Budget Resolutions and Economic Situation

Charlotte Nichols Excerpts

Wednesday 15th March 2023 Commons Chamber

[Charlotte Nichols (Warrington North) (Lab)]

Thirteen years of Tory Government have seen a sustained fall in living standards across my constituency, accelerated by the disastrous mini-Budget and the Truss mortgage premium. My constituents in Warrington have frankly had enough of a cost of living crisis made in Whitehall. It is no longer just those on the lowest incomes who are feeling this hurt, but many who would previously have considered themselves comfortable on the kind of salary on which they could once have raised a family.

We have seen widespread industrial unrest as the pay and living standards of our junior doctors, nurses, posties, lecturers, railway workers, barristers, police and others have been squeezed, while the Government try to balance the books on their backs. The OBR reports that living standards are expected to fall by 6% this fiscal year and next, as inflation outstrips growth—the largest two-year fall since ONS records began. At my weekly surgeries and my doorstep surgeries across Warrington North, the picture is a depressing one.

This Budget does not meet the ambition that we have for our town or for the country. It commits £400 million to levelling-up partnerships in a range of key Tory marginals, but there is nothing for devolution to Warrington and Cheshire. In fact, any devolution settlement support, according to paragraph 3.118 of the Red Book, is contingent on a model with a

“mayor or directly elected leader”—

something for which there is no local appetite. Why do we need another layer of politicians and bureaucracy to make more of our own decisions about our local priorities, when our existing structures are working?

Warrington North has the second biggest nuclear workforce in the country. I welcome the news on the green taxonomy changes for the nuclear sector that the all-party parliamentary group on nuclear energy, which I co-chair, has been calling for, but constituents in the nuclear sector are already WhatsApping me memes about the small modular reactor competition. First, far from being new, it was already tried and scrapped by George Osborne in 2016. Secondly, there are concerns about the UK’s competitiveness in this sphere against, for example, GE Hitachi, which has just seen a major pre-licensing milestone in Canada, potentially putting our sovereign SMR sector at a disadvantage in such a competition. Having read through the Red Book in the time available, I cannot see any money allocated for Great British Nuclear either, for all the Chancellor’s warm words about its importance in launching it today.

I welcome the support for childcare costs. However, the issue is not just affordability but availability. The timescales for this support mean that many children will be in school before their parents see any benefit at all. Nor does the lack of anything for social care help families who are caring for parents and children or grandchildren at the same time to get back into the workforce. That is not nearly good enough, especially at a time when my local council is having to spend 70% of its budget on statutory care services—a situation that will only get worse over time with an ageing population with increasingly complex care needs.

The announcement of reforms to the medicines approval process is welcome, as it means that patients should receive access to emerging medicines, including psychedelics, sooner than they otherwise might. MDMA and psilocybin are due to receive approval from the US Food and Drug Administration in 2024 and will be approved later this year in Australia. Hopefully, UK patients will gain access simultaneously or soon afterwards. In the meantime, however, we will continue to lose, on average, 18 people a day to suicide, and our veterans and victims of crime will continue to suffer needlessly with post-traumatic stress disorder. The funds that the Chancellor committed today to the Office for Veterans’ Affairs and to the suicide prevention fund, which involves voluntary, community and social enterprise organisations, could be working much harder and going much further if we would only commit ourselves to what colleagues across parties have been calling for: a drug scheduling policy based on evidence, rather than stigma, misinformation and political expediency.

I welcome the measures to support leisure centres—I recently led an Adjournment debate on the need for them—and the differential for draught beer, which will also be greatly welcomed by the all-party parliamentary group on pubs, which I chair. However, while there are aspects that I welcome, this Budget has been lacking in big-vision ideas to get our country moving. Halving inflation does not mean prices coming down; it only means that they rise more slowly. Without a proper pay rise for the country, too many of the essentials of everyday life will still be out of reach for too many, and our local food banks and charity sector will still be stretched far beyond capacity.

There was an opportunity to reform the apprenticeship levy to make it work for businesses, for industry and for apprentices themselves, but this returnerships proposal that no one asked for is what we have instead. That was an opportunity missed. There was also a missed opportunity to improve our bus sector—buses are the most used form of transport in the country—and a missed opportunity to do more for our small businesses: the Federation of Small Businesses has described this Budget as irrelevant to the 5.5 million-strong small business community. There was a further missed opportunity to reform business rates radically to bolster our high streets. However, the biggest missed opportunity of all was the failure to make those who can most afford to pay do just that. A number of companies and sectors, including companies in the oil and gas sector, have made more profit over the last few years than they know what to do with. While my constituents face the highest tax burden in decades, little seems to have been done to tax those giants with the broadest shoulders more.

Sticking plasters are not enough. The Government could have gone much further and been much fairer. Politics is about priorities, and we can see from this Budget today that the people's priorities have been overlooked and millions will understandably be feeling short-changed as a result.