Conservatives accuse Labour of 'taking lessons from the worst bits of our record' with Budget
The Conservatives have accused the government of “taking lessons from the worst bits of our record” as Rachel Reeves prepares to give her first Budget today.
The Chancellor is expected to increase capital gains tax, employer national insurance contributions, while pledging billions of pounds to the NHS.
Laura Trott, Shadow Chief Secretary to the Treasury, said had been recreating the “greatest hits of government mistakes” in the party’s first 100 days in power by releasing Budget details early.
The attack came after Commons Speaker Sir Lindsay Hoyle expressed further frustration over the Government’s handling of the Budget, ahead of the official announcement today.
Ms Reeves, during a round of broadcast interviews while attending the International Monetary Fund meeting in Washington DC last week, signalled she would rewrite the way Government debt is measured.
It is hoped that this will lead to more funding for big infratructure projects, particularly across Yorkshire and the North.
The Ministerial Code states that the most important announcements of Government policy should be made in the first instance in Parliament when it is in session
The Prime Minister’s official spokesman responded to the Speaker’s criticism by saying it is “entirely routine” for the Government to make announcements in the run-up to Budgets and spending reviews.
Ms Trott told the Commons: “The response from Number 10 yesterday seemed to be that their whole argument is ‘Well, we did it because you guys did it’.
“But I’m old enough to remember a fresh-faced Prime Minister coming into Downing Street promising change. Justifying their actions based on things that we’ve done doesn’t really seem like the change that we were promised, now does it?
“We’re learning the lessons of why we lost the election but this Government seems to be taking lessons from the worst bits of our record, and not just ours but the last Labour government too. It’s like the greatest hits of government mistakes being replayed in just 100 days.”
Ms Trott went on to accuse the new Government of “cronyism” and a “gross betrayal” of pensioners following the cuts to winter fuel payments.
Ahead of the Budget, Tory MPs handed a petition into the Treasury yesterday calling on the Government to “think again” about means testing the benefit.
Shadow Work and Pensions Secretary Mel Stride explained that “many” pensioners are going to “really, really struggle”.
He said: “This Government chose to give well above inflationary pay rises to trade union paymasters when it came to wage settlements and chose to take this money away from some of the most vulnerable people in the country. We don’t believe that’s right.”
Ms Reeves has said she will have to increase some taxes in the Budget to pay for the apparent £22 billion black hole in public finances left by the Conservatives.
The Leeds West and Pudsey MP announced in July that the winter fuel payment would become means-tested, a change in policy that was expected to reduce the number of pensioners in receipt of the benefit by 10 million.
Mr Stride said: “This £22 billion black hole is simply a smoke screen to try and disguise the fact that – whereas in the general election the Government said we shouldn’t expect lots of tax increases – now the general election is over, they knew all along that with their spending plans they were going to have to raise taxes quite dramatically.”
Bridlington and the Wolds MP Charlie Dewhirst said: “Small businesses across our region will be extremely fearful about what this Budget means for them.
“Increases to employer’s national insurance contributions and inflation-busting rises in the minimum wage will make businesses less profitable and less likely to expand and hire more people.
“There is a very real danger that this will sink some businesses and start to reverse the record levels of employment achieved by the previous Conservative Government.”
Keighley and Ilkley MP Robbie Moore said he had been “inundated by correspondence from small business owners” with their concerns.
He added: “The Labour government seems to be so out of touch with what the small business community wants to see”.
A Labour spokesperson said: “The Conservatives left Britain facing the worst economic inheritance since the Second World War because they refused to make the tough decisions and spent money that didn’t exist.
“The Chancellor has been clear that difficult decisions lie ahead to repair the colossal damage left by the Conservatives and address the £22 billion hole in the public finances. Decisions on how to do that will be taken at the Budget in the round.”