Income tax (charge)

Debate between Gerald Jones and Chris Elmore

Tuesday 17th March 2020 Commons Chamber

[Gerald Jones (Merthyr Tydfil and Rhymney) (Lab)]

Although the investment that this Budget provides in our public services is welcome, it does not go far enough, and it does not bring our public services and local authorities back to a level we saw before this decade of austerity began in 2010. Our councils and public services are suffering and they need some genuine hope that austerity really has ended.

The Government’s new commitment to borrowing to invest, set out in this Budget, shows that the past decade of austerity was a failed experiment and that, ultimately, our communities and public services endured a long decade of hardship and immense pressure for a political choice. As we know, the budget for the Welsh Government has been cut by £4 billion since 2010, and this new investment does not come close to delivering the support our local authorities and our communities desperately need now. The additional £360 million of funding promised for Wales is welcome, but much more is needed, especially given that the UK Government clawed back £200 million from Wales on a recalculation only earlier this year. We all know that this welcome money does not come close to dealing with the cost of repairs and recovery following last month’s floods, let alone to supporting the Welsh NHS and all our other public services, which continue to suffer and operate under continued pressure from austerity, particularly as they prepare for dealing with the virus. We have been told time and time again that austerity is ending or has ended, and this Budget was a missed opportunity to give us all some hope that that is now truly the case. The Institute for Fiscal Studies has since confirmed what we all already knew: that this Budget does not end austerity or truly reverse the decade of cuts our communities have suffered.

On the virus, although the extra package of support announced by the Treasury to help the Welsh Government deal with the outbreak in Wales is welcome, we need clarity on exactly what will be provided and when, so that Wales can be prepared for the next stages of the spread; especially as the Welsh NHS is already under significant pressure from operating on budgets that we have endured since 2010. We have concerns about the impact on the training-based apprenticeships and on training providers, trainees and apprentices. Obviously, a lot of that is a devolved area, but we need much more support from the UK Government to ensure that Wales is able to meet its responsibilities in these areas.

Due to the unprecedented nature of the spread of this virus and its devastating impact on businesses, communities and, crucially, families, I urge the Chancellor to bring forward emergency measures to support jobs, small businesses, including pubs and restaurants, and the most vulnerable in our society, as we all attempt to weather this increasingly serious and constantly changing situation.

[Chris Elmore (Ogmore) (Lab)]

Does my hon. Friend agree that we need support for not just small businesses, but one-person businesses? I have been inundated by constituents contacting me because they run a business by themselves and do not qualify for much of this support. I hope that the Chancellor will make an announcement on that, because many people are desperate for that help in the future.

[Gerald Jones]

I absolutely agree with my hon. Friend on that. Indeed, only yesterday, I received an email from a constituent who was having similar problems. Such support is appropriate and we hope that the Chancellor will bring forward some measures later today or in the very near future.

I welcome the Welsh Labour Government’s response to the outbreak, which has seen a £200 million emergency package provided to support retail, leisure and hospitality businesses across Wales suffering due to the outbreak. We must also support our food banks in the coming months, because we know they will be needed much more than ever.

It was shocking that the Chancellor made no mention of Wales when talking about the damage from last month’s flooding. Communities in Merthyr Tydfil and Rhymney, and across Wales, were some of the hardest hit by last month’s storms, and the funding we desperately need to recover must now be forthcoming, as it has been promised—by the Prime Minister indeed. The cost of the initial repairs is estimated to be more than £15 million in my constituency alone, and we need assurances that Wales will not lose out and will get the funding it needs for our communities and businesses to recover.

As my hon. Friend the Member for Aberavon (Stephen Kinnock) mentioned earlier, it was alarming not to hear anything in the Budget statement about progress on how EU development funding will be replaced at the end of the year. There are just nine months to go until the EU development funding programmes end and we have still not had any information or clarity from the Government on how the funding streams will be replaced, or any clarity on the proposed shared prosperity fund. For months, Members from all parties have called for clarity on the fund. The people of Wales need answers. There is a gap of well over £300 million in EU funds for the Government to fill. They cannot hide or kick the issue into the long grass any longer. Our public services, local authorities and businesses need assurance and must be given time to prepare for the transition. I urge the Minister to give us clarity and confirm that it will be “not a penny less, not a power lost,” as we have been promised time and again.

I welcome the measures introduced so far to help our communities and businesses to cope with the current situation with covid-19. I praise the Welsh Government in particular, and local authorities and community organisations in Wales and throughout the UK, for how they have responded to the virus and sought to protect the most vulnerable among us. I also praise the incredible acts of kindness and compassion that we have seen from so many residents—I know that all Members are seeing the same in their communities—as well as the community initiatives we have seen as we endeavour to help those who need it most. We will unfortunately need much more of that in the coming months.

Finally, I urge the Chancellor and the Government to take the decisive action required to protect those who will be hit hardest by the virus outbreak and who do not have the means to support themselves. It would be a good start to remove the five-week wait for universal credit and to support self-employed workers with a realistic statutory sick pay. I hope the Minister will show that this message and the calls from other Members have been heard, and that the Government will now do what is necessary in this increasingly severe and fast-moving situation.