Esther McVey MP: speeches

Speeches

• 1 Jul 2025 · Topical Questions · Hansard source

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  Does the Chancellor believe that the changes she has made to employer’s national insurance contributions will lead to higher levels of employment, or will they lead to higher levels of unemployment?

• 26 Jun 2025 · G7 and NATO Summits · Hansard source

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  I welcome the increase in defence spending. Will the Prime Minister take this opportunity to explain where the money is coming from, particularly as his Government continue to weaken our economy and when another expensive benefit U-turn—on top of the winter fuel U-turn—is on its way?

• 11 Jun 2025 · Spending Review 2025 · Hansard source

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  I know the Chancellor considers herself to be a world-leading economist, so can she tell me how it is that everyone in the country knew that hiking taxes on employers’ national insurance contributions—making it more expensive to employ people—would destroy jobs, destroy businesses and destroy the economy, and the only people who did not know that were her and her socialist boss?

• 9 Jun 2025 · Winter Fuel Payment · Hansard source

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  I appreciate that this has been a humiliation for the Chancellor and that her credibility is in tatters—no wonder she is not here today to announce her own U-turn—but now that she and the Government have got a taste for climbdowns, may I urge them through the Minister, who unfortunately drew the short straw today, to reverse the equally ridiculous national insurance contribution rises, which are destroying jobs, and the inheritance tax changes, which are destroying farms and family businesses?

• 5 Jun 2025 · Relocating Civil Service Roles · Hansard source

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  When the Minister is moving civil service jobs outside London, may I remind him that there is much more to the north than just Manchester and Leeds? Why are the Government moving the Information Commissioner’s Office away from Wilmslow to Manchester, and what assessment has been done of the impact of that move on the economy of Wilmslow?

• 5 Jun 2025 · Bank Closures and Banking Hubs · Hansard source

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  I agree—the lack of banks is a disgrace. Where do people go for their banking needs? The reality is that the banks that are closing have entered into an agreement with businesses and individuals; when they opened their bank account, they opened it with the bank on the high street. The business was there because it expected a certain amount of customer service—that is why they went there in the first place. Face-to-face banking offers confidence, security and efficiency, especially for businesses handing over cash and making significant financial decisions. Without those services, it just will not work. In 2022, the Federation of Small Businesses found that four in 10 small businesses still relied on cash as a primary payment, and six in 10 needed to make regular cash deposits. I regularly hear from businesses in Tatton that they simply cannot deposit cash or access the basic services needed. Why? Well, that is because 64% of bank branches have closed in the last decade and 65% of cashpoints have gone. That is reducing the ability of businesses to deposit cash in the local area. The shift to online poses risks from technical failures and cyber-attacks. We have heard that through this monopoly and lack of access, there is a squeeze, and commission is being charged for the transactions of these businesses. Our high streets are at the heart of our communities, but without access to banking services, our high streets, which are already under pressure, have become even harder places to trade, grow and thrive. If we are serious about supporting small businesses and seeing investment on our local high streets and in our town centres, we must stop the decline in banking infrastructure. Some may argue that closures would be reasonable if banks were losing money and needed to take cost-cutting measures, but that is simply not the case. Banks are not struggling institutions. Last year, HSBC reported nearly $25 billion in post-tax profits. Barclays made $6.4 billion. Lloyds made $4.5 billion. NatWest made $4.8 billion. Those are all eye-watering profits—

• 20 May 2025 · Topical Questions · Hansard source

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  I am sure that the Chancellor subscribes to the basic principle that if the cost of something is put up, we will see less of it. That is why Governments have, over many years, put taxes on things like smoking. Does she accept that the principle also applies to employing people—that the more expensive the Government make employing people, with their jobs tax increasing NICs for employers, the less we will see of that?

• 29 Apr 2025 · Public Authorities (Fraud, Error and Recovery) Bill · Hansard source

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  I wish to speak in support of new clause 11, entitled “Publication of results of pilot schemes”. Make no mistake: this Bill allows for a massive expansion of state powers. It will permit mass financial surveillance of the public. It is a massive overreach by the state, so of course it requires close scrutiny. It requires the publication of those results, and then they must be analysed. Let me put this in context. Before the covid years, fraud and error across the tax and benefit system were at an all-time low. Then, in 2020, after a state-imposed lockdown—another massive state intervention—unprecedented financial support was set up for millions of people, in a rush of panic, with the full support of Members on both sides of the House. I exclude myself from that, but very few Members opposed the arrangement, and it opened up all sorts of new vulnerabilities in the system. This support was set up only because of a blanket stay-at-home mandate from the state. It was the state that opened up those fraud vulnerabilities, and it was the state that saw, as a result of those impositions, many millions more people claiming universal credit. Let me give the House the figures. In March 2020, 3 million people were receiving universal credit. By November that year 5.8 million were receiving it, and in January 2025 the number was 7.5 million. Just as the heavy-handed state intervention of lockdown left the public paying a very high price, I am concerned that the Bill, another heavy-handed state intervention, will also leave the public paying a very high price. As Big Brother Watch states, the Bill will introduce “an unprecedented system of mass financial surveillance; create a second-tier justice system for people on the poverty line; undermine the presumption of innocence; result in serious mistakes risking the freedoms and funds of our country’s elderly, disabled and poor; and turn Britain’s once-fair welfare system into a digital surveillance system.” I have said it before and I will say it again, lockdown was an experiment inflicted on the British people without their consent and that experiment failed. The Bill will be another such experiment on the British public.

• 1 Apr 2025 · Product Regulation and Metrology Bill [Lords] · Hansard source

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  Does my hon. Friend agree that this is yet another hammer blow to British businesses? We have had the Labour Government introducing £25 billion of tax with the employers’ national insurance contribution, £5 billion of costs with workers’ rights and a never-ending increase in energy bills as they drive forward on their net zero fantasy. Now they will be able to change regulation more or less on a whim, whenever they feel like it, destroying certainty and confidence for British businesses.

• 18 Mar 2025 · Welfare Reform · Hansard source

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  How precisely will these benefit cuts be realised, given this Government’s anti-business Budget, which has seen businesses close at the fastest rate since Labour was last in office? Of those still standing, 30% are planning to cut staff to cope with the increase in employers’ national insurance contributions. Where are the jobs? We know Labour is the party of the magic money tree; is Labour now the party of the magic jobs tree, too?

• 17 Mar 2025 · Benefit Reforms: Disabled People · Hansard source

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  When I was a Minister in the Department for Work and Pensions, working with my right hon. Friend the Member for Chingford and Woodford Green (Sir Iain Duncan Smith) on reducing welfare dependency, getting 1,000 more people into work each and every day, and delivering record numbers of people into work, the Labour party opposed us every step of the way. Can I take it that the Government’s recent conversion to reducing the benefit bill is only about conning the Office for Budget Responsibility into thinking that they will balance the books after their disastrous Budget, rather than because they really believe in it?

• 26 Feb 2025 · Family Businesses · Hansard source

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  My hon. Friend speaks knowledgably and passionately about the business in her constituency, and she is right. A family business I spoke to said, “We are already working on small profit margins. We do not know how we will cope. The enormity of the changes will change the way we look at our business. What are we going to do? We might have to carve up the business or cut it down. We might end up selling up or we might look for foreign investment, whether we seek that out or they seek us out”. They say that their business will not survive and thrive, and there is no doubt that it will shrink or end. Another essential point, which other hon. Members have mentioned, is that family businesses are the breeding ground of entrepreneurs. Family members will work of a weekend, be trained up and go into the family business. People talk about love and passion—all those things—but it is that entrepreneurial spirit that this Government will kill, along with jobs in local communities, because family businesses have a special place in the heart of communities. This Chancellor said that the changes would only impact the wealthiest of businesses—have we not heard that before? The Government said that the farm tax would impact only the wealthiest of farms, that the removal of the winter fuel payment would impact only the wealthiest of pensioners, and that VAT on schools would impact only the wealthiest of people: that is utter nonsense. The Labour party is removed from reality, ideologically driven and blinded by jealousy. Labour’s raid on family businesses, worth about £500 million by 2030—that is the Treasury’s forecast—will actually lose billions of pounds more. These tax changes are ideologically driven and the Chancellor is killing the geese that lay the golden eggs. There is a vacuum of business know-how and business knowledge among those on the Government Benches. What they are doing to our country is an utter disgrace.

• 26 Feb 2025 · Family Businesses · Hansard source

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  I must say, I am disappointed—as will be business owners up and down the country—that the Chancellor could not find her way into the Chamber today. If she had done, she might have learned a thing or two. In Tatton, there are family businesses that go back four or five generations. Before the Budget, some were planning to get ready for the next generation—but not now. Some, founded in the 1800s, have told me that their businesses survived two world wars, the Spanish flu, the high tax and economic lunacy of the 1970s, and even the recent covid lockdowns, but the Chancellor’s Budget will be the death of them. They have told me that on their family business gravestone will be written: “RIP. 1830-2026. Reeves’ budget the fatal blow.” Here we have a Chancellor who wanted her legacy to be that she was the first female Chancellor; in fact, her legacy will be as the grim Reeves reaper who fatally killed off family businesses and destroyed enterprise in the UK. The Labour Government show no sign of understanding business, let alone family businesses that employ 14 million people and add £575 billion to the economy. The family business is a living entity; it needs to be nurtured, and if it is, it will grow and last hundreds of years, to be passed on to the next generation. It has a unique place in the business ecosystem—it serves a special purpose. Even previous Labour Governments knew that. That is why they introduced the business property relief; they knew that it was required. But not this Labour Government—oh no! Now, the death of a family member could spell the death of the family business, too. The CBI and Family Business UK have warned that the changes to property business relief alone could lead to 125,000 job losses and reduce economic output by £9.4 billion. Businesses must think about how much money they will put aside for those tax changes. With every £1 put into tax, they can invest £1 less in their business, which will stifle the growth of the company. This Labour Government talk about growth, but these measures will only kill it off. The impact is not just from inheritance tax: we have the family farm tax, the increase to employer national insurance contributions and the minimum wage changes. Every single one of those will add a final nail in the coffins of many of our businesses.

• 26 Feb 2025 · High Street Bank Closures · Hansard source

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  The hon. Gentleman is making a powerful speech. We all understand that when a business is struggling, it has to cut costs, but these banks are closing branches despite making billions of pounds of profit. By pulling out of towns and the high street, those banks no longer provide a service for their customers—for the elderly, the disabled and local businesses. Knowing that banks need a licence to operate, does he agree that, to solve this growing problem, there needs to be a condition that, to get that licence, banks need to serve all of their customers and actually remain on the high streets?

• 11 Feb 2025 · Employer National Insurance Contributions: Police Forces · Hansard source

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  I thank the hon. Member for saying that. I hope he too shares my delight that Liverpool is top of the football division as well. We all should share a love of this country, and we should all want the best for this country. I too want a safe country, so it is vital that the money goes to the police and the police forces to ensure that happens, and not on increased tax bills. That is why I am asking for this ham-fisted tax increase to be reversed.

• 11 Feb 2025 · Employer National Insurance Contributions: Police Forces · Hansard source

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  I beg to move, That this House has considered the impact of planned changes to employer national insurance contributions on police forces. It is a pleasure to serve under your chairmanship, Dr Allin-Khan, and I am grateful for the opportunity to speak on this important issue. I rise to address a matter of significant concern that will affect police forces in my constituency and across the country. Hon. Members will be aware of the broader tax and fiscal challenges presented by the Government in the autumn Budget, including changes to the agricultural property relief and the cruel cutting of the winter fuel payment, which have been rightly widely condemned, and to which I have objected many times in this House. In fact, this room was jam-packed last night with hon. Members from across the House condemning the Government’s family farm tax. People sat on the ledges here trying to speak—some were not able to—such was the feeling against some of the disastrous consequences of the Budget.

• 11 Feb 2025 · Employer National Insurance Contributions: Police Forces · Hansard source

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  I will not just yet. Please allow me to make the case, and then I will come back to the hon. Gentleman. We know about the removal of the winter fuel payment from nearly 10 million pensioners, we know about the family farm tax and we know about the VAT on private schools. All have received much attention in this House, but we must not overlook the breadth of the ramifications of the autumn Budget, particularly the changes to employer national insurance contributions. They will have a devastating impact on individual employers and businesses, but their impact on our treasured public services has been widely overlooked. I want to focus my comments on the impact on our police forces. You will be wondering, Dr Allin-Khan, how the Member for Tatton knows what is going to happen here. Did the Treasury conduct an impact assessment? Did the Chancellor generously share the assessment with Members from across the House? Were police forces consulted on such changes? The answer to all those questions is no, as is often the case with the Government’s policy announcements. Late last year, I submitted freedom of information requests to every police force in the UK, asking for the expected additional costs that each will incur as a result of the Chancellor’s hike in employer national insurance contributions. I was shocked, yet unsurprised, to learn of the devastating impact that the policy will have on our police forces. In my county of Cheshire, the local constabulary will face an additional £3.7 million per year in employer national insurance costs.

• 11 Feb 2025 · Employer National Insurance Contributions: Police Forces · Hansard source

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  My hon. Friend and neighbouring MP makes a valid point; £3.7 million is the equivalent of about 67 police officers. That is a recurring expense, not a one-off. In places such as Devon and Cornwall, the police will face a £6.3 million tax bill each year. Greater Manchester will be hit with a whopping extra tax bill of £11.9 million each year. Those are just a few examples, and the list goes on.

• 11 Feb 2025 · Employer National Insurance Contributions: Police Forces · Hansard source

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  I am afraid I will not. I understand that the Government say that they will pick up the £230 million tab, but that still means that the Government will be paying a tax bill rather than having money to spend on frontline police. Last month, we heard the Home Secretary announce a £200 million boost to neighbourhood policing to fund the recruitment of 13,000 new neighbourhood police officers, as the Government said before the election, although they had been very quiet on that for a long period of time. I wonder whether the Government can do that. The numbers are very similar: £200 million for 13,000 new neighbourhood police officers, yet they have given themselves a £230 million a year tax bill. Will those 13,000 neighbourhood police officers ever materialise? In her summing up, will the Minister say what will happen, particularly in light of the national insurance contribution black hole, as those national insurance contributions are to be paid year in, year out? Will the Government pay for those police officers, year in, year out? If so, what will be the amount paid during a whole Parliament? Where will that money come from? I urge the Government and the Chancellor, through the Minister, to stop this ill-thought-through, ham-fisted Budget change to employer national insurance contributions. The only solution to the problem—

• 11 Feb 2025 · Employer National Insurance Contributions: Police Forces · Hansard source

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  My hon. Friend is correct. That is why I highlighted the cost implications of the policy to the Secretary of State for Health that day on the Floor of the House, and he was absolutely taken aback. There was muttering among the Government Front Benchers, and the Government put in a solution straight away, but they overlooked the police. Later in my speech, I will come on to the fact that the Government now think they will put money into this area. Fewer police will inevitably have broader consequences for public safety. Police officers are on the frontlines, tackling serious and organised crime, addressing domestic violence and responding to emergencies. Every officer we lose or fail to recruit means less protection for communities such as Tatton. To give an example, in Cheshire there has been a significant rise in serious sexual assaults by people who are in this country illegally. Money that should have gone into supporting our police force to halt that crime will not be there, which is making our streets less safe. This Government are fiscally illiterate. They made a £25 billion grab in employer national insurance contributions at the Budget, without really thinking where that money would come from. Remember, the Government said that they did not want to tax working people, yet we know this will hit working people—the Government never thought where that money would come from. Instead, the measure was born from ideological reasons, whether that meant funding the Government’s net zero obsession, foreign aid or their union paymasters. In introducing the change, the Government have failed to consider the most basic duty of any Government: to protect their citizens.

• 11 Feb 2025 · Employer National Insurance Contributions: Police Forces · Hansard source

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  Can I finish my sentence? There is only one solution to the problem that will have the correct consequences: scrap the diabolical tax on our police forces.

• 11 Feb 2025 · Employer National Insurance Contributions: Police Forces · Hansard source

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  My right hon. Friend might have hit on a point, as the burden could well come back to the taxpayer. Remember that this is tax—it is money that will be going on tax, and a bill that the Government are imposing. However we look at it, it is money that the frontline police service are being deprived of. Let us consider the financial burden that the changes will place on the police force. Employer national insurance contributions represent a significant cost for everyone, but they will hit the police especially hard. For police forces that employ a number of police officers and staff to protect our communities, the cumulative cost of the increase will run well into the tens of millions of pounds. To put that into perspective, take West Yorkshire, where the figure of £11.2 million per year is the equivalent of 220 police officers. That is potentially 220 fewer police officers keeping our communities safe as a direct result of the Government’s Budget. Let me name a few other places, such as my home area of Merseyside—[Hon. Members: “Hear, hear!”]—Thank you very much indeed. It will be paying an extra tax bill every year of £7 million, which is roughly 130 police officers. Kent will be paying more than £6 million, which is about 100 police officers a year, and Thames Valley police will face an £8 million tax bill every year.

• 11 Feb 2025 · Employer National Insurance Contributions: Police Forces · Hansard source

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  I will not take another intervention, because I cannot quite get over the word “entertaining” being used about such a devastating policy, which will have devastating impacts on the streets of all our communities. There is a real risk that police forces will have to scale back on recruitment—that is not entertaining. There is a real risk that they will have to cut back on vital training—that is not entertaining—or reduce operational spending in other areas, which again is not entertaining. These decisions could have serious consequences for the police service’s ability to deliver an effective police force. The planned national insurance increases will make it harder for police forces to recruit new officers, particularly in areas where the cost of living is already high. The Government have committed to recruiting more officers, yet those efforts will be undermined by these fiscal pressures through taxation. A common theme of this Government is their lack of foresight. They failed to consult with Back Benchers, public services and Government Departments before steamrolling ahead with this policy. They failed to understand the impact of the rise in employer national insurance costs on our public services, a mistake so basic that it is sometimes hard to comprehend. I think we all remember the immediate outcry that we heard from GPs, charities, social care providers and hospices. I remember being in the main Chamber when the Secretary of State for Health came to the Dispatch Box to answer questions on this policy, and he was taken aback. He did not know how to answer those questions, and his plea to the Chancellor at the time was, “Where are we going to get that extra money? I hope I will get that extra money, and I will come back to Members later with answers.”

• 11 Feb 2025 · Employer National Insurance Contributions: Police Forces · Hansard source

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  I thank all Members for taking part in today’s debate. I think I understood from everyone that they would not want to see police officers taxed off our streets. There was one area on which I did not get consensus, which was why I said that the current Government were fiscally illiterate: what Government Members did not seem to understand is that money going to pay for extra taxes means money that will not be going on the frontline. The very fact that it is going in taxes and has to be compensated for shows that it will not go on the frontline. That is why I am asking for this policy to be stopped and reversed. There seems to be collective amnesia among those on the Government Benches. The coalition Government came into power because the previous Labour Government pretty much crashed the economy. That was why the coalition was voted in. I have to say that I already see—in just seven months—that this Labour Government with that awful, awful Budget are doing exactly the same thing: they are crashing the economy all over again, but in record time. I just want to make sure that our police and our streets are protected. I wish to thank the Minister because I know that she takes this matter very seriously. Whatever she said or did not say in the debate today, I know that she will take that message back and I know that she will be fighting to get this terrible employer national insurance contribution policy reversed. Question put and agreed to. Resolved, That this House has considered the impact of planned changes to employer National Insurance contributions on police forces.

• 10 Feb 2025 · Inheritance Tax Relief: Farms · Hansard source

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  Does my right hon. Friend agree that the Labour leadership is in serious jeopardy of stubbornly painting itself into a corner, when what is needed is pragmatism and for the Labour leadership to listen to the farmers, the public and its own Back Benchers? For today’s debate to mean anything, for Labour Back Benchers to mean anything and for their words not to be cheap, it is time for the leadership to actually listen and find a way to graciously stop this farm food tax.