I opened the Opposition Day Debate in the House of Commons, where I set out my deep concerns about the economic damage being caused by Labour’s recent Budgets and employment policies.
Last year’s Budget – with tax rises on jobs, higher business rates and costly pay settlements – led to more than 180,000 job losses because it increased the cost of employing people. Most people understand that when the price of something goes up, demand goes down. Labour increased the cost of jobs, and unemployment rose.
Despite this, and fully aware that unemployment is increasing, the Chancellor came back this year with even more tax rises and further costs on employers. Through the new Unemployment Bill, more regulation, and additional taxes such as the proposed tourism tax, the Government is making it harder for businesses to survive and for people to find work.
On top of that, Labour have imposed a £26 billion tax rise on working people, breaking their manifesto pledges. Freezing the tax-free allowance means every income tax payer will now pay more. Working people are being made to pay for Labour’s inability to get a grip on the welfare bill or stand up to pressure from their own MPs.
The result is a Budget that disincentivises work, damages business confidence, and places more pressure on families who are already feeling the strain.
