Cost of Living Increases

Part of the debate – in the House of Commons am 4:56 pm ar 24 Ionawr 2022.

Danfonwch hysbysiad imi am ddadleuon fel hyn

Photo of Simon Clarke Simon Clarke The Chief Secretary to the Treasury 4:56, 24 Ionawr 2022

It is good to see the hon. Gentleman back in the Chamber. The reality is that nobody came into politics to raise the burden of tax on our society. We all feel that keenly, but we are equally clear that we face a £400 billion bill for covid costs. We have a clear programme of targeted investment in the NHS and in social care, designed to alleviate the backlog in treatment and the longstanding challenges that we know we face with an ageing society. We owe it to people to be candid that there are no easy solutions to how to pay for that. I certainly do not want—and I know the Chancellor does not want—to put more borrowing on to the books, when we know that those are structural challenges that need to be paid down, and therefore a tax increase is the most sensible and honest way for us to pay for that. In that spirit of total candour, that is why we are bringing that forward, and we believe that it is the right thing to do. The sadness is, of course, that the Opposition did not support us in that, and persistently criticise us for not spending enough on the NHS when they will not will the means for that investment.

Direct financial assistance, help to find work and support for people in every region and nation of the UK are just some of the ways in which the Government are aiming to secure a more prosperous future for this country. I note that the motion tabled by David Linden calls for the Government to spend more. I should remind him that the devolved Administrations already have the power and the money to make spending decisions of their own. The Scottish Government have significant tax and welfare powers, so they can choose to raise more tax if they want to spend more on welfare.

For our part, we have shown unequivocally that we are not afraid to make the big decisions to do right for the people of this country. That is why we are investing £600 billion in the public sector over the course of this Parliament, on our health service, our education system, and securing our borders. That is why, at the spending review, we took the total we have committed to the economic infrastructure to £130 billion. That is why, to respond the hon. Gentleman’s point, we are spending more on the NHS as a result of the health and social care levy as well.