Budget Resolutions

Andy Carter Excerpts

Tuesday 2nd November 2021 Commons Chamber

[Nadhim Zahawi]

I am grateful for the hon. Member’s question. I know that he cares passionately about this subject and the overhaul of information and communications technology in the curriculum. I think an £83 million investment in that is a signal to the sector of how important it is to the UK economy. I saw at first hand at Barnsley College how T-levels in technology are delivering for young people. We will invest £2.8 billion of capital funding in skills and further education, including to further expand our new T-levels, which are set to offer a new gold standard in technical education and will be more than a match for A-levels.

[Andy Carter (Warrington South) (Con)]

I recently visited the university technical college in Warrington, which is a great example of skills-based education, linking with employers such as Sellafield. Does the Secretary of State agree that that is exactly the sort of education we need to see across the UK?

[Nadhim Zahawi]

My hon. Friend is absolutely right that the UTC and the work it is doing with Sellafield is exactly the sort of high-skilled, high-ambition, career-developing education that we need, giving those young people, when they become young adults, a real outcome. Of course, higher wages and a more successful economy will be by-products of that, but the real outcome is that rounded adult who has a real career path in the economy.

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[Kate Green]

If my hon. Friend will forgive me, I will make some progress.

OECD data show that the UK has some of the world’s highest childcare costs—the cost of nursery provision for a one-year-old increased four times faster than wages between 2008 and 2016—but despite the high costs for parents, many early years providers are struggling to stay afloat. This year alone, nearly 3,000 childcare and early years providers have closed their doors. This Budget could have been an opportunity to put provision on a sustainable footing, reduce costs to parents and invest in quality, making a real difference to millions of families, but the announcements that we got were inadequate.

Don’t get me wrong: any investment in families with young children and in support for new parents is welcome, but the family hubs project is a pale imitation of what the Conservatives inherited in 2010. [Interruption.] “Nonsense,” says the Minister, but let me tell him that when Labour left office, there were 3,500 Sure Start centres delivering support to more than 2.9 million children in every local authority in the country. Since then, 1,000 children’s centres have closed. A moment ago, I think the Secretary of State was promising new family hubs in only half of local authorities. Can he tell me how many family hubs in total will be created as a result of the spending announcements?

By the 2021 summer term, children had missed an average of 115 days of schooling, and on 21 October, just before the half-term break, 248,000 children were still out of school as a result of covid, yet the Government’s response falls well below the scale of ambition needed for children’s educational recovery. The extra £1.8 billion announced by the Chancellor last week brings the Government’s recovery plans up to a total of £5 billion—far short of the £15 billion that their own expert adviser said would be needed to ensure that children make a full recovery from the pandemic.

Labour, by contrast, remains committed to our £15 billion children’s recovery plan. Whereas the Government will provide tutoring to just one in 16 pupils this year, Labour’s plan would resource schools to deliver tutoring to all who need it. We would deliver universal catch-up breakfast clubs and extend the school day for additional activities—I noted that the Secretary of State seemed to be in favour of that at Education questions yesterday, but he got nothing from the Chancellor. We would invest in training world-class teachers and teaching assistants and in supporting the early years sector, schools and colleges with an education recovery premium. We would prioritise young people’s mental health, giving every school access to a professional mental health counsellor.

[Andy Carter]

I have totted up all Labour’s uncosted spending plans to about £400 billion. From what I can see, Labour is proposing about £5 billion of extra taxes. Can the hon. Lady explain where the extra money will come from? Is it not still the case that Labour is the party that cannot be trusted to run the economy?

[Kate Green]

I have absolutely no idea where that £400 billion figure comes from. The hon. Member says that it is uncosted, but there is no such uncosted plan; he needs to check his figures. The £15 billion costed plan—a plan advised by the Government’s own expert adviser—will, of course, be covered by the covid funding pot that the Government themselves admit has to be set aside to meet the costs of the pandemic. If the hon. Member cares to examine the tax burden from the Budget, he will see that it is not Labour that is increasing taxes on hard-pressed families. Taxes will hit families by an extra £3,000 as a result of his Chancellor’s Budget.

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[Andy Carter (Warrington South) (Con)]

I commend the opening comments of my right hon. Friend the Education Secretary, particularly the emphasis he placed on skills and education, because that is our route to levelling up. I also pay tribute to the Chancellor and the entire Treasury team for the work they did to deliver the Budget last Wednesday.

We need to recognise the news that the economy is growing much faster than anybody predicted, and much faster than any other G7 country. Looking back 12 months, everybody in this House had a genuine fear about an unemployment crisis. Certainly the models were predicting a very difficult period. While we should not underestimate the challenges that many families still face, it is absolutely clear that those predictions have not come to pass. Unemployment appears to be peaking at much lower levels, largely owing to the actions taken by this Government and my right hon. Friend the Chancellor. I congratulate him on the work that he did around the furlough scheme to ensure that businesses could support their employees through that incredibly difficult time.

In general, I welcome many of the measures that the Chancellor introduced last week—in particular, the tapering of universal credit. I am also very pleased to see the national living wage being increased to £9.50 an hour, thereby, as he said, putting about £1,000 into the pockets of the lowest paid. It is good news to see the public sector pay freeze being lifted as well.

As a Member of Parliament in the north-east representing the brilliant people of Warrington South, I was very glad to see many of the announcements that will relate to the levelling up agenda in my part of the country. Levelling up is not just about bricks and mortar; it is also about our public services and how they are delivered and setting higher standards for local communities that have been ignored for too long. It is about ensuring that opportunity is spread equally around the UK, giving people the chance to realise their full potential, no matter where they come from, without having to travel to the south-east.

Talking of travel and transportation, improving transport links locally has a massive part to play in levelling up. If people cannot get to a job, it is impossible to tackle the underlying issues around unemployment. I welcome the decision to freeze fuel duty and to invest in public transport. I was struck by a conversation I had with a gentleman called Patrick in Stockton Heath in my constituency. He is a pensioner who had given up using his car and wanted to spend a night out in a village enjoying some craft beers, but because he lives outside the big city, the last bus ran at 7 o’clock in the evening, so having arrived at the pub he could not get home and ended up spending far more on a taxi than he spent drinking that craft beer. Whereas buses run 24/7 in cities around the country such as London, Manchester and Leeds, far too often in towns such as Warrington they switch off and stop running at 7 o’clock in the evening—and it is nigh on impossible to travel outside of Warrington, from Warrington to Altrincham or Warrington to Leigh. So the announcement that Warrington is to get a £20 million all-electric bus fleet, run by Warrington’s Own Buses, is of huge benefit to the town and something I really welcome. On top of that, the Government have funded a new electric bus depot at a cost of £5 million. We will be one of the first areas in the north of England to get a totally electric bus fleet, with 120 new buses being phased in over the coming year, replacing the current diesel fleet. That will benefit the environment and improve public transport options for working people, as well as reducing the cost of running the buses, which means that more can be invested into services across our town.

In terms of skills and education, and delivering public services for the future, I very much welcome the continued focus on investing in training and apprenticeships for young people. There is a need to invest in digital and cyber, in health and social care and in advanced engineering and nuclear technology, which are key for my local economy in Warrington but also across the UK. I am pleased that schools such as the university technical college in Warrington are working closely with employers such as Sellafield, Cavendish Nuclear, BAE, Rolls-Royce and the NHS to ensure that young people’s training is preparing them for the workplace of the future. I am also pleased to see the commitment to a new UK global talent network to work with research institutes and businesses to identify and attract the best global talent in key science and tech sectors that are rapidly growing in my constituency and across the north-west.

We have seen significant additional funding to help our public services in the fight against the pandemic, and the vaccine roll-out has been nothing other than phenomenal, with more money going into our booster jabs programme. Looking forward, we are also making investment in the NHS that provides a cash increase of £33.9 billion for 2023-24 and continues with our programme of hospital rebuilds. Warrington has recently submitted an excellent application for one of the eight additional new hospitals being built, and I look forward to a decision on that project being made in early 2022.

I welcome the decision to support small businesses. The temporary 50% cut in their business rates, up to a maximum of £110,000 a year, will make a difference to local businesses on my high street. In addition, the decision to scrap 2022’s planned annual increase in rates for all firms for the second year in a row is very welcome, but I urge my right hon. Friend the Chancellor to look carefully at a complete revision of the business rates system. We are faced with incredible challenges on the high street, and we need to support SMEs as they help the economy recover. We are delivering on a central mission of levelling up for every single person, no matter their background and no matter their circumstances. It is the right Budget at the right time in our economic cycle, and I congratulate the Chancellor on the work he is doing to take this country forward and on levelling up.

[Mr Deputy Speaker (Mr Nigel Evans)]

I just remind everyone that if they take part in today’s debate, they will be expected to be here for the wind-ups.