Budget Resolutions and Economic Situation

Alex Sobel Excerpts

Wednesday 3rd March 2021 Commons Chamber

[Alex Sobel (Leeds North West) (Lab/Co-op)]

This Budget is made in the context of the UK having the worst economic performance during covid of any major economy and the highest death toll per capita. The Government have failed to protect the nation’s health or its economy. However, as the chair of the net zero all-party group, I have called for an infrastructure bank and, as a Leeds MP, I have called for that to be in Leeds, so I am pleased that one thing that I have lobbied for has come to fruition. My experience on the Environmental Audit Committee in looking at the performance of the Green Investment Bank, sold to Macquarie in 2017, means that I will scrutinise the detail of the bank’s capitalisation, mission and governance very closely to ensure that it supports net zero and biodiversity, and is not greenwash.

Tourism supports 3.1 million jobs in the UK, and I am pleased that the Chancellor has announced measures to support the tourism industry, including the extension of furlough and the extension of the reduced rate of VAT. That will be of some comfort to the sector after months of uncertainty and last-minute announcements. However, these announcements were again made at the 11th hour, with the current measures running out in just a few weeks. The Chancellor’s announcements fall short of Labour’s calls for 100% business rates relief for retail, hospitality and leisure to be extended in England for at least a further six months from July. We need more support for our tourism sector than has been offered today.

Although I am trying to take the positives from the raft of measures today, the reality is that many of the Chancellor’s previous announcements, promises and funds have been sorely lacking, with money promised but never arriving. I hope that this Budget does not repeat those mistakes. A glaring example is the zoo animals fund. Only £5 million of the £100 million promised has been spent. It is hard to know whether this is wilful penny-pinching or unbridled incompetence. Either way, it has meant that zoos have had to make painful cuts to their operations, including conservation, education and research work, in order to prioritise animal welfare. This is putting the lives of our zoo animals at stake, but it is not just about animals. The same goes for the green homes grant, where vouchers have been issued very slowly or not at all, and installers have not been paid in a timely way, risking that industry as well.

People have been left suicidal by a lack of support. The Chancellor may remember receiving a letter from Stephen Liddell, one of the 3 million taxpayers excluded from meaningful support during the pandemic. He said:

“I paid my taxes for 2019-20 in May as I am a good person. Yet I have received zero help and support, absolutely nothing.”

Will the support announced today reach Mr Liddell, as only 151,000 people out of the 3 million excluded, according to the Office for National Statistics, will receive any support? I hope so and I am sure that we will hear from Mr Liddell in due course.

At a time of crisis, those in charge have a duty to act. They also have a duty to listen, understand and admit when the tack needs to change, and, on some of these measures, that is what needs to happen.