60 Barbara Keeley debates involving HM Treasury

Oral Answers to Questions

Barbara Keeley Excerpts
Tuesday 28th June 2022

(1 year, 10 months ago)

Commons Chamber
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Rishi Sunak Portrait Rishi Sunak
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I thank my right hon. Friend, the Chair of the Select Committee, for his constructive and thoughtful dialogue with me on these issues. He makes an excellent point, and I direct him to the tax plan that we published at the spring statement to indicate the direction of travel on tax. There will be tax cuts in, I think, a day’s time to help people with the cost of living, tax cuts in the autumn to drive growth in business investment and innovation, and further cuts to personal taxation thereafter, once the situation stabilises.

Barbara Keeley Portrait Barbara Keeley (Worsley and Eccles South) (Lab)
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Unpaid carers have seen their bills soar during this cost of living crisis. Many carers find it impossible to reduce their energy use, because the person for whom they are caring relies on electricity to power a wheelchair, a hoist or other vital equipment, yet last month the Government decided to exclude hundreds of thousands of unpaid carers of state pension age who are not in receipt of a means-tested benefit from the £650 cost of living support package by leaving carer’s allowance out of the qualifying benefits. Will the Chancellor reconsider this unfair decision, which risks putting even more carers into financial hardship?

Rishi Sunak Portrait Rishi Sunak
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The hon. Lady is right to pay tribute, as we Conservative Members do, to those who care for others. She should be reassured that of the 1 million people in receipt of carer’s allowance, 60% or more will be in a household that receives the £650 or, indeed, the disability payment. Carer’s allowance itself is not a means-tested benefit.

Financial Statement

Barbara Keeley Excerpts
Wednesday 23rd March 2022

(2 years, 1 month ago)

Commons Chamber
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Rishi Sunak Portrait Rishi Sunak
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I think the hon. Gentleman missed the household support fund announcement, which is specifically for local councils, so that they can help those who are most vulnerable. Many of those people who are not currently in work can, with the right support, care and attention, be supported into work. That is something that this Government are spending a lot on doing.

Barbara Keeley Portrait Barbara Keeley (Worsley and Eccles South) (Lab)
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Today, the Welsh Government announced a £500 payment to unpaid family carers, to recognise their commitment during the pandemic. Unpaid carers in Scotland receive the carer’s allowance supplement. Meanwhile, carers in England get a miserly carer’s allowance, which is increasing by only £2 this year. That means not only that the sacrifice and commitment of unpaid carers in England is going unrewarded, but that carers are being driven further into financial hardship. How many more need to be pushed into poverty before this Government act to value carers, and give them the targeted support they deserve?

Rishi Sunak Portrait Rishi Sunak
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We do value carers. There are fewer people in poverty today than when we first came into office—1.7 million people fewer in absolute poverty than in 2010, after housing costs. Also, today we have topped up the household support fund, in order to provide support to the most vulnerable who need help.

Downing Street Parties: Police Investigation

Barbara Keeley Excerpts
Tuesday 25th January 2022

(2 years, 3 months ago)

Commons Chamber
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Michael Ellis Portrait Michael Ellis
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I know the hon. Lady wishes to make a political point, and it is kind of her to focus on my comfort, but I am not forced to do anything. I am here because I know the Prime Minister is entitled to the same justice as anyone else. It is unedifying to see the Opposition making party political points over this matter. The focus of this Government is on the primary concerns of the cost of living, employment, the economy and the situation in Ukraine and Russia, while the police and the Cabinet Office conclude their investigations.

Barbara Keeley Portrait Barbara Keeley (Worsley and Eccles South) (Lab)
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The police were asked to enforce covid rules across the country and faced difficult challenges in doing so to keep us all safe, issuing tens of thousands of fines to people who broke the rules—even those gathering for birthdays. Does the Minister believe that the Prime Minister is above the law? My constituents are asking why these events took place, disregarding the rules. I say to Conservative Members who have attacked this business that these matters do concern our constituents—they do.

Michael Ellis Portrait Michael Ellis
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No one is above the law in this country.

Downing Street Garden Event

Barbara Keeley Excerpts
Tuesday 11th January 2022

(2 years, 4 months ago)

Commons Chamber
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Urgent Questions are proposed each morning by backbench MPs, and up to two may be selected each day by the Speaker. Chosen Urgent Questions are announced 30 minutes before Parliament sits each day.

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Michael Ellis Portrait Michael Ellis
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Surely the hon. and learned Lady would know about the pillars of fair justice. She knows that it is necessary to wait for the result of the investigation. She would know that better than most. As for the enforcement of rules, they apply equally to everyone in this country, they have done for many generations, and they will continue to do so.

Barbara Keeley Portrait Barbara Keeley (Worsley and Eccles South) (Lab)
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In May 2020, a constituent told me this:

“I had a little baby boy on 17th April but because of [pandemic] conditions we have been unable to have anyone round—not friends, not family. We’re completely on our own. It’s been really hard. My Dad hasn’t met his grandson and I’m feeling exceptionally isolated and alone without any support.”

How does the Minister feel—how does he himself feel—about the behaviour of the Prime Minister and Downing Street staff enjoying a drinks party while new mothers such as my constituent felt unsupported and desperately alone?

Michael Ellis Portrait Michael Ellis
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I can tell the hon. Lady how I feel about what has happened to her constituents. As a human being, I feel considerable regret and sorrow, and indeed distress, for those who have suffered loss—of course I do. We all do. We would not be human if we did not. So I say to her that I am terribly sorry for the loss of her constituents’ friends and families, and for everybody who has suffered loss, but my feelings are irrelevant; what matters is the opinion of those who have been charged with the heavy duty of investigating the propriety of gatherings that may or may not have taken place. When that person then reports back on the result of their investigations, no doubt the hon. Lady will wish to discuss the matter further.

Covid-19: Government Support

Barbara Keeley Excerpts
Wednesday 7th July 2021

(2 years, 10 months ago)

Westminster Hall
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Barbara Keeley Portrait Barbara Keeley (Worsley and Eccles South) (Lab) [V]
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It is a pleasure to speak in this important debate with you in the Chair, Mr Mundell, and I congratulate the hon. Member for Midlothian (Owen Thompson) on securing it.

Over the past 18 months, the people of this country have made extraordinary sacrifices to control the spread of coronavirus and to protect one another. At every turn, they have done what was required of them, but the Government have not been as reliable or committed. The financial support schemes put in place have often fallen short of what was needed. As we have heard, more than 3 million people have been excluded from Government support throughout the pandemic. Be it zero-hours workers who have been denied furlough by their employers, or sole traders who were excluded from self-employment schemes because of their registration status, the Government have consistently failed to plug the gaps in their support packages.

The greatest impact on many people in my constituency has been the gap between furlough and the self-employment income support scheme. For those working in the creative industries, it is common to work across a mix of short-term, pay-as-you-earn contracts and self-employed contract work. Unless more than half their income came from self-employed work, they could not get any support through the self-employment income support scheme. However, unless they happened to be working on a pay-as-you-earn contract at the start of the pandemic, they could not be furloughed.

People trapped in that situation have been left without support for 18 months, causing immense financial stress and leaving them trying to make impossible choices. Savings have been used up and I have heard from constituents who simply do not see how they can continue to pay their bills. I want to put it in their words and express their hurt. A constituent of mine who is self-employed and normally works in the entertainment industry described their situation:

“Through no fault of my own I’ve had no income since the grant in late November…It has been incredibly difficult trying to get through the last few months…All I want to do is earn a living in the way I have for the last 20 years. I’ve never asked for help and over the years I’ve had many ups and downs, but I need help now. The bills are mounting up and the wolves are at the door…I’ve had no option of work for 8 months out of the last 11.”

Another constituent described how they now owe money to HMRC:

“After being excluded and denied furlough for over a year, I now find myself somehow owing HMRC”

a sum of thousands. They continued:

“There has been no work, and schemes and jobs I applied for were suspended. I have no idea how I am going to be able to pay it back. I feel it is so unfair how I am being treated as a taxpayer. For me it’s like I’m being blamed for what the government did which isn’t my fault”.

As we move forward, my constituents and others excluded from the schemes need real financial support to make up for the debts that they have built over the last year. I hope the Minister can confirm that support will be offered as soon as possible.

Covid-19: Ethnic Minority Disparities

Barbara Keeley Excerpts
Monday 1st March 2021

(3 years, 2 months ago)

Commons Chamber
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Kemi Badenoch Portrait Kemi Badenoch
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My hon. Friend asks a very important question, and he is absolutely right. We know that the virus targets different groups differently, but we do not necessarily have all the answers. Some of the issues around the disproportionate impact on men are to do with occupational risk, which is not something we can control for very easily. That is why we are making sure that we address the pandemic holistically. We do not stigmatise any specific groups, but we make sure that we target information and assistance on those who are most vulnerable, particularly the elderly, who are 70 to 80 times more likely to contract the disease and die from it than other age groups.

Barbara Keeley Portrait Barbara Keeley (Worsley and Eccles South) (Lab) [V]
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We know that one of the drivers of the spread of covid-19 is people being unable to self-isolate, because they cannot afford to miss work. That is a particular problem for people in insecure or zero-hours contract jobs. Black, Asian and minority-ethnic people are more likely to be on those contracts, so are less likely to qualify for sick pay. If we want to drive down covid-19 rates everyone needs to be able to self-isolate, so will the Minister work with her colleagues to expand eligibility for the self-isolation support payment to everyone who needs it?

Kemi Badenoch Portrait Kemi Badenoch
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What I can tell the hon. Lady is that, certainly in the Treasury, we look at how different groups are being impacted to make sure that we target help on those who are most vulnerable. All the various schemes—not just the ones that I have mentioned such as the self-employment income support scheme or the CJRS but others such as kickstarter—are targeted at the groups that are most vulnerable, which includes ethnic minority people in particular.

UK-EU Future Relationship Negotiations and Transition Period

Barbara Keeley Excerpts
Monday 7th December 2020

(3 years, 5 months ago)

Commons Chamber
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Barbara Keeley Portrait Barbara Keeley (Worsley and Eccles South) (Lab) [V]
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Orchestras in the UK are being hit by a double whammy of the covid pandemic and uncertainty around what they need to do to perform on tour after 31 December. The Northern Ireland protocol means that goods moving between Great Britain and Northern Ireland will require customs declarations. Orchestras that work between Great Britain and Northern Ireland have to transport their instruments to perform there. Can the Minister confirm whether an orchestra in this position will require carnets for their instruments after 1 January because orchestras have not been able to find out, despite the Government promising to give the information and support needed for the end of the transition period?

Penny Mordaunt Portrait Penny Mordaunt
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I suspect that there is more to it than all the information that I heard in the question, because I do not think that orchestras should require—if I have understood the journey correctly—any paperwork of that sort. Again, if the hon. Lady would like to give me the details of that case, I will get her a swift answer on that.

Economic Update

Barbara Keeley Excerpts
Wednesday 8th July 2020

(3 years, 10 months ago)

Commons Chamber
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Rishi Sunak Portrait Rishi Sunak
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I very much thank my right hon. Friend for that support. Of course, this is an area he will know well. He is absolutely right. There is no point in doing this if the work placements are of low quality. It is important that we get it right as we construct the bidding process. I would be very grateful to him if he sat down with me so that we can get his thoughts on how best to achieve that.

Barbara Keeley Portrait Barbara Keeley (Worsley and Eccles South) (Lab) [V]
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I join my hon. Friend the shadow Chancellor in urging an end to poverty pay for our care workers. Today’s interventions in the job market are welcome, but there is still no recognition in pay for the fantastic job done in this crisis by our care staff. Rather than blaming care staff, as the Government have done this week, will the Chancellor commit to showing them some parity of esteem with NHS staff and pay them a real living wage of £10 an hour?

Rishi Sunak Portrait Rishi Sunak
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I join my colleagues in paying enormous tribute to those on the frontline during this crisis, who have done an extraordinary job under incredibly difficult circumstances. They deserve not just our thanks, but our praise, and they have it. In terms of public sector pay we are in the midst of the second year of inflation-busting pay rises for almost a million people, and we have got social care who are funded from local authorities. As I said, local government has enjoyed two years of record increases in core spending power, which hopefully will help find its way to the frontline.

Budget Resolutions

Barbara Keeley Excerpts
Thursday 9th March 2017

(7 years, 2 months ago)

Commons Chamber
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Sajid Javid Portrait Sajid Javid
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I am pleased that my hon. Friend asks that question as it allows me to say more on this issue. First, I can confirm that the £2 billion is all new money; it is new grant from central Government. Secondly, I can confirm that it will be added to every local authority’s baseline over the next three years as that money is distributed. My hon. Friend also rightly asked about how it will be allocated. The vast majority of the money will be allocated using the improved better care formula that already exists and is transparent and open, which will mean that account can be taken of not just the needs of every local authority but of their ability to raise money through council taxes. A small portion—10%—will be allocated using the existing relative needs formula, and the purpose of that is to make sure that every local authority in the country that has responsibility for adult social care is able to access new funding.

Barbara Keeley Portrait Barbara Keeley (Worsley and Eccles South) (Lab)
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The Secretary of State tells us that the vast majority of the money will be allocated via the better care fund. We know that the settlement before Christmas caused problems and that a third of councils lost out, including mine which lost out because of the adult social care bill. Will he say how the rest of the money will be allocated?

Sajid Javid Portrait Sajid Javid
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I thought I had just made that clear, but I will repeat it and be a little more specific: 90% will be allocated using the improved better care fund formula and 10% will be allocated using the relative needs formula. These are two existing formulae already in place and, as I said, further details will be published this afternoon, with the allocations and a description of those formulae. I hope that is helpful to the hon. Lady.

We also need to make sure that councils deliver the best possible local care services. There are many excellent examples of best practice around the country, but there is a big difference between the best-performing and worst-performing areas. There is clearly room for improvement across the sector, so alongside the additional funding announced in the Budget my right hon. Friend the Health Secretary and I will shortly announce measures to help ensure that those areas facing the greatest challenges can make rapid improvement.



Looking at health more widely, we are already committed to a £10 billion annual increase in NHS funding by 2020. This Budget goes further still: there is £325 million to allow the first NHS sustainability and transformation plans to go ahead, meaning more efficient and more effective healthcare for local people; and there is another £100 million to fund improvements in accident and emergency departments for next winter, including better on-site triage and GP facilities. That is enough to fund up to 100 new triage projects, taking some of the strain off our A&E departments.

--- Later in debate ---
Barbara Keeley Portrait Barbara Keeley (Worsley and Eccles South) (Lab)
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We have heard a wide range of speeches this afternoon, including from the hon. Members for Kirkcaldy and Cowdenbeath (Roger Mullin), for Richmond (Yorks) (Rishi Sunak), for Esher and Walton (Mr Raab), for Harrow East (Bob Blackman) and for Peterborough (Mr Jackson), and from the right hon. Member for North Norfolk (Norman Lamb), who is no longer here. We also heard excellent speeches from my hon. Friends the Members for Wallasey (Ms Eagle), for Croydon North (Mr Reed), for Bristol East (Kerry McCarthy), for Ilford North (Wes Streeting), for West Bromwich West (Mr Bailey), for Feltham and Heston (Seema Malhotra) and for Cardiff South and Penarth (Stephen Doughty) and from my right hon. Friend the Member for Leicester East (Keith Vaz).

I shall mainly talk about social care, but I want to mention the absence of any Budget help for the 1950s-born women struggling without their state pensions owing to the 1995 and 2011 Pensions Acts. Their demonstration and lobbying here yesterday were wonderful. I am also sad that the Chancellor could not find £10 million for the children’s funeral fund, which was campaigned for so ably by my hon. Friend the Member for Swansea East (Carolyn Harris). Despite cuts from central Government, my local authority has recently announced that it will waive fees for child burials, but all the weight of that should not be put on councils.

I had hoped that this Budget would finally announce a Government funding commitment to start to put the social care sector on a stable footing. The Chancellor said that everyone should be able to

“enjoy security and dignity in old age.”—[Official Report, 8 March 2017; Vol. 622, c. 820.]

However, despite his rhetoric, it is clear that his Budget did not match up to that aim. As we have heard, the King’s Fund has put the current funding gap for social care at around £2 billion. Yesterday, the Chancellor announced additional funding of £2 billion over three years, of which only £1 billion will be available this year. That is half of what is needed to deal with the immediate crisis. The Care and Support Alliance commented that that the funding will

“keep the wolf from the door”

but no more. There has been much discussion about the future and what will happen to that extra funding, but we must bear it in mind that post-Budget figures for adult social care show a 2.1% cut between 2016-17 and 2019-20, showing that funding is still being cut in this Parliament.

Along with council leaders, social care providers and health leaders, the Opposition have been warning this Government for many months about the perilous state of the social care sector. Indeed, the King’s Fund recently said that adult social care is

“rapidly becoming little more than a threadbare safety net for the poorest and most needy older and disabled people.”

Last week, the care company Mitie offloaded its two homecare businesses for £2, which is a clear demonstration of the fragility of the current care market. That company, which had provided care and support to 10,000 people and employed 6,000 staff, was reduced to being worth only £2. It has taken until now for the Government to heed the many warnings, and they were wrong to wait so long to act, just as they were wrong to cut local government budgets by around 40% since 2010, which has led to cuts of £5.5 billion from adult social care budgets by the end of this financial year.

Angela Eagle Portrait Ms Angela Eagle
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Does my hon. Friend also recognise that the cuts to benefits, particularly to housing benefit, will have a huge effect on extra care? Large numbers of people are very happy, well looked after and protected in those arrangements, but they cannot pay for them if housing benefit goes. Moving those people into nursing care will cost far more a week. That is another ticking time bomb.

Barbara Keeley Portrait Barbara Keeley
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My hon. Friend is right about extra care housing.

The Chancellor was wrong not to make any extra funding available for social care in the autumn statement. Instead, Ministers chose to continue putting the burden of funding social care on councils and council tax payers. The local government finance settlement compounded the mess by recycling money from the new homes bonus to create the adult social care grant. That rather inept settlement made a third of councils worse off, including my own Salford City Council, which loses an extra £2 million from budgets this year.

One council that did not lose out from the settlement was Surrey County Council, which will gain £9 million extra from the adult social care grant. Perhaps that should not surprise us, given that the settlement was made when Surrey was in the middle of a long, drawn out and clearly highly successful lobby of Ministers to get more funding for just that council’s social care.

Last night, Surrey County Council released many documents and texts revealing the extraordinary level of access that that one council enjoyed with Ministers and their advisers. My local authority recently asked for a meeting with the Secretary of State for Communities and Local Government to discuss our difficult financial situation and the loss of funding for social care. We were given a 30-minute meeting with one of the Under-Secretaries of State. However, the leader of Surrey County Council was given meetings with the Secretary of State on 12 October, 19 October and 9 January. There were a number of further meetings with the Secretary of State to discuss Surrey County Council’s funding situation involving the Chancellor, the Secretary of State for Health and other Surrey MPs. There was also a substantial stream of letters, emails and texts, some of which may make surprising reading. Some frustration was expressed about the Communities Secretary, with one Surrey MP saying:

“Sajid led me to understand before Christmas that he would be trying very hard…to help Surrey out with the worst of its (Government-dictated) financial dilemma.”

And he said that if the Secretary of State was

“imprudent enough not to have £40m hidden under the Department sofa for just this sort of emergency/problem”

and if all the Secretary of State’s local government money really is allocated, he

“still has the option of adjusting all other Council settlements down very slightly in order to accommodate the £31m needed for Surrey—and I think he should be encouraged to do this.”

In January that Surrey MP wrote that he was

“losing hope re getting help from Government this time, we still need to kick up such a fuss that Ministers and Civil Servants really do remember at the very least ‘they will need to treat us better next time.’”

I think that refers to the new funding formula. All this about a council that the Chancellor himself told in a letter in December:

“Surrey’s core spending power in 2016/17 decreased by 1% compared to an average reduction of 2% for shire counties as a whole”.

And the Chancellor said that over the lifetime of this Parliament

“Surrey’s spending power is forecast to increase by 1.5% compared to a flat cash settlement for local government as a whole”.

It seems that Ministers were not ready to listen to most council leaders, care providers, local authorities and their own regulator about the fragile state of social care funding, but it is clear from all the correspondence—I recommend that hon. Members read that correspondence, as it is very interesting—that relying on council tax and business rates to fund social care will never give us the fair and stable funding system that we need.

As I said earlier, there will still be cuts of 2.1% to social care up to 2019-20, so what we have in this Budget is a sticking plaster or a stopgap announcement that will not give older and vulnerable people the “security and dignity” in old age that the Chancellor claims. And it will not enable us to deal with the continuing demographic challenges that we face. The number of people aged 75 and over is projected to nearly double by 2039. That ought to be something to celebrate, but instead the Government have created fear and uncertainty for older people by failing to address the health and care challenges raised by those demographic changes. The Chancellor said that the Government intend to produce a Green Paper in the autumn on long-term funding options, and there has been some discussion of that in this debate, but given that we have already had the Barker review and the Dilnot commission, there are fears that the Government could be kicking this issue, once again, into the long grass.

I hope that the Government are not doing that, because cuts to social care budgets hit not only people who need care, but the 6.5 million unpaid family carers. Carers UK tells us that an estimated 1.6 million people currently provide 50 hours or more of care per week, which is an increase of a third since 2001. Some 2 million people have given up work at some point to care for loved ones, and 3 million carers have had to reduce their working hours. That is not good for their finances, with many falling into poverty as time goes on.

As people live longer with disabilities and long-term health conditions, more of us will find ourselves having to take on a caring role. Sadly, this Budget offered nothing to carers, just as it offered nothing to women born in the 1950s and nothing to families who were bereaved after losing children. There was nothing in it for carers, no extra support and no sign that this Government value the important work that they do. I say to the Minister that £120 million would deliver a three-hour respite break each week for 40,000 carers who are providing full-time care; instead, as we know, the Government have chosen to prioritise cuts to inheritance tax and corporation tax, and to ignore the increased burden on unpaid family carers.

The Government have also failed to recognise that the social care crisis is not just about older people. The Chancellor talked about the impact that the £2 billion over three years will have on delayed discharges, but, as councils have reminded us this week, other groups of people need social care, including those with learning disabilities. About a third of councils’ annual social care spending—some £5 billion—goes on supporting adults with learning disabilities. Surrey MPs must now understand that fact, after all the correspondence from their council leader, who spent a lot of time trying to make clear to them what an issue that was for councils.

We had an excellent debate in Westminster Hall earlier in the week on social care in Liverpool, when we heard that Liverpool had lost almost 60% of its grant since 2010 and that that will reach cuts of 68% by 2020. Cuts to social care there have meant that funding for care packages had to be cut, so whereas 14,000 people were receiving one now only 9,000 are—5,000 people are no longer getting a care package. Surrey, which has had so much attention, did not have cuts at that level; its cuts were only 28%. Indeed, social care spending in Surrey has increased from £273 million to £367 million.

I want to make an observation about the new allocations for the £2 billion that the Government have announced. I observe—that is all I can do, because the figures have only just arrived—that the allocations are £1 billion for year one, two thirds of a billion for year two, and one third of a billion for year three. In that, Surrey’s allocation goes up in year two; it is one of only six councils on the whole list that gets a bigger allocation out of a smaller amount of money. I do not know, and it is impossible to see here in the Chamber, what the formula is, but that position is very worrying.

Disturbingly, this important matter of funding social care has been tarnished by the offering of sweetheart deals and the making of gentlemen’s agreements. It seems, from reading the correspondence, that all of that was done to escape the political heat for some right hon. and hon. Members facing the reality of what cuts to council funding have done to social care in their local authority area. That is what this is all about: threats of what will happen to constituencies and areas if the cuts go on.

Social care should not ever be consigned to becoming a threadbare safety net. We also should not have a Communities Secretary who can hold more than seven meetings with Surrey County Council or Surrey MPs to discuss their funding, yet who will not meet a cross-party delegation from Salford City Council and has no time in his diary to meet the leader of Hull City Council. I hope the Communities Secretary will start to listen to councils other than Surrey County Council, whose leader emphasised in letters that we have seen that it has the largest Conservative group in the country. He should also listen to leaders from Hull, Croydon, Salford, Manchester, Liverpool, Durham and Newcastle. He needs to understand from them what is needed throughout the country to save social care from crisis.

Jane Ellison Portrait The Financial Secretary to the Treasury (Jane Ellison)
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We certainly have covered a lot of ground in today’s debate; indeed, we have strayed internationally, as well as covering an awful lot of domestic policy. Before I address some of the key themes, I wish to stress again the central point made by my right hon. Friend the Secretary of State for Communities and Local Government when he opened the debate. Our ability to provide public services is entirely dependent on our ability to pay for them. Indeed, the right hon. Member for Leicester East (Keith Vaz) said in his speech that before we talk about spending, it is important to talk about how we would raise the money. That is the last thing we have heard from the Opposition today.

Key to this debate is the fact that if we do not live within our means, deal with the deficit and get debt falling, we simply will not be able to continue to fund the public services that we all care about on both sides of the House; of course, the generations to follow will then suffer. We have seen how debt has been left for others to deal with, which is why at the heart of the Budget and our economic policy is our continued resolve to restore the public finances to health, increase our economic resilience and secure our public services for the future. At the heart of our aims is the work to bring down the deficit. We have made great strides, and in doing so we have been able to bring what we spend and what we raise further into line. That is how we can afford public services.

We have already cut the deficit by almost two thirds, but the work is not done. We are also on course to get debt falling as a share of GDP by 2018-19. We are, though, the first to acknowledge that there is no quick fix, no silver bullet and, contrary to assertions by Opposition Members, no magic money tree. That is why we are sticking to the spending plans we have set out and why we are taking a systematic look at how we can become ever smarter in how we spend taxpayers’ money, including by conducting an efficiency review that aims to get more value for money and to save £3.5 billion. As my right hon. Friend the Secretary of State said earlier, we are looking forward to benefiting from the insight and expertise that Sir Michael Barber can bring to bear on the process.

We all have to acknowledge that this work is part of a longer-term challenge. There are many pressures on services in advanced economies around the world, and if we do not grapple with the issue of how we pay for things, we just cannot tackle them. We heard quite a lot from the shadow Minister, the hon. Member for Worsley and Eccles South (Barbara Keeley), about social care. We made a significant announcement in the Budget statement about a £2 billion injection of extra cash—[Interruption.] Opposition Members say from a sedentary position that it is not enough; I return to my previous point: we have heard so much from them about where they would spend more, but we have heard absolutely nothing about how they would pay for it. They have a few gimmicky ideas, to which I shall come—I am going to address one of them head on—but their answer really is the magic money tree. We have made new money available, and further details have been announced today about how it will be allocated. That is real money made available very quickly—£1 billion is being made available for the new financial year starting in just a few weeks—and it is really important that we do that.

Nevertheless, we acknowledge that there is a longer-term challenge. As I said, all advanced economies face pressures as populations become older and the rise in complex and chronic conditions continues. As well as offering some kind words about me relating to my previous role, the right hon. Member for Leicester East rightly drew our attention to the Government’s work on prevention. I shall not be drawn into talking about that too much—as a former public health Minister, I could talk on that for some time—but I remind him of the national diabetes prevention fund and the related work, and the £16 billion a year from the public health budget that we give to local government.[Official Report, 13 March 2017, Vol. 623, c. 1-2MC.] All Members have acknowledged what the sugar levy and other work are doing to turn the sugar tide.

I also draw the right hon. Gentleman’s attention to page 35 of the Budget book—our consultation on the damage that white cider can do. We are consulting on the alcohol by volume duty rates because we have heard from many charities, particularly those working with the homeless, about the impact of the abuse of white cider, in particular, on the health of homeless people and many young drinkers and the increase that it provokes in the frequency of visits to A&E.

Barbara Keeley Portrait Barbara Keeley
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Surely the key point is that we are almost abandoning prevention. Some 1.2 million older people live every single day with unmet care needs. There is no prevention when a frail older person who needs care does not get it, and this money goes nowhere to helping with that.

Jane Ellison Portrait Jane Ellison
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I disagree with the hon. Lady about prevention. We can do a lot on prevention, particularly with older people. With this new money, we can have more care packages. For example, falls prevention, which is delivered in the community or at home, is one of the most valuable ways to keep people out of accident and emergency. But we are not in any way downplaying the challenges of dealing with these pressures. We are not burying our heads in the sand. It is a matter not just of common sense but of responsible government that we must face up to the question of how to secure our social care system for the long term. He is not in his place, but the right hon. Member for North Norfolk (Norman Lamb), my former colleague in the Department of Health, talked about that, and there are areas of great agreement across the House about some of those challenges. That is why we announced that we will publish a Green Paper by the end of the year in which we will set out our proposals to put spending on a sustainable footing.

The hon. Member for Worsley and Eccles South said from the Opposition Front Bench that this was about the long grass. I will not embarrass her by reading out the very long list of times that the last Labour Government attempted to grapple with this issue over 13 years.

Jane Ellison Portrait Jane Ellison
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No, I am not going to take another intervention—I will take the same time that the hon. Lady took.

The list is very long. Labour said in its 1997 manifesto that it would tackle this issue; there was a royal commission in 1999, a Green Paper in 2005 and the Wanless review; it was said that the issue would be resolved by the 2007 comprehensive spending review, and there was another Green Paper in 2009—13 wasted years. I am afraid that Opposition Members provoked me to embarrass them. Their long grass was very long indeed.

We are injecting not just new money into social care but an extra £425 million into the NHS to help A&E departments triage patients more effectively and to support local NHS organisations as they reform and improve for the long term the way services are provided to patients. By putting more money into social care and those specific parts of the NHS—triage and capital for A&E—we are addressing some of the very issues that Simon Stevens has talked about recently as immediate challenges of dealing with pressures in the system.

My hon. Friend the Member for Harrow East (Bob Blackman) asked about STPs. The investment that we set out will make a real difference by supporting regions with the strongest plans that are ready now to deliver their long-term visions. We will revisit STPs in the autumn to see whether there are further areas with strong cases for investment, but the NHS obviously also has a part to play in looking at how it can, for example, dispose of unused land and reinvest that money. I give my hon. Friend that assurance.

Let me talk a little about education and skills. We have already taken action to fundamentally reform and improve school education, with the result—this is never acknowledged by the Opposition—that 1.8 million more children are in good and outstanding schools compared with 2010. The simple fact is that vastly more children are getting a good or outstanding education. In this Budget, we further galvanised our schools with £320 million of investment in new schools and £216 million for the maintenance of existing schools.

My right hon. Friend the Secretary of State for Communities and Local Government spoke compellingly about the sweeping reforms that we have introduced to put technical skills at the heart of our education system. I sense great cross-party consensus that that has been an undervalued part of our education system. That will give young adults a chance to develop new talents that will stand them and, of course, our country and economy in good stead as we work towards the high-skill, high-wage and hi-tech economy that will help us to be competitive in a global marketplace.

I have spoken about the importance of controlling our public finances, investing carefully in our public services and ensuring that our spending is sustainable. Alongside that, I want to make a few remarks about the importance of ensuring that our tax system is sustainable. We cannot talk about one side without talking about the other. The flipside of how we invest in public services is how we fund them. Let me address two issues.

First, a number of hon. Members have mentioned business rates. It is right that we update them to reflect today’s property values, but we recognise that this has meant a sudden jump for some. I thank my hon. Friend the Member for Richmond (Yorks) (Rishi Sunak) for his excellent speech. I am familiar with some of the pubs in his beautiful constituency. He mentioned the importance of supporting pubs. That was part of the £435 million package of support that the Chancellor outlined yesterday. He has been working on that with the Secretary of State for Communities and Local Government to help businesses manage the steepest increases following the business rates revaluation.

Secondly, there has been much discussion in this debate of the changes we have made to national insurance contributions, and I will respond directly to some of the points made. Let us be clear that the contributory benefits funded by national insurance contributions are very different from employment rights. Much of this debate and the public discourse has criss-crossed between those two important, but distinct, subjects. National insurance pays into a fund that pays out to the NHS and contributory benefits—principally the state pension, but also parental pay. We have announced that we are looking carefully at maternity and paternity rights.

Oral Answers to Questions

Barbara Keeley Excerpts
Tuesday 7th June 2016

(7 years, 11 months ago)

Commons Chamber
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David Gauke Portrait Mr Gauke
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As I outlined a moment ago, the purpose of the tax measures is to encourage people to invest in businesses. The changes are specifically targeted at companies—the cut in CGT does not apply to residential property—and put in place an environment in which businesses can grow and prosper. That is absolutely the right approach to follow. I remind the hon. Gentleman that there are other countries that have taken different approaches, of which he has been full of praise. It is not quite working out in Venezuela, is it?

Barbara Keeley Portrait Barbara Keeley (Worsley and Eccles South) (Lab)
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11. What steps he is taking to ensure that disabled people are not disproportionately affected by reductions in government expenditure.

Damian Hinds Portrait The Exchequer Secretary to the Treasury (Damian Hinds)
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The Government have protected the value of disability benefits, exempting such payments from the uprating freeze and exempting those in receipt of them from the benefit cap. Disability spending will be higher in every year to 2020, relative to both 2010 and today.

Barbara Keeley Portrait Barbara Keeley
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That may the case, but a 40% reduction in core Government funding to local authorities has led to cuts that affect services. Local authorities are required to provide short breaks for children with disabilities, but 58% of local authorities have cut their short break funding by 15% or more. It is Carers Week. What will Treasury Ministers do to reverse the trend and ensure that there is money for local authorities to fund those important short breaks?

Damian Hinds Portrait Damian Hinds
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We have provided funding for respite breaks. The hon. Lady is right to identify this as an important thing for carers in this, Carers Week. There are 200,000 more people now receiving carer’s allowance in this country. The Care Act 2014 extends rights to assessments, and the Government are launching the new carer strategy in recognition of how important a role this is for millions of people throughout the country.