Income Tax (Charge)

Colleen Fletcher Excerpts

Thursday 4th March 2021 Commons Chamber

[Colleen Fletcher (Coventry North East) (Lab)]

Listening to the Chancellor yesterday, I was surprised by the tone that he took. He seems to have forgotten that his Government’s shambolic handling of the covid pandemic has seen the UK suffer both the worst death toll in Europe and the worst economic crisis of any major economy. As we move towards recovery, I share the concerns of many of my constituents, who feel that the confused policy making of the last year means that this is not a Government who can be trusted to deliver the recovery that the UK needs.

Following the financial crisis, the Tories responded with austerity. Labour warned against cutting too far and too fast, and we ended up with soaring rates of poverty, threadbare health and social care services and one of the most unequal economies in the western world—a situation that no doubt exacerbated the impact of the covid pandemic. Now the Government’s failure to recognise the role that poverty and inequality play in holding our nation back means that they are once again risking the economy. In particular, it is noteworthy that, despite countless charitable organisations arguing that the £20 universal credit top-up should be made permanent, the Chancellor could commit to it for only a further six months. Indeed, there are almost 16,000 individuals in Coventry North East who could do with that extra £20 per week, yet this Government seem determined to find a way to take it off them. The Chancellor has said that the increase is only temporary and that it is unaffordable in the longer term. Yet we only have to look at how easily and freely they hand out Government contracts to their friends and close associates to see that when it comes to the question of affordability, it helps to be a personal friend of a Minister. Sadly, for the 16,000 recipients of universal credit in Coventry North East, this means that this much needed increase may soon be ripped away from them. With many of those people already on furlough or in insecure work, there is a real danger that when this is taken away from them, they will become even more dependent on the state for support, which is not what anybody wants.

A society that is built on shaky foundations will not be able to tackle the challenges this country faces, nor take advantage of the opportunities we are presented with. The Government’s plan for the post-pandemic recovery does nothing to tackle the poverty and inequality that resulted in the worst death toll in Europe and the worst economic crisis of any major economy. We all want a strong and resilient country, but unless the Government start to take these issues seriously, they will once again leave us vulnerable to the future challenges we will inevitably face.