Budget Resolutions and Economic Situation
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Mr Robin Walker (Worcester) (Con)
My hon. Friend the Member for West Worcestershire (Harriett Baldwin) made her contribution to the debate by talking about inflation. I agree with some of the contributions I have heard, but just as important as the fact that we have avoided a technical recession is that inflation figures are forecast to come down very sharply. That is hugely important and it is right that the Government have helped households with the cost of living, including the £94 billion package set out in the Budget, which is not to be sniffed at. I particularly welcome the announcement on prepayment meters. I congratulate the hon. Member for Brent Central (Dawn Butler) on her campaign. It is an important issue of social justice and many of us have been raising concerns about prepayment meters over a long period of time, so I congratulate her on her success in that regard.
The main thing I want to say, as Chairman of the Education Committee, is thank you to the Chancellor for listening to the concerns raised by colleagues on both sides of the House about the affordability of childcare. I pay tribute to the Members who have raised this issue consistently: the hon. Members for Walthamstow (Stella Creasy) and for Birmingham, Yardley (Jess Phillips); the hon. Member for Twickenham (Munira Wilson), who speaks for the Liberal Democrats; my hon. Friend the Member for Stroud (Siobhan Baillie); my right hon. Friend the Member for South Northamptonshire (Dame Andrea Leadsom); my hon. and learned Friend the Member for Eddisbury (Edward Timpson); my hon. Friend the Member for Newbury (Laura Farris); and my hon. Friend the Member for Ruislip, Northwood and Pinner (David Simmonds). All have spoken up about the need to reform childcare and the need to properly fund the so-called free—more correctly, subsidised —hours of childcare that we provide.
There are some really welcome decisions in the Budget that go further on this issue. The first is the decision to invest. I spoke recently in the estimates day debate on the Department for Education. I described investing in childcare in the early years as a win to the power of four. The decision that the Chancellor has taken to invest in childcare in the early years is, after defence, the next big spending commitment in the Budget. I welcome both key investments for the long run.
I welcome the idea of extending the 30 hours offer to one and two-year-olds. The gap that exists between the end of parental leave and the beginning of support has been pointed out by many Members on both sides of the House. That gap has been made significantly smaller by the Government’s introduction of the 30 hours for three and four-year-olds. It has been made significantly better for a small group of people by the offer for disadvantaged two-year-olds. Widening the offer to cover 30 hours for one, two, three and four-year-olds could be game changing, but only if we ensure the sector is properly funded. In that respect, I welcome the fact that, as part of today’s announcement, the Government have announced a step up in the funding for the existing allowances: £204 million next year, increasing to £288 million the year after.
However, the Select Committee has heard concerns about the very real cost pressures that the sector faces right now. Those include substantial increases in business rates—a real problem affecting the voluntary and independent sector, which is such a key part of the childcare sector. I join the calls from the Opposition and Government Benches for further consideration of business rates reform. Another concern I have about the childcare announcements is the ratios. The Select Committee has heard clearly from the sector that if the change is voluntary, not many will take it up, and they certainly do not hear from parents that they want it. However, I welcome the fact that the Government have listened to the consultation and have at least made it optional.
I listened carefully to the arguments made by my right hon. Friend the Member for North East Hampshire (Mr Jayawardena) about family taxation. There is great sympathy on the Select Committee for going further to provide genuine tax-free childcare, and I hope that we will be able to pick that up as we move forward with our inquiry. I very much welcome the emphasis on expanding the provision of childminding and the reforms to universal credit, which can make a substantial contribution in this space. Again, that is going with the grain of the sector, but we need to ensure that we have sustainable funding for both maintained and voluntary and independent nurseries.
Investing in childcare and early years is the right thing to do, but there are other pressures within the Department for Education’s remit. We heard from the IFS that, under a Conservative Government, investment in the early years has grown faster than in almost any other area of education spending, but its summary of education spending over the last decade also stated that the post-16 further education provision—what my predecessor as Select Committee chair, my right hon. Friend the Member for Harlow (Robert Halfon), often describes as a “Cinderella sector”—is one of the most tightly squeezed. As we move forward from the Budget towards the autumn statement, I hope that the Treasury will look carefully at the need for more investment in that sector. Although I welcome the £2.3 billion extra for schools from the spending review, they still face a real squeeze from the combination of inflationary pressures and pay rises for teaching and non-teaching staff.
I welcome smaller Budget announcements, such as the £3 million for supported internships. Buried away in the Red Book and not in the Chancellor’s speech was £11.5 million for Ukrainians to access language programmes. That is welcome, and I know from my time at the DFE that the provision of English for speakers of other languages could be variable. Any extra money spent on supporting Ukrainian families in all our constituencies will be well-spent.
I welcome the extra support for children in care and the amazing people who support them. I hope that the Government will look carefully at extending that further, particularly when it comes to kinship carers. I listened with interest to what my right hon. Friend the Member for South Northamptonshire (Dame Andrea Leadsom) said about attendance allowance for grandparents.
I want to pick on the action taken on pensions to help keep doctors in the NHS, which is extremely welcome and important. That will also help to improve retention of headteachers. In addition to action to keep and retain doctors, we need more places in medical schools. This morning I met the Hospitals Minister, my hon. Friend the Member for Colchester (Will Quince), along with MPs from across Worcestershire, Herefordshire and Gloucestershire to press the case for funded places at the Three Counties Medical School in my constituency. That will make a real difference. I heard the Chancellor mention his long-term NHS workforce plan, and I am glad that it will be announced shortly. I will keep pushing for the fact that funded places at the Three Counties Medical School in Worcester need to be part of that.