Sorry, Mr Speaker, bear with me. [Laughter.] This Government are committed to growing the economy, and we were the fastest-growing economy in the G7 in the first half of this year. We have done three trade deals and cut interest rates five times—and I did not even need my notes to remember all that.
New polling by the Trades Union Congress shows that the public overwhelmingly support packages of taxes on wealth, on banks and on gambling companies. It also found that 74% of 2024 Labour voters who are now leaning towards Reform back those measures. Will the Chancellor commit to protecting working people from higher taxes on their income by ensuring that wealth pays its fair share, rather than imposing cuts and regressive measures?
In the Budget last year, we got rid of the non-dom tax status, we put up capital gains tax, we started treating carried interest as income—not as capital gains—we introduced new taxes on private jets, we put VAT and business rates on private school fees and, of course, we changed the rules around agricultural property relief so that people who have farms worth more than £3 million will pay inheritance tax, although at half the rate that everybody else does. We took a number of measures last year to ensure that the wealthy pay their fair share.
Some countries around the world do have a wealth tax, but countries like Switzerland, for example, do not have inheritance tax. I think it would be a mistake to get rid of inheritance tax and replace it with an unproven tax without knowing what revenue it would bring in.
May I welcome the new members of the Treasury team, with their courage in joining it? I also do so for the shadow Chancellor of the Exchequer, my right hon. Friend the Member for Central Devon (Sir Mel Stride), who cannot be with us today. May I particularly welcome the new Chief Secretary, who replaces the old Chief Secretary, the right hon. Member for Bristol North West (Darren Jones), who is now another new Chief Secretary?
Earlier this year, Labour made a mess of its welfare reform proposals because they were rushed out to help plug a £5 billion gap in public finances. The result was chaos and a humiliating reversal for the Chancellor. Welfare spending is too high—it does need reform—and today the Leader of the Opposition has pledged Conservative support to help the Government to develop a thoughtful plan on welfare reform. Will the Chancellor take up this offer of support?
While the Leader of the Opposition is talking down the British economy, we are setting our sights on growing the economy and making working people better off. No, we will not be taking any advice from the Leader of the Opposition, who was part of a Government who crashed the economy, sending mortgage rates spiralling and putting pensions in peril.
I fear that the Chancellor’s dismissive response fails to acknowledge either the serious state of public finances or the serious difficulties of her own position. Having extended economic uncertainty until just before Christmas, will the Chancellor at least confirm that the November Budget will include savings from welfare reform?
In the Universal Credit Act 2025, which passed before the summer recess, we reformed the universal credit system to reduce the gap between what people on the health element and those on the standard element got. That reform will help more people into work, as well as the £1 billion package of measures to help people—particularly those who have been long-term unemployed—get back to work. [Interruption.] The hon. Member for North West Norfolk (James Wild) says that that is spending. Actually, getting people into work and paying taxes, as well as paying less on benefits, is good for the economy and good for those people who get back into work.
T4. Last Friday, I visited Demelza children’s hospice, which does amazing work for children and their families, but it needs certainty and sustainable funding to survive. Will the Chancellor consider extending the children’s hospice grant for the next five years, increasing it in line with inflation, to help it to plan and deliver those vital services?
The Government are investing £100 million to improve hospice facilities and a further £26 million of revenue funding to support children and young people’s hospices this year. That is the biggest investment in hospices in a generation. Details about the funding arrangements for 2026-27 will be set out by the Department of Health and Social Care in due course.
T2. Pubs are at the heart of the community in North Shropshire, whether community-owned pubs such as the White Lion in Ash and the Horse and Jockey at Northwood, the Bailey Head in Oswestry, which was the Campaign for Real Ale’s pub of the year, or attached to a microbrewery like the Stonehouse brewery in Morda. But all those hospitality businesses are buckling under the strain of higher business rates, the national insurance increase and higher energy costs. May I add my plea to those of my Liberal Democrat colleagues and ask the Chancellor that, in the upcoming Budget, measures are put in place to support our struggling hospitality industry?
As set out at the last Budget, we will introduce permanently lower tax rates for retail, hospitality and leisure businesses with rateable values below £500,000. The relief that we inherited from the previous Government was due to end entirely in April of this year. We extended it for one year to give us time to legislate for permanently lower tax cuts for pubs across this country.
T6. I recently visited the ghost terminal at Ashford International train station, where five years ago Eurostar, shamefully, ceased to have its services stop. A report last month found that bringing back those international trains to Ashford could benefit our local economy in Sussex and Kent by over £2.5 billion, which would mean more jobs and more visitors for my constituents in Hastings and Rye. Will the Chancellor join me in calling on the train operators and the rail regulator to grasp that opportunity for growth?
I thank my hon. Friend for the work that she is doing to help grow the economy in all parts of the country, including Kent and Sussex. The Government have made significant commitments on the expansion of international rail services, and we are working closely with the German and Swiss Governments on direct links between our countries. Work is under way to understand the prospects for expansion of the number of services on the channel tunnel rail link. I absolutely agree that new opportunities at Ashford and Ebbsfleet have huge potential to help grow the economy, giving more opportunities for people in those communities to access good jobs and other leisure opportunities.
T3. The 52 pubs in my constituency provide vital community spaces, yet they tell me that this Government have hit them disproportionately hard with their increases in employer national insurance contributions, on top of soaring energy prices and as yet unfulfilled promises on business rates. Ahead of the autumn Budget, will the Chancellor say what measures she will take to protect our local independent pubs and small businesses?
I absolutely recognise that businesses face challenges, but they also have lower borrowing costs because of the five cuts in interest rates, which the Bank of England was able to make because of the stability that we have returned to the economy. It would be good to have a bit more honesty from political parties. If they oppose the national insurance increase, then they oppose the extra money for the national health service. If they stood up and said that, they might get a little more respect and credibility.