Autumn Statement Resolutions

Bell Ribeiro-Addy Excerpts

Thursday 23rd November 2023 Commons Chamber

[Bell Ribeiro-Addy (Streatham) (Lab)]

The Government have presided over a crash in the economy of Titanic proportions. They saw the iceberg of stagnation, persistently high inflation and falling living standards, and they decided to head straight for it. Yet they refuse to do the one thing left that would be useful to the rest of the country: abandon ship.

The Chancellor talked a great deal about the need for growth and called this his “autumn statement for growth” yesterday, but what is the reality? The OBR has cut the growth forecast for next year to just 0.7%. In fact, it has cut the growth forecast for the next three years. If it is right—I remind the House that it was the Government’s decision to devolve forecasting to the OBR—we will not hit a 2% real GDP growth target in the foreseeable future. Worse still, this will go down in history as the only Parliament where living standards were lower at the end of it than at the beginning. How is that a policy for growth? I do, however, agree with the Chancellor on one thing, that strong public services depend on a strong economy, but on the official forecasts we will have neither. I do not think I could be any more damning of the Government’s record and the economic legacy they will leave than the OBR itself. It says that, faced with weak growth and the giveaways in this statement, the Chancellor’s spending plans rely on implausible levels of austerity in local government and public services.

Implausible levels of austerity mean enormous levels of cuts, when we know that local government spending has already been cut to the bone. That is why councils of every political stripe up and down the country are now facing bankruptcy. At the same time, our public services are in crisis. People are now more likely to be on an NHS waiting list than ever before and our schools are literally falling apart. I could go on. The Chancellor’s policy for the crisis of funding for public and local services is typically Conservative—even more cuts.

In passing, we should explode the myth that a pre-election bribe is anything but the most cynical type of politics. More importantly, the voters will see through it. The Foreign Secretary, also known as the former, former, former, former Prime Minister and his Chancellor Osborne had a one-off increase in Government spending and investment in 2014 and then reimposed austerity once they were re-elected in 2015. I have no doubt that the Prime Minister and the Chancellor hope to emulate that con trick. The British public, however, will not be taken for mugs, not least because on the Labour Benches we will warn them of it. The reality is that this is part of another bout of austerity, just as the OBR warns. The shiny bauble of cutting national insurance is to get the Conservative party through to the election without tearing itself apart—then the axe will fall.

As for the carrots to business to invest, we know they will not work. One reason they will not work is that the Government are cutting public investment. Why does that matter? Because the state sector is the single biggest investor in the economy. The whole notion that it crowds out private investment is nonsense and one of the many idiocies of the Thatcher era. Government have been “getting out of the way of business investing” for well over 40 years now. As a result, we have an abysmal record on investment, one of the worst in the industrialised world.

It is hard to imagine that any of the measures in the autumn statement were properly assessed for their impact on equalities in accordance with any of our laws. Despite literally being lawmakers, the Government have a strained relationship with complying with any of them. To prove it, we do not have to look much further than the callous announcements regarding disability benefits. In a cost of living crisis of the Government’s own making, an estimated 370,000 people with disabilities and debilitating chronic health conditions will be forced to work from home in jobs that do not exist whether they are physically or mentally able to or not, or lose up to £5,000 in income a year. How are they expected to survive, and how much more inhumanity dressed up as policy can this Government drag through the House before the country has an opportunity to vote them out? In case we have forgotten, they obviously want to remind us that they are the nasty party—nastier than ever.

Any reasonable equality assessment in accordance with our laws would have the author of this Budget sent back to the drawing board. In any scenario in which real incomes and living standards are falling, those at the bottom—those who are already facing discrimination and hardship—will be even worse off. This is the Conservatives’ economic legacy, and it is a shameful one.