Budget Resolutions

Debate between Emma Hardy and Simon Hoare

Tuesday 2nd November 2021 Commons Chamber

[Emma Hardy (Kingston upon Hull West and Hessle) (Lab)]

It is a pleasure to follow the hon. Member for Kilmarnock and Loudoun (Alan Brown). I agree with the point that he made about the shared prosperity fund and the need for it to be announced quickly so that we can get the funding that we need in all areas.

I do not want to be too negative, Madam Deputy Speaker, but I was a little disappointed when, in the Treasury Committee, I raised concerns about debt advice directly with the Chancellor and he did not seem to be fully aware of the situation, so I hope that, today, those on the Front Bench will take this point really seriously.

Hull has been named one of the debt capitals of the UK. We have double the average number of people unable to service their debt levels. At the moment, a face-to-face service is provided by the Money and Pensions Service. I am aware that that does not operate directly through the Treasury, but I am also aware that policy decisions relating to debt are informed by the Treasury. What I am asking for is an assurance that that face-to-face advice service remains, because what the service is proposing is to move towards regional call centres where people can access debt advice remotely. I am sure that everybody here, including, hopefully, Conservative Members, will acknowledge that if a person is in a desperate situation—they are saddled with debt, have perhaps not been opening their bills, and are incredibly worried about the situation that they face—the idea that they can go through all the issues on the telephone with someone is simply unrealistic. That is ignoring the fact that some people might have autism or learning disabilities or be in an extremely distressed state. I do hope the Treasury will take that point really seriously and speak to the Money and Pensions Service.

Let me turn now to the Budget. I had six clear asks of the Budget to provide what I believe was needed by the people of Hull West and Hessle. One was on fuel poverty. I support the Labour party’s call for the ending of VAT on domestic fuel as one way to try to alleviate the problems. This really lovely lady told me that she was worried about the issue. She is a pensioner and reliant on her pension. She likes to be warm, as elderly people often do—when people get older they like to keep their homes nice and warm. She is at home all day, so is extremely concerned about the rise in fuel costs, telling me that her bills have gone up by more than 40%. This is an area that needs a lot more Government action, because the problem will not go away; it will continue. I hope the Government will put party politics to one side and review a sensible proposal from the Labour party to look at cutting VAT on domestic fuel.

I raised the issue of adult social care in interventions on the Secretary of State and on my own shadow Front Bencher. I also raised it at the Treasury Committee. The issue has nothing to do with the type of council in control, or the political party that represents it. My constituency is in the East Riding, and it is also in Hull. Hull is urban and a Labour authority. East Riding is rural and a Conservative authority. Both councils have come to me and said that, as the local MP, could I do everything possible to lobby the Government for support for adult social care. In fact, the Conservative-run East Riding of Yorkshire Council has just passed a motion in its council chamber on this matter.

This should not be a political issue. The situation is a crisis. I said in an intervention on the Minister that East Riding council is unable to provide the amount of care hours that constituents need. It has admitted that in a letter and has been quite open and honest with me, saying that it simply cannot provide the service. Its solution is to tell families that they will either have to take care of the person in need themselves or that person will have to go into residential care. That is not a choice that we want people to have to make, so the council has asked me to lobby the Government for increased funding for adult social care, because it says that it is unable to compete with companies such as Amazon, which is offering £11 an hour, because all that it is able to offer is the minimum wage. It told me that it is facing budget pressures of £1.4 million with the national minimum wage increase that the Government have already announced. Of course I support the national minimum wage increase—in fact, I believe that it should be more, as I think all Labour Members do—but we have to acknowledge that the cost has to come from somewhere, and if it is coming from the adult social care budget, it is not going on providing the hours that are needed. The letter has been sent to the Health Secretary. I hope that he reads it, acknowledges it and sends us a reply.

[Simon Hoare (North Dorset) (Con)]

My own council in Dorset tells a similar story. Does the hon. Lady agree that it would be helpful if when we were talking about adult social care, particularly in the media, we did not just concentrate on those who are older, but remember the complete age range of people who require daily support from our local government? I agree with her entirely that the local government family, which is hardest hit in hard times, really should be the beneficiary of extra cash as the purse strings loosen.

[Emma Hardy]

I absolutely agree; the hon. Gentleman is completely right. We do often forget all those people with learning difficulties and adults of all ages requiring support. He is correct to draw attention to that point.

The situation really is one of crisis. Yesterday I was talking to the OBR—again, in the Treasury Committee—and it said that it believed that 95% of councils are going to raise their precept to the maximum amount. That is another tax increase that is not being mentioned by the Government and we are not talking about. It is another impact on the cost of living, and councils are having to do that because they simply cannot afford to cover social care as it is.

I want briefly to mention universal credit. Even with the changes to the taper and the other changes that the Government have introduced, a lone parent who is working part-time on the minimum wage still loses £361. All the time throughout this Budget, it seems that people on lower pay are paying more in taxes. That just does not feel right.

I often hear Government Members say, “Well, where would you find the money? What are you going to do with it?” It always comes down to choices; in politics, everything is about choices. We have a certain amount of finance and then we make a choice. My personal priority would be not to give more money to whisky price cuts and tax cuts than I would give to children needing educational catch-up. That is just a principle that I have: children before whisky—call me radical! I would also not spend £5 billion sending a rocket up into space funded by the British Government, when we have lots of children here on earth who might require that money a little bit more. Again, it comes down to choices: rockets and whisky, or kids.

We also need to look more seriously at business rates. Interestingly, Government Members talked about a whole radical change to business rates, which I support. This is a disappointing Budget, filled with many issues that need resolving. I hope that the Government will finally do something about them.