Budget Resolutions and Economic Situation

Barry Gardiner Excerpts

Wednesday 3rd March 2021 Commons Chamber

[Barry Gardiner (Brent North) (Lab) [V]]

Today, the Chancellor has been dealing with the economic cost of coronavirus. Coronavirus is a zoonotic disease and, just like SARS and Ebola, it has come about as the result of the increasing stress that human activity has put on the natural world. As a result of coronavirus, the Chancellor admitted borrowing a record £355 billion, and for the first time in more than 50 years public debt has risen above 100% of GDP. Let me say it again: coronavirus is a zoonotic disease; there will be others.

Our species is grappling not just with one global pandemic, but with the two global emergencies of climate change and the destruction of nature through biodiversity loss. Today should not just be about the allocation of money; it should be about the management of our assets. Once we understand that our economy is bounded by nature, natural capital, we will perhaps understand the need to stop consuming each year goods and services that the planet takes 1.6 years to reproduce. Economists call this living beyond our means. The Intergovernmental Panel on Climate Change is clear that we need urgent and unprecedented transformational change. If this Budget had adopted the principles of the Dasgupta review, we would have got that change. It would have set out the basis of a green industrial revolution, full investment in low-carbon infrastructure and the greening of our economy. It could have created a million new jobs.

Protecting jobs and maintaining incomes through furlough is only a baseline. Alongside it, the Chancellor should have put in place incentives for companies that spread employment through job sharing while using non-employed hours engaged in a new, paid national retraining scheme for the zero-carbon industries of tomorrow. That would have been transformational and given people currently in old industries hope and security for the future. Yes, set targets for electric vehicles, but retrain the mechanics. Yes, bring in more solar and wind arrays, but train the new generation of engineers. Yes, retrofit our homes, but where is the skilled workforce to carry out the work?

On the super deduction of 130% tax reliefs on investment, the Chancellor should have said that this could be used only for sustainable green investment, and not to subsidise what could be environmentally damaging infrastructure by oil and gas corporates. No wonder it took him until precisely 37 minutes into his speech before he even mentioned the word “green”—and that, ironically, came just after saying there would be no fuel duty rise. I welcome what he said about changing the remit of the Bank of England to consider environmental sustainability and net zero, but a transformative Budget would have mandated both climate and nature-related financial disclosures by listed companies. He patted himself on the back and said that he would be ready when the next crisis comes. The truth is that the next crisis is already here: it is called the climate catastrophe and environmental destruction, and this Budget has not prepared us to meet it.