Mims Davies

Mims Davies

Conservative — East Grinstead and Uckfield

Speaking in the House of Commons on 31 October 2024

Debate

Income tax (charge)

Contribution

It is very important to support people working in the wine sector. Viticulture is alive and well in Sussex, Essex and across the country. If the train drivers’ needs have truly been satisfied, the services from East Grinstead to the capital simply must improve. That is my plea to the Southern rail service. Despite the leaks and the pre-Budget announcements, it came as something of a shock to hear the full announcements in the Budget yesterday. There can be no mistake: the cost to the country is very dear. According to the OBR, the direct and indirect costs amount to £52 billion. The new Labour Government cannot escape the fact that, in their first Budget in 14 years—as they keep reminding us—they are set to raise taxes by a staggering £40 billion. Taxes will be at their highest level since 1993, and that builds on the winter fuel payment debacle. Despite Labour Members’ glee and their waving of Order Papers, when they go back to their constituencies or open their emails, they will see a very different story. Their constituents, like mine, will face the largest tax burden in our history, and working people will pay the price, as the Chancellor has now agreed. Let me turn to younger voters and those keen to get on the housing ladder. Stamp duty is back for first-time buyers. One of my Conservative councillors in Copthorne and Worth highlighted this morning that the purchase of two rental properties has fallen through because the margins were already very tight. Yesterday’s decisions mean that two couples will now not be homeowners. In Handcross and Pease Pottage, one of my councillors, Mr Prescott, mentioned the Budget of broken promises. His organisation will face a cost of £70,000, it will lose two people, and the delivery of programmes will be stopped. That is the reality of these decisions. Small businesses—often those that are women-led, such as salons—will see the impact of the national insurance rise. I will be interested to see the effect across all sectors, particularly as the measures are a clear breach of the Labour manifesto. Despite Labour’s retrospective revisionism, the effect will be felt right across the land. On every radio station that I listened to on my way in this morning, the dismay across sectors, affecting real people’s lives, was everywhere. The national insurance rise affects charities and organisations, such as our hospices and air ambulances. As the shadow Chancellor said in the media this morning and again here today, picking the pockets of business, charities and organisations is not cost-free. The Institute for Fiscal Studies confirmed that the rise will hit the lowest-paid workers through lower pay, and the OBR has said that it will hit employment. So much for not raising taxes on working people. Two manifesto commitments have been broken.

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