Wendy Morton

The Budget is built on fantasy. The Chancellor claimed that there was a fiscal black hole so deep that she had no choice but to hammer working families with the highest tax burden since the war, but we now know the truth: the OBR told her in October that the so-called black hole did not exist. She actually had a surplus, but she deliberately told the public the opposite. This is now a political crisis of the Chancellor’s own making. Even a Cabinet Minister has said: “At no point were the Cabinet told about the reality of the OBR forecasts”, and called this Budget “a disaster from start to finish”. The Chancellor promised the country that she had “wiped the slate clean” and would not “come back for more”, but we now know how wrong she was. Labour Members can dress it up however they like, but this is the “Benefits Street” Budget—tax hikes to fund a welfare splurge, paid for by ordinary, hard-working people who get up, go to work and do the right thing. Labour promised not to raise taxes on working people. That was printed in its manifesto, but within weeks of coming to power it did exactly that. A Chancellor who breaks her word cannot expect to command the public’s trust. She must come to this House and explain herself, and I hope she does the winding-up speech tomorrow evening at the close of the debate. While this Government play politics with the public finances, it is working families in my constituency, and others up and down the country, who are paying the price. In Aldridge-Brownhills, families who have never been higher rate taxpayers in their lives will now find themselves pushed into a higher band, with no increase in real pay. That is not fairness; it is failure. Businesses reached their verdict within hours. The Institute of Directors found that 80% of business leaders felt negative about the Budget. They know that Labour Members do not understand what business is. Labour’s job tax has hit employers hard. On Friday, businesses in my constituency told me that they have frozen recruitment and investment, that they have no choice but to pass costs on to customers, and that in some cases they are beginning to think about redundancies. Small businesses—the backbone of our economy—were forgotten entirely in this Budget, and the Federation of Small Businesses has said that dividend tax hikes punish people for investing in their own companies. New employer charges are a bad idea, and the business rate measures fall far short. Small Business Saturday is on this coming weekend, and I am sure that many Conservative Members will be going out and supporting small businesses in their constituencies. Why? Because we understand what business is.