Income Tax (Charge)

Florence Eshalomi Excerpts

Thursday 4th March 2021 Commons Chamber

[Florence Eshalomi (Vauxhall) (Lab/Co-op) [V]]

There is much to welcome in the Chancellor’s Budget. The extension of the furlough scheme, the business rates holiday, his long overdue new support for the self-employed, and the £300 million for the culture recovery fund are a step in the right direction. These measures will help some of my constituents get through the next few months of this crisis, but what about the longer term? I wanted to see a Budget that puts us firmly on the road to recovery and rights the wrongs of the last decade by rebuilding our economic foundations, but this Budget just papers over the cracks with short-term giveaways.

There was no pay rise for the key workers who have cared for us through this pandemic, including the hard-working staff at St Thomas’ Hospital in my constituency, who cared so diligently for the Prime Minister when he was ill; no recovery plan for our NHS after a decade of cuts; no mention of schools or teachers, who have worked tirelessly to educate our children in such challenging circumstances; and no mention of help for the thousands of leaseholders paying extortionate costs for temporary safety measures while still living in unsafe buildings.

The Chancellor assumes that household spending will help fuel growth, but not everyone has managed to save through this pandemic. In September, unemployment will rise when furlough ends, and without the £20 uplift to universal credit the poorest households in my constituency in Vauxhall will be facing a significant fall in income in the second half of this year.

This Budget was full of missed opportunities. The pandemic has exposed structural vulnerabilities and inequalities, and this Budget was an opportunity to reflect on how our economy works, what we value most and what our priorities should be as we start to recover from this nightmare. The Chancellor missed an opportunity to help the co-operative movement in leading a recovery to a fairer and more inclusive economy. He should have shown real ambition by committing to double the size of the co-operative sector to help build a fairer and more resilient community.

This Budget offers none of the ambitions, values or vision that my constituents in Vauxhall had hoped for and needed to see, and it fails to answer some of the bigger questions about protecting household incomes and coping with the squeeze on our public services. The Chancellor had an opportunity to push the reset button with this Budget; he must explain why he did not take it.