Budget Resolutions

Debate between Caroline Johnson and Fiona Onasanya

Tuesday 30th October 2018 Commons Chamber

[Fiona Onasanya (Peterborough) (Lab)]

It is a pleasure to follow my hon. Friend the Member for Sheffield Central (Paul Blomfield) in this important debate.

It is important that we pay attention to the fact that the Prime Minister announced the end of austerity, yet yesterday it was announced that austerity is “coming to an end”. Which is it and when will this be? Austerity was a political choice, not an economic necessity. How will the Government alleviate and redress the devastating impact of austerity? Austerity has not tackled the deficit; rather, the onus of who pays has been shifted to teachers, police and nurses. After eight years of this Government’s hard austerity, too many people are suffering and too many vital public services are in crisis.

Yesterday, we heard not a penny announced for the day-to-day costs of schools, even though school funding has been cut by 8%; not a penny for regular policing, even though 21,000 officers have been cut and violent crime is on the rise; and not a penny for local councils to close the funding gap of £7.8 billion by 2025—and they are facing cuts of £1.3 billion next year, too. The Government are not fixing the fundamentals. Must it always take a tragedy to effect meaningful change?

Take a look at our fire service: rather than fighting fires, it is having to fight for funding. It is beneath contempt not to pay those who work in our fire service properly. Indeed, real wages are lower today than they were in 2010, while CEOs are paid 143 times the wage of the average worker.

The late Audrey Hepburn once said: “As you grow older, you will discover that you have two hands: one for helping yourself, the other for helping others.” When will the Government stop and realise that? Rather than help, the Government have shown again through the Budget that they know the price of everything, yet the value of nothing. Once again, they are saying, “Your price is way too high; you need to cut it, cut it, cut it, cut it.” It is like the emperor’s new clothes: the emperor seeks to describe an elegant, flamboyant gown that he is wearing, but he is actually completely naked.

This Budget does not mark the end of austerity. The NHS has experienced the slowest spending growth in its history. When the Government created the Budget, clearly ignoring the issues caused by their austerity, it seems they had 99 problems but did not consider the state of the NHS to be one if they believed that £20.5 billion was sufficient to repair the damage caused by eight years of under-investment.

According to the Health Foundation, the £20.5 billion promised is simply not enough. The £2 billion that has been announced for mental health is welcome, but it is half what is needed, and let me be clear: this is not new money and these are not new resources. These financial gimmicks fool no one. The Health Secretary has said that it would take a generation to establish parity of esteem under this Government. However, people with severe mental health conditions cannot afford to wait five years for meaningful action from this Government. Too many people, including children, are already waiting months to access the treatment that they need, leading to a devastating mental health crisis.

In my constituency, there has been a real-terms cut of 10.6% in adult social care, almost double the national average, and the Government consider their announcement of £650 million for long-term adult social care services an accomplishment when it is less than half what the King’s Fund estimates is required to meet demand. Nearly 1.5 million elderly people are not getting the care that they need—an increase of 20% in just two years. The sum of £84 million over the next five years to expand children’s social care programmes is pitiful compared with the £3 billion needed by 2025. Services are over- stretched, and the recent trends in the level of funding are unsustainable and unacceptable. The needs of Peterborough —my constituency—have been attended to on the cheap for far too long. As a consequence, cracks are beginning to appear in our services. Our needs have not been properly or adequately assessed, or indeed addressed, and the current settlement is blatantly below par.

[Dr Caroline Johnson]

Does the hon. Lady agree that one of the biggest challenges facing Peterborough hospital, which serves her constituency and in which I work, is the financial burden of the PFI that was used to build the hospital? It is a beautiful hospital, but so much money was spent on it that we are burdened with this PFI. It was a Labour Government who did that and we are now having to pay for it.

[Fiona Onasanya]

I thank the hon. Lady for her intervention. Yes, I know that very well about the PFI, which is why Labour is seeking to end PFIs. [Interruption.] Before she says that we signed it, I would like to talk about now and the fact that PFIs actually came in under John Major. Talking about now, Government are pursuing efficiency to the point of ineffectiveness. I end on this poignant note: investment now is lower in relation to GDP and we are ranked 22nd in the world. The time for warm words is over. Austerity has dire consequences and a little extra just will not cut it.