Sir Ashley Fox

Last year, the Chancellor increased public spending by £72 billion, financed by £40 billion of extra taxes and £32 billion of extra borrowing. That was all justified, we were told, by a mysterious black hole that only the Labour Front-Bench team could see. The OBR certainly could not find it. These tax rises were so large that the Chancellor felt it necessary to reassure the country that “I’m not coming back with more borrowing or more taxes.” One year later, the Chancellor is back for more, raising Britain’s tax bill by a further £26 billion. These extra taxes will be paid by working people, like my constituent Rowena, who wrote to me after the Budget. She said: “I have worked in education for over 10 years and have only recently reached the top of the pay scale after years of dedication and hard work. I manage long hours, increasing responsibilities, and rising needs within schools, all while striving to maintain high standards for my students. I do this as I care deeply about educating future generations and also to pay my mortgage and support my three children. I do not claim any benefits, other than child benefit, and I have always taken pride in being financially independent. However, the changes announced today leave me questioning the value of this commitment. Under the new thresholds, I will be dragged into the 40% tax bracket, making additional work—such as examining during the summer—financially unviable. If I stop examining, students and schools will feel the impact. But what’s the point when 40% of that exam fee will disappear. Teachers are not high earners, yet these changes treat us as if we are. Calculators suggest I will be approximately £1,500 worse off annually. In fact, under the new rules, I would be financially better off and under less stress if I had two more children and claimed Universal Credit now that the two-child cap has been lifted. That is a deeply troubling message for hardworking professionals. I also want to share a personal perspective: my 15-year-old daughter is in Year 11 and about to take her GCSEs. I encourage her every day to work hard and aim for a successful career. But what is the purpose when she sees her parents struggling and effectively penalised for being hardworking? What message does this send to the next generation?” I hope that the Secretary of State will answer Rowena when she winds up. Twelve months ago, the Chancellor was opposed to removing the two-child benefit cap. It was too expensive and not the best way to tackle child poverty, and seven Labour MPs had the Whip removed when they voted against that. So what has changed? Well, nothing, except the collapse in the Prime Minister’s authority. He is buffeted by events because he has no principles and no vision for where he wants to lead our country. He is raising taxes on Rowena, and others like her, to increase benefits, because that is what Labour Back Benchers want. Devoid of any real purpose, his Government’s only guiding philosophy is to survive, so Labour is now doing what it has always done: taxing and spending, without thought for the consequences. Taxes on working people are rising to their highest level ever, all to pay for higher benefits for those who do not work. A Budget is about choices, and Labour has made its choices, because this is a Budget for “Benefits Street”.