Budget Resolutions

Debate between Florence Eshalomi and Caroline Nokes

Wednesday 6th November 2024 Commons Chamber

[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.