Budget Resolutions

Florence Eshalomi Excerpts

Wednesday 6th November 2024 Commons Chamber

[Andrew Griffith]

Well, we will talk a little later about stability. If colleagues do not have maiden speeches to make, I will be very happy to talk at great length about the many benefits of Brexit and the important ability for a country to make its own laws and deliver benefits for the economy.

Let me make some progress. The Secretary of State has talked much about infrastructure, and, indeed, that is partly the subject of today’s debate. Although creating infrastructure is a noble goal, important to all the constituents who send us here, words, I am afraid, are cheap, and the actions of his party somewhat undermine his position. His party voted in the other place against measures to allow 100,000 homes to be built, and his Labour Mayor of London failed to build to such an extent that the Secretary of State for Housing, Communities and Local Government now proposes lowering his targets. This Labour Budget has pulled up the housing ladder for so many, by increasing the burden of stamp duty for first-time buyers. Currently, an estimated 80% of first-time buyers pay no stamp duty, but from April 2025, that could fall to only half.

[Florence Eshalomi (Vauxhall and Camberwell Green) (Lab/Co-op)]

rose—

[Andrew Griffith]

I will happily give way to the hon. Lady, particularly if she can tell me how this Budget will help deliver for first-time buyers.

[Florence Eshalomi]

Does the shadow Secretary of State agree that this Labour Government will help renters by banning no-fault evictions?

[Andrew Griffith]

I was party to the debate in which my right hon. Friend the Leader of the Opposition talked about the unintended consequences of piling burden upon burden on the rental market—in a well-meaning way, I accept. We have only to look north of the border, where similar measures were introduced, to see their devastating effect on the rental markets, and the shocking increase in rents as a result of a Government trying to over-regulate a sector.

Laughably, while the Government talk about investment, in their first 100 days, they cancelled the restoring your railway programme—clearly, with some projects being honourable exceptions—which would have made it easier for constituents to get to work sustainably. They have also cancelled road schemes, including the A303 scheme and—I declare an interest—the A27 Arundel bypass in my constituency. It is not the first time that a Labour Government have cancelled that bypass. The Government talk a great deal about the future of this country, the technology and their modern industrial strategy, but should not new innovative technologies, such as artificial intelligence and supercomputing, be at the heart of that?

--- Later in debate ---

[Florence Eshalomi (Vauxhall and Camberwell Green) (Lab/Co-op)]

I am delighted to speak about the first Labour Budget in 14 years. For my constituents, the last fourteen years have been difficult. Too often, they felt that the then Government were not on their side. That Government did not hear that austerity left us not only with deteriorating public services but more fragile communities. They did not reform the planning system, which would have alleviated the housing crisis and stopped the 20% to 30% rent increases that left many of my constituents facing eviction during a cost of living crisis. They did not take the difficult decisions to protect the economy, and left our new Government with a black hole to fill.

We heard loud and clear in July that government must be different. This Budget offers that. We have a rise to the national living wage and to the rate for under-21s, which will make work pay whatever someone’s age. Funding of over £25 billion for the NHS over the next two years will deliver more doctors and tens of thousands of extra appointments, helping hospitals such as St Thomas’, just over the river in my constituency.

As the Chair of the Housing, Communities and Local Government Committee, I have heard a lot from our local authorities, which have borne the brunt of the failure to tackle the housing crisis. Councils have been forgotten, with devastating consequences for communities. Yesterday, at our first public Committee meeting, we heard from homelessness organisations and local authority representatives on the state of temporary accommodation. Councils are having to spend unsustainable amounts to fill gaps in that area, which is driving them to near bankruptcy. In London alone, 70% of local authority housing budgets are being absorbed by temporary accommodation. That means less money for repairs and maintenance of housing stock, which leaves tenants feeling the increase in the crisis.

The human impact is even more shocking. As I speak, over 150,000 children are in temporary accommodation across England. In the last five years, 55 children have died in circumstances linked to temporary accommodation; 42 of them were under the age of one. That should shock and shame us. Those deaths are not coincidental. Yesterday, the Committee heard about families living in one room. That can stunt a child’s growth because they are not able to do the things they should, such as crawling. We heard about how a child’s ability to form social attachments with peers can be affected by the lack of consistency caused by constant moving. We heard about how parents are often plunged into mental health crises because of the stress of raising a family in those conditions, which further isolates the child.

The Government can and must do better. I welcome the steps in this Budget to supplement the affordable housing programme, increase homelessness spending and scale back right to buy to boost our social housing stock, but they must be first steps. We need further significant change in the upcoming funding settlement, and the next Budget must truly start to address that crisis. I am particularly worried about the freeze to local housing allowance rate, because it is a lifeline for people who are struggling. That is covered by the Department for Work and Pensions, but the measure could have a significant impact on attempts to tackle the homelessness crisis, so it must be addressed in upcoming statements.

The deep harm caused by the last 14 years cannot and will not be fixed overnight. The Budget is the first in my five years in this House that gives us a glimmer of hope and a road map for fixing our broken public services. I congratulate the Chancellor and her team on getting on with the job so quickly, but I will be a voice for the thousands of families who continue to fall through the cracks with no safety net beneath them. They cannot afford to wait any longer for help—they need it now. I urge the Government to give attention to people in crisis, such as those in temporary accommodation. We cannot, as a Labour Government, risk failing a generation of young people.

[Madam Deputy Speaker (Caroline Nokes)]

I call the Liberal Democrat spokesperson.