Budget Resolutions

Fleur Anderson Excerpts

Tuesday 12th March 2024 Commons Chamber

[Laura Trott]

Unlike the Labour party’s massive £28 billion unfunded tax commitment until 2030, our long-term ambition to cut national insurance and erase the double tax on work does not have a date on it. We have shown that, through careful stewardship of the economy over time, we can reduce people’s taxes without cutting spending.

Simply spending more is not sustainable. If no action is taken, public spending is forecast to grow faster than GDP from 2030; that accounts for pressures that we cannot avoid, such as demographic changes. That must be managed, using all the tools at our disposal—and not by borrowing more, or increasing taxes on the British public. Instead, we have to assess how we deliver public services, and improve them to make the UK more productive and ensure the long-term sustainability of public finances. Yes, this is about money, but it is also about delivering the best services for the public, because productivity is not a theoretical concept; it affects us all, in each area of our everyday lives.

I want better outcomes for children, and teachers being able to spend more time with pupils, rather than filling out paperwork. I want the police to spend more time on the beat, not on forms. As a Member of Parliament representing constituents in Sevenoaks and Swanley, I want nurses and doctors spending time with patients, not having to look at computer screens. Better public productivity means better value for money, better support for frontline workers to do their jobs effectively, and better results.

In last week’s Budget, the Chancellor announced that we are allocating £4.2 billion to investment in productivity. The package is broad and comprehensive, and includes £3.4 billion for the NHS—double its current budget for tech and digital transformation. The NHS says that that will unlock over £35 billion in the coming years—10 times the amount we will put in. At the next spending review, that will be the model for all our public services. The package also includes £105 million for 15 new special free schools across England, which I know will be welcomed across the House. That will create over 2,000 high-quality places for children with special educational needs and disabilities, and prevent local authorities’ use of costly independent provision.

The Budget provides £165 million to tackle the shortage of children’s home placements and to rebuild the children’s home estate. That will reduce the need for expensive and unsuitable emergency provision that does not produce the right outcomes for the children who need our help the most. There is £334 million to cut crime by improving policing technology, and £17 million for modernisation of Department for Work and Pensions services, and replacing the paper-based system for benefits. As a former Pensions Minister, I know the impact that such modernisation has had on the state pension. However, this is just the start. I am also committed to driving forward work to embed productivity at every level across the whole public sector.

[Fleur Anderson (Putney) (Lab)]

Will the Minister give way?

[Laura Trott]

No, I will not. I have been very generous with my time.

When I began thinking about this agenda in 2009, no one could have foreseen the technological changes of the last decade. Those changes are revolutionising the private sector, and we must embrace them in the public sector, too.

Our job is not yet done on the economy, but we are making progress with our plan to reward work and create growth—a plan that would be put in jeopardy under the Labour party. This Budget does what it says on the tin: it sticks to the plan—a plan that Britain needs, a plan that is putting money back in the pockets of British people, and a plan that is working. I commend this Budget to the House.

--- Later in debate ---

[Fleur Anderson (Putney) (Lab)]

I know that the residents of Putney, Southfields, Roehampton and Wandsworth town will be watching this debate, because they tell me all the time as I go out and about in the constituency that they watch the Parliament channel. I also know that they will be very, very disappointed by the Budget. They will have seen nothing for our declining high streets, nothing for youth centres, and nothing to tackle the cost of living crisis that means that there are higher bills but less money for my constituents week after week after week.

The theme of this debate is productivity, which is fundamental for our competitiveness, wage growth, ability to attract investment and overall future economic wellbeing —in fact, our wellbeing as a whole. Without growth, we cannot have the hope for the future, the hope for our young people and the boost for our economy that we need. I will focus on one area of under-investment which has meant a chronic lack of productivity across the UK, an area of investment that is essential to tackle the climate crisis, boost our economy and give young people hope: green skills.

I was disappointed to hear in the Budget that there were no new policies to help boost the roll-out of low-carbon technologies such as electric vehicles or heat pumps. There is a clear need for better alignment between net zero investments and the skills and employment system. That is the problem that leads to our poor productivity at the moment. Solar Energy UK called the Budget “virtually nude” of anything to bolster that sector. We cannot begin to move in the right direction on green productivity without having the processes in place to embed green skills within our economic infrastructure, but we need a whole industry and skills approach. There is a massive shortage of heat pump engineers. We currently have 3,000, but we will need 27,000 by 2028. Offshore wind industry engineer numbers need to triple to just over 104,000 to meet our current targets, let alone our future ones.

Political choices have led to that under-investment and under-skilling. The Institute for Public Policy Research found that the UK employs fewer people in renewable energy as a proportion of the working age population than most other European countries. It does not have to be that way. In my constituency, South Thames College offers courses in green skills and solar panel fitting. It is taking proactive steps, responding to the wide range of green jobs arising across the economy. By helping students to move into apprenticeships or jobs, South Thames College shows that it is ahead of the curve in adopting a joined-up approach. Also in my constituency is Treadlighter, a solar energy company in Southfields. It is booming, but it cannot keep up with demand because it needs more skilled trainees and staff to fit panels.

Matching skills with green businesses is essential, but Government inaction is currently holding back productivity. A whole new approach is needed throughout the economy to secure a seamless transition between training, education, manufacturing, supply and services, but we do not see any of that in the Budget. We see no new boost, and nothing about the new revolution in green skills that would be so exciting for our economy and would give us hope. The Government’s green jobs delivery group has been meeting for a year and plans to publish its green jobs plan soon, but the Budget has given nothing to the green energy industry, so I have no high hopes for that plan.

We in the Labour party know how important to our success investing for the future will be, which is why we have committed ourselves to spending £23.5 billion during our first Parliament in government in order to deliver green power by 2030. Green British Energy, a publicly owned energy company, will invest in green energy projects including offshore wind, hydrogen, carbon capture, tidal and nuclear. If we can match that with the green skills revolution, we really will have the productivity that we need to change the amount of money in the pockets of people across my constituency.

The No. 1 mission of the next Labour Government is to get our economy growing so that Britain will be better off, and we will do it through stability, investment and reform. That means bringing stability back so that we can protect family finances with tough fiscal rules and a long-term plan for our economy, it means investing in British business so we can unlock tens of millions of pounds of private sector investment for our towns and cities, and it means reforming planning so we can boost growth and get Britain building again. The Conservatives are missing in action. They have run out of ideas, they have run out of ambition and hope, and they have run out of all the ways in which growth can be boosted. It is time for a new approach: it is time for a Labour Government.

[Mr Deputy Speaker (Sir Roger Gale)]

To make the last Back-Bench speech of this Budget debate, I call the ever patient Ruth Jones.

--- Later in debate ---

[Tulip Siddiq]

I thank my hon. Friend for her intervention. Those on the Conservative Benches do not want to hear it, but if they have so much confidence in their record, why do they not do as she asks, call a general election and put a test to the public?

Unable to defend his own Government’s records and unable to offer any plan to get the country out of the economic mess that his party created, this Chancellor has resorted to undeliverable promises. When we thought things could not get any worse, the Chancellor bizarrely ended his Budget last week with a £46 billion unfunded tax plan to abolish national insurance. This would leave a gaping hole in the public finances, put family finances at risk and create huge uncertainty for our pensioners. This is even bigger than the unfunded tax cuts announced in the Conservatives’ mini-Budget that added hundreds of pounds to people’s mortgages, as my hon. Friend the Member for West Ham (Ms Brown) powerfully pointed out. I will be listening intently to the Minister’s response today, and I hope that he will set out how his Government would fill that gaping hole in the public finances to avoid rerunning the disastrous experiment that crashed the economy just 18 months ago.

[Fleur Anderson]

Does my hon. Friend agree that it is absurd that throughout today’s event the Government have been unable to confirm how they will pay for their unfunded £46 billion plan to abolish national insurance contributions? Where is the money coming from?

[Tulip Siddiq]

rose—