Income Tax (Charge)

Fabian Hamilton Excerpts

Thursday 4th March 2021 Commons Chamber

[Fabian Hamilton (Leeds North East) (Lab) [V]]

I would like to begin my remarks by welcoming the Chancellor’s announcement that the national infrastructure bank will be based in Leeds. Although that is good news for the Leeds economy, and for jobs in the city and its region, the Government really need to provide clarity on how they will ensure that the bank cannot be used to fund highly polluting projects and that it will fund only renewable-energy based infrastructure that will boost green jobs and ensure it directly addresses the imbalances between the north and the south in that sector. Sadly, yet again, there was no new investment for green recoveries in key industries, including automotive, aerospace and steel. After the mishandling of the pandemic and the economic disaster that accompanied it, a £30 billion green economic recovery fund is now vital in order to create at least 400,000 secure jobs in clean industries.

It is also disappointing that the green homes grant did not feature in the Chancellor’s remarks yesterday. With more than two thirds of homeowners said to be interested in the grant, the Government have squandered the chance to send a message to the world that we are a leading force in the battle against climate change. If they were serious about global Britain, they would start by throwing their weight behind initiatives that lower people’s bills and save the planet at the same time. We have an unprecedented opportunity in this country for a post-covid green revolution, which could generate thousands of jobs across the whole of the United Kingdom, but, once again, this Government have offered more of the same short-term fixes; it is business as usual and it is simply not good enough.

While it is most welcome that the furlough scheme is to be extended, we should not have had to wait for Budget day to give businesses the certainty that they needed months ago. Our bars, pubs and restaurants are particularly dependent on the furlough scheme, and to leave them in this kind of purgatory is unacceptable, as people’s livelihoods are on the line.

Before the pandemic, the night-time economy was the UK’s fifth largest sector. It contributed £66 billion per annum to the economy, equalling 6% of the UK total, and provided 1.3 million jobs alongside a vast supply chain and a number of creative freelancers, sole traders and skilled workers. With no meaningful expansion to eligibility to access the culture recovery fund, and no action on spiralling commercial rent arrears, businesses have made it clear that the loan solutions outlined by the Chancellor simply will not save those hospitality businesses that are already overburdened with debt.

Sadly, many jobs in our hospitality sector will have been lost already, but it is not too late to act. I urge the Chancellor to listen to the needs of the businesses that are the beating heart of the Leeds economy, as well as so many other large cities’ economies.

Following the last decade of cuts to our public services and a crippling lack of investment, the very foundations of our economy have been weakened. Yet again, this Budget does nothing to resolve the concerns of those working in two or even three jobs just to make ends meet, and it does nothing to solve the housing crisis. The pandemic has shown us what happens when we do not properly fund our NHS. We simply cannot afford to make the same mistakes again, whether in social care or housing, or on the climate emergency.

How can we trust this Government on the economy? They spent £22 billion on a test and trace system that did not work for months, £2 billion on outsourced contracts that did not deliver, and £7,000 a day on management consultants. After the past year, the NHS and social care should have been at the very heart of the Budget. There are no plans for jobs, no plans to tackle the climate emergency and no plans for the future. The people of our country have sacrificed so much over the last year. They deserve far better than this wretched Government.