Budget Resolutions and Economic Situation

Chris Evans Excerpts

Tuesday 9th March 2021 Commons Chamber

[Chris Evans (Islwyn) (Lab/Co-op) [V]]

During the run-up to any Budget, there is much chatter about the rate at which Government set taxes—too high and we run the risk of choking off growth; too low and the national debt will rise to unmanageable levels. What is very rarely asked, however, is how taxpayers’ money is spent. A taxpayer has a right, when they hand over a proportion of their hard-earned wages, for that money to be spent in a wise and prudent manner by the Government. However, the facts and evidence, as presented by the independent National Audit Office, show that this is simply not the case.

From April 2017 until the end of 2020, central Government Departments have recorded at least £5 billion in accounting losses. This is an incredibly high figure of wastage. For example, HMRC racked up over £470 million in departmental losses from 2017 to 2020. It gets worse: according to HMRC’s own planning assumption, total fraud and error arising from the coronavirus job retention scheme cost anything in the region of £2 billion to £3.9 billion. So far, only £10 million has been recovered and any more is unlikely to be claimed back.

To put that into perspective, Saffron Cordery, the NHS Providers deputy chief executive, said that building a new, average, mid-sized hospital costs around £500 million. This means that the £5 billion in accounting losses over three years could have built 10 new hospitals. Given the strain that we have seen on NHS resources this year, I am sure that an extra 10 hospitals would have been appreciated by many communities across the country.

The new Grange University Hospital has just been built near my constituency by a Welsh Labour Government. The hospital has a specialist critical care centre, a top-range cardiac suite and 30 individual intensive therapy unit rooms. It was even able to open four months early to relieve pressure on the NHS during the pandemic. All of that cost £350 million.

Let me tell the House what else was over £300 million: the total losses for the Department for Work and Pensions departmental group. That was in one year alone. I cannot speak for other Members in this House, but I certainly know what I would rather have taxpayers’ money spent on and it is certainly not fraud and error. All that money should be spent helping the people of the UK to recover from the effects of the pandemic and not wasted on departmental error. We owe that to the British people. It is their money. Let us spend it wisely.