Cost of Living Increases

Abena Oppong-Asare Excerpts

Tuesday 25th April 2023 Commons Chamber

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

After 13 years of Conservative Government, do the people of Britain feel better off? As my hon. Friend the Member for Hampstead and Kilburn (Tulip Siddiq) put it, the answer is a resounding no. Across the country, families and individuals are seeing their bills rise while their pay packet falls, and they are faced with a Government who are only making the problem worse. We must remember that the shocking decisions made over the past year, be it the mini-Budget that crashed our economy or the pension reforms that cut taxes for the 1%, only further entrenched 13 years of failure and mismanagement.

That economic record and the Government’s failure have left the UK exposed to skyrocketing price increases. Working people are facing soaring bills, rising food prices and higher taxes. Meanwhile the Government have inflicted a Tory mortgage premium on first-time buyers that has increased costs by £500 a month for some households, forced a 5% rise in council tax this spring by reducing funding to councils, and introduced a permanent tax cut for the wealthiest 1% of pension savers by changing pension allowances. As my hon. Friends have powerfully illustrated, these decisions continue to have a devastating impact on people across the country.

My hon. Friends the Members for Bootle (Peter Dowd), for Cynon Valley (Beth Winter), for Kingston upon Hull West and Hessle (Emma Hardy), for Ellesmere Port and Neston (Justin Madders), for Liverpool, West Derby (Ian Byrne), for Vauxhall (Florence Eshalomi), for St Helens South and Whiston (Ms Rimmer), for Bolton South East (Yasmin Qureshi) and for Wansbeck (Ian Lavery) all talked about how people are worse off after 13 years of Tory Government. Even the hon. Member for Wantage (David Johnston) said that the cost of living crisis is the No. 1 issue on the doorstep. My hon. Friend the Member for Lewisham, Deptford (Vicky Foxcroft) talked about how the cost of living crisis is affecting disabled people in such a cruel way.

My hon. Friend the Member for Pontypridd (Alex Davies-Jones) talked about how the Welsh Government are moving heaven and earth to help constituents. This is what a difference a Labour Government make.

People who walk down a local high street today are likely to see pubs, independent shops or even bank branches shutting their doors as soaring inflation and energy bills make their businesses near impossible to run. They might go into a local supermarket and be shocked at the price tickets accompanying everyday items. The price of eggs is up by a third, the price of milk is up by a third and the price of sugar is up by 42%. And at the end of the street they might see a food bank where local people generously volunteer their time to help members of their community in need.

That is the reality of 13 years of Conservative Government. Hard-working families and individuals are struggling to make ends meet, are having to cut back to only essential spending, and are deciding whether they can afford to take their children on holiday this summer or go out for a meal with friends on their birthday. Businesses, suffering under the weight of price rises, are looking at their balance sheets and having to take incredibly difficult decisions. High streets are on the decline. The fabric of the community is breaking down. I know that hon. Members on both sides of the House will recognise that picture. The UK has lost 6,000 pubs, 4,000 local shops and more than 9,000 bank branches since 2010. The Government have presided over and led that managed decline, and now the UK is right at the bottom of the pack, with dismal growth forecasts and no plan to steady the ship. Instead, despite fast-rising prices, wages are stagnating while the tax burden reaches its highest point in 70 years, with 24 tax rises since 2019—I repeat: 24 tax rises since 2019.

For first-time buyers, the Tory mortgage premium has added up to £500 a month to their bills, as the Conservative mini-Budget wrecked the economy and saw interest rates rise and markets losing confidence. That first step up the ladder as people start a family and settle into the community has been put out of reach. What should be a time of excitement and joy has been reduced to one of anxiety and disappointment, and this is before we consider the impact of the many other tax rises coming down the path. Council tax bills have risen above £2,000 for the first time, with the Government forcing councils to put up rates by reducing their funding, seeing families hit with an average rise of 5.1%. Bills are landing on the doormat while parents hide their fear from their children upstairs.

That is the reality of 13 years of a Conservative Government and the time for change is now. But instead of focusing on the interests of working people, the Chancellor’s main offer has been a tax cut for some of the wealthiest pension savers. While he refuses to take action, it is clear that the British people deserve much better. What is needed is a change of direction. What is needed is a Labour Government—a Labour Government who will create good jobs across every part of the country. We will make Britain a world leader in the industries of the future and ensure that people have the skills to benefit from these opportunities. A Labour Government would today freeze council tax and cut business rates to ease the cost of living crisis, supporting businesses and consumers to thrive. That is the choice facing the country and that is why it is time for a Labour Government.