Budget Resolutions and Economic Situation

George Howarth Excerpts

Wednesday 15th March 2023 Commons Chamber

[Sir George Howarth (Knowsley) (Lab)]

Thank you, Madam Deputy Speaker. It was a pleasure to see the Chairman of Ways and Means in her place earlier.

As with most Budgets, the next few days will show the extent to which the Chancellor’s rhetoric and the measures that he has announced stand up to scrutiny. The early indications are, as my right hon. and learned Friend the Leader of the Opposition pointed out, that they do not undo the damage of the last 13 years or resolve the doubts about the strategic economic direction for the future.

Two problems have already been highlighted. The Office for Budget Responsibility forecasts a 5.7% fall in real incomes of over the next two years. That means that the cost of living crisis that many of our constituents are facing in very real terms will continue. The second problem is that, adjusted for inflation, real wages have fallen recently by about 3.2%. The Chancellor has in the Budget signalled measures to boost productivity. Of course, that is important in principle, particularly given our need for greater economic growth, which he also referred to.

The Financial Secretary to the Treasury, who I am pleased to see in her place, and the hon. Member for Altrincham and Sale West (Sir Graham Brady), and others from various parties across the House, are aware that last year I tabled a ten-minute rule Bill aimed at reforming employee share ownership schemes. As such, I welcome the reference in the Red Book to the research that the Department has commissioned into those schemes—how they are doing and how they can be improved—as well as the engagement we have had with the Financial Secretary, which is much appreciated.

I take this opportunity to give notice that the hon. Member for Altrincham and Sale West, subject to the provisions of the Finance Bill, hopes to table an amendment that would create a new employee share ownership scheme for the benefit of low-paid workers. That proposal, in addition to helping those who are vulnerable to the still-acute cost of living problems to achieve greater financial stability, would boost productivity in the companies that take such a scheme on board. Moreover, I believe that the Financial Secretary is favourably disposed to such a scheme, at least in principle—whether or not she will accept our amendment remains to be seen—and I would be grateful if she could give some indication of her willingness to continue to work with the hon. Member for Altrincham and Sale West, and with others from all corners of the House, to bring about the sorts of changes that we hope to achieve in employee share ownership.