Finance Bill (Second sitting)

Debbie Abrahams Excerpts

Committee stage
Tuesday 16th January 2024 Public Bill Committees

Brought up, and read the First time.

[Debbie Abrahams (Oldham East and Saddleworth) (Lab)]

I beg to move, That the clause be read a Second time.

It has been a pleasure to serve under your chairship during today’s proceedings, Mr Paisley. New clause 3 would compel the Chancellor to assess the impacts of the Finance Bill on poverty, inequality, and health and healthcare demand across the UK, and to lay a report before the House within six months of Royal Assent.

Let me expand a little on why the new clause is so important. This is the first opportunity I have had to come to a Finance Bill Committee to advance these arguments, although I have regularly made them on Report and Third Reading. The new clause partly reflects my experience as a former public health consultant and academic, and relates to one of the reasons that I became an MP. It is about tackling health inequalities. It is not about changing anything in the Bill; it is about understanding what its impact will be. It is about our not working in silos and understanding the Bill’s impact on the NHS, education and so on. That is why I tabled it.

The new clause is also about transparency, to which the Prime Minister is very committed. It will have an important impact on the electorate’s lack of confidence not just in the Government, but in politics and all politicians. It is important that we are seen to be transparent and to be evaluating the work that we do. We can do that in a prospective way that anticipates what the impacts will be.

Finally, although the Government have a massive commitment to levelling up, we are experiencing one of the biggest health divides since 1980. I refer to 1980 because that was when our real understanding of the relationship between poverty and health began. The Black report was in 1980, and it was followed by Dame Margaret Whitehead, my former colleague at the University of Liverpool, authoring “The Health Divide”, which described the socioeconomic inequalities that drive health inequalities. Of course, that was in post-war Britain—a Britain with the NHS. Everybody thought that the NHS would be the saviour that would end all our health woes.

Evidence of the relationship between poverty and health has increased. “The Spirit Level”, by Professors Pickett and Wilkinson, showed that this is a universal experience and not just one in the UK. Health is driven by inequalities in societies right across the world. Indeed, it is almost a universal law that most of the societies with the smallest gaps between rich and poor do better than other societies, not just in health but in social mobility, crime reduction, increasing trust and so on, which are things that I think all of us here would subscribe to.

--- Later in debate ---

[Debbie Abrahams]

On that basis, I did ask a question at the autumn statement. In relation to the social security measures, I asked what were the anticipated impacts on the health of social security claimants. I have heard nothing back from anyone on that. If that evidence exists, what is it?

[Nigel Huddleston]

I shall respond to the hon. Lady on the plethora of analysis and support that goes on for a range of policy areas. We are not lacking in either interest in this area or consideration of impact. As I said, there are numerous Government Departments, bodies and other mechanisms already in place to systematically collect, monitor and evaluate the impact of Government policy across the UK.

The Department of Health and Social Care and its arm’s length bodies are responsible for developing and evaluating policies to help people to live more independent, healthier lives for longer. As part of DHSC, the Office for Health Improvement and Disparities works across DHSC, the rest of Government, the healthcare system, local government and industry, to shift focus toward preventing ill health, particularly in places where there are the most significant disparities. DHSC also invests in research and evaluation through the National Institute for Health and Care Research, which delivers robust evidence to inform policy development and implementation, including evaluation of policies and research to fill longer term evidence needs and gaps.

The Treasury carefully considers the impact of its decisions on those sharing protected characteristics, in line with both our legal obligations and our strong commitment to providing fairness. We go beyond our legal requirements by publishing a summary of equality impacts for tax measures within the tax information and impact notes alongside the Finance Bill.

Various parts of Government, including from within the Cabinet Office’s equality hub, promote the Government’s commitment to levelling up opportunity and ensuring fairness for all. The hub includes the Government Equalities Office, the Race Disparity Unit, the Disability Unit, and the Social Mobility Commission, all of which provide valuable input.

As I mentioned in answer to new clause 2, since 2010 the Treasury also publishes an “Impact on households” report at major fiscal events, but I will not repeat the comments I made there. The “Households below average income” report also provides valuable input. For example, in 2021-22, there were 1.7 million fewer people in absolute poverty after household costs than in 2009-10, including 400,000 fewer children, 1 million fewer working-age adults, and 200,000 fewer pensioners. We believe the mechanisms currently in place are effective in providing the necessary insight, so I urge the Committee to reject new clause 3.

[Debbie Abrahams]

I beg to ask leave to withdraw the clause.

Clause, by leave, withdrawn.

Question proposed, That the Chair do report the Bill to the House.

[Nigel Huddleston]

On a point of order, Mr Paisley. Before you conclude your comments, I think this is an appropriate opportunity for me to make similar comments and thanks to those made by my opposite number. I agree with everything he said. I put on record my thanks to you, Mr Paisley, and your co-Chair, who did not have the opportunity to participate in this Bill; there will be other opportunities in the future.

Of course, I thank the Clerks and all officials who have worked on this Bill across multiple Government Departments, including His Majesty’s Treasury and His Majesty’s Revenue and Customs, but it goes well beyond that. I thank members of the Committee in this place, and also members of the House of Lords Sub-Committee for their input and work. I also thank all those stakeholders who have provided invaluable input. Some have provided specific input recently in the form of written submissions to this stage of the process, but many have participated over many years in extensive formal and informal consultations. I put on record our deep gratitude and thanks to all those who have taken their responsibilities and interests incredibly seriously, providing great input into this Bill to date.