19:00 - The House divided: - Ayes: 319 / Noes: 230 - Question accordingly agreed to.
19:14 - The House divided: - Ayes: 319 / Noes: 231 - Question accordingly agreed to.
The Secretary of State for Education (Nadhim Zahawi)
In 2019, we made a promise. We promised to give the people of this country world-class public services and to strengthen the entire fabric of this country so that everyone benefits. Everyone is entitled to have access to the same opportunities to make the most of their lives, whether they are at school, at work or whatever their personal circumstances. That is what we meant, and what we mean, by levelling up: making this country fairer for all who live in it.
Gareth Thomas (Harrow West) (Lab/Co-op)
On the subject of levelling up, will the Secretary of State tell the House why he thinks it is acceptable for schools to be worse off in real terms now than they were in 2010?
Nadhim Zahawi
Respectfully, it is quite the opposite. I will get to that point later. Schools will be £1,500 better off per pupil than in 2019-20—not even 2010— but we will return to that subject in a moment or two.
I was getting to the point about those who are more vulnerable. For those who are most vulnerable, levelling up means that extra support will always be there for them. The covid virus has put enormous pressure on all our public services, and I know the whole House will want to join me in again thanking our magnificent public heroes—our nurses and doctors, our teachers and nursery workers, our care home staff and our delivery workers—for how they have helped us all to weather the pandemic storm.
The national health service has been the frontline of this pandemic and we must build up its resources after an unprecedented 18 months. We are committing £5.9 billion to tackle the NHS backlog of non-emergency tests and procedures, which will include £2.3 billion for ensuring that there are at least 100 community diagnostic centres where people can get health checks, scans and tests closer to their homes.
Digital technology is transforming every aspect of our lives, so the package includes £2.1 billion over the next three years to support its use in hospitals and other care organisations to improve efficiency, freeing up valuable NHS staff time and ensuring the best care for patients, wherever they are. There will also be £1.5 billion from that package over the next three years for new surgical hubs, increased bed capacity and equipment to help elective services to recover, including surgeries and other medical procedures.
We have promised an overhaul of our adult social care system, improving social care outcomes through an affordable, high-quality and sustainable system. We are therefore allocating £3.6 billion for local government to reform adult social care provision, including capping personal care costs at £86,000.
Emma Hardy (Kingston upon Hull West and Hessle) (Lab)
I thank the Secretary of State for giving way; he is always very generous. I draw his attention to the letter from the East Riding of Yorkshire Council, a Conservative-led authority, to the Secretary of State for Health and Social Care, stating that,
“the council has 302 assessed individuals requiring 4,114 hours of home care per week that we are currently unable to provide.”
The letter was dated in October. It identifies extra money that the Government have given, but says the council still does not have the funding needed to care for the people who need help in the East Riding.
Nadhim Zahawi
I am grateful to the hon. Lady, and I am sure the Secretary of State for Health and Social Care will take a careful look at her letter and respond in good time.
Nevertheless, it is this Government who have grasped the nettle of adult social care and will deliver on capping personal care costs, which can be so debilitating, at £86,000. While £1.7 billion will improve the wider social care system, including the East Riding of Yorkshire, as announced in September, at least £500 million of that will go towards improving qualifications, skills and wellbeing across the social care workforce.
Lloyd Russell-Moyle (Brighton, Kemptown) (Lab/Co-op)
Is it not the case that the additional money for adult social care is on a promise that might come along in a few years’ time, and that most local authorities will not see a penny immediately to tackle the immediate problems that they have in adult social care? That is why I tabled my amendment; it was quite rightly not selected, but it would have brought in £15 billion extra and not harmed anyone earning under £50,000. Why will the Government not just make national insurance a flat rate for everyone?
Nadhim Zahawi
I am grateful for the hon. Member’s question. I think he may have missed, while trying to catch your eye, Mr Speaker, what I just said about the £1.7 billion to improve the wider social care system that was announced in September. The additional £3.6 billion to local government that was announced in the Budget is more money. This is not an arms race on how much we can spend; this Government are interested in delivering outcomes. Covid has, no doubt, added extra challenges to our reforming agenda, but it has not deflected us from delivering our promises; it has made our commitment more focused as we deliver and build back better. For me, that means skills, schools and families.
Barbara Keeley (Worsley and Eccles South) (Lab)
I detect a hint of complacency on funding for social care. The Secretary of State mentioned £500 million to go towards workforce issues. That is nothing; it is a drop in the ocean for the issues with the social care workforce. There are more than 100,000 vacancies in social care and turnover is 30%. The money just will not touch the sides. The reaction to the Budget from the social care sector, which I hope to speak about today, has been one of profound disappointment and disbelief, really, that the Government do not understand what a crisis the sector is in. I really think it is about time for the Secretary of State to change his tone on that.
Nadhim Zahawi
I have to respectfully disagree with the hon. Lady. In my time as vaccines Minister, I saw the social care sector rise to the challenge and deliver. I opened my remarks by reminding the House of that and thanking the workers on the frontline. Of course, money does make a difference, including the £500 million announced to make sure that we retain and inspire the social care workforce.
Marsha De Cordova (Battersea) (Lab)
I thank the Secretary of State for giving way; he is being very generous with his time. He talks about the investment in social care, but does he not agree that there will still be a gaping hole of over £500 million in disabled children’s social care support?
Nadhim Zahawi
I will return to children’s social care later in my speech. Mr Speaker, you will, I hope, recognise that I have given way several times. I would now like to make some headway in my speech and return to my theme, which hon. Members will hear from me and my team and from across Government: skills, schools and families.
World-class public services demand world-class skills, and in this country we are entering a new era—the era of the skills economy. We are investing over £3.8 billion over the course of this Parliament in further education and skills to make sure that people have access to the kind of high-quality training and education that will open the doors to good jobs, which in turn will boost productivity and support levelling up. For too long, employers have complained that young people just do not have the skills that their businesses need, particularly in science, technology, engineering and maths. For too long, students have studied subjects that will not result in a meaningful or satisfying career. That mismatch is not just bad for students; it is bad for business and it is catastrophic for our economy, especially as we try to rebuild after the pandemic.
We need people with the skills for tomorrow’s industries, so we are making the largest investment in skills in a decade, and it is going to deliver the technical education our economy needs. Our skills economy will power innovation and growth, and we will all feel the benefit.
Alex Sobel (Leeds North West) (Lab/Co-op)
Yesterday I was speaking with members of the tech industry, and they were lamenting the fact that there is only one hour a week for computing in secondary schools. Our growth will be in the technological sector. What will the Government do to improve computing education in schools?
Nadhim Zahawi
I am grateful for the hon. Member’s question. I know that he cares passionately about this subject and the overhaul of information and communications technology in the curriculum. I think an £83 million investment in that is a signal to the sector of how important it is to the UK economy. I saw at first hand at Barnsley College how T-levels in technology are delivering for young people. We will invest £2.8 billion of capital funding in skills and further education, including to further expand our new T-levels, which are set to offer a new gold standard in technical education and will be more than a match for A-levels.
Andy Carter (Warrington South) (Con)
I recently visited the university technical college in Warrington, which is a great example of skills-based education, linking with employers such as Sellafield. Does the Secretary of State agree that that is exactly the sort of education we need to see across the UK?
Nadhim Zahawi
My hon. Friend is absolutely right that the UTC and the work it is doing with Sellafield is exactly the sort of high-skilled, high-ambition, career-developing education that we need, giving those young people, when they become young adults, a real outcome. Of course, higher wages and a more successful economy will be by-products of that, but the real outcome is that rounded adult who has a real career path in the economy.
Robert Halfon (Harlow) (Con)
I welcome what my right hon. Friend is saying. Can he confirm that there is a 42% increase in the skills budget in cash terms? Does he not agree that if we spend that money right, we will create, for the first time, a parity of esteem between skills and higher education, and that rather than just “university, university, university”, our mantra should be “skills, skills, skills” and “apprenticeships, apprenticeships, apprenticeships”?
Nadhim Zahawi
There is no greater champion of this agenda than my right hon. Friend, the Chairman of the Select Committee on Education. “Skills, skills, skills” runs through his veins, and I thank him for that point. I absolutely agree with him on the uplift in the investment that we are making.
I would like to take a moment to tell the House all about the visit I made to Barnsley College just a week or so ago. The college was the first in South Yorkshire to roll out T-levels. While I was there, I met several of its students, including one whose name is Greg. Honestly, I have rarely met a more inspiring individual. He told me that with his T-level—I will quote him word for word:
“I’m looking at unis now and thinking, ‘Which one am I picking?’ not ‘Which one of them is picking me?’”
Greg is living proof of the transformative effect our skills programme is having.
The same is true for apprentices. Apprenticeships funding will increase by £170 million to £2.7 billion, alongside other improvements to support more small businesses to hire new apprentices.
Nadhim Zahawi
I want to make sure that others get a chance to participate in the debate, so I will make some headway. I hope that the hon. Lady will forgive me; I beg her indulgence.
These investments are putting employers at the heart of our skills economy so that education and training respond to local business needs. In this way, we will not only build one of the best technical education systems in the world, but drive local prosperity and levelling up.
Of course, we know that skills training is not just for the young. As technologies change and develop and businesses adapt, so people will find that they will need to reskill or retrain throughout their lives. Globalisation and automation are changing the modern workplace. Jobs and industries that are flourishing now might not be in five or 10 years. Our skills economy must be sufficiently agile to flex not just for today but for tomorrow and long into the future.
With our “Skills for Jobs” White Paper, we are committed to boosting the job prospects of adults across the country by making sure that they can get the training they need to adapt to a changing workforce. A total investment of over £550 million will make sure that adults at any age can retrain or upskill, and that is part of our national skills fund commitment. We will be investing more in boot camps, which offer free flexible courses of up to 16 weeks, giving people the opportunity to build up specific skills with a clear route to a job at the end. We are also investing more to help adults in England take advantage of our free courses for jobs offer. There are now more than 400 courses to help more adults gain the skills they need to boost their career prospects. There will be opportunities for adults across the whole of the UK to develop their numeracy skills through the multiply programme the Chancellor announced, funded by another £560 million through the UK shared prosperity fund. That means that wherever people live and whatever stage they are at in life, they will be able to access training and education that gives them the skills employers want and which can lead to good jobs and career progression.
Ben Everitt (Milton Keynes North) (Con)
This is a national effort. A lot of attention has quite rightly been placed on the areas in the north of England that are targets for levelling up, but will my right hon. Friend confirm to the House that levelling up is a national agenda and that there are poorer areas in the south of England and London that will receive priority funding from the Government?
Nadhim Zahawi
Levelling up is at the heart of the Government’s agenda. Levelling up means empowering local leaders and communities to drive real change: boosting living standards, particularly where they are lowest; spreading opportunity and improving public services, particularly where they are weaker; and restoring local pride across the United Kingdom. Every local authority across the UK is eligible for the levelling up fund. In line with the Government’s mission to level up, it is right that we have prioritised areas that have been objectively assessed as most in need of the kind of investment that the levelling-up fund provides. That includes areas in the south of England which are most in need.
Schools are equally important and they have done well in the spending review. One of the biggest challenges we currently face is helping the young people who have suffered so much disruption to our schools during the pandemic. Those young people have been foremost in my mind and are central to the significant investment we announced this week. We know that world-class public services will help to turbocharge our economy. They will give us the skills, knowledge and technical excellence to drive productivity and growth. To deliver them, we have to begin with our schools.
All of us here, without exception, will owe a great debt to a teacher—maybe more than one—who helped us to get to where we are today. Colleagues will be aware that I have more reason to be grateful than most, having arrived here at the age of 11 as an immigrant without a word of English. I will always be grateful to the teachers who helped me on my way, which is why it gives me particular pleasure today, as Education Secretary in Her Majesty’s Government, to say that we are going to increase our spending on our country’s schools. Core funding will rise by £4.7 billion in 2024-25, building on the largest cash boost for a decade provided in the 2019 spending review. That equates to a total cash increase of £1,500 per pupil compared to 2019.
Clive Efford (Eltham) (Lab)
Will the Secretary of State give way?
Nadhim Zahawi
I will make some headway. I have taken many interventions.
Let us not forget that these are not normal times for any of our schools and colleges. The task in front of them, helping every young person to get back to where they need to be, requires all our teaching and education staff to continue to deal with the fallout from the pandemic. To reflect that, we will be allocating nearly £2 billion extra to support young people who are struggling to catch up on missed learning, following the existing investment in tutoring and training for teachers.
Clive Efford
The Institute for Fiscal Studies has described the increase in education funding over the past decade as the worst for 40 years. The Secretary of State says he is increasing funding for schools, but by next April, 12 years on, we are only about to achieve the same level of funding that existed in 2010. That is a damning indictment of the Conservative Government over the past decade. Why have young people in our schools been forced to pay the price of Tory austerity?
Nadhim Zahawi
I am grateful to the hon. Gentleman for that question, but respectfully he is completely wrong. It is not the same level of funding as 2010. Let me try to explain it to him and his constituents. The £1,500 per pupil extra by 2024 is £1,500 more than in 2019-20. That is a significant investment in the future of this great country.
To reflect that, we will allocate—as I was saying on recovery—£2 billion extra to support young people who are struggling to catch up on missed learning, following the existing investment in tutoring and training for great teachers. That is in addition to the 6 million tutoring courses and 500,000 training opportunities we have already made, which takes overall investment specifically dedicated to pupils’ recovery to almost £5 billion. That includes an additional £1 billion of catch-up funding that goes direct to schools so that they can best decide how to support education recovery for those of their pupils who most need it. Teaching unions wanted that additional flexibility—I thank them for that—and I listened to them and made representations to my right hon. Friend the Chief Secretary to the Treasury. As they told me, this funding might pay for specialist small groups, or hiring staff to lead extra-curricular activities outside the school day. In that way, an average secondary school could receive about £70,000 a year in additional cash. That is money that can make a real difference to young lives. Evidence shows that the pandemic has had a significant impact on older pupils who have the least time left in education. We will be investing £800 million in extending the time they spend in colleges.
It is no secret that the most important person in any classroom is the one standing at the front of it, which is why this settlement enables us to raise teachers’ starting salaries to £30,000. We promised that in our manifesto and we are delivering on that promise. That is in addition to a salary boost of up to £3,000 tax free to teach maths, physics, chemistry and computing, which we have already announced, to increase the number of teachers in subjects that are facing the greatest shortfall. It will also build on our groundbreaking teacher recruitment and retention reforms. We want our brightest and best graduates to be queueing up to be teachers. We now have far more compelling reasons for them to do so.
As a former families Minister, I care passionately about giving children a great start in life. That means giving families every support. I have seen for myself on many occasions the incredible effect that our investment can make on helping struggling families. Around 300,000 of our most vulnerable families will be supported with an extra £200 million boost to the Government’s flagship supporting families programme, which supports families through complex issues that could lead to family break- down. That is an approximately 40% real-terms uplift in funding for the programme, taking total planned investment across the next three years to nearly £700 million. As I said, we are being driven by three things: skills, schools and families.
Ben Bradley (Mansfield) (Con)
I welcome my right hon. Friend’s commitment to the supporting families scheme. The certainty around that for the long term will be very beneficial. He will recognise, as a former families Minister, that the big pressure on local government budgets is not social care—I wish I could spend the money, but I cannot employ anybody—but children’s services. The cost is growing exponentially. We need to move to more proactive preventive services, such as supporting families. Will he make a commitment to ensure that the transition in local government to preventive services will continue beyond this Budget? It is very welcome, but it has to be a long-term trend. Will he commit to supporting local government to do that?
Nadhim Zahawi
My hon. Friend is absolutely right and I thank him, not least because of his deep experience in local government. We will continue to engage with the MacAlister review and we will take very seriously the points that my hon. Friend made about the pressures on local government.
As I said, this is about skills, schools and families, which is why we are setting aside £50 million over three years—
Nadhim Zahawi
Let me make some headway, because hon. Members might find this interesting: we are setting aside £50 million over three years for parenting programmes to help parents and carers build positive relationships with their children and around £80 million to create a new network of family hubs—a one-stop shop where families can get help and support services when they need them in 75 local authorities across England. Almost half of local authorities will have a family hub. I will give way to the hon. Member for Denton and Reddish (Andrew Gwynne).
Andrew Gwynne
I am grateful to the Secretary of State. I welcome the Government’s new-found conversion to something that sounds particularly like the Sure Starts that we had in 2010, but I want to ask him about a practical point. The fact is that in large parts of the country—usually where the facilities are needed most— the Sure Start centres are just not there physically in the community, because of the reductions in the revenue support grant to local government. They have been subsumed into schools, removed or sold. Will he prioritise areas such as Tameside so that we can build back this network of family support in our communities? We do not have the Sure Start centres; we need capital funding to bring them back.
Nadhim Zahawi
The hon. Gentleman will know that, as Children and Families Minister, I tried to follow the evidence, and I will do the same as the Secretary of State. I will always be evidence-led. My difficulty with his statement about Sure Starts is that when we look at the evidence, we see that much of the investment went into buildings rather than to the families that we really needed to access those services. The difference here, as I saw through the evidence from family hubs in Harlow and elsewhere, is that with this multi-agency, wraparound approach, we can get to the families that need to access the service. I am glad to hear that he welcomes this announcement, because I know that he will probably be an outlier in his party in wanting to work constructively to get the 75 centres up and running.
We also continue to invest in early education, with around £170 million every year—the sector was slightly confused, but I know that the Children and Families Minister, my hon. Friend the Member for Colchester (Will Quince), set them straight—to increase the hourly rate for free early education entitlements, supporting families with the cost of childcare. As we would expect from a Government who are as committed to levelling up as this one, much of our focus is on those who need additional help, especially the most vulnerable in society.
Nadhim Zahawi
I know that Mr Speaker is looking at his watch, so perhaps the hon. Lady will forgive me if I make some headway and let others into the debate.
Nadhim Zahawi
Indeed, Mr Speaker. We are investing £2.7 billion of capital funding to improve provision for pupils with special educational needs and disabilities.[Official Report, 2 December 2021, Vol. 704, c. 10MC.] That funding represents a significant investment in high needs provision and will help to deliver tens of thousands of new places for some of the most vulnerable children in our country. Over the next three years, we will provide £259 million to expand the number of places available in secure and open residential children’s homes. That will provide high-quality, safe homes for some of our most vulnerable children and young people.
We will also support families through our adoption strategy. That will go a long way to improving the process of matching children who need a home with the adopters who are desperate to provide one for them. That means encouraging all those who can provide a loving home to come forward, not just those from a narrow, rather middle-class demographic. We will, in due course, see more centres of excellence for our regional adoption agencies.
Every child deserves to grow up in a secure and loving home and every single one of us, young and old alike, deserves to live in a community where we feel safe. The whole country has been shocked to the core by the recent violent attacks on people who have been walking home or out enjoying themselves, especially vulnerable young women. This is simply unacceptable. We promised to recruit an extra 20,000 police officers in 2022-23 and we are putting an extra £540 million into recruiting a further 8,000 additional police officers. We are allocating £42 million for new crime and drugs programmes. That will help to fund our Safer Streets programme and will help more people to improve home security, especially in areas that have a high incidence of burglary, car theft and robbery. We have always taken a zero-tolerance approach to crime, and tackling drugs is a priority, especially through our county lines programme. We will set up a national crime and justice lab to analyse crime reduction and prevention data.
Part and parcel of keeping our streets safe is making sure that those who threaten that security are dealt with quickly and efficiently through our criminal justice system. The covid pandemic has had a massive impact on this, so we are making an extra £2.2 billion available to manage the increased number of offenders being brought to justice and to reduce backlogs in criminal courts. There will be an extra 20,000 prison places, which builds on the additional 18,000 prison places that we announced at the last spending review, plus a further 2,000 temporary places. That represents the largest prison-building programme in a generation.
For those people who have been victims of crime, we will increase our support services to over £185 million a year. Security, safety and support are going to underpin our public services, but we must also take a proactive approach to make sure that all our communities are vibrant, resilient places where people can live, learn and work. One of the chief ways to make sure that everyone can get from A to B smoothly and efficiently is through world-class public services, and we will need world-class local transport systems. The investment there makes a huge difference across the board.
I know that you are anxious about the time, Mr Speaker, so I will conclude. This Budget will provide billions of pounds to deliver the public services that the British people deserve. It puts skills, schools and families at the centre of everything we do and it embeds levelling up throughout all our services and our national infrastructure. The Budget is a clear statement of intent: world-class public services backed by £150 billion a year in cash terms.
Johnny Mercer (Plymouth, Moor View) (Con)
I will definitely not take my full allocation, Mr Deputy Speaker. I just want to make a few brief remarks about the Budget. I want to refer to a couple of measures that I think are very positive and pay tribute to some of my Front-Bench colleagues who have worked to bring them about, to mention an issue connected with defence spending that makes me quite uncomfortable, and then, I am afraid, to talk about something a little bit ugly in relation to spending on veterans’ affairs. But let me start with the good stuff.
I warmly welcome what has been done about universal credit. As my right hon. Friend the Chancellor knows, I have campaigned for it for many years. The return of the taper rate to where it should have been when it was designed is perhaps the single biggest factor, over and above the argument about whether people should or should not keep the £20 uplift. The taper rate and the twin-track approach to universal credit have the greatest impact in communities such as mine, with a high take-up of universal credit and other benefits. I am extraordinarily grateful for my right hon. Friend’s work, and for everyone’s work, to make that a reality.
This is a good Budget for Plymouth, in terms of the levelling-up fund. We received £20 million, and we will be dualling the road from The George up to the top of town. I know that it does not mean much to people here, but many of us in Plymouth have sat for what seemed like hours of our lives in that traffic jam. It is very encouraging to see the Government pushing funds downstream towards Plymouth. The living wage is fantastic news for a low-wage economy like ours. People have spoken to me about business rates so many times on the doorstep, and as a result of the Budget, 90% of businesses will see a 50% reduction. When we express our qualms about the Government, it is important to mention what is being done right as well.
I see that the Chief Secretary is in his place. As he knows, I am a huge fan of his, but I am going to give him a slightly hard time over the Ministry of Defence budget. I do not understand why we should talk about global Britain and about record settlements for the MOD, and then reduce its budget in real terms over the current spending period. This is a reduction of 0.4%, which admittedly is not a lot, but the point is the message that it sends to those who are serving and those who want to engage with us in a global Britain to match the threats that we are constantly discussing. I am afraid that the two are not in sync. If we want to be taken seriously, we must get our message right, and it must be done with money.
However, the main issue that I wanted to talk about at a national level—I know it is terribly boring for everyone—is the issue of veterans and spending. The distribution of money for the Office for Veterans’ Affairs was mentioned in the Budget, and I am pleased about that, but the amount is £5 million. There are 2.2 million veterans in the country, and that would buy them each a pint—in Plymouth, where beer is not £6 a pint as it is in London. We need a seismic shift in our attitude to veterans.
While I have been sitting here, I have been looking at some figures. It is difficult to compare apples with apples when it comes to veterans’ affairs, because different countries do this differently, but in America, for example, £270 billion a year is spent on veterans. That includes allowances, payments for injuries and so on, but it is a lot of money. We compare better with countries such as New Zealand, with 31,000 veterans. This time last year, it spent £10 million in its office for veterans’ affairs purely on administration. The closest match, however, is probably Australia, with 325,000 veterans. It spent £11.5 billion in its Department of Veterans’ Affairs last year.
Obviously £5 million is better than not having £5 million, but I would caution against making a song and dance about what we are doing for veterans without taking account of the reality of how they feel in their communities. It is still hard for them to know where to turn for help, and it is hard for them to get on to a care pathway where someone will pull them through and care about their outcomes. Op Courage is fantastic, but far too many people do not know about it, because we have not gone out and sold it.
Australia had a problem with veteran suicides and did not know what to do about it, so it established a royal commission which looked into the facts and produced a report. As a result, it provided A$302 million in additional resources for its Department of Veterans’ Affairs. It provided A$12.1 million to support veterans and their families, and A$55.4 million specifically to tackle the issues raised.
I know that I consistently pursue this theme, but there is no point, at this time of year in particular, in taking nice photographs of us all looking sombre at memorial services and buying poppies. That stuff matters, but it does not matter to a working-class guy or girl on an estate in Plymouth, or Basingstoke or Birmingham, who does not know how to access care—who hears about all the fantastic mental health care that is available but does not know where to turn, does not know the right people and does not know about the charities. There was a seismic moment for the Office for Veterans’ Affairs to pull all this together, but it cannot do that if it is asked to reduce its budget from £5 million to £3 million in the first year.
Carol Monaghan (Glasgow North West) (SNP)
One group of veterans whom we talk about regularly in the House—I raised this subject with the hon. Gentleman when he was the Veterans Minister—are the nuclear test veterans. I have not heard him talk about them, and he did not speak much about them in his former role. Perhaps he would like to say a little about them now.
Johnny Mercer
With respect, I have spoken a lot about nuclear test veterans. I was the only Minister who met their group, and I have spoken about the fight to get some sort of medallic recognition. I reviewed the nuclear—
Johnny Mercer
The hon. Lady can shake her head, but I did actually review the nuclear test programme medical settlement for them, and I improved it.
Nuclear test veterans are a part of this, but no one wants more than me to get away from the narrative that we do not treat veterans particularly well in this country. We are all incredibly proud of them, but this requires action and commitment. The Office for Veterans’ Affairs gave us the opportunity to do that, and I urge the Chief Secretary to the Treasury to do it. I know that he and everyone else on the Front Bench believe in this stuff, but we have to get away from giving money to military charities as though that will make us feel better. We have to develop a professional and profoundly different level of veterans’ care in this country, working with the third sector and others, to make people feel as though things are really changing for veterans in this country. I urge the Chief Secretary to take that forward.
The Chief Secretary to the Treasury (Mr Simon Clarke)
It is a privilege to bring the past four days of Budget debate to a close. Over that time we have heard dozens of excellent speeches from across the House. I echo what the shadow Chief Secretary said in thanking all those who contributed. I express my deep gratitude to the civil service and the wider Treasury team, who have devoted long hours to preparing this Budget, working closely over the course of the spending review with all other Government Departments. I am immensely grateful for their hard work.
I also pay tribute to the Chancellor for his third Budget in 19 of the most challenging months in living memory. Winston Churchill once told this House:
“The first Budget of a Chancellor is often well received, but the third Budget is the most critical of all, because it is the heir of previous decisions”.—[Official Report, 22 September 1943; Vol. 392, c. 212.]
Well, this third Budget is a vindication. As Members will recall, over his first two Budgets, the Chancellor developed our plan to protect jobs and livelihoods and to safeguard the economy from coronavirus. In the words of the Office for Budget Responsibility, that plan has proven “remarkably successful”. The OBR’s forecasts show that our economy returned to its pre-pandemic size around the turn of the year, several months earlier than previously expected. Wages are rising, growing in real terms by 3.4% compared with February 2020. More people are in work and literally millions fewer people than anticipated last July are unemployed. Our public finances are under control and debt is under control. To echo the Chancellor: growth up, jobs up, debt down.
Just because disaster has been averted does not mean that we should take that for granted. It is the result of conscious policy decisions that have steered our nation to a safer place. Now is the time to carry this momentum through into building the economy this Government were elected to deliver, with a future of higher wages, higher skills and rising productivity, no longer based on Labour’s and the SNP’s model of low-skilled migrant European labour, but based on training and equipping our own people to succeed; and a future where our businesses flourish and drive growth and that growth is shared more evenly across the United Kingdom. We will have a greener economy. Multiple Opposition speakers, such as the hon. Member for Nottingham East (Nadia Whittome) and the right hon. Member for Walsall South (Valerie Vaz), seemed to forget the £30 billion net zero strategy announced just a fortnight ago. It will be a future where our citizens benefit from world-class public services at every stage of their lives.
Emma Hardy
I am aware that the Minister is very familiar with the area I represent, and indeed the local council, but on the issue of labour shortages I raised in the debate, and have raised in earlier proceedings, we have a shortage of adult social care workers in the East Riding of Yorkshire—a shortage so great that people cannot access all the care that they need. When he talks about labour shortages, is he going to address the shortages we have in that sector?
Mr Clarke
I thank the hon. Lady; hers was one of the more thoughtful speeches in this debate. We have committed £162.5 million as part of our winter plan to help fund the adult social care workforce. That money is exactly designed to make sure that we can attract people into this most pivotal of sectors. That comes on top of the £5.4 billion across the spending review that we have committed, thanks to the new health and social care levy, and the record funding for local government that was announced in the SR. I am always happy to work with her on this, but there is more money for this sector.
Barbara Keeley
Unless there are pay increases for care staff, the small dribbles in amounts of training, and bits of this and bits of that, will not deal with this serious crisis. There are 105,000 vacancies, and people are leaving in droves to go and work in burger bars and other forms of retail.
Mr Clarke
Again, I thank the hon. Lady for raising that point. I do take this point seriously. We have committed in this Budget to the national living wage increase, which is a major increase—6.6%, rising to £9.50 an hour. That money comes as a complement to the extra funding that the Government have committed to help with labour shortages, and I believe it will make a real difference. Obviously we can continue to monitor the situation closely with the sector.
If I may make a little progress, I want to return to the core theme of today’s debate: our public services. As the Chancellor outlined last week, this Budget increases total departmental spending over this Parliament by £150 billion. That is the largest rise this century, with spending growing by 3.8% a year in real terms. We are taking forward plans to deliver more than £600 billion of gross public sector investment over this Parliament, meaning that public sector net investment will be at its highest sustained level as a share of GDP for nearly half a century. This is funding that can and will make real change possible for communities throughout the country.
Last week, my right hon. Friend the Member for Maidenhead (Mrs May) reminded the House when talking about the NHS that increased spending is not enough on its own and that we must strive to deliver value for taxpayers. I could not agree more. The measure of a Government’s compassion is not how much they spend, but the outcomes they deliver. In making these investments, the Government are committed to ensuring that every pound is spent well and makes a difference.
To take healthcare, we are building 40 new hospitals and upgrading 70 more, as well as funding 50,000 nurses and 50 million more primary healthcare appointments. We are working closely with the NHS to roll out a stream of innovative developments that will reduce backlogs, help cut waiting times and transform healthcare for good. Some 100 community diagnostic centres, rightly praised by my hon. Friend the Member for Bishop Auckland (Dehenna Davison), will help people to obtain tests close to home. New surgical hubs will cut waits for elective operations, and we are making a record investment in R&D to support the health technologies of the future.
Margaret Greenwood
I have listened with interest to the Minister’s points about the national health service. If the Health and Care Bill goes through, as the Government intend that it should, instead of having a national health service, we will have 42 independent systems that will all have to meet strict financial limits. The Bill also has provision to make things wide open for the private sector to start delivering care that the NHS currently delivers. What would the Minister say to those NHS workers who may not be able to secure a job in the NHS any longer, because that role has been taken over by a private company, thus losing Agenda for Change pay and terms and conditions?
Mr Clarke
This Government remain fully committed to great care, free at the point of need, which of course is the founding principle of the health service. We remain fully committed to working to ensure that our healthcare system and our social care system are properly funded and staffed for the future. Our commitment to providing world-class public services extends to people of all ages, and that is reflected in our wider work on social care.
We have pledged an extra £4.7 billion by 2024-25 for schools, and I congratulate my right hon. Friend the Secretary of State for Education on securing a good settlement that will include nearly £2 billion of new funding over the spending review period for education recovery. That brings total education recovery spending to almost £5 billion. We are also providing £500 million to support the very youngest and their carers and to invest in family help. Last week, my right hon. Friend the Member for South Northamptonshire (Dame Andrea Leadsom), who has been such a brilliant advocate for this cause, described those measures as fulfilling
“a fantastic pledge for every baby.”—[Official Report, 27 October 2021; Vol. 702, c. 317.]
I could not agree more.
Ben Bradley
I welcome the positive interventions in early years and for young people in the Budget in particular, which are meaningful. If we are going to support that change for the long term, we need to support local authorities to transition to that early intervention approach, as laid out by my right hon. Friend the Member for South Northamptonshire (Dame Andrea Leadsom). I trust that the Minister will confirm the Government’s commitment to doing that.
Mr Clarke
I absolutely will, because there is sometimes said to be ambiguity about levelling up. It is clear to me that it is about life chances through life, from cradle to grave. It is about jobs, prospects, investment in skills and jobs, and all of that comes from the start of life. I know that my hon. Friend will be doing a fantastic job in Nottinghamshire to help to deliver that.
Lloyd Russell-Moyle
So much for intergenerational levelling up—why have the Government cut the youth budget? It is the biggest cut in youth funding in 10 years.
Mr Clarke
The Government stand fully behind our youth budget. From the National Citizen Service to youth hubs, our wider work is clear. We are fully committed to ensuring that young people benefit as part of the Budget and spending review.
Meanwhile, we are spending record sums on improving connectivity and have allocated £5.7 billion to eight city regions to transform their transport systems. There is also the £4.8 billion levelling-up fund. We are taking on the criminals who make too many people’s lives a misery by recruiting 20,000 new police, providing an extra £2.2 billion for the courts, prisons and probation services, and committing £3.8 billion to the largest prison-building programme in a generation.
World-class public services are made possible only by the hard work of the private sector and the genius of the free market—a point made brilliantly by my neighbour, my hon. Friend the Member for Redcar (Jacob Young). That is why we are choosing to ignite even greater public sector success by investing in our economic infrastructure, improving skills and supporting innovation, with commitments to boost R&D funding and access to early stage equity finance.
To make sure that work pays, we are increasing the national living wage, cutting the universal credit taper rate and increasing the universal credit work allowance by £500 a year. That was the subject of a powerful speech by my right hon. Friend the Member for Preseli Pembrokeshire (Stephen Crabb) and likewise by my hon. Friend the Member for Isle of Wight (Bob Seely).
Dehenna Davison
I reiterate my right hon. Friend’s point about research and development, which is important. Does he agree that investing in R&D and introducing tax incentives for it is the right way to get our economy growing in a future-proof way?
Mr Clarke
My hon. Friend is absolutely right. We are investing smart so that we seed the growth of the future. That is what we need to do. Ultimately, it is all about unlocking the dynamism of industry and making sure that we can compete in a way that matches some of the competitor economies that do so much more in that space.
I have outlined some of the bold policy initiatives that the Government are bringing forward, which represent a transformative investment in our economy and the country. There is one final promise that I want to address, which is our pledge to safeguard the nation’s finances. I reassure my right hon. Friend the Member for Gainsborough (Sir Edward Leigh) and my hon. Friend the Member for South Dorset (Richard Drax), who gave robust Thatcherite speeches, that this Chief Secretary will never bequeath his successor a note saying “I’m afraid there is no money.”
Make no mistake, however, that although the economic picture is improving, we are still vulnerable. As the Chancellor said, a 1% increase in inflation and interest rates would increase spending on debt interest by nearly £23 billion. That is over £6 billion more than the total Home Office net budget will be in ’24-’25, so we must continue to build a stronger economy with the headroom to withstand shocks, which will mean making difficult decisions in the national interest.
That is why we have announced a new charter for budget responsibility, with two new fiscal rules that will keep the Government on the path of discipline and responsibility. The whole House will be asked to vote on it, which will give Members the choice between unfunded pledges and fiscal sustainability. It is the easiest thing in the world to say yes to everything, but as everyone on the Government Benches knows, reckless promises are the luxury of the Opposition and tough choices are the responsibility of the Government. Members can rest assured that the Conservatives will always do the right thing to protect our economy and our citizens’ future.
Our record spending on public services, huge investment to fund growth and unrelenting focus on building a stronger economy stand in stark contrast to the Opposition. If there is one idea that the debate has dispelled, it is that there is a credible plan on the Opposition Benches. There were so many negative speeches and unfunded pledges, and so many people, such as the hon. Member for Leeds East (Richard Burgon), who ridiculed an age of optimism. I think, and I know Conservative Members believe, that we should be optimistic about the future. We have come through the shadow of the pandemic as one country, stronger together, and we have come forward with a plan for investment, growth and levelling up. We should be proud of that.
Churchill talked about Budgets having an heir. I believe that this Budget will leave a long-lasting legacy for the UK in the shape of transformed lives, new opportunities and the strong foundations that will transform our country for decades to come. I commend the Budget and spending review to the House.
Question put and agreed to.
Resolved,
That income tax is charged for the tax year 2022-23.
And it is declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.
Madam Deputy Speaker (Dame Rosie Winterton)
I am now required under Standing Order No. 51(3) to put successively, without further debate, the Question on each of the Ways and Means motions numbered 2 to 57 and the money resolution on which the Bill is to be brought in. These motions are set out in a separate paper distributed with today’s Order Paper.
The Deputy Speaker put forthwith the Questions necessary to dispose of the motions made in the name of the Chancellor of the Exchequer (Standing Order No. 51(3)).
2. Income tax (main rates)
Resolved,
That for the tax year 2022-23 the main rates of income tax are as follows—
(a) the basic rate is 20%,
(b) the higher rate is 40%, and
(c) the additional rate is 45%.
And it is declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.
3. Income tax (default and savings rates)
Resolved,
That—
(1) For the tax year 2022-23 the default rates of income tax are as follows—
(a) the default basic rate is 20%,
(b) the default higher rate is 40%, and
(c) the default additional rate is 45%.
(2) For the tax year 2022-23 the savings rates of income tax are as follows—
(a) the savings basic rate is 20%,
(b) the savings higher rate is 40%, and
(c) the savings additional rate is 45%.
And it is declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.
4. Income tax (rates of tax on dividend income)
Resolved,
That—
(1) In section 8 of the Income Tax Act 2007 (which provides, among other things, for the dividend ordinary rate, dividend upper rate and dividend additional rate)—
(a) in subsection (1) (the dividend ordinary rate), for “7.5%” substitute “8.75%”,
(b) in subsection (2) (the dividend upper rate), for “32.5%” substitute “33.75%”, and
(c) in subsection (3) (the dividend additional rate), for “38.1%” substitute “39.35%”.
(2) In section 9(2) of the Income Tax Act 2007 (the dividend trust rate), for “38.1%” substitute “39.35%”.
(3) The amendments made by this Resolution have effect for the tax year 2022-23 and subsequent tax years.
And it is declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.
5. Income tax (starting rate limit for savings)
Resolved,
That—
(1) For the tax year 2022-23 the amount specified in section 12(3) of the Income Tax Act 2007 (the starting rate limit for savings) is “£5,000”.
(2) Accordingly, section 21 of that Act (indexation) does not apply in relation to the starting rate limit for savings for that tax year.
And it is declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.
6. Surcharge on banking companies
Question put,
That (notwithstanding anything to the contrary in the practice of the House relating to the matters that may be included in Finance Bills) provision taking effect in a future year may be made altering the percentage specified in section 269DA(1) of the Corporation Tax Act 2010 and amending Part 7A of that Act so as to alter the amount of the surcharge allowance.