Budget Resolutions

Chi Onwurah Excerpts

Thursday 27th November 2025 Commons Chamber

[Dame Chi Onwurah (Newcastle upon Tyne Central and West) (Lab)]

Had our productivity grown at the same rate as media speculation, the UK would have been in a much stronger fiscal position ahead of the Budget. All the more credit is due, then, to my right hon. Friend the Chancellor of the Exchequer for delivering a Budget for working people, lifting children out of poverty and equipping our economy to grow, at the same time as delivering a master class at the Dispatch Box.

There was another performance that was, well, magical in its way: that of the Conservative Members. They have managed to forget their economic vandalism, their fiscal incompetence and their social sabotage, and pretend that the UK’s economic situation is nothing to do with them, even as the OBR downgraded its productivity forecasts to reflect their past productivity failures. It is like some Westminster edition of “The Bourne Identity” without Matt Damon—well, perhaps the shadow Minister, the hon. Member for North Bedfordshire (Richard Fuller), thinks he is Matt Damon—but with a whole political party that wakes up not knowing where it has been for the past 15 years. But the north remembers, and particularly the north-east.

We are a great and vibrant region, and the engine of the industrial revolution. It was growing up in Newcastle, surrounded by the legacy of great Geordie engineers and inventors, in a culture that championed making and building things, that inspired me to become an engineer. But the wealth created by our region’s industrious workforce has not been enjoyed by us. Despite having world-leading companies and research institutions, the north-east now has the lowest GDP per head in the UK, at £28,000. Every region in the country is below the national average of £39,000, except the south-east at £41,000 and London at a whopping £69,000.

The Conservatives responded to the global financial crisis with the economic equivalent of leeches, with sustained austerity resulting in the slow strangulation of the economy and my constituents’ wages. Annual earnings for full-time employees in the north-east fell during that time and, despite Tory talk of levelling up, we see the same regional disparities in labour productivity, which is also, indirectly, a measure of capital investment, both physical and human. If we could just lift the north-east’s per capita GDP to the national average, it would increase UK GDP by over 1%, which is almost the same GDP growth as we had for the entire country in 2024. That is why the Chancellor chose to turn her back on Conservative austerity and make the tough decisions necessary to invest.

Let me focus on just two areas, science and social justice, which are the twin passions of my personal politics. As a Geordie and as Chair of the Science, Innovation and Technology Committee, I am delighted to see the new £30 million facility in the constituency of my hon. Friend the Member for Darlington (Lola McEvoy), which will accelerate the development of novel RNA—ribonucleic acid—therapies from labs to market to tackle cancer, heart conditions and infectious diseases. I am also excited by the Budget measures to support innovative businesses to grow and investors to invest beyond the start-up phase.

My Committee’s inquiry into regional innovation and growth heard wide-ranging evidence that disparities in investment, access to capital, skills, infrastructure and integration of universities and local economies all need to be addressed if we are to ensure that our regions benefit from Britain’s scientific strengths. Unfortunately, the inquiry also revealed an enduring complacency and lack of regional focus in many Whitehall Departments. I urge the Chancellor to go further to address the barriers to regional growth, and I particularly echo the hope of our regional mayor, Kim McGuinness, to see more infrastructure investments in the coming months.

The last Government’s record on social justice stained our nation, with children growing up in households where heating and eating were daily sources of stress. Cutting £150 from the average household energy bill, extending the warm home discount to a further 3 million of the poorest households, expanding free school meals and breakfast clubs and improving nutrition will make a real difference to young lives and cut the cost of living for my constituents. The Chancellor’s high-value council tax surcharge will also go some way to righting the ridiculous situation of a family in a band D home in Newcastle paying more council tax than someone in a £10 million property in Westminster.

Finally, the decision to scrap the two-child limit will change for the better the lives of 4,960 children in my constituency alone and put almost £7 million back in the pockets of local families. It is an honour and a privilege to support a Labour Chancellor delivering a Labour Budget in the interests of every region and of every working person in this country.