Budget Resolutions and Economic Situation

Baroness Keeley Excerpts

Monday 8th March 2021 Commons Chamber

[Barbara Keeley (Worsley and Eccles South) (Lab) [V]]

This Budget may come to be remembered for what it did not mention rather than for what it did contain. The health and care world was reported to be stunned that the NHS was mentioned only once and social care not at all in the Chancellor’s speech, and this despite the fact that we are still in the grip of a deep crisis in health and social care due to this Government’s failure to get covid-19 under control. The UK has experienced higher rates of infections, hospitalisations and deaths from the virus than other countries. The care sector was rocked by more than 30,000 deaths, and a fragile sector has now become even more fragile. Turnover in care staff is at 40% and there are still 100,000 care staff vacancies. The president of the Association of Directors of Adult Social Services has warned that the care system risks “catastrophic failure” without urgent changes. During the pandemic, the number of people with unmet need is likely to have risen to 1.9 million. The £1 billion extra to councils for social care and the reliance on councils raising the social care precept by 3% are both inadequate sticking plasters. We need a recovery plan that gets social care functioning properly by putting it on a par with the NHS.

After a year of incredibly hard work spent fighting this virus, there was no mention of a recovery plan for the NHS, and we learned just a few days ago of the proposal for only a 1% pay rise for NHS staff who have sacrificed so much during this pandemic. My constituents are angry and upset at this derisory pay proposal, because last year Conservative MPs promised, budgeted for and voted into law a 2.1% pay rise for NHS staff.

Many people around the country were excluded from support in this Budget. The 2.4 million people who have been excluded from financial support are not helped by Budget measures that apply to only some of the self-employed. The Chancellor failed again to put in the financial support needed to help people to self-isolate, meaning that they still have to choose between their job and their health. Our schools are left with nothing for additional spending related to covid. Our local councils are being forced into a 5% council tax increase after a decade of cuts that have seen £211 million cut from budgets in my local area of Salford.

To add insult to injury, the Chancellor and the Communities Secretary have come up with a priority list for the levelling-up fund that puts their constituencies into priority 1 for investment but leaves Salford and other more deprived areas lower down the queue. This was not the Budget the country needed, with its triple blow of tax rises, a pay freeze and a cut to universal credit later. Worst of all, while Government Ministers are happy to waste billions on test and trace that fails to deliver and to give contracts to their cronies, they are failing the key worker heroes of the NHS and social care.