North of England: Economic Support

Abena Oppong-Asare Excerpts

Wednesday 11th November 2020 Westminster Hall

[Abena Oppong-Asare (Erith and Thamesmead) (Lab)]

It is a pleasure to see you chair the debate, Mr Efford; I am not saying that for brownie points. This is my first time speaking as the Opposition spokesperson, and my first time speaking in a Westminster Hall debate; I am not saying that because I want extra speaking time.

I thank my hon. Friend the Member for Barnsley Central (Dan Jarvis) for showing leadership in bringing forward the debate; this is a really important time to talk about the issues facing the north. My hon. Friend mentioned how covid has massively affected the north—the unemployment numbers are much higher, and much more support needs to be given. I share those concerns and commend him for his leadership in helping individuals locally.

I thank everyone who contributed to the debate. All Members have shown so much passion for their constituencies, and I can see at first hand the challenges that they face on such a huge scale. It is good that we have been able to have deep, meaningful conversations without getting into any political point scoring.

I will mention those Members whose comments particularly touched me, although I will not be able to mention everybody. The right hon. Member for Rossendale and Darwen (Jake Berry) talked about football clubs in his constituency and the need for a northern economic recovery fund. My hon. Friend the Member for Halifax (Holly Lynch) talked about the £15 million deficit that her council has. I echo her calls for infrastructure investment in rail—a point also made by the hon. Member for Leigh (James Grundy). My hon. Friend the Member for Batley and Spen (Tracy Brabin) spoke passionately about the challenges in her constituency and about extending the local growth fund, which is particularly important. My hon. Friend the Member for Weaver Vale (Mike Amesbury) referred to the unemployment in his northern constituency and spoke powerfully about more investment in hydrogen. That point was echoed by a number of Members.

My hon. Friend the Member for York Central (Rachael Maskell) talked about the economic situation in York and called for transparent data, investment, modelling, infrastructure and a fresh economic plan. We need a shift towards economic investment. Rather than just maintaining current housing developments, we need to think about the future. The hon. Member for Wakefield (Imran Ahmad Khan) made a really strong case for his constituency, which encouraged me to visit it again. I have been there once, and I will definitely go again. He talked about the disparity between the north and the south, and how he is working collaboratively to try to address the issues.

It is crucial that attention is brought to this issue, because covid-19 will affect not just London but the whole country. We have to acknowledge that some parts of the country are suffering a lot more than others. We have already seen businesses close. I have seen the impact in my constituency and know from conversations how it has affected so many people across the country. The Government are failing to plug the gaps and address those issues—a point that a number of colleagues have echoed.

Businesses that have survived so far will struggle without extra support pumped in, and we need to think about that. We need to think about protecting local and regional economies. We need there to be local jobs, local businesses and strong economies. We need there to be local jobs, local businesses and strong local economies. That is not just so that people can earn a living and survive, but so that the different regions of the UK can thrive.

This is not just a Treasury issue, but a health issue, a tourism issue, a Department for Digital, Culture, Media and Sport issue and an environmental issue; it goes across Departments. We are facing one of the biggest challenges of our time, and we need to ensure that the north of England and all other regions that continue to be affected by covid-19 are fully supported.

As some of my colleagues mentioned, local authorities have been forced to negotiate the financial support that they will receive in tier 3. An example is the negotiations last month with Greater Manchester, which continued for 10 days—10 days when the Mayor of Greater Manchester was fighting for sufficient financial support for his constituents. Initially, the Government said to workers in Manchester that they would get only 67% of their pre-crisis income—67%. They said that 80% was impossible. Then, when the restrictions in the south were introduced this month, they changed their mind. Why was that?

The Chancellor of the Exchequer has yet to come clean on the phantom funding formula—I am still struggling to understand it—that he is using to determine funding for areas under tier 3 restrictions. What we really need is clear, consistent and fair funding for jobs and businesses, not to be playing poker with people’s livelihoods, because people are suffering. They are really suffering and are expecting to see leadership from us so they can address the barriers they face.

I want to echo calls from hon. Members in this Chamber, such as that from my hon. Friend the Member for Barnsley East (Stephanie Peacock), who talked about an exit plan for the national lockdown. That was echoed by other Members. The Chancellor needs to end the last-minute scramble to announce economic support measures and set out a proper plan for the next six months.

The Government need to fix test, trace and isolate, so that different parts of the UK can understand their local covid risk and find a way to recover. We need clarity—this has been echoed by a number of colleagues, such as my hon. Friend the Member for Bradford South (Judith Cummins)—on the economic support for local areas and what they can expect once lockdown finishes. The Government need to set out what they plan to do with regard to recovery, jobs and rebuilding businesses.

So many people have fallen through the gaps. Now the Government must step up, working across all parties and with local leaders, to ensure that those affected are supported. A number of people have talked about a green economy—something I support. Can the Minister confirm that the upcoming spending review will secure a green recovery across the country? The Labour party really wants to see a safety net that includes scrapping the five-week wait for universal credit, the two-child limit, the savings cap and the overall benefits cap. That would help to alleviate the financial hardship faced by many of those on the lowest incomes during this pandemic.

We need to see the Government stepping up to provide support for those who have been excluded from the start. There is still nothing beyond social security for those who have been excluded, and many of the self-employed remain cut out from social security if they have amassed small amounts of savings.

The support must be long-term and help different regions, including the north, to respond to their individual needs and support local growth. The Government must put in place changes to enable people who are off work to use the time to gain valuable skills for the future. That needs to be done urgently; we do not have time to just sit and have conversations about it. Rapid work needs to be done.

I appreciate that it will take years to rebuild crucial industries and identities if this support is not secured. The Government must act now and treat every region of the UK with the same respect for local people and local pride.