Budget Resolutions and Economic Situation

Gareth Thomas Excerpts

Wednesday 15th March 2023 Commons Chamber

[Gareth Thomas (Harrow West) (Lab/Co-op)]

It is a pleasure to follow the hon. Member for Waveney (Peter Aldous), who rightly implies that this Budget offers thin pickings for most in the UK—it certainly does for my constituents. It underlines the fact that we have seen no wage growth across the UK for 13 years. Taxes are at record levels and we have the OBR confirming today the grim news of record falls in living standards. It would be churlish of me not to welcome the moves on childcare, albeit with the powerful caveats mentioned by my right hon. Friend the Member for Barking (Dame Margaret Hodge), and the move on prepayment meters.

I want to highlight a message from Japan’s decade of lost growth, with which many in this House will be familiar. It took place at the end of the 1990s, when there was an annual rate of growth of just 1%. Between 2016 and 2025, the UK is set to experience even worse—an average growth rate of just 0.8%. We face a Conservative decade of lost growth, missed opportunities and, as my right hon. and learned Friend the Member for Holborn and St Pancras (Keir Starmer) said from the Dispatch Box, managed decline. The Resolution Foundation last year underlined the significance of that lost decade for the UK: typical incomes are higher in Ireland than in the UK by 6%, in France by 10% and in Germany by 19%. Those are extraordinary figures that underline the point about the UK increasingly having become the sick man of Europe—a profoundly worrying state of affairs for us all.

The Resolution Foundation also highlighted last year that the Conservative party’s particularly toxic combination of low growth and persistently high income inequality has led to some in our country being particularly exposed to the cost of living, so it was particularly disappointing, although sadly not surprising, again to see nothing of substance in the Budget to tackle the rise in child poverty. Nearly 20% of children are living in poverty, including almost 16% in my constituency alone. We can do better as a country and we must do better for our constituents, although I fear it will fall to a future Labour Government to reverse the trends.

I am particularly disappointed that the Chancellor has not brought forward a bolder package to address the slow growth that Britain has experienced over the last decade and is likely to see over the next two or three years. Other G7 countries have seen faster growth—for example, in exports to the world’s largest economies. Germany and America, and even Italy and France, have seen their exports to the world’s fastest growing economies in the G20 racing ahead of Britain in the last decade. The poorly negotiated trade deal with Europe has clearly done considerable damage and the lack of the much promised US trade deal has not helped, but cuts in support to British businesses wanting to attend trade shows, a woeful Government website for helping exporters, late decisions by Ministers on which markets to prioritise, and then little follow-up from Whitehall when businesses go to those markets, are consistent criticisms from British businesses.

The other striking thing about the Budget is how little there is for our public services, which are heavily stretched—to put it generously. That is perhaps hardly surprising given the attacks on staff in those public services who have the temerity to ask for decent pay. We all remember only too well that on the Prime Minister’s watch nearly £30 billion has been lost to fraud, vanity projects and even crony contracts. That could have been invested in galvanising the green economic renewal that our country so desperately needs, or simply in our schools, hospitals and police.

In Harrow, our public services are crying out for investment. There is huge pressure on our GP surgeries. Over 2,000 people in Harrow had to wait more than a month for a GP appointment in January, and 8,000 had to wait between two and four weeks. That is not a criticism of the staff who work at our excellent GP surgeries; it is simply the fact that they are under huge pressure. Similarly, at Northwick Park Hospital, which serves my constituents, over 43%—almost 50%—of people attending accident and emergency services are having to wait longer than four hours. It is not that long ago that we had three clinics that supported GP surgeries across the borough of Harrow, ensuring that no one who needed to see a doctor or a nurse waited more than an hour. Many now face very long waits to do so, which inevitably increases pressure on the rest of the NHS.

The Chancellor knows that there are huge staff shortages in the NHS. He also knows that, if he backed the abolition of non-dom status, as Opposition Members have argued for, we could double the number of medical school places and train some 10,000 more nurses every year. That would certainly make a start. But to address the crisis in NHS, it is not just staff that we need. None of the 40 new hospitals that we have seen promised has actually had work begin on it, and all the while the need for new investment is growing across the NHS estate. At Northwick Park Hospital, as well as a rising backlog of essential maintenance, there is a need for capital investment in new intensive care beds to help to improve A&E services. This Budget does not offer much hope that there will be change in that regard.

Our borough’s schools need more investment, too, and a Government determined to put in place a plan to boost recruitment and help headteachers retain staff. Per-pupil funding is lower now in real terms than a decade ago. It was striking that the Chancellor of the Exchequer had nothing to say on that.

The Chancellor also had nothing to offer on more funding for our police services. We have seen a drop of more than 75% in the number of police community support officers in London over the last eight years. Where once we had local police teams of a sergeant, three police constables and three or four PCSOs in every area of Harrow, now we are lucky to have one PC and one PCSO per ward, and even that has required extra investment by the Mayor of London to achieve. Funding for the Met police is so tight that it cannot fund town centre police teams in every part of London. The constituency of the former Prime Minister, the right hon. Member for Uxbridge and South Ruislip (Boris Johnson), gets a town centre police team, but my Harrow West constituency does not.

I must say that this was a very disappointing Budget. I hope we will see a Labour Government soon to put right its mistakes.