Richard Fuller MP: speeches

Speeches

• 19 Mar 2025 · National Insurance Contributions (Secondary Class 1 Contributions) Bill · Hansard source

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  As is evident to many hon. Members, the Minister has, for the first time, found himself unable to answer some very straightforward questions from Opposition Members about the difference between the allocation of funding for capital expenditure and for current expenditure, and the impact that that difference will have on our hospices, children’s hospices, GPs and others affected by Labour’s jobs tax. I am sure Members of the House of Lords who brought these amendments back will also have noticed that the Minister has been unable to answer those questions. Prior to the Bill going back to the House of Lords, will the Minister agree to speak to the Chancellor or the Chief Secretary to the Treasury to get a clear answer to the questions that have been raised today about which money will be available for capital and which money will be available to offset the national insurance charge increase?

• 29 Jan 2025 · Charter for Budget Responsibility · Hansard source

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  That is all very well, but the Chief Secretary is talking about the wrong budget. He is talking about increases to the health budget or changes to aspects of the DWP budget; he is not talking about why this Government are allowing an increase of up to 42% in welfare payments in this country. That is a different issue. It shows laxity on the part of the Government. Serious questions need to be asked, and I am sure will be asked, in the next debate. Let me return to the charter for budget responsibility, which was established by former Chancellor George Osborne as part of the Budget Responsibility and National Audit Act 2011. On Second Reading, the Economic Secretary to the Treasury explained why the measure was necessary: “We inherited the largest budget deficit in our peacetime history, we inherited a budget deficit forecast to be the largest in the G20, and we inherited the largest structural deficit in the whole of Europe.” —[ Official Report , 14 February 2011; Vol. 523, c. 746.] She did not have to make up numbers, as this Government have done, about some fanciful black hole; these were facts, and my former colleague, Justine Greening, was telling the truth to the nation. Indeed, truth is the foundation upon which any charter for budget responsibility is based. Let me be clear: when the Chancellor said on 13 November 2023 that she was “not going to fiddle the figures or make something to get different results”, the fiscal rules included in this charter demonstrate that she was not telling the truth. In this charter, the Chancellor has changed the rules on the measurement of debt from public sector net debt, or PSND, excluding the Bank of England, to public sector net financial liabilities, or PSNFL. This fiddling of the figures opened the taps for the Chancellor to borrow more, even while our debt to GDP ratio stands at historically high levels following the pandemic and the Ukraine war. The Guardian newspaper, which I am sure the Chief Secretary reads avidly, reported on 24 October 2024 that if my right hon. Friend the Member for Godalming and Ash (Jeremy Hunt), the former Conservative Chancellor, had acted similarly to the current Chancellor, his fiscal headroom would have ballooned from £9 billion to £49 billion, but he knew better than the current Chancellor. The Chancellor has even had to create her own name for things, just so that she can claim she is getting debt falling. She said in her Budget statement that she will call PSNFL “net financial debt, for short.” —[ Official Report , 30 October 2024; Vol. 755, c. 823.] The reality is that the proper measure of Government debt, as per the previous fiscal rules, is rising in every single year of the forecast. The OBR has confirmed that on the previous definition, which she had said she would keep to, the fiscal rules are being broken. At the last election, Labour said it would get debt falling, and the Government continue to claim that they are delivering that. They are doing nothing of the sort. Let us be very clear: debt is rising, and it is forecast to continue to rise. We will be spending nearly £50 billion more on debt interest over the next five years as a result of their first Budget alone. There are also concerns about the rolling three-year targets for the rule that the current Budget should be in surplus and the rule that debt—the Government’s dubious definition of debt—should be falling as a share of the economy. Like the water and fruit for Tantalus, the rules permit these reasonable targets to remain just out of reach every time—they are always there but never met. To extend my similes, the charter rules are to the Chancellor and the Chief Secretary as St Augustine regarded self-control: “Grant me chastity and self-control, but not yet.” The charter begins on shakier ground with a weaker Treasury team, but it remains an important part of our country’s fiscal framework. Under the rules of the House, the motion is not amendable, so we shall not oppose the measure. We do need fiscal rules, but we condemn the Government’s approach of fiddling the figures to add more borrowing. They promised that they would not, but, as so many times before, they have broken their promises once again.

• 29 Jan 2025 · Charter for Budget Responsibility · Hansard source

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  I am aware that the Chief Secretary to the Treasury is interested in a prolonged debate today—I am not sure whether that is because of the content of the debate, or for other reasons. I would say gently to him that writing rules is different from following rules, so he will be judged by this House on how he meets the rules that he has set. My purpose today is to cover some of those rules, and I will have some comments on them, but first, although we will be having a separate debate on the welfare cap, the Chief Secretary to the Treasury made some points about it. My hon. Friend the Member for Faversham and Mid Kent (Helen Whately) will respond formally on that issue, so these are just my thoughts, really. The welfare cap, of course, was introduced in 2014 by Conservative Chancellor George Osborne, who recognised the particular difficulties with forecasting and managing certain welfare budgets. At the 2014 Budget, he explained his rationale: “Britain should always be proud of having a welfare system that helps those most in need, but never again should we allow its costs to spiral out of control and its incentives to become so distorted that it pays not to work. In future, any Government who want to spend more on benefits will have to be honest with the public about the costs, will need the approval of Parliament, and will be held to account by this permanent cap on welfare.” —[ Official Report , 19 March 2014; Vol. 577, c. 785.] George Osborne’s initiative has shown its value over the past decade, and it is right that the new Government are following its intent in principle and, one hopes, also in practice. Our task today is to listen to the explanations for the breaching of the welfare cap for fiscal year 2024-25 and the rationale for the particular limits that the Chief Secretary’s Government will set on the welfare cap for future fiscal years through 2029-30. As the Chief Secretary said, in October, as part of the first Budget of the Parliament, the OBR provided its assessment of the status of welfare spending compared with the cap that was set in 2024. That assessment was an excess of £8.6 billion, which indicated a breach. With the country now spending over £156 billion on welfare every year and with the obvious pressures on public expenditure, there should be a determination to find savings in the welfare budget. Indeed, that was the intention of the Conservative party at the last election, with a commitment to reduce expenditure by £12 billion through better targeting of disability benefits, amending the levels of payments for those whose disabilities would not routinely be expected to lead to additional life expenses, overhauling the fit note process, and introducing tougher sanctions on those who shirk the opportunity to work and contribute to society. But the Labour Government today appear to be set on a different course, with a pathway for the welfare cap that is up, not down, growing from this year’s cap of £137 billion to reach £195 billion by 2029-30. That is a 42% increase in the welfare cap. It is important to note that at the same point in the last Parliament, when the Conservative party set the rules on the welfare cap, that increase was limited to 15%.

• 3 Dec 2024 · National Insurance Contributions (Secondary Class 1 Contributions) Bill · Hansard source

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  I will make a bit more progress and then give way to my right hon. Friend. If the Minister does not like the Resolution Foundation’s judgment on this tax, he should just listen to the Institute for Fiscal Studies, which said: “Simple economic theory suggests that the incidence of employer NICs and employee NICs should be the same, at least in the long run. It is likely that the long-run incidence of both employer and employee NICs is predominantly on employees”. The measures in the Bill represent by far the largest part of the tax grab in the October Budget. The Treasury Red Book assesses that these measures will raise £23.7 billion in the next financial year, rising to £25.7 billion, but the Minister knows that behavioural changes means that they will actually raise substantially less; the IFS estimates about £16 billion. I note that in the Red Book there were three opportunities for this jobs tax to be referred to as “Delivering on our Promises”. There is: “Delivering on our Promises—New Policy to Close the Tax Gap”, “Delivering on our Promises—Collecting Tax That is Due” and even the catch-all: “Delivering on our Promises—Other Manifesto Tax Commitments”, but the increase in national insurance contributions cannot be included in any of those, because Labour politicians hid their intentions from the British voters at the election.

• 3 Dec 2024 · National Insurance Contributions (Secondary Class 1 Contributions) Bill · Hansard source

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  To be fair, my former colleague did not last quite as long as the lettuce, and the public made their judgment clear on that and many other issues at the general election. The hon. Gentleman’s point is fair, but it is not particularly relevant to the decisions he will be asked to vote on today. Hospices in his constituency will know how he votes. GPs in his constituency will know how he votes. Charities in his constituency will know how he votes. I will be interested to see whether he votes with his conscience or with the party line. Less than one in four of the public now believe that the Government are handling the economy well. It is not just the public who have lost faith in the economic competence of His Majesty’s Treasury; it is the Prime Minister himself, who apparently on Thursday will ditch the ambition for the United Kingdom to be the fastest-growing economy in the G7, removing at a stroke one of the key planks of Labour’s economic plans. The Bill will add to that lack of faith in this Labour Government, because this measure to raise national insurance contributions directly contradicts Labour’s election promise not to increase taxes on working people. In the election campaign, the Prime Minister, the Chancellor and the entire Labour Treasury team, including the Minister, repeated the phrase from their manifesto, which stated: “Labour will not increase taxes on working people, which is why we will not increase National Insurance, the basic, higher, or additional rates of Income Tax, or VAT.” Yet today, with the election behind them, increasing taxes on working people is exactly what Labour is proposing to do. The shadow Minister is shaking his head.

• 20 Nov 2024 · Financial Assistance to Ukraine Bill · Hansard source

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  Before I turn to the Bill, I just say that the Chief Secretary, in an earlier debate, kindly welcomed me to my new role, and I would like to reciprocate that welcome today. He and I have worked together as members of the Business and Trade Committee, which he chaired and of which I believe you were also a member, Madam Deputy Speaker. We had a shared desire to use Parliament to hold to account fearlessly, factually and, when needed, ferociously those who hold authority and power over our constituents. He now finds himself in such a position of authority and power, and I will hold him to account fearlessly, factually and, when needed, ferociously. However, today is not a day for ferocity. We welcome this Bill. It is an important signal of the continuing commitment of the United Kingdom to the people of Ukraine, the defence of Europe and the achievement of peace through strength. We join the tributes to the people of Ukraine—the men and women who have had to leave behind their peaceful endeavours in order to stand shoulder to shoulder to defend their land and liberties. Today we are talking about financial contributions, but we should never forget that the greatest sacrifice is being made each and every day by members of the Ukraine military and civilians, upon whom Putin’s rockets rain down destruction each and every day. Under the strong leadership of former Prime Minister Boris Johnson, the United Kingdom led the world in defending Ukraine, and since 2022 we have pledged more than £12 billion in overall support. We were often the first mover on vital lethal aid, from Storm Shadow missiles to Challenger and main battle tanks. We imposed the largest and most severe set of sanctions that Russia had ever seen, to cripple Putin’s war machine. We sanctioned around 2,000 individuals, companies and groups, and this economic pressure restricts Russia’s ability to prosecute its illegal invasion. More broadly, we built up a formidable sanctions regime during our time in office and brought in a major new sanctions strategy to deter and disrupt malign behaviour, and it is pleasing that the current Government are continuing those efforts. On behalf of the United Kingdom, my right hon. Friend the Member for Richmond and Northallerton (Rishi Sunak) hosted the Ukraine recovery conference last year, raising over $60 billion for Ukraine’s recovery and reconstruction. This Bill takes a further step forward in our commitments to Ukraine, and does so alongside our allies. It fulfils the United Kingdom’s part of June’s G7 mandate—confirmed by G7 finance Ministers in Washington last month—to disburse for the benefit of Ukraine approximately $50 billion from the extraordinary revenue acceleration loan, or ERA, as the Chief Secretary termed it. The United Kingdom’s share is £2.26 billion, and this is earmarked as budgetary support for Ukraine’s military spending. I understand that it will be in addition to the UK’s existing annual commitment of £3 billion of military aid. Each loan will be in the form of a bilateral loan, but will be based on common principles to ensure consistency and co-ordination between each loan. We support the Bill and will support the Government if any other party seeks to divide this House, but I would be grateful if the Chief Secretary or the Minister could provide further clarification on several questions. The first is about disbursements to Ukraine under the extraordinary revenue acceleration loan. Point 5 in the annexe to the G7 statement says: “Loans will be fully disbursed to the benefit of Ukraine between 1 December 2024 and 31 December 2027.” The whole House will be aware of the current heightened levels of military activity and the urgent demands from Ukraine for assistance, including UK Storm Shadow missiles. What discussions has the Minister had with the Secretary of State for Defence about the timings and scale of distributions? Secondly, I want to ask about the asset base. Can the Minister update the House on the total value of Russian assets seized by the G7, and on the total assets seized by UK jurisdictions? The last estimates we had were in March 2023, when the total was £48 billion, of which £18 billion was seized by UK jurisdictions. As the extraordinary revenue acceleration loan refers only to sovereign assets, will the Minister tell us what consideration was given to the inclusion of income streams from other seized Russian assets, and why it was determined that they should not be included? Do the commitments made by each G7 country relate to the amount of Russian assets seized or held by a jurisdiction, or are they done on some other basis? If so, what is the basis for those allocations? Can the Minister give some indication of the allocation of seized sovereign assets by type? As they are sovereign assets, I assume that many will be in the form of cash holdings, but there may be properties and other assets. It would be helpful for the House to have some understanding of the allocation of these assets by type. Thirdly, I want to ask about the use of anticipated income streams from Russian assets to repay the loans. The Bill’s explanatory notes claim: “The extraordinary profits on the immobilised Russian sovereign assets will then be divided between the G7 lenders in proportion to their contributions. This will happen as the extraordinary profits accrue, on a 6-monthly basis…in three tranches”. I have three similar questions on this issue. Has there been any modelling of the future flows of anticipated income from seized Russian assets that will be used to repay the loans? Has the Treasury made an assessment of the expected period for their repayment? Can the Minister provide the House with a forecast or estimate for the anticipated revenues available for repayment in each of the tranches? Fourthly, I want to ask about contingencies. There are five participants in the loan agreement: the UK, the USA, Canada, Japan and the EU. Can the Minister advise whether the terms of the agreement will still stand if one or more of the participants do not ratify it? In the event of a peace settlement, subsequent to disbursements being made, point 12 of the annexe to the ERA loan initiative says that “the outstanding balances that cannot be covered by extraordinary profits shall be repaid by Ukraine to each lender.” Can the Minister advise whether that is the case? In such circumstances, what priority will the repayment of these loans have compared with other loans made to Ukraine? Finally, I want to ask about the Government’s overall defence expenditure. The Government’s Budget committed to setting out a pathway to increase defence spending to 2.5% of GDP at a future fiscal event. Since then, however, Labour Ministers have been unable to confirm whether it remains Labour’s ambition to meet that target by 2030. Can the Minister confirm whether it is still Labour policy to increase defence expenditure to 2.5% of GDP, when that might be reached and whether the commitments contained in this Bill will be included in such estimates? The principles underlying the Bill are sound. Our commitment to the defence of Ukraine is reinforced. Our prayers are with the people of Ukraine and the cause of peace and freedom. We support the Bill.

• 6 Nov 2024 · Budget Resolutions · Hansard source

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  I thank the 67 Back-Bench Members who have spoken in this debate, and I commiserate with the two Labour Members who did not get in. I am sure that they will have their opportunity in future. I congratulate the four Members who gave their maiden speech: the hon. Members for North Ayrshire and Arran (Irene Campbell), for Stoke-on-Trent North (David Williams), for Ely and East Cambridgeshire (Charlotte Cane) and for Sherwood Forest (Michelle Welsh). Many in this House will remember their maiden speech and will know how anxious those four Members were before they stood up to speak, and how relieved they were when they reached the end and could sit down. That feeling does not go away. We end this Budget debate where we began: with the deceit that the Labour party showed to the British public about its intention to launch one of the biggest tax grabs in our history. At the election, Labour Front Benchers toured the country, staging photo ops, snapping cheeky selfies and soliciting reassuring quotes from businesses, farmers and senior citizens, saying to each in turn that they could trust Labour and that a Labour Government would have their back. This Budget of broken promises shows that they have all been conned. My Conservative colleagues have laid bare, always clearly and frequently with strong feeling, the consequences of the political choices this Labour Government have made with this Budget. Colleagues have spoken on behalf of Britain’s farming families, on behalf of our country’s small businesses, on behalf of parents with children in education, on behalf of GP surgeries and hospices, and, above all, on behalf of the working people they represent, who have been targeted by this Budget. This is a Budget of choices, and the choices are Labour’s, and theirs alone—their choice to increase taxes, their choice to increase debt, their choice to change the fiscal rules, and their choice to rip up election promise after election promise. Just as the Labour Government have made their choices, today we must start to make our own choices. Our choices are to help the small business owner, to help the aspiring entrepreneur, to help those thinking of using their talents to help build Britain, to help the farmers whose parents and grandparents have toiled in our fields, to help the children who will be turfed out of their schools in the middle of the year—some having no school place to go to—and to protect the workers of Britain who believed what Labour said at the election and who now know they were conned. That is why we will vote against Budget resolutions this evening. Two groups of people have been clobbered drastically by this Budget, groups who are the cornerstone of our economy. As we have heard throughout these debates, the Labour Government’s decision to increase employers’ national insurance contributions is not only a manifesto breach but a barrier to growth. Sadly, this Labour Government do not understand that there will never be a sustainable public sector without a thriving private sector. The private sector in this country is a delicate fabric of small and medium-sized businesses. Many have been just scraping by for years, but each is spurred on by the endeavour that is the spirit of free enterprise. Running a small business—Labour Members may want to take a note—is not easy. Our constituents run some 5.4 million small and medium-sized enterprises across the UK, so when the Minister responds, will she explain to those people, in my constituency and across the country, what they are to do in the face of Labour’s jobs tax—the massive increase in employer national insurance contributions? The Office for Budget Responsibility said that the jobs tax would be passed on by “most” firms to their employees through reduced wages; the Resolution Foundation said it will have the biggest proportional impact on low-paid workers; and the Federation of Small Businesses said it will cause “many SMEs” to “struggle”. That is the truth, and a far cry from the warm words the Labour Chancellor offered businesses during the election campaign. When the Prime Minister, in February this year, looked farmers in the eye and said that they “deserved better”, was he already hatching Labour’s family farm tax? The NFU has said: “The shameless breaking of those promises on Agricultural Property Relief will snatch away much of the next generation’s ability to carry on producing British food”. The truth is that the Labour Party does not understand even the basics of farming. Reducing the relief and imposing inheritance tax on farmland will devastate family farms and pose a serious risk to domestic food security and food prices. Throughout the debate, Labour MPs have sneeringly referred to those farmers as “millionaires”, but many family farmers are not rich. They eke out a modest and— [ Interruption. ] Labour Members should have been here for the debate. Many family farms eke out a modest and highly uncertain income, year after year. That is why we ask taxpayers each year to subsidise British farmers so they can continue growing food for Britain. The family farm tax is not just taxing farmers; it is taxing Britain’s farmland, the very land we need to grow the food we eat. This Budget of broken promises sends a series of clear messages: don’t start your own business, because Labour will tax you; don’t have a plan to hire new employees because Labour will tax you; don’t take a risk and expect to keep a reward, because Labour will tax you; don’t invest in the education of your children, because Labour will tax you; and don’t, whatever you do, farm your land to grow British food, because Labour will grind you into that very same ground, and tax you too. Finally, I say to the Minister that the trust that has been broken in this Budget will not be recovered. People will never forget what happens when Labour is given its chance. They will never forget the harm done when Labour makes its choices, and they will never forget that Labour’s first Budget was a Budget of broken promises.

• 8 Oct 2024 · Independent Schools: VAT and Business Rates Exemptions · Hansard source

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  My hon. Friend is speaking eloquently about the impact on children’s education, on children with special educational needs and on children being ripped out of their schools, perhaps in the year of their GCSEs or A-levels. This is obviously a debate about education. There are Members of Parliament in the Chamber from the Conservative party and the Liberal Democrats, as well as independent MPs and Members from Reform—