Budget Resolutions and Economic Situation
Catherine West Excerpts(3 years, 2 months ago)
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Catherine West (Hornsey and Wood Green) (Lab) [V]
Before this Budget, the facts were there in black and white. Our economy was hit hardest because we had longer and stricter restrictions than other countries because the Government failed to get the coronavirus under control. In response, Members on both sides of the House were crying out for the Budget to put the economy on the road to recovery and right the wrongs of the insecurity of the past decade through bold investment in jobs. Instead, the Budget announcement—the 15th financial statement in just a year—just papers over the cracks of a failed economic approach.
There was no mention of schools or teachers, of cracking down on crime or of restoring our high streets. What we did have was the Chancellor freezing pay for key workers—our coronavirus heroes who have got us through this crisis. There was no mention of help for the care sector or for the carers who have given everything—100% of their work—to this crisis.
On household debt, the charity StepChange reported in September last year that 2.5 million people faced a financial crisis due to the impact of coronavirus. The Budget missed the opportunity to set that right and provide relief for those in our society who need it the most. Despite the clear dangers, the Chancellor’s pledge to freeze the personal allowance will further compound the household debt crisis.
The Budget showed that the Government want to go back to the same insecure economy and unequal country that has been so cruelly exposed by the virus. We need a commitment from the Chancellor and the Government to do things differently and to deliver on the needs of all our constituents, not more years of strained finances and mounting debt. There was no real ambition on the question of international tax evasion and avoidance, which could bring in funds to tackle some of the problems that desperately need tackling, and to address our mounting debt problem.
On the climate, despite some progress, the Budget failed to deliver the ambition that we all want to see. That is why Labour has called for investment spending to be brought forward, to kickstart the green economic recovery, as many other countries are doing, including through the large stimulus we have seen across the Atlantic. We desperately need measures to help key industries, including aerospace, car manufacturing, steelmaking, shipping and agriculture, reduce their emissions. Where are the plans for that? Where is the investment in those key sectors to bring down our carbon footprint? And of course we need the Government to reverse the cancellation of the green homes grant, which was myopic to say the least.
We need the Chancellor to grasp the urgency of this crisis and deliver the change that is needed. Labour has a plan and a commitment to deliver. We are delivering on the green economy here in London, with the leadership of Sadiq Khan. Give us another chance to get that right.
Oral Answers to Questions
Catherine West Excerpts(3 years, 4 months ago)
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The Prime Minister
Of course I am familiar with the superb workforce in Shropshire to which my hon. Friend refers. There is a competition currently going on, and negotiations are going on with the modernisation that he speaks of. As he knows, we have made the biggest investment in our defences since the cold war with the recent spending review, but it would not be right for me to comment on those negotiations at this stage.
Catherine West (Hornsey and Wood Green) (Lab) [V]
The Prime Minister
Not only have we uprated universal credit by £1,000, but, as I have said, we have increased the local housing allowance, the living wage and many, many other benefits. We will keep all this under constant review. I know that the hon. Lady speaks for the Labour Front Bench. Current Labour policy, as far as I understand it, is to abolish UC. Many people in receipt of UC, knowing how important it is, will find that stunning, in view of what she has just said.
Covid-19: NAO Report on Government Procurement
Catherine West Excerpts(3 years, 5 months ago)
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Catherine West (Hornsey and Wood Green) (Lab)
I thank my hon. Friend the Member for Liverpool, Walton (Dan Carden) for his excellent speech at the beginning of the debate. This is a fantastic opportunity to shine a light on this issue; sadly, the Government have been found lacking.
We know that huge sums of money have been spent since March. The National Audit Office report analyses £18 billion, but we know that the sums are even higher. Due to the economic downturn, serious financial decisions will have to be made in future to protect our public finances, yet so much has been wasted and given away to friends. The need for those financial decisions is made more pressing by the way in which the procurement decisions were made. This is public money, and our communities demand answers.
Since the report came out, the Prime Minister, Cabinet Ministers and Conservative MPs have been at pains to say that the contracts were rushed, but hon. Members should not forget that we had an exercise that showed what was needed in a pandemic. I believe that that still has not come to light. It should be brought to light now so that we can learn the lessons in advance of wave No. 3.
All hon. Members will pay tribute to the civil servants and armed services planners who played a key role in the huge logistical feat of managing. Without their efforts, where would we be? However, we can all remember the moment when we were watching on Sky News the aeroplane about to land, full of wonderful PPE from Turkey. Of course, that PPE arrived at great cost to the taxpayer, only to be found completely inappropriate and not to standard. That is just one snapshot. There has been a litany of errors, not just a few honest mistakes. It is clear that we need a new framework for procurement, particularly in advance of Brexit, after which we will not necessarily have the rigour that European law gives us.
I have three questions for the Minister. When will information relating to the remaining unpublished contracts be released? Will the Government commit to implement in full the recommendations of the NAO report on the rapid awarding of contracts? Thirdly, will the Minister commit to ensuring that all contract decisions will be covered by a future inquiry, with powers to prosecute any wrongdoing?
Julia Lopez
I am afraid I am really short of time. Forgive me; I want to get through the content.
As I say, no PPE contracts were awarded by reason of who referred them. I remind colleagues that, ultimately, there was very little waste. Of all the product in question, so far only 0.5% of what was ordered was found to be unusable. That is not to say that we cannot improve. Admittedly, there was not an adequate stockpile, and the lack of a central stock control system made it very difficult to get a clear grip of the demand signals coming in through the NHS. That is an extremely important issue to rectify.
Oral Answers to Questions
Catherine West Excerpts(3 years, 7 months ago)
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Catherine West (Hornsey and Wood Green) (Lab)
The Prime Minister (Boris Johnson)
I know the thoughts of the whole House will be with the hon. Member for Bolton South East (Yasmin Qureshi). I am sure Members from across the House will want to join me in wishing her a speedy recovery.
This morning, I had meetings with ministerial colleagues and others. In addition to my duties in this House, I shall have further such meetings later today.
Catherine West
I associate myself with those kind remarks on behalf of my hon. Friend the Member for Bolton South East (Yasmin Qureshi).
My constituents are reeling from the 9% contraction of the economy since March this year. Unemployment has sky-rocketed and joblessness in Haringey is the highest in the capital. Unfortunately, we are at the same time facing the idea that there could be a congestion tax forced on an extra 4 million Londoners by this Government. These Londoners are already facing the double whammy of covid and financial ruin. Will the Prime Minister please immediately stop the imposition of this dreadful plan? I look forward to his answer.
The Prime Minister
I must respectfully inform the hon. Lady that the current Mayor of London had effectively bankrupted TfL before coronavirus had even hit and left a massive black hole in its finances. Any need to make up that deficit is entirely down to him. It is entirely his responsibility. Any expansion of the congestion charge or any other measure taken to improve the finances of TfL are entirely the responsibility of the bankrupt current Labour Mayor of London.
Covid-19 Update
Catherine West Excerpts(3 years, 11 months ago)
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The Prime Minister
Yes, indeed, and we will be doing a huge amount for coastal communities that have been left behind, as my hon. Friend knows. But one thing I think we can all do now is ensure that we send out a very positive and welcoming message from coastal communities around the UK. Now is the time, folks, to have a staycation in the UK—Hunstanton or elsewhere.
Catherine West (Hornsey and Wood Green) (Lab)
The fastest-growing languages in Hornsey and Wood Green are Mandarin Chinese and Latin American Spanish. The diversity within Hornsey and Wood Green is a real strength; they even chose an Australian-speaking MP—but my question is serious. What personal steps will the Prime Minister take to stop black and minority ethnic communities getting covid, so that we can save more lives in the next few months? It has been a really tragic few months for my constituency.
EU-UK Partnership: EU’s Mandate
Catherine West Excerpts(3 years, 11 months ago)
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Catherine West (Hornsey and Wood Green) (Lab)
It is a pleasure to follow the hon. Member for Arundel and South Downs (Andrew Griffith), who must represent one of the most beautiful parts of the UK. Sadly, I do not share his Panglossian view of where we are with the negotiations.
I tend to agree more with the former leader of the hon. Gentleman’s party, who asked the Prime Minister yesterday about the sorry state of manufacturing at the moment and the risk to car companies such as Nissan, with a possible 10% tariff to be levied if this does not go right. The purchasing managers index is down to 40, indicating contraction. We know that that is, in recession terms, a very serious position for manufacturing. The Governor of the Bank of England has described our economy as potentially going towards a depression rather than just a recession. This feels to me less like a Panglossian rebirth and more like a second punch in the face after covid.
I am very concerned about the sanitary and phytosanitary arrangements, which are not yet pinned down. I hope that the Minister will be able to clarify where she thinks we are on food standards. We have the gold standard at the moment, but we read in the newspaper concerns about the quality of imported food. What is her view of where we are with that negotiation?
Will the Minister also outline whether she believes we are likely to veer away from the excellent environmental protection standards in the European Union in order to save some of our businesses, which will be severely at risk? Will we cut corners on workers’ rights? Has she had conversations with the TUC about protecting the rights of workers? Obviously, statements were made about that in the last Parliament, and it was something that we debated a lot. However, given the way the economy is going at the moment—possibly even towards a depression—will the Government cut corners on important questions such as environmental protections and workers’ rights?
We have talked a lot this afternoon about Northern Ireland. Will the Minister please give businesses there clarity? They are not just important for communities in Northern Ireland; when we go to the shops and buy a bar of cheddar, which is our most popular cheese, we are buying it from farmers in Northern Ireland, so we all have an interest in getting these details right.
We know that the Prime Minister’s promise of an oven-ready deal with no checks at the border in Northern Ireland was a fiction. We now know that new red tape and rules will be introduced for the business community, much of which is small and medium-sized enterprises. Even a small amount of red tape can tip a small business into a problematic area, so please may we have some detail on that in writing, so that Members can disseminate it to those small businesses that are worried about it?
In conclusion, I beg for some pragmatism and not just an ideological approach to this important area. Given that we are in a seriously problematic area for our economy, we need to stop being ideological and be much more pragmatic.
Madam Deputy Speaker (Dame Rosie Winterton)
I call Duncan Baker. You have 90 seconds.
Northern Ireland Protocol: UK Approach
Catherine West Excerpts(4 years ago)
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Michael Gove
There will not be any customs infrastructure and there will not, save in the specific example of agrifoods and products of animal origin, be the requirement for physical checks of the kind about which I believe the hon. Member has expressed concern. It will be the case that we will implement these principles in a way that has the lightest possible touch, so that Northern Ireland’s businesses—wrestling with covid-19—have the brightest possible future.
Catherine West (Hornsey and Wood Green) (Lab) [V]
The Prime Minister’s advice to Northern Ireland when he last visited was to throw any border forms “in the bin”. Does this remain the Government’s advice, and does this apply in a no-deal Brexit scenario?
Michael Gove
The whole point of the protocol is that it is part of the withdrawal agreement. We cannot have a no-deal scenario because the withdrawal agreement is a deal. However, in a spirit of generosity, I know what the hon. Member means: if we have an Australian-style trading relationship rather than a Canadian-style one, will the protocol apply? The protocol exists for just such an eventuality. As for bins, there will be no need for forms, because it will all be done electronically.
Budget Resolutions
Catherine West Excerpts(4 years, 2 months ago)
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Ian Blackford (Ross, Skye and Lochaber) (SNP)
Before I begin, I pass on my best wishes and those of my colleagues to the hon. Members for Mid Bedfordshire (Ms Dorries) and for York Central (Rachael Maskell)—we are thinking of them and, indeed, all those who are caught up in this terrible virus.
The scale and seriousness of the coronavirus demand a collective response. As I said last week, this virus requires all of us to demonstrate calm and practical leadership. This is the very least the public deserve from us at a time of deep and natural worry. SNP Members are committed to that approach. That example of leadership has been clearly embodied by our First Minister of Scotland, and I welcome the close co-operation between the Scottish and UK Governments on this matter.
The first priority in dealing with the crisis has to be about maintaining the health of all our people. The scale of the coronavirus has and will put added pressures on the NHS in Scotland and across the United Kingdom. I take this opportunity to thank all our NHS staff for everything they do, but most especially now, as they deal with the outbreak of this virus.
I welcome the fact that the Chancellor has committed to providing additional funding, but I wonder whether he will take the opportunity to tell the House how much of that additional spending on the coronavirus will come to Scotland. I also urge him to go further—the SNP Scottish Government have ensured that frontline health spending in Scotland is £136 higher per person than it is in England. Social care funding is £130 per capita higher than it is in England. Matching Scottish per capita NHS spending would provide health services across the UK with the resources, equipment and staff that needed now during this crisis and in the longer term. It would also allow Holyrood to increase funding for NHS Scotland by over £4 billion by the end of this Parliament.
Catherine West (Hornsey and Wood Green) (Lab)
Will the right hon. Gentleman take an intervention?
Ian Blackford
I will not.
We believe that that is the only adequate and prudent response to this unprecedented health crisis. As part of the Budget package, we also need to recognise the deep worry that people are experiencing about the impact of its consequences on their incomes, employment, rights and benefits. Just as our health response must be led by the best scientific advice, our economic response must be guided by the need for an appropriate fiscal stimulus that ensures that the economy is not tipped into recession. The employed and the self-employed need to be aided through the crisis. I acknowledge many of the measures taken today by the Chancellor to do just that, but more urgent and more targeted action is also required.
In particular, urgent measures are needed to help the tourism and hospitality industry, above and beyond what has been offered today. Industry leaders are already warning of the consequences of the coronavirus, with a raft of booking cancellations and a significant drop in numbers. The SNP is advocating a package of measures, including a temporary drop in the VAT rate to 5% to help businesses to reduce their costs—[Interruption.] I can hear the Prime Minister saying, “We’ve cut interest rates,” but—[Interruption.] Business rates, rather, but the problem, Prime Minister, is that these businesses are facing a crisis not of their own making.
Many of the businesses in my part of the world, in the highlands of Scotland, come through a fallow period over the winter. It is not just an issue of their seeing a reduction in business; in some cases, they are going to be desperately short of cash coming in through the door. Let us not forget that many of these businesses have relied on an EU workforce over the last few years. In anticipation of what is happening with the migration proposals from the Government and of the difficulty of recruiting labour, they have had to staff up. They have additional costs, but their revenues are about to fall through the floor. That is why I have written to all the major UK banks to ask them to support businesses and households through this period to make sure that working capital is extended to all businesses, and that no business—no good business in the hospitality and tourism sector—should be pushed to the wall as a consequence of what is happening.
Chancellor, a temporary drop in VAT would allow business to weather the storm as people follow public health advice and tourist numbers drop, but let me say, on the basis of the scientific advice that we have today, that Scotland is well and truly open for business, and I encourage people to come and experience the breadth and depth of our tourism offering. VAT was reduced in Ireland and it helped to boost both employment and tourist numbers. I urge the Chancellor, in the strongest possible terms, to consider a similar policy to help our tourism and hospitality sectors to come through this crisis.
Let me turn to the other measures in the Budget. The Chancellor has just delivered his first Budget speech—I welcome him to his position—and I give him credit for one thing: he did really well in fluently reading out Dominic Cummings’ handwriting. It is a strange irony that those who were most obsessed with taking back control from Brussels are now at the heart of the unelected, centralised elite who have grabbed control, not just in Downing Street but in the Treasury. Today they have produced a half-baked Budget thrown together by a bunch of Vote Leave campaigners drowning in the responsibility of government. I am talking about a group of ideologically driven campaigners—let us be charitable—so distrustful of Europe and the benefits it might have brought, economically, socially and culturally, and so caught up in their own meaningless slogans that they are blinded by the damaging reality they have caused. People are not fooled. The slogan “take back control” does not work when you have been in power for the last decade. We have not forgotten that the Tories have been in control and that we are all the worse for it. If the Chancellor really thinks that this Budget levels up after a decade of austerity, he must have bought himself a wonky spirit level. After delivering a decade of cruel cuts, the Tories are now offering a new decade of political and economic isolation outside the European Union.
The Budget is a warning of what may be ahead of us and a reminder of Scotland’s need to choose a different future. It has never been more stark: Scotland’s economic interests are not served by being part of this UK union. Rather than the instability and limitations imposed by the UK, independence now offers the Scottish people the chance to build a better, more prosperous and safer future. The 2016 Brexit referendum was the moment when our political futures met a point of divergence, and we are now on the cusp of the moment of decision for Scotland’s people. The Conservatives may have delayed our democratic right, but they cannot indefinitely block the voices and votes of the Scottish people. Scotland’s future will be ours to choose, and we will very shortly make that choice. I am more confident than ever that the Scottish people will choose to be an independent, equal and European nation.
As I have said, this is a Budget produced by a group of people who are expert in fabricating slogans but amateurs in delivering competent government. The Tories have a new slogan about levelling up funding and living standards. Let us judge them on their record. A reasonable place to start is basic income. The Office for National Statistics recently confirmed that the median income for the poorest 20% fell by 4.3% per year between 2017 and 2019. Institute for Fiscal Studies analysis shows that since 2010 the poorest 10% of households have lost an average of 11% of their income. That is £1,200 per year. For those with children the average loss was up to 20%, or £4,000. That is the cost of Tory Government to people in Scotland and the United Kingdom. That is the true Tory record: falling wages and growing hardship. While the gap between rich and poor grows, last month the ONS revealed that income inequality was as much as 2.4% higher on average than official figures had suggested over the decade since the financial crisis in 2008, and this Budget does not help by failing to implement policies that deal with growing inequality. The Tories still refuse to raise their pretend living wage to the real living wage and refuse to end the age discrimination that penalises our young people.
Another reasonable place to judge their levelling up record is overall public spending. Let us not be fooled by some of the rhetoric in the statement today. Since 2010, aside from health spending, the Tories have cut per person spending on public services by a whopping 21%. This Budget comes nowhere near either closing or reversing that devastating legacy. By any standard, by any measure, by any objective acknowledgement of fact, this Tory Government have failed to level up for anyone anywhere. They cannot be allowed to hide from these facts, just as they cannot be allowed to hide from their legacy.
Let us be clear: the poor becoming poorer was a Tory political choice. The Resolution Foundation has said that the fall in income for the poorest
“has been driven by policy choices, with gains from higher employment more than wiped out by benefit cuts.”
Why did the Conservatives take these political choices? As ever, they were serving their own interests and the interests of those they serve. For them, it is a simple and cynical calculation. A Government who rob Peter to pay Paul can always depend on the support of Paul. As far as the Tories are concerned, everyone else can go whistle.
I suppose we should not be surprised. This is a Budget advocated by a Prime Minister who once eulogised:
“some measure of inequality is essential for the spirit of envy and…is, like greed, a valuable spur to economic activity.”
Greed—a valuable spur to economic opportunity! That is the reality of the vision of the Prime Minister. That does not sound like a man determined to level up. The honeyed words and new slogans in the Budget will not change the long and bitter experience of Tory economics. People in Scotland know that they cannot believe their words, they cannot believe their promises, and they cannot believe that they will ever change—not ever.
If this really was the great investment Budget the Chancellor heralds, he should have started by paying up the moneys the Tories have been holding back from Scotland for years. I am grateful to a Scottish Parliament Information Centre—[Interruption.] I hear the Prime Minister talking about grievance. This is not about grievance; this is about the facts of what a Conservative Government have done for the people of Scotland. The Scottish Parliament Information Centre has confirmed that Scotland would be owed about £5.8 billion if the proper Barnett consequentials were applied to the DUP Brexit bung and the additional moneys since. That is the reality. That is added, of course, to the £175 million still owed to the Scottish Police Authority and the Scottish Fire and Rescue Service—money that was stolen from our vital public services. [Interruption.] I hear the hon. Member for West Aberdeenshire and Kincardine (Andrew Bowie) saying it was against all the advice. It was the vindictiveness of his Government that took these funds from the Scottish public services. That is the reality. Let us be crystal clear: the UK Government have chosen to rob Scotland’s public services of that money, and the silence from the Scottish Conservatives—their failure to stand up for our police and firemen—is audible to all.
The Budget also turns its back on the oil and gas sector in the north-east of Scotland. These industries face months of instability and uncertainty in the aftermath of the latest collapse of an OPEC deal to stabilise prices. The oil price has plunged, yet there was not a mention of it from the Chancellor. The impact of the global oil price slump will reverberate around the world, including hitting Scotland’s vital oil and gas sector. The oil and gas sector has generated £334 billion of net tax revenues for the UK Government since 1970. Having used the sector as a cash cow, the Treasury must support it in its time of need. The UK Government must deliver crucial support for the sector as part of a just transition to net zero emissions. Scotland still bears the scars from rapid de-industrialisation under previous Conservative Governments. That must never happen again, and it must not happen to north-east Scotland.
The failure of the Government’s investment strategy— the Chancellor admitted it today, and we see it in the productivity record—has unfortunately failed to diminish their arrogance in trying to dictate the investment needs of the devolved Administrations. We are told that the Treasury is considering an intra-UK connectivity study, which sounds suspiciously like another Tory power grab on the devolved Parliaments. Chancellor, how can people be expected to have faith in a Prime Minister who cannot build a bridge between London and London, and a Scottish Secretary who thinks a bridge is a euphemism for a tunnel? Having ripped up the Sewel convention, the Tories are on a mission to level down devolution. Chancellor, your Government are neither competent enough nor trusted enough to invest in infrastructure in Scotland. Go back and think again, and allow the Scottish Parliament to use extra capital resources to provide for Scotland’s infrastructure needs. We will deliver for the people of Scotland.
The Budget fails to attempt to fix, or even to acknowledge, the underlying fundamental problem of the economy. For the past decade, the Conservatives have presided over a crisis in productivity. Only last year, about 6,000 companies revealed that uncertainty over leaving the European Union had lowered capital spending by about 11% on average. That is what is really going on in the economy. According to the Bank of England, that has cut overall UK productivity by between 2% and 5%—a reduction in productivity created by the Conservative Government in power in Westminster. The overall perception of the UK’s productivity is not helped by the Prime Minister’s productivity levels; he downs tools and hides away whenever the going gets tough.
Static productivity is a direct consequence of choices made during the financial crisis. There was a massive quantitative easing splurge in the wake of the crash, but there has been no real return on that investment for ordinary workers. It did do one thing, though; a Bank of England analysis of the impact of quantitative easing showed that between 2006 to 2014, the 10% least wealthy households saw a marginal increase in wealth of around £3,000. The wealthiest 10% saw a £350,000 increase. In other words, printing money for the financial services industry ended up helping only those working in the financial services industry. Improved productivity, and capital investment for wider society, never got a look-in. I challenge the Chancellor: will he commit to a review of the impact of the bonus culture in financial services and its effect on general economic activity?
As I have said, the decade of Tory austerity and the inequality it inflicted has hit the poorest hardest. The brutal cuts have targeted children and the most disadvantaged. The benefits freeze, universal credit sanctions, disability assessments, the cruel two-child limit, the rape clause—the list of failed and punishing policies goes on and on. It is a legacy the Tories should be ashamed of, and should have the basic decency to apologise for.
If the Chancellor is serious about looking after those who have been left behind, he can begin to prove it by committing to four things. Will he increase the monthly allowance for universal credit and end the benefit cap; increase benefits above inflation and restore their value after the four-year freeze; scrap once and for all the two-child cap on tax credits and the rape clause; and follow the lead of the Scottish Government and bring in a child payment scheme similar to theirs, which has lifted 30,000 of our children out of poverty? If the Chancellor cannot commit to those four basic measures, which would reduce poverty and bring compassion into the social security system, his words and promises of levelling up will be shown to be hollow.
The devastating Tory legacy on social security has especially hit pensioners, who still receive the lowest state pension in the developed world, according to the OECD. They have also been denied their full rights. I am proud that the Scottish National party, with others, has stood shoulder to shoulder with 1950s-born women since the beginning of their campaign, and we stand with them still. They deserve justice, and it is disgraceful that their plight continues to be ignored in yet another Budget.
Another Tory attack on pensioners, and another broken promise, is of course the removal of free TV licences for the over-75s. This will hit 240,000 households in Scotland and 3 million across the United Kingdom. Chancellor, this is your Government’s responsibility, not the BBC’s. It is time to pay up. Stop punishing pensioners, and keep the free TV licence for all those over 75.
By far the biggest budgetary and economic decision that confronts these islands—[Interruption.] We are talking about some of the poorest in our society, and women who have been denied their pensions. I say to the Prime Minister that when I knocked on doors in the election campaign, I found that a great number of elderly people were alarmed by the loss of their TV licence. That is what we get from the Conservatives, but they sit laughing and scoffing. I find it remarkable. It is okay for them; the rest of the population can go hang.
By far the biggest budgetary and economic issue that confronts these islands remains our relationship with the European Union. We hope that the negotiations on our future relationship can be successfully concluded, but all the signs from this Tory Government are that instead of co-operation and close relationships, they are heading for divergence and deregulation. The UK Government’s negotiation mandate all but confirmed that choice. The consequences for workers’ rights, environmental protection, the shape of our economy and the nature of our society will be profound, and—this will be of little interest to this Tory Government—the impact will be felt most by those who already have the least: the vulnerable and the poor. Scotland will end up paying a heavy price for a future we did not back.
Our Government’s modelling shows that even if the UK Government secure a basic free trade agreement, Scottish GDP would be 6.1%, or £9 billion, lower by 2030 than if we had retained full EU membership. We heard from the Chancellor about the impact of a slowing global economy, and have heard about the impact that coronavirus may have on us, yet the Government are prepared to crash our economy and put Scottish workers on the dole. Not in our name! The harsh reality is that that lost GDP—let us put it in cash terms—amounts to £1,610 per person. A no-deal Brexit—heaven help us—will raise that figure to £12.7 billion, equivalent to £2,300 per person. This Tory Government will sacrifice our economic health. Why? For an ideology––the narrow ideology of the Brexit fanboys, led by Dominic Cummings, now running the Treasury. As the trade negotiations unfold in the coming months, the numbers are worth reflecting on, because it is worth reflecting on the fact that the Westminster Government are actively choosing to make Scotland’s people poorer. It is not an accident; it is by design.
On top of all that, the National Audit Office—[Interruption.] I find it remarkable to watch the reaction of the Prime Minister. I challenge the Prime Minister to tell me that the figures that I have just given on the impact of a free trade deal or a no-deal Brexit are wrong. The Prime Minister knows, just as I know—just as we know—that the Scottish economy is going to be harmed by what he wants to do in these trade negotiations.
Catherine West (Hornsey and Wood Green) (Lab)
I thank the right hon. Member for Bournemouth East (Mr Ellwood), with whom I agree on so many issues; although I perhaps disagree on others, it was good to hear his speech. He is right on transport for Bournemouth and some of our coastal areas: it is not good enough.
Let me set the scene by reading from the Haringey fairness commission report. The commission undertook a year-long listening exercise on what it is like to live in an inner-London borough with real inequality, listening to what some of our residents said. The commission heard about
“young people attending school in shoes lined with plastic bags to protect against water which might otherwise seep through the holes in their shoes, depriving them of dignity at a time when their sense of self is being formed.”
It also heard about
“physically disabled residents unable to leave their homes due to inaccessible housing and the inability to afford suitable equipment, meaning that they were left isolated and unable to participate in day-to-day activities. It heard about low-income…workers living in overcrowded, unsanitary accommodation with little chance of saving enough money to improve their situation.”
The reason why I began with that is because when I last spoke in the Chamber, I spoke about the health inequalities in Haringey borough highlighted by the fairness commission. If someone catches the 41 bus from Turnpike Lane to Highgate, each time they go west one stop, the people there live another year longer. That disparity between rich and poor within one constituency is very disconcerting, because in unequal communities we end up with some of the worst outcomes. My question is not necessarily about the elements of today’s almost emergency Budget, but about the long-term strategic view and how that might answer some of the questions raised by the fairness commission that the House heard in my introduction.
On the covid-19 emergency, I wish to take a moment in my speech to put on record our commitment as a House: the fact that covid-19 originated in China does not mean that Chinese people are in any way to blame for the disease. [Hon. Members: “Hear, hear!”] I know that everyone in the House will agree with me and will be worried about their constituents from the far east who are currently being very badly treated. Chinatown in central London has closed down completely, and a lot of Chinese takeaways are being discriminated against because they serve Chinese food. There is some of the most incredible ignorance. I know that each person in this House thinks that is deplorable and will agree that whether someone comes from China, Italy or somewhere else, this is not their fault. This is a terrible illness that afflicts each of us as human beings, and that is how we must address it, in a public health way.
The Bank of England has announced some measures to deal with the emergency caused by this terrible illness, and I wish to pick up on some of them. First, the 0.25% lending rate is a positive step. I am not sure how much it will help, because so much in respect of lending and business confidence comes from people’s confidence to be able to go out and purchase things and then take out loans. I am not sure that that is where people’s thoughts are at the moment—I am not sure that the confidence level is high enough.
Secondly, we hope that the cheap funding to the real economy will happen, but I have to say that 10, 11 years or 12 years on, the confidence in the banking sector, at least among a lot of my constituents, is not necessarily there yet.
Thirdly, even though there might be £100 billion for small businesses to borrow and so on, I worry about how people will know that those loans are available to them. I wonder whether Treasury Ministers could tell us about that challenge. How are they telling small businesses about the £100 billion that might be there to ease capital expenditure and to make changes?
Fourthly, the Bank of England announced today the dividend freeze, which is a positive step. It is about the first time that I have ever heard anything just a little bit hard for a sector of the economy that, over the 12-year period, got away with less harm than my constituents. I am pleased that the Bank of England has decided to freeze dividends.
On the question of the European Union and our membership thereof, The Guardian today cited the fact that since the referendum in 2016 we have lost £26 billion of GDP. I wonder whether we will reflect on that and on how we will make up for that in the medium to long term, because we have a lot of productivity challenges. I am not sure that just saying, “Well, we won’t have to pay as much into the pot,” does it. I am very worried about our medium to long-term relationship with Europe, particularly if the transition period is complicated by the covid virus and by the negotiating style of some of our Ministers.
The third and final thing I want to talk about is the defining challenge of our time—that is what António Guterres has called the climate change challenge, and I could not agree more with the head of the UN’s description. The measures announced today do not go far enough—they are very timid—particularly when we think how frightening the climate change challenge really is.
My hon. Friend the Member for Hackney South and Shoreditch (Meg Hillier) and the right hon. Member for Kingston and Surbiton (Sir Edward Davey) pointed out that the ambitious-sounding carbon capture and storage facilities suggestion, while it might sound good on paper, has been announced several times now and has not actually changed anything. The proof is in the pudding on that one.
There are also some real mixed messages. Freezing fuel duty is a mixed message, and new roads are a mixed message, when Parliament has decided that climate change is an emergency. What is the message? Is it that this is an emergency, or is it that we can just keep building more roads and freezing fuel duty forever?
There is a real missed opportunity in the Budget around the climate change agenda and the role of local government. If we give half of the money for the carbon capture experts to local government, they will insulate properties, prevent heat loss, ensure lower bills for millions of low-income people, introduce the proper cycle lanes the right hon. Member for Bournemouth East mentioned, and develop highly skilled green jobs in a micro way. A lot of the climate agenda and the climate challenge is very localised.
In conclusion, despite the Chancellor’s Panglossian tone when he delivered his Budget speech at lunch- time, I am worried about the mixed messages on the environment. I am also worried about the lack of measures to tackle inequality in a genuinely energetic way. When the comprehensive spending review comes up, I hope we will look at the role of local government and at the way local government can really take on the climate challenge.
Local Government Finance
Catherine West Excerpts(4 years, 3 months ago)
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Andrew Gwynne (Denton and Reddish) (Lab)
I beg to move,
That this House notes that the Government’s proposed changes to local authority funding will dramatically downgrade the importance of deprivation in deciding the distribution of funding to local authorities and will have a devastating effect on local adult social care funding; further notes that proposed changes will cause even greater reductions in foundation funding and children’s social care; and calls on the Government to scrap its Review of Local Authorities’ Relative Needs and Resources and to ensure that local authorities are properly funded through a fairer system that properly takes account of deprivation, need and differing council tax bases.
The state of local government finance is desperate. Our councils are not just at breaking point; many of them are broken. The Government’s so-called fair funding review could be about to make matters worse for some of them.
Catherine West (Hornsey and Wood Green) (Lab)
My hon. Friend is making an excellent start to his speech. How many councils does he think will fall like Northamptonshire County Council, in the next five years?
Andrew Gwynne
Of course that is the worry, because several councils are edging ever closer to the cliff edge, and the number that will drop over that cliff edge is very much dependent on the actions of this Government. If they honour their word and put resources into the local communities that need them most, hopefully we can avoid more Northamptonshires. However, if they continue along the lines that I fear they will, removing resources from the areas with the greatest need but the least ability to raise their own finances, I fear for the future of the local government sector.
Oral Answers to Questions
Catherine West Excerpts(4 years, 6 months ago)
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The Prime Minister
I thank my hon. Friend for his support. I thought he was going to ask about the hospital in Watford, which I am delighted to say is going to be rebuilt, along with many others across the country. I congratulate him on being the Conservative Member of Parliament for Watford. I am delighted with all the work he has done for his constituency.
On the Bill, I am delighted that the House voted in favour of it. Unfortunately, as I say, it willed the end but not the means. The House of Commons has, alas, voted to delay Brexit again. We must now see what the EU says about that request for a delay, and I will be studying its answer very closely to see how we proceed.
Catherine West (Hornsey and Wood Green) (Lab)
The Prime Minister
I was with the hon. Lady until her last point. I certainly think that racism in football is utterly disgusting and should be stamped out at every possible opportunity. She will have seen what happened in Bulgaria. I am delighted to say that the head of the Bulgarian football association was dismissed from his position as a result of what happened in that match. We will certainly be making sure that we do everything we can to stamp out racism of any kind, wherever it takes place in this society and whatever form it takes.