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I am devastated to hear the hon. Gentleman’s description of what happened to his constituents, and I will ensure that he gets a meeting with a Minister.
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I am devastated to hear the hon. Gentleman’s description of what happened to his constituents, and I will ensure that he gets a meeting with a Minister.
This is a Budget with immediate action today and clear direction for the future. If we want to build a Britain where all people can live a good life and live it well, where everyone has control to shape their own lives for themselves, and where no one’s future is limited by where they are from, because the only ceiling is their own ambition, what we need is good growth in every postcode. However, we also know that people need a bit of breathing space right now, which is why we have announced targeted support for households this winter, and action to bring down the cost of essentials. We are a Government with a clear theory of growth: retake control, and devolve power to places. We are fundamentally shifting where and how decisions are made by transferring powers, resources and functions to mayors, strategic authorities and local authorities across England, and we are working with the devolved Administrations of Scotland, Wales and Northern Ireland. That shift means that local leaders with skin in the game can target spending towards the biggest issues in their communities: new housing projects, infrastructure that cuts workers’ commutes, and investment in our town centres. The fiscal devolution road map published alongside the Budget sets out a new funding model so that local leaders can rise to this challenge: by the end of the decade, local and regional government will retain 100% of the business rates income. It sets out plans for mayoral strategic authorities to receive a share of local income tax revenues from 2028, and details how the overnight visitor levy will work, as well as our plans to explore further fiscal devolution.
I know the hon. Gentleman has a private Member’s Bill on this issue, but the Budget provides an extra £1.5 billion for social housing, which I welcome. That takes the overall amount up to £40 billion in the next 10 years. We should welcome that investment. At the Budget, we also announced £285 million of good growth funding, including incubator funding for areas that are yet to have a mayor, and plans for a £1.5 billion borrowing facility for mayors from 2028. This will give them access to the capital needed to back their local priorities and deliver growth in every postcode. We have also confirmed a £150 million uplift to mayoral capacity funding in 2027-28, to give them the resources they need as their range of powers grow. To support mayors, we are publishing guidance on place-based business cases. This represents a new approach to appraisal that puts local objectives and potential at the heart of decision making. We recognise that too much of England is not covered by strategic authorities, so we remain committed to filling the gap. This is why I was delighted that we announced at the Budget that we are in the final stages of agreeing devolution deals in Devon, Plymouth and Torbay; Hertfordshire; Lancashire; Leicester, Leicestershire and Rutland; Stoke and Staffordshire; Surrey; Thames Valley; Kent and Medway; Wessex; and Cornwall. These areas will join Cheshire and Warrington; Cumbria; Sussex and Brighton; Hampshire and the Solent; Greater Essex; and Norfolk and Suffolk at the forefront of the Government’s ambitious programme to expand devolution. Together, these agreements will mean that over 90% of England’s population is covered by a devolution agreement, with mayoral devolution reaching every part of the north. We will continue working with all remaining areas, including Bedfordshire, Luton and Milton Keynes, where there is broad agreement but not yet local consensus.
I did just say that we are working with all remaining areas. We will continue to do so where we can find local consensus, because we are the party of devolution and believe in working with local leaders. Later this year, we will publish our full plan for rewiring the state, which will outline a vision for devolution in England. The changes that we have announced are about devolution, not delegation. Where powers and functions are transferred, they will not be duplicated at the centre. This means that, over time, central Government will become smaller but more strategic.
Again, we are working with local areas to make sure that we progress as quickly as possible. We are happy to engage with local leaders as part of that programme.<span id="617" class="column-number" data-column-number="617"></span> As we move towards a local government finance settlement, we will continue working with local leaders to plan and invest for the long term. I am clear that local government is the foundation of the public services on which neighbourhoods and communities rely, which are essential to our wider ambition to rewire the state.
Our plans are about making sure that mayors work with local authorities. In fact, in my area in Greater Manchester, we have seen the combined authority have really good pulling power, with our economy doing better than other areas, so we want to see that across the whole nation. That is why the Cabinet statement on rewiring the state committed to the financial sustainability of local authorities, and this Budget is the next step towards that. The upcoming local government finance policy statement will set out our next steps alongside the rewiring the state delivery plan. Good growth is growth that we can see and feel. We need to draw a line under a decade of drift during which the public realm was seen as sideshow to politics—<em>[</em><em>Interruption.</em><em>]</em> The hon. Member for Hinckley and Bosworth (Dr Evans) should know about sideshows. Our high streets are where we catch up with friends for a coffee, and those businesses provide solid jobs at the heart of our communities. Those small moments of joy give us real hope, and that is why our strategy is giving hope back to the high streets. New powers, new funding and changes to the business rates system will provide much-needed relief for thousands of cafés, pubs and high street shops. We are freezing all retail, hospitality and leisure bills in real terms to protect them from above inflation increases for the next two years, and we are lifting the small business rate relief threshold for qualifying properties.
My hon. Friend is absolutely right. We are removing business rate relief for vape shops and adult gaming centres, and giving local authorities stronger tools to tackle business rates avoidance. At the Budget, we announced an extra 20% business rate cut for pubs and all but the largest live music venues. We will also introducing a general anti-avoidance rule for business rates at the earliest opportunity, and expanding what legal costs local authorities can claim when they are unsuccessful.
We have been taking forward a number of measures, such as the overnight visitor levy, and working with businesses. As devolution pushes down into local communities, I hope there will be a role for the public realm as well as for businesses and innovators and for those in the community and voluntary sector who do so much as volunteers in our local community. More broadly, we are also moving Government buildings on to high streets and improving design standards, with a whole-of-Government plan to show the public that the best days of our high streets are yet to come.
Noted, Madam Deputy Speaker. I really applaud what Gravesham is doing, especially for its young people. The strategy is backed by £125 million to transform derelict buildings in our high streets, £65 million for community ownership funding and £10 million to deliver high street rental auctions. Alongside this, we are cracking down on illegitimate and illegal businesses, giving councils powers to limit vape shops and adult gaming centres, and reforming licensing. The state of our town and city centres says so much about us, who we are as a country and whether we are on the right path. Getting our high streets back on track is a crucial step to giving Britain hope again. But this strategy is just one part of our plan to make people proud of their local area. Alongside it, we have confirmed plans for a new No. 10 North priority projects programme. This will unlock homes, jobs, investment and long-term economic growth, with No. 10 North working directly with new strategic authorities. The Budget will also accelerate the delivery of priority projects in West Yorkshire, the West of England and South Yorkshire. These include investment to expand the Leeds College of Building to accommodate over 2,000 new learners, crowding in around £350 million of private investment into Bristol Temple Quarter, and match-funding incubator space in the Don Valley Corridor. We will continue to support growth in London, as one of the world’s most important cities, working with the Mayor of London to bring forward improvements to the transport network and towards a global city <span id="619" class="column-number" data-column-number="619"></span>productivity plan. More widely, we have also confirmed that all 20 strategic authorities will be eligible for funding in the new co-operative development programme. This £10 billion programme is the biggest Government-backed boost to co-operatives for decades and shows how we are meeting our commitment to our sister party to double the size of the co-operative economy.<span id="vol792_col6WC" class="cross-reference" data-house-id="1" data-column-number="6WC" data-volume-number="792">[<em>Official Report</em>, 3 November 2026; Vol. 792, c. 6WC.] (Correction)</span> In the years ahead, we will continue to deliver the £5.8 billion Pride in Place programme, putting local residents in charge of change across almost 300 neighbourhoods. This month, we will see the next major milestone of the programme as we reach the deadline for phase 2 neighbourhoods to submit their 10-year plan. We will continue to work with the devolved Administrations in Scotland, Wales and Northern Ireland, confirming at the Budget the investment in the Edinburgh-Glasgow central belt, funding for the expansion of the M-SParc science park in Anglesey and of Cardiff Parkway station, and the £7.5 million of investment to grow AI and cyber industries in Belfast. Our plans for good growth will shape the future of this country, but we also know that people need breathing space right now. Alongside radical reforms to reduce bills in the future, we have also announced a series of measures to tackle the cost of living and help make everyday life easier. We know that rising energy costs are going to be tough for a lot of households this winter. That is why we are removing VAT and standing charges from bills, freezing fuel duty and providing £100 per household for energy payments in council tax bands A to D in England. The measures are supporting up to 80% of households in England, and local authorities will get a discretionary fund of £100 million to provide further support to households most in need. On top of that, we have taken action to make groceries cheaper by cutting import duties; increased the living wage and the minimum wage; extended parental leave; and ended the carer’s allowance cliff edge. We brought in higher tax-free mileage rates and boosted support for nurses, and we are making sure that pensioners in receipt of the full state pension will not have to pay tax. Britain is a kind, caring nation where people take pride in looking out for each other. In 2026, in the world’s fifth-richest economy, everyone should have a roof over their head. That is why we will make sure that by Christmas this year everyone sleeping rough will be offered a route off the streets. Earlier this year, I announced £442 million for a new rough sleeping programme to meet that milestone. Support off the streets should not just be for Christmas, though, so we are almost doubling that figure with £432 million to keep that offer going for the next two years. That means continuing to help people off the streets, while preventing people from returning and giving them the support that they need. That is why we will make sure there is wraparound support for those people as well. The Budget makes progress towards our commitment to deliver the biggest boost in council house building since the post-war period. We have announced that we will extend the preferential borrowing rate for councils on top of the £1.5 billion that I mentioned earlier. Our message to local leaders is, “Get ambitious, and we will back you all the way.” The Ministry of Housing, Communities and Local Government’s planned AI tool, Assist, will be available to all councils in England by the end of 2027. We also <span id="620" class="column-number" data-column-number="620"></span>announced the Your First Home scheme to help around 70,000 first-time buyers to get on the ladder. Good growth in every postcode is not just about fairness; it is the simple point that Britain is at its best when every area of the country can play its part. I am proud of this Government’s action, I am proud of our history, and I am proud of this Budget. I commend this statement to the House.
<Question HRSContentId="{1AE5607F-BEAB-482A-A1B4-E6E4139FDBBC}">13. <QuestionText HRSContentId="{EEEF7F35-7FDC-4250-B9F2-FF5D66D4BAC8}">What steps she is taking to support first time house buyers. </QuestionText></Question>
House prices in Mid Cheshire are nearly £20,000 higher than the regional average and have continued to rise over the last year. The Your First Home scheme will be a big help for my constituents, but it is also important that we increase the number of affordable homes being built. The National Housing Federation estimated that we could have delivered an additional 41,000 homes outside of London in the latest round of the social and affordable homes programme. What steps is the Minister taking to increase the funding available in the early years of the social and affordable homes programme?
I welcome my right hon. Friend’s statement and her distinction between illegal migrants and those who came legally to work and contribute. We must confront the mess left by the Conservatives, whose failure to manage our immigration system is nothing short of a national scandal. Settlement should be earned through contribution, and in Portsmouth, I have seen that at first hand from our care workers, who look after our most vulnerable. Will the Home Secretary reassure those who have already contributed so much that their contributions will be recognised, and that those who have not contributed and have tried to play the system will need to contribute to remain?
We live in an ever-changing world where global issues impact on our everyday lives, so I am pleased that this Budget is about making a difference to working people and families in Portsmouth North, with little changes that make a big difference. People in my city are worried about the cost of energy. This Budget responds by extending the removal of VAT on electricity until 27 July, removing gas standing charges and putting £100 directly into the bank accounts of 40,000 households across Portsmouth North. That sits alongside the new British industrial competitive scheme for businesses. However, energy is not the only cost putting pressure on families. For many people in Portsmouth North, getting to work or school means getting in the car, and the cost of filling up hits hard. Extending the 5p fuel duty cut and keeping fuel duty frozen helps motorists and businesses to manage these costs every day. Cost of living measures are also about allowing people to keep enjoying life and coming together, so I am pleased to see that changes in this Budget will mean that half of the retail, leisure and hospitality businesses in our region will no longer pay business rates at all. We must invest in our future. The Your First Home scheme means lower deposits and more opportunities for young people, and I look forward to seeing more details. We must also keep our country safe. In Portsmouth—our naval city—defence means more than national security; it means jobs, skills and opportunities for local people. The Government are spending £14 billion more on defence than the previous Government did, and the £3.9 billion for the naval dockyard is brilliant. That, alongside the investment from previous Governments, is great. One announcement is especially close to my heart: paternity pay for the self-employed. For too long, self-employed men have faced an impossible choice between spending those precious first few days with their newborns <span id="658" class="column-number" data-column-number="658"></span>and returning to work because their bills will not wait. Labour introduced paternity leave, but self-employed dads and non-birthing partners were left behind. This Budget takes an important step: for the first time, they will be able to receive paternity pay—that is a point of principle. For a builder, a plumber, a taxi driver, a shopkeeper or a farmer, this means real support at the most important moment of their life. Up to £194 a week for two weeks might not be enough, and the Minister will not be surprised to hear that I want to see longer leave and more generous pay, but for someone who currently gets nothing, this change means real help with their bills, less financial pressure and, more importantly, more time with their new-born child. Being there for your child should not be a luxury that is reserved to those who can afford it. I want to quickly thank the incredible campaigners who have helped deliver this change, including all at the Dad Shift, On The Tools and Movember. Most importantly, I thank the hard-working tradespeople across the country who have made their voice heard and trusted me to bring their voice to this place. This victory is theirs, and they should be so very proud, just as I am so very proud of them. How can we ask young men to take up apprenticeships in our trades if we do not protect their future and their families? This is personal for me: my dad was a tradie, my brother is a tradie, and so was my grandad. I am incredibly proud of all of them, and I want something different for my own sons.
Thank you, Madam Deputy Speaker, for giving us breathing space with a little bit more time. It is a pleasure to respond to this Budget by talking about growth in every postcode. North West Leicestershire is a former mining area, so I welcome the progress made on the miners’ pension. I welcome the confirmation that surplus sharing and the standstill will be abolished to protect bonus pensions, helping members to benefit from the success of their pensions. No Government have ever done more on pensions for former mineworkers than this one, but as the Chancellor said himself, the job is not finished. It is clear that more work is needed to resolve the substantial undistributed guarantor fund surplus currently held within the mineworkers’ pension scheme. The miners <span id="675" class="column-number" data-column-number="675"></span>who powered our country and our homes and who supported us deserve our support now, and I want to reassure my constituents that I will do just that. North West Leicestershire is home to one of the three sites in the only inland freeport in the UK. The site in Leicestershire has created considerable concern, which I share, particularly for Diseworth—an 825-year-old village with heritage status. While the new data centre covenant is helpful, I worry that it will apply only to AI and not to the creation of new mega-sheds more broadly, which impacts communities such as mine. The other two sites in the freeport are covered by the Mayor of the East Midlands, so I welcome the Chancellor’s announcement on devolution and the settlement for Leicester, Leicestershire and Rutland—something I have long called for. I look forward to continuing the discussions on how devolution will deliver greater benefits and strategic powers to ensure that the freeport site for Leicestershire has a mayor fighting its corner. The powers offered to mayors on transport could be transformational for Leicestershire. Transport connectivity is a significant barrier to growth locally. My constituent Eli spoke to me recently about the impact that poor public transport has on their access to further education. They said: “I wake up before six in the morning to catch a 7 am bus to college, which is always packed, standing room only due to there being too many students for the capacity of the public bus services. Even if I do everything right, the buses are unreliable—either being late or completely absent—which is treated as my responsibility by my college”. A lot is said about demand in rural areas. In fact, Arriva increased its patronage by 30% for one of my local routes because it started one bus stop earlier, connecting the route to another village and allowing more kids to get to college. Just think about what we could achieve if we want to grow even more. North West Leicestershire still has no passenger rail service anywhere in the constituency, making it home to the two largest towns in the country without any access to rail, which restricts growth and investment. If we want growth in every postcode, transport has to be a priority. North West Leicestershire has so much potential, including in our SME sector. I know that this will surprise you, Madam Deputy Speaker, but nearly 30 years ago I wrote my dissertation on small business support, so I know how much we limit our growth if we fail to invest in small businesses. I have always advocated for dedicated business support, just like we saw in the universal offer we had from Business Link. We now have a patchwork that is devolution dependent—another reason why devolution for Leicestershire is so vital.
I thank my hon. Friend for making that incredibly important point. The Mayor of the East Midlands does not cover the whole of the east midlands, and I think that gives us the opportunity to continue to talk.<span id="676" class="column-number" data-column-number="676"></span> Because I now have a bit of time left, I note that the Chancellor confirmed that land sold to social housing providers will now be VAT free. After two decades working in the social housing sector, I cannot express the difference that that will make to social homes and growth in our communities. House building is also a massive builder of growth; it helps brick manufacturers in my constituency, and it helps builders and local tradespeople to grow. We should not underestimate that important step forward.
There was a certain irony in the shadow Home Secretary lecturing the House on who should be defined as highly skilled. He was certainly highly skilled at opening asylum hotels, including the one in my constituency. Can the Home Secretary confirm that the proposals she has made today, along with the other work she is doing in the Department, will mean that that hotel is closed by the end of this Parliament?
I start by thanking the Chancellor for presenting us with the Budget, and the Secretary of State for Housing, Communities and <span id="649" class="column-number" data-column-number="649"></span>Local Government for introducing today’s debate on growth in every postcode. When the Prime Minister began his tour of the country in August, he started in Ilkeston. There, he, the Secretary of State and I listened to people talk about the loss that they feel, having watched our town centre decline over decades. Whether I am in Ilkeston or Long Eaton, people in my constituency share that sense of loss. They remember how our town centres used to be. They had vibrant high streets and markets and great pubs. They were bustling centres of commerce and the beating heart of our community, all at the same time. The Chancellor is absolutely right to help level the playing field by recognising the fundamental shifts in our economy, and helping out struggling small local businesses while asking thriving online giants to finally pay their fair share. Following the Chancellor’s announcement, almost 400 Erewash businesses will no longer need to pay a penny in business rates. That is money that they can now spend on creating jobs, pass back to their customers, reinvest, or keep hold of to reacquire some breathing space. More than 80 additional shops in my constituency no longer pay any business rates at all, and I know that the Chancellor will be very glad to hear that 10 great pubs have been given full business rates relief, including the fantastic Dewdrop in Ilkeston, and the Mill and Brook in Long Eaton.
I will not, because so many people want to speak tonight. If the Chancellor is looking for somewhere to celebrate his first Budget, I invite him to Erewash to try out the newly done-up function room at the Mill and Brook, or perhaps enjoy one of the Dewdrop’s famous cheese and onion cobs. I turn to the measures that my right hon. Friend the Chancellor has introduced for families. I was heartened to hear him present such an extensive raft of measures to help pull back the cost of living for so many people across Erewash and the country. Alongside the removal of VAT from electricity costs and scrapping standing charges on gas, there is the direct £100 payment this winter. It is an enormous step that pulls down energy bills for more than 40,000 families, from Sawley to Sandiacre and Shipley View. I also thank the Chancellor for his continued investment in Rolls-Royce. Royce’s is a huge employer in my constituency, and it is a great point of pride for us in Derbyshire that the most groundbreaking innovation in the world happens on our doorstep. The Chancellor has recognised how much Rolls-Royce and my constituents have to offer our country. That is what a Labour Budget is all about—rooting our economy in society and making them both fairer, and supporting working families, pensioners, carers and small businesses. It is great to have a Chancellor and a Government who listen to people, who will allow our communities to hope again, and who will put our communities back at the heart of our economy.
I was hoping when I turned up today that I would hear the Home Secretary say that she was abandoning all the proposals around ILR. While it is positive that she has responded to the cross-party campaign on social care workers, she still has a long way to go to address the unfairness at the heart of these proposals. The un-British retrospectivity is still in place, and those who thought they had a contract with the UK will still be let down. When is she going to be positive about immigration, including its economic benefits and the value that it brings to our communities?
Scottish voters were promised change, but instead this Budget delivers a real-terms cut of £650 million to Scotland’s block budget. It treats Scotland as an afterthought, syphons off our energy wealth and fails to protect hard-working families facing a bitter cost of living crisis this winter. Rather than delivering economic growth or protecting the vulnerable, this is a Budget of broken promises. Turning first to the cost of living crisis, during the election campaign Labour explicitly promised to cut household energy bills by £300, yet under its watch, energy bills are forecast to surge by 27% this coming January, taking average annual bills to £2,192, before climbing further to £2,389 by April. Scottish families will face energy bills a whopping £1,275 higher than Labour promised.<span id="645" class="column-number" data-column-number="645"></span> Even worse, the Chancellor’s decision to replace standing charges with higher gas unit prices creates a deeply unfair geographical penalty. Recent YouGov polling shows that 84% of people in Scotland already had to turn their heating on this year, compared to 59% in London, and independent analysis from the Scottish Parliament confirms that over 800,000 Scottish households face higher gas bills under these changes. Scots are effectively being forced to pay higher bills to subsidise warmer homes in the south of England. This Budget ignores the 142,000 Scottish households who rely on heating oil, leaving them exposed to soaring fuel costs with negligible support. At the pumps, drivers face a similar squeeze. Since July, diesel has rocketed by 34p per litre to over £2 a litre in many locations, leaving diesel drivers £130 worse off each year. Regrettably, the Prime Minister and Chancellor are frankly asleep at the wheel. Nowhere is Westminster’s contempt for Scotland’s economic future clearer than in the decision to axe grant funding for the Acorn carbon capture project in Peterhead. Despite explicit promises that capital was secured, the Government have removed Acorn grant funding. Out of the £200 million promised by Ministers, a mere £12 million in grant funding was delivered, with the rest now being converted to a loan or—possibly, maybe—equity proposals. This continues a 20-year history of Westminster betrayals, from Gordon Brown to the Tories, and Acorn being snubbed, with carbon capture projects being left on the scrap heap all over the place. The decision deals a direct blow to a just transition. In its Budget documents, the Treasury has banked £5.1 billion in revenue from Scottish oil and gasfields. Over decades, more than £400 billion in oil and gas revenue flowed from Scotland’s waters into Westminster’s hands, with the Chancellor admitting that a Scottish sovereign wealth fund would today be worth £1 trillion, had that wealth been properly invested, as Norway chose to do. Every single penny generated from Scotland’s natural resources should be reinvested in Scotland to secure a genuinely just transition to a renewables future.
The Prime Minister has made it clear that Labour councils should end their power-sharing agreements with local Green parties, following the disgracefully antisemitic motion passed by the national Green party that Zionism is racism. However, the Labour leader of Havant borough council has refused to condemn her Green party coalition partners for supporting that motion and has refused to withdraw from the coalition. Does the Minister agree that that is a breach of the Nolan principles, and will he clarify who is right: the Prime Minister, or the Labour leader of Havant borough council?
In August last year the Government admitted that they had no idea how many people who came in on care worker visas were still working in the care sector. How can the Home Secretary make an informed decision on their earned settlement when she has no idea whether they are still here doing the jobs they came in to do?
Summer was a difficult time for Nottinghamshire fire service; it battled with wildfires and a lot of heat-related incidents. The firemen and women had to wear protective equipment and clothing in which it was simply unbearable to work in that type of heat. I know that the Secretary of State has made some funding available for this, but will she work to ensure that by next summer, if we have the same hot weather and wildfires, brave firemen and women will have the clothing and protective equipment that they need to work in those conditions?
I respect the Home Secretary, but these are not the reforms that she wanted. When she said that the Boris wave was destabilising and unprecedented, and that it would cause incalculable damage, she was absolutely right. The Boris wave was the worst public policy failure of the 21st century, and now she risks locking it in for generations to come. When the last Conservative Prime Minister—my Prime Minister—ignored my advice on immigration, I resigned. Her Prime Minister has ignored her advice on immigration, and the damage is going to be disastrous for this country. Why has she not considered her position?
Kinver Business Solutions has secured more than £1 million in project management fees from Ashfield district council. It now turns out that one of the project managers is actually the son of the chief executive of Ashfield district council. <span id="560" class="column-number" data-column-number="560"></span>I thank the Department for arranging an appointment this week, but does the Minister agree that it is time to send the commissioners in to Ashfield district council? There is not a minute to spare.
Swindon and Wiltshire councils are building a lot of new housing, which is excellent, but the Government have now abolished an essential safeguard for communities against inappropriate planning, which is the power of councillors to call in applications. What steps are the Government taking to review that particular measure, and will they reconsider if it turns out that it is not working?
Following this summer’s wildfires, we saw that the devolution of fire policy was no barrier to mutual aid co-operation between the UK Government and the Welsh Government. Can the Minister tell me how any additional air firefighting capability will be allocated fairly across the nations of the United Kingdom?
The list of public sector jobs eligible to apply for the five-year settlement route does not appear to include prison officers. What assessment has the Home Secretary made of the effect that these changes will have on the crisis-hit Prison Service?
I welcome the Government’s recognition that economic growth cannot be driven solely from Whitehall and that local leaders and communities must have a greater say in shaping their future. The Liberal Democrats have long argued that decisions should be taken as close as possible to the people they affect. We support genuine devolution, greater fiscal autonomy for local government and the empowerment of communities to shape their own future. The real question before us today, however, is whether this Budget will actually deliver the Government’s ambition of good growth in every postcode.
My hon. Friend is absolutely right. We need that support to ensure that people can get from where they live in rural constituencies to other areas for work and education. Growth is measured not by the number of new governance structures we create, but by whether people can find an affordable home, access GP appointments, travel to work, start a business and build a secure future in the place that they call home. For the Liberal Democrats, this Budget must meet three tests: democratic consent, sustainable local government finances and tangible improvements in everyday lives. The first test is democratic consent. Devolution should bring power closer to communities. We should be careful not to mistake devolution for decentralisation. Power removed <span id="626" class="column-number" data-column-number="626"></span>from Whitehall but concentrated in a single regional office, such as a mayor, is not necessarily power shared with local communities. In Surrey, the home of my Guildford constituency, that distinction is becoming increasingly apparent. The Budget confirmed that the Government are in the final stages of agreeing arrangements for a mayoral strategic authority in Surrey, despite Ministers previously assuring the House that no area would be forced into a mayoral model. What has changed? There has been no vote of the councils that will have to operate within this structure, and residents have not been given an opportunity to express a view on what model they want. In fact, the bulk of the discussions appear to have been had with Surrey county council—a council that will be defunct in just six months—rather than the new east and west unitaries. How can the Government claim to be bringing power closer to communities when those same communities have had so little say? Of course, a mayor is democratically elected, but representing an entire county or region is very different to representing a specific town, village or ward. Local councillors understand the character, challenges and priorities of the communities they serve; they are often the first people residents turn to when problems arise. I ask the Minister what meaningful influence locally elected leaders will retain and how the voices of villages and rural communities will be protected under the new arrangements. Devolution should not be forced on communities; it should happen with them. My second test is whether the Budget delivers sustainable local government finances. The Budget contains announcements on strategic authorities, borrowing powers, business rates retention and new fiscal freedoms. Some of those measures may prove beneficial, but we must not confuse devolution with funding reform. Local government’s central challenge is not governance but financial sustainability. While Ministers talk enthusiastically about new structures and powers, councils across England face profound financial pressure. The Local Government Association has warned of a billion-pound funding gap over the coming years. Against that backdrop, many councils are struggling simply to maintain core services. To return to my area of Surrey, the six councils coming together to form West Surrey will inherit £4.5 billion of debt while simultaneously facing rising demand for adult social care, children’s services and support for children with special educational needs and disabilities. My concern is about how implementing measures without funding reform solves any of those problems. How does the new governance structure address historical debt? How does it ease pressure on social care budgets? How does it help councils meet rising demand for frontline services? The Budget includes a £1.5 billion borrowing facility for the strategic authorities. While borrowing may help investment, it is no substitute for financial stability. We must learn lessons from councils such as Woking, where serious financial failures—failures caused by previous Conservative administrations—have left residents paying the price. Nowhere is the gap between structural reform and real-life outcomes clearer than in special educational needs.
I think we need to recognise that we are looking forward. Multi-year settlements are a positive step, but there is still ultimately no fix for local government finances, which is causing enormous problems for local councils. Returning to the issue of SEND, families do not lie awake worrying about governance models. They worry about whether their child will receive the support they need, about delays to assessments and about whether an education, health and care plan will be delivered in time. I welcome the Government’s commitment to cover 90% of eligible historical high needs deficits accrued by March, but uncertainty remains about whether deficits accumulated in subsequent years will also be covered. This Budget also does not provide the scale of additional adult social care funding needed to address rising demand. Finally on local government finance, I want to address business rates. I welcome the principle that more locally generated revenue should remain in local areas. Giving councils a stronger stake in local economic success is sensible. However, retaining more revenue does not necessarily mean receiving more funding. The reality is that councils only benefit from the share of business rates that they are allowed to retain. If a national policy decision reduces revenues, local government must be appropriately compensated. We must ensure that areas with fewer opportunities for growth are not left behind. Rural communities in particular should not find themselves disadvantaged by a system that increasingly relies on locally generated revenue. On my second test, the jury very much remains out. My third test is whether the Budget will deliver tangible improvements to people’s lives. Good growth should mean growth that people can actually see and feel. It means a young family being able to afford a home and people being able to secure a GP appointment. It means reliable public transport and thriving town centres. It means ensuring that infrastructure arrives alongside development, rather than the reality we see, which is that the infrastructure arrives years afterwards. My constituency of Guildford is home to a strong local economy, world-leading innovation and enormous potential, but beneath that prosperity, families are struggling with housing costs, children are growing up in poverty, and residents are frustrated by pressures on local services and infrastructure. That experience is not unique; it is being felt across the country. If the Government genuinely want growth in every postcode, investment must translate into improvements. That means ensuring that the delivery of infrastructure comes with housing development, because people will support the development if they can see it. It also means growth beyond our major cities. As my hon. Friend the Member for Chippenham (Sarah Gibson) mentioned, it has to include our rural communities. Our high streets, of course, must also be central to that vision of growth.<span id="628" class="column-number" data-column-number="628"></span> In conclusion, the Liberal Democrats believe that genuine devolution must mean more than transferring powers from Whitehall to an equally centralised regional mayor. We want decisions to be taken closer to communities, and we want growth that reaches every community. The Government recognise those things, but there is still so far to go. We want to see tangible change for our residents.
Order. Before the Minister replies, may I encourage everybody to speak through the Chair? I do not want to be too pompous about it, but the convention is that the debate goes this way, not that way. Before you start a conversation among yourselves, please remember that.
Order. May I remind the hon. and learned Member that a winding-up speech is not a new speech? It is two minutes. If he could come to an end, that would be great.
HMOs are the only way many young people can afford to rent, but their unregulated growth leads to the loss of family homes. However, Bath and North East Somerset council has taken action, and has included in its draft local plan a ban on the conversion of homes that would otherwise mean the loss of three-bedroom homes in Southdown, Twerton and Odd Down. Will the Minister congratulate Bath council?
I welcome the Government’s focus on first-time buyers, because so many young people cannot get their first step on the ladder. My concern with the properties that are being built—not on the green belt but within town-centre boundaries—is that first-time buyer properties are being manipulated out of the system, in the same way that affordable homes have been on the green belt. I know the Government have done some stuff around the green belt golden rules, but what are they doing to ensure that we have first-time buyer homes on every development?
I am aware that businesses not offering high-quality employment, such as mini-marts, barber shops, vape shops and nail bars, are still able to get sponsorship licences. Will the Home Secretary commit to reviewing the types of businesses that can access those licences and stop these people being able to exploit people who are not high-quality employees?
More than 60 years ago, this House passed legislation establishing a register for hairdressers. The purpose was clear: to encourage professional standards; to support qualifications and training; to provide consumers with confidence; and to recognise hairdressing as a skilled profession. The principle was right then, and it remains right today—what has changed is the world around it. The high street has changed. The labour market has changed. Increasingly, the sector itself is warning us that the voluntary system, put in place in 1964, is no longer enough to ensure a sustainable future for hairdressing and barbering. Tonight, I want to make the case that moving from a voluntary register to a mandatory one is not a radical step, but a natural next step. Crucially, it is not a proposal to create a new register. Parliament has already established that principle; the register already exists. I am simply seeking through mandatory registration to strengthen a framework that Parliament itself put in place when Harold Wilson was first Prime Minister. The proposal would help to tackle the collapse in apprenticeships, strengthen public safety and support the legitimate businesses that form the backbone of our local high streets. What is perhaps most striking is that the sector itself has now reached this conclusion. The British Hair Consortium, the National Hair and Beauty Federation, the Hair and Barber Council, employers, educators and industry leaders are all increasingly united in calling for a mandatory registration scheme. This is not Government regulation being imposed on an unwilling industry, but a solution designed by the industry for an increasingly urgent problem. As I am sure you are aware, Madam Deputy Speaker, hairdressers and barbers are far more important than many people appreciate. We all know the feeling of walking out of a salon or barber shop feeling better than when we walked in. Many people value the relationship they have with their hairdresser, such as my cousin Jayne and her daughter, Lucy, who travel several hours every couple of months to see their stylist after he moved to Dorset. Nick supported my mum, Lin, as she lost her hair through chemotherapy, and still managed to make her feel a million dollars. These professionals improve confidence, wellbeing and self-esteem. These businesses provide social connection. In an increasingly isolated society, they often offer something that technology never can—genuine human interaction. One survey found that 42% of young men had experienced weeks when visiting a barber or personal care professional was the only in-person interaction they had.
In my constituency, one such barber is Mike Taylor of Bond’s in Broadstone. He recently created a retro-style, one-to-one barbering space, specifically recognising the role that barbers play in supporting men’s wellbeing and mental health.<span id="692" class="column-number" data-column-number="692"></span> Barbering and hairdressing are not just socially valuable but economically vital. The wider beauty and personal care sector contributes more than £28 billion to the UK economy and supports almost 600,000 jobs. These are jobs that cannot be offshored or replaced by artificial intelligence, and they drive footfall to our town centres. When people visit a barber or salon, they often spend money elsewhere on the high street too. They are anchors of our local economies in villages, market towns and city centres. For generations, hair and beauty has acted as a ladder of opportunity. It has provided first jobs for young people, offered flexible careers for parents and carers, and enabled thousands of people to build businesses of their own. Following the introduction of my private Member’s Bill in September, I was contacted by Nova who owns NovaLux salon in Poole. She reminded me that when we first met 25 years ago, she was an apprentice at Karen’s Hair Design in Broadstone where I was a customer. I ran a business on the same high street. She trained, qualified, gained experience and, ultimately, has built a successful business of her own. Hers is exactly the sort of journey that this sector has made possible for generations. Nova’s story is the story of hair and beauty, but she shared with me that professional qualified business owners who follow the rules increasingly feel that they are competing against businesses that do not. People like Nova increasingly tell me that the profession that they love is becoming harder to sustain. The concern I hear repeatedly is not about competition but about unfair competition.
I thank the right hon. Gentleman for his intervention. Indeed, the number of barber shops on our high streets has doubled in the last decade or so, and I am fairly sure that the number of us requiring a weekly haircut has not. The point is not about competition but about unfair competition, alongside what are, it has to be said, quite impossible trading conditions.
It is interesting; although this campaign is specifically about hair and barbering, there have been calls for a similar registration system for those industries that do piercings, tattoos and that sort of thing, but the industry itself is struggling to work out exactly what it should look like. There is a big issue around insurance, which I will come on to. According to analysis commissioned by the British Hair Consortium, employee numbers in the sector fell by about 23% in 2025, which is equivalent to the loss of 20,000 jobs. To put it another way, that is the equivalent of 20 employing salons making all their staff redundant every working day for a year. Industry estimates suggest that more than 70% of those working in the sector are now classified as self-employed. Of course, genuine self-employment is not a problem—many talented stylists and barbers have always chosen to rent a chair as a stepping stone towards their own business—but the concern is about places where self-employment exists entirely on paper. When I met representatives of the National Hair and Beauty Federation a couple of weeks ago, they described workers who were, in their own words, employees on Friday and self-employed on Monday. Nothing about their work or the business had changed; only their employment status had changed. They continue to work at the same chair in a single salon with no control over their prices and unable to determine their own working practices, but they no longer have sickness cover, pensions or any rights. The change involves reduced tax receipts for the Government and, crucially, fewer apprenticeships—without workers, a business cannot hire apprentices. It is in apprenticeships where the consequences are most serious. Hairdressing apprenticeship starts in England fell from more than 13,000 in 2015 to just 4,000 in 2023, and forecasts suggest that recruitment could completely collapse within a couple of years if current trends continue. That should concern every Member of the House, because those are not just statistics but lost opportunities for young people, for social mobility and for skills development. The sector reports that about a quarter of its apprentices have special educational needs, which is a significantly higher rate than the wider apprenticeship sector. Many of them have also spent time not in education, employment or training. For thousands of young people who struggle to access traditional academic pathways, the sector has provided a route to qualifications, employment and independence.