Conservatives fear welfare reforms will not head off ‘tax rises' this autumn

South Wales Guardian

5 hours ago

Deputy Prime Minister Ms Rayner promised a debate on the welfare Bill next Tuesday as planned, despite 120 Labour MPs publicly backing a move to block the reforms.
She criticised the Conservatives for having 'no plan, no idea', amid Labour efforts to temper benefits spending.
But shadow chancellor Sir Mel Stride warned that 'tax rises are coming' in this autumn's budget, with the number of benefits claimants set to rise.
Sir Mel asked: 'When you cut out the blather, isn't the reality that this Labour Government has condemned us to higher taxes, more debt, fewer jobs, more pain for businesses right up and down our country?
'Borrowing up, unemployment up, inflation up, yet (the Deputy Prime Minister) tells us the Government's plan is working.
'It's not just me who isn't convinced, the people behind her are not convinced either and neither are the public.
'In fact, I'm not even sure if (Ms Rayner) herself is convinced, so can I ask her, isn't she just a little embarrassed to be defending policies she doesn't even agree with herself?'
At the despatch box, Ms Rayner replied: 'I'm proud we've got a huge boost to the minimum wage, the biggest uplift to affordable housing in a generation, and expanding free school meals to half a million children.
'The Tories' choice? Billions of pounds in unfunded tax cuts for the very wealthiest.
'We know where that gets us, it's the same old Tories' failed approach.
'They haven't listened and they haven't learned a thing.'
Earlier during Deputy Prime Minister's Questions, Ms Rayner vowed not to 'walk away and stand by and abandon millions of people trapped in the failing system left behind by him and his colleagues'.
Asked whether a vote on Tuesday 'will actually go ahead', including a potential vote on the reasoned amendment put forward by critics which would block the reforms, Ms Rayner replied that it 'will'.
Sir Mel continued: 'There you have it, there will be a vote in this House on Tuesday on the welfare Bill, although many on the backbenches could be forgiven for thinking they've heard this before with the winter fuel payment, where they were marched up the hill – and we all know where that story ended.
'But on this side of the House, we're absolutely clear, we will help her to get their Bill through, if they can commit to actually reducing the welfare bill and getting people off benefits and into work.
'Can (Ms Rayner) make that commitment right now, yes or no?'
The Deputy Prime Minister replied: 'Well, if ever we needed a reminder of the party opposite having no shame, it's their demands for this Bill.
'He demands a programme to help people into work – exactly what this Bill does – after he left one in eight young people out of the economy.'
She added: 'He demands further welfare savings, from the man who was in charge, as the welfare bill absolutely ballooned.
'They say cut welfare bill, they failed.
'They say put people in work, they failed.
'They say no tax increases, they failed.'
The reforms would 'see the number of people on welfare rising for every single year going forward' with 'no commitment' to cut the number of claimants, Sir Mel warned.
'And even if they manage to deliver these reforms, almost every respected economist now says tax rises are all but inevitable in the autumn,' he continued.
'But after the budget, the Chancellor (Rachel Reeves) said, and I quote, 'I'm not coming back for more taxes'.
'British businesses have been hit again and again by Labour's economic mismanagement.
'They are desperate for certainty, so can (the Deputy Prime Minister) give them that certainty now and repeat to the House the Chancellor's promise not to raise taxes at the budget?'
Ms Rayner replied that the Tories had 'no plan, no idea' and added: 'This is a bit rich – unbelievable.
'Inflation above 11%, the biggest tax rises? By their party.
'I take no lectures and on this issue in particular, they can't make their minds up.
'First they said our reforms were taking too long, then they say they were rushed, then their front bench said our measures are too tough, and now they say they need to be tougher.'
Responding, Sir Mel said: 'The whole House will have heard that (Ms Rayner) did not repeat the Chancellor's promise not to raise taxes and Britain's businesses have today been put on notice – tax rises are coming.'
The Universal Credit and Personal Independence Payment Bill, if agreed, would restrict personal independence payment (Pip) eligibility and curb rises the sickness-related element of universal credit, with the aim of getting more people back into work and saving up to £5 billion a year.
Conservative MP for Fylde Andrew Snowden later asked Ms Rayner who she would sack if she were in charge of a reshuffle, and criticised Chancellor Ms Reeves 'for killing economic growth', Work and Pensions Secretary Liz Kendall 'for the botched handling of the welfare Bill', and Prime Minister Sir Keir Starmer.
Ms Rayner suggested Mr Snowden might want 'a go' at asking questions from the despatch box, in place of Sir Mel.
'I'm just wondering when they're going to give the shadow justice secretary (Robert Jenrick) a go,' she added