Lord Murphy of Torfaen
Main Page: Lord Murphy of Torfaen (Labour - Life peer)Department Debates - View all Lord Murphy of Torfaen's debates with the HM Treasury
(2 weeks ago)
Lords ChamberMy Lords, the noble Lord, Lord Northbrook, referred to a recent article in the Times. Yesterday, in the editorial of its sister paper, the Sunday Times, was this sentence:
“Whoever won in July was going to need billions of pounds more for public services”.
That is not from a newspaper which normally supports my party, but it went to the heart of it. Over the last 14 years, public services in the United Kingdom have declined to an intolerable degree; we are in an awful state. Public services in health, education, our railways and local government have all suffered in that period.
No one wants to spend money for the sake of spending, but many of the speeches I heard today talked about spending, spending, spending. I have been involved in Budgets in public life for nearly 51 years, and never on one occasion did I want to spend for the sake of spending. You spend because you improve the quality of life of the people you represent, and that is why spending is important. You spend wisely, of course—that is a different issue altogether—but the fact that we need it is so very important.
Of course, the money has to come from somewhere—from taxation or from borrowing. If you borrow then you should only borrow for investment; if you raise taxation then you should ensure that those who can afford it most will pay most. That is why, personally, I believe income tax is the best tax of all, and other taxes, important as they are, are not as fair or transparent. Earlier, the noble Lord, Lord Young of Cookham, gave us a number of examples of taxes which could be looked at, and I hope that both the Minister and the opposition spokesperson will do so.
I turn the House’s attention to the situation in Wales. The Welsh Government have received this week the best financial settlement since devolution began in 1999—even better than the settlements that Gordon Brown and I gave them back in the 1990s and 2000s. It is a brilliant settlement, with £2 billion more of new money going into Wales. There is more money for our public services, £100 million for our steel communities, £25 million to ensure our coal tips are safe and much-needed money for local government, which has been underfunded for so many years.
I make a plea to the Welsh Government. When they receive, as they will, many millions to be spent on the Welsh health service, can they ensure that they spend it with reform in mind? The money on its own is not right or sufficient for improvements to take place; it must be matched by reform in the health service.
I will refer to something that is the responsibility of both the United Kingdom and the Welsh Governments: the position of the Welsh National Opera. It might not appear huge in the shape of things, but it was referred to by the noble Earl, Lord Clancarty. The arts and opera have suffered dramatically over the last number of years. I see no immediate prospect that they will improve, and I see the Welsh National Opera possibly disappearing unless the financial situation it faces is addressed. Arts Council England is responsible for greater funding of the Welsh National Opera than the Arts Council of Wales. I ask the Financial Secretary whether he will have a chat with the Secretary of State for Wales, who in turn can speak to the First Minister of Wales, to ensure that both Governments have a very serious look at the prospect facing one of our great national institutions in Wales.
To conclude, the Budget is right in addressing the deficit in our public services. Education, health, the railways and all the other public services in Wales and the United Kingdom will benefit as a result of a Budget that is significant in its contribution and wide-ranging in its effect.