 jobs across the UK. He highlighted that beer duty has not increased since before the 2017 general election and supported the Chancellor's measures to simplify alcohol duties. The MP also praised the announcement of a new reduced rate for draft beer and cider.
Adam Afriyie
Con
Windsor
Commended Mike Wood's speech, noting that the Windsor constituency is heavily dependent on hospitality businesses which have been significantly supported by recent Budget measures. He highlighted the relief felt in his community and praised the Chancellor for supporting smaller businesses.
Clive Efford
Lab
Eltham and Chislehurst
The speaker criticises the Conservative government's approach to 'levelling up', arguing it amounts to returning public funding levels to those of 2010, which he deems insufficient. He highlights cuts to NHS spending, police funding, education, local authorities, Sure Start and youth services under austerity measures since 2010. Efford also mentions the reduction in nurse recruitment due to scrapped bursaries and the impact on teacher pay and school budgets. Furthermore, he discusses public sector wage cuts and increases in poverty rates, food bank usage, and reductions in universal credit support.
David Davis
Con
Goole and Pocklington
The MP emphasises the importance of economic growth, stating that it is crucial for funding any initiatives. He criticises the Treasury's forecasting accuracy and suggests a strategy to manage national debt by creating long-term war bonds. David Davis argues against high taxation as he believes it can depress employment and consumption. Instead, he supports lower tax rates to stimulate investment and productivity, leading to higher overall tax revenue.
Seema Malhotra
Lab Co-op
Feltham and Heston
The Chancellor's Budget is disappointing as it fails to address the cost of living crisis adequately. It provides insufficient funding for children's education recovery, cuts universal credit which exacerbates poverty, does not assist with rising domestic energy bills, introduces a 'new jobs tax' and weakens the industrial strategy. The speaker also criticises the lack of support for small businesses, entrepreneurs and start-ups, emphasising that business rates need reform to support local high streets. Additionally, she highlights the importance of climate action and vocational skills development. She calls for more investment in tackling climate change and mentions concerns regarding mortgage prisoners, building safety, Sure Start centres, and youth services.
Nigel Mills
Con
Amber Valley
Welcomed the Budget's positive forecasts for balancing the books by the financial year after next, despite an increase in deficit. Emphasised the need to focus on long-term economic growth and productivity improvements. Acknowledged welcome measures such as increased NHS funding, raising of the living wage, end of public sector pay freeze, reduction in universal credit taper rate, and tax tweaks for post-Brexit freedoms including draft beer duty reduction and adjustments to R&D rules.
Richard Thomson
SNP
Caithness, Sutherland and Easter Ross
The Chancellor's Budget is marked by short-termism and does not adequately address the cost of living crisis, supply shortages, or environmental challenges. The reduction in universal credit uplifts will draw 20,000 children into poverty in Scotland, undermining the Scottish child payment initiative. The removal of the triple lock on pensions and a 1% hike in national insurance further exacerbate financial hardships for families. Labour shortages in haulage, agriculture, and butchery sectors threaten to create an animal welfare crisis during winter. Additionally, the cancellation of the Acorn carbon capture project demonstrates a failure to invest in green energy initiatives that benefit Scotland.
Angus MacNeil
SNP
Na h-Eileanan an Iar
The intervention by Angus MacNeil highlights the injustice of denying Scotland access to its carbon-capture asset, especially considering the historical extraction of its natural resources. This move further undermines trust and respect for Scottish autonomy within the union.
Mark Harper
Con
Falmouth and Camborne
Mark Harper clarified that levelling up is about spreading opportunity more fairly across the UK, emphasising the Chancellor's Budget as a means to deliver this. He highlighted specific local initiatives such as funding for Hartpury University and College and improvements in construction skills through the Construction Skills Accelerator Centre. Harper also commended the reduction in alcohol duty for small producers and business rates relief for hospitality businesses. He stressed the importance of fiscal responsibility and sound money management, noting that decisions made during 2010-2019 enabled a strong pandemic response. Harper welcomed measures to encourage work through universal credit reforms and supported reducing the size of the state.
Andrew Mitchell
Con
Sutton Coldfield
I congratulate the Chancellor on his exceptional handling of a difficult year and praise him for reducing the taper rate of universal credit. Andrew supports transport funding for the west midlands, particularly in Sutton Coldfield, and highlights the importance of regional mayoral structures for skills development. He advocates for brownfield site development to protect green belts and discusses national priorities including climate strategy, COP26, NHS Test and Trace waste, international development budget cuts, and value for money in NHS catch-up funding.
Greg Clark
Con
Bournemouth East
Underlined the central importance of science, innovation and technology for the future wellbeing and prosperity of the UK. Emphasised that the Budget will increase national investment from public funds in research and development to £20 billion a year by 2024-25, though noted regret at not meeting the manifesto commitment of £22 billion. Highlighted the need for sustained increases rather than stop-start funding approaches due to fiscal difficulties. Welcomed the steady progress throughout the spending review period that will give confidence to the science community. Mentioned the role of creative industries in boosting cities and private sector investment, citing the Glasgow example. Acknowledged concerns about delays in securing association with Horizon Europe but confirmed that £1.3 billion is guaranteed for this year, rising to £2.3 billion in 2023-24. Welcomed the increase in ODA funding for science and called for levelling up of contributions made by regions and nations of the UK.
Alison Thewliss
SNP
Glasgow Central
Expressed concern that the creative industries, which were part of the original industrial strategy, seem to have been lost in current Government priorities. Highlighted that economic activity can come from the creative industry including innovation and questioned whether it ought to form a larger part of the strategy.
David Evennett
Con
Bexleyheath
Welcomes the Chancellor’s Budget and highlights its support for businesses, workers, and skills development. Emphasises the importance of investing in skills through measures like the Kickstart scheme, Restart scheme, and UK global talent network. Supports the lifetime skills guarantee and additional funding for apprenticeships and further education. Praises the substantial investment to tackle poor numeracy with a new programme called Multiply. Welcomes the increase in funding for schools and support for the hospitality industry through reduced business rates.
Robert Syms
Con
Croydon Harbour
The Chancellor's Budget is described as optimistic, acknowledging the successful economic interventions during the pandemic despite high national debt. The economy is recovering faster than expected with a growth rate of over 6% for this year and continued growth forecasted in future years. However, Robert Syms expresses concern about tax increases and calls on the Government to justify spending increases, particularly regarding Test and Trace costs. He welcomes the change in universal credit taper rates and emphasises the importance of converting scientific achievements into job creation within the UK. Syms advocates for economic resilience by reducing reliance on foreign imports and suggests investing in domestic production capacities.
Tim Loughton
Con
East Worthing and Shoreham
Welcomes the Chancellor's Budget as skilful, comprehensive and prudent. Emphasises the importance of avoiding further lockdowns and highlights the increase in economic growth compared to forecasts and competitors. Supports ending the public sector pay freeze and increasing the national living wage. Praises measures on universal credit that benefit 2 million families, focusing on R&D investment and productivity improvement through upskilling. Advocates for early years investment, highlighting its financial benefits. Suggests a winter fuel payment to assist vulnerable households with energy bills. Calls for VAT reduction on environmental goods and permanent solutions for hospitality businesses.
John Baron
Con
Basildon and Billericay
John Baron praised the Treasury Ministers for their handling of the pandemic, particularly highlighting the Chancellor's sure-footed approach. He commended the Budget for its emphasis on green jobs, science and technology, and the introduction of a £9.50-an-hour national living wage, which will benefit younger and lower-paid workers. However, he expressed concerns about the forecasted level of spending increases being unsustainable and warned against letting inflation spiral out of control. He also opposed the increase in national insurance, advocating for reduced corporation tax and more deregulation to boost growth. Baron suggested reconsidering tariffs on imported goods and proposed scrapping HS2 as a way to save money.
Kevin Hollinrake
Con
Thirsk and Malton
The speaker welcomed the Budget, emphasising the optimism it presented in contrast to Opposition pessimism. He highlighted the Government's handling of economic recovery post-covid and Brexit, noting that while there are current issues such as labour shortages and inflation, these are short-term challenges. Long-term demographic pressures were also discussed, with a focus on the ageing population and its implications for public finances and national debt. The speaker supported measures to make work pay through incentives like the universal credit taper, arguing for business growth by fostering competition and a fair playing field. He advocated for simplifying taxation and proposed scrapping business rates in favour of a more equitable system based on VAT.
The speaker indicated dissent but did not provide further details or a full contribution.
Tobias Ellwood
Con
Bournemouth East
Ellwood appreciates the enthusiasm and constructive effort behind the Budget, especially from a tourism and hospitality perspective. He highlights cuts to air passenger duty, alcohol duty, fuel duty, and business rates as welcome measures. He also supports the net zero strategy but urges the Government to advance the modular nuclear reactor programme. Ellwood expresses concern over the defence budget being cut while global security issues are increasing. He emphasises the importance of addressing security concerns alongside economic recovery.
Felicity Buchan
Con
Ealing Central and Acton
Buchan warmly welcomes the positive, optimistic Budget that focuses on post-pandemic economic recovery. She highlights strong predictions for growth, employment recovery, and rising wages. Buchan supports lower taxes to encourage growth and investment but emphasises the need for value for money in public service expenditure. She also discusses the tapering of universal credit, residential property development tax progress, corporation tax rates, and business rates measures.
James Daly
Con
Bury North
The Budget is transformative for the ordinary people in Bury, with significant funding announcements that will improve transport infrastructure, regenerate town centres, and enhance employment opportunities. James Daly also supports the reduction in beer duty but calls for consideration of pub leasehold issues. He highlights investments in youth employment, health innovation centres, school improvements, road repairs, technological advancements, steam railway preservation, special educational needs services, and SEN hubs to deliver these provisions effectively at a local level.
Government Response
The Chancellor highlights significant investments in infrastructure and job creation initiatives, arguing these measures will support economic recovery, reduce inflation over time, and ensure long-term prosperity for all.
Shadow Response
Jeremy Corbyn
Shadow Response
The Opposition leader regrets his absence due to illness but appreciates the shadow Chancellor’s robust response. He emphasises that without immediate government intervention to tackle inflation and support struggling families, further hardship will ensue.
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