Budget Resolutions

Jeremy Corbyn Excerpts

Wednesday 6th March 2024 Commons Chamber

[Mr Tobias Ellwood (Bournemouth East) (Con)]

We are on day one of the four days in which the House will debate the Chancellor’s Budget statement, but within minutes of the Chancellor sitting down we heard Opposition parties roll out their headline soundbites, such as “Look where we are after 14 years of Tory rule.” I suspect we will hear a lot of that in the lead-up to the next general election, which is fast approaching, in the hope that the wider geopolitical context in which we have had to govern is completely glossed over. That simply trivialises the importance of this debate, so let us do it justice, and appreciate what has actually happened over the past 14 years.

We have had to endure the largest global pandemic since 1920. It cost more than £400 billion to protect our economy and vaccinate the nation. We continue to endure the worst war in Europe since 1945, which is impacting both the continent’s security and its economy, with global oil prices having increased by 11%, UK wholesale gas prices having risen by 40%, and food prices having spiked following Ukraine’s grain export disruption. That is the monetary and fiscal backdrop—the challenging context—that we find ourselves facing today. It sits behind the cost of living crisis, with double-digit inflation, and has led to the unprecedented but necessary colossal state intervention that we are now slowly moving away from.

Look at the situation that we inherited 14 years ago: UK debt was rising, the deficit was about £150 billion a year, and unemployment was higher than in 1997. Labour would rightly point out that it had to endure the global financial crisis that hit Britain hard, but that underscores my point about the context of the global economic headwinds that we have had to face. Of course I would like to see more money to further ease the burden on households, tackle the waiting lists, and upgrade our defence posture, but the reality is that the Conservatives have had to manage the UK economy through the toughest of circumstances, during which time there have been successes that should be acknowledged, including investment in our schools, the roll-out of free schools and academies, our jump in the international league tables, and the roll-out of the pupil premium and free school meals.

Our welfare structures are far simpler, fairer and better targeted, with transformative free childcare as well. National insurance contributions have now been cut to 8%—a tax cut for 29 million people. On the green economy, our agenda is world-beating: the fastest decarbonisation of any major economy, and the first to legislate for a net zero target. We hear today that there will be further steps as we invest in the modular nuclear reactor programme. Thanks to the tax breaks and investment incentives, we have the third-largest tech sector in the world, behind the United States and China. We are global leaders in pharmaceuticals, life sciences, quantum computing, artificial intelligence and aerospace, as well as fintech and financial services, backed up by some of the best universities in the world.

Crime is falling. Police numbers are now rising. Violence reduction units to tackle knife crime, which I have been campaigning for with the Chancellor, are now being rolled out, including in my constituency of Bournemouth. A new generation of hospitals are being built, with upgrades to existing hospitals, such as we are seeing in Bournemouth. There are 42,000 more doctors and 72,000 more nurses. The levelling-up programmes are transforming communities up and down the country, including Bournemouth’s seafront, and we are on target to build 1 million new homes in this Parliament.

On defence and security, we have expanded our surface fleet with two carriers. We have upgraded our Air Force and our continuous at-sea deterrence programme. We formed the National Security Council as well as the National Cyber Security Centre, and signed up to AUKUS. We have hosted G7 summits and the NATO summit, and have played a lead role in Ukraine, as well as defending safe maritime passage in the Red sea.

So please do not say that it has been 14 wasted years. That is an insult to the British people. It has been challenging, absolutely, and not without frustration—I can say that at first hand—but had Labour been in office without benefit of hindsight, would it have fared so much better than us? Bear in mind that the right hon. Member for Islington North (Jeremy Corbyn)—he is in his place—would have been at the helm for some time. He would certainly have taken Britain in a very different direction. I think he would acknowledge that.

[Jeremy Corbyn (Islington North) (Ind)]

Will the right hon. Gentleman give way?

[Mr Ellwood]

I did mention the right hon. Gentleman, so I will give way.

[Jeremy Corbyn]

Yes, it would have been a very different direction. There would not be the levels of poverty, homelessness and inequality that we see in this country today.

[Mr Ellwood]

I gave the right hon. Gentleman the opportunity to put his words on the record. I look forward to hearing what he has to say.

Here is the rub: it is not likely to get any easier in Britain. Global storm clouds are gathering again. Our world is becoming more contested and more fragmented. We face evermore testing times ahead, with increased threats to our international rules-based order. The question is, who is best placed to strengthen our economy, to navigate us through further global shocks and to lead the country? With inflation now falling—heading towards 2%—wages rising, business confidence returning, education standards improving and the UK growing faster than most of the other members of the G7, this is clearly a Budget for growth, which we should all support.

--- Later in debate ---

[Jeremy Corbyn (Islington North) (Ind)]

I ask the House one question: how can it be right that, in the sixth richest country in the world, more than 4 million of our children are living in poverty, and the richest 10% of households earn or receive an income over 10 times that of the poorest 10%? In my borough, in which some extremely wealthy people live, one in four people live in poverty, making us the sixth most deprived borough in London—in other words, there are 26 other boroughs that are less deprived. Some 19,000 people in my borough experience high levels of food insecurity. I am delighted that the Mayor of London has pledged free school meals across the whole of the city, even though my borough has been providing them since 2010. It is a huge step forward. We have a very high rate of child poverty, with 47.5% of our children living in poverty. This Budget could have done so much to reduce levels of child poverty and improve the livelihood of some of the poorest people in the country, which is why I intervened on the right hon. Member for Bournemouth East (Mr Ellwood) in the way I did.

We have what I think is an immoral and disgraceful two-child policy on benefit levels in this country, which means that children in large families lose out. Large families are already often poor because they are large, and they are then made even poorer by the discrimination against the third, fourth or even fifth child in the family. It would not be madly expensive to end that policy, and it would take 250,000 children out of poverty. It would cost £1.3 billion. The Chancellor announced that the non-dom abolition, which I agree with, would free up more money for tax cuts in the future, but that could have been used to end the two-child policy, in a very neat synchronisation of two policy changes. The Chancellor could also have looked at page 63 of the OBR report, which tells us that there are now estimated to be £156 billion-worth of uncollected taxes in this country. That is more than double what it was five years ago, and the figure is getting worse and worse.

It seems that in this Budget the Chancellor was more interested in appealing to a small number of people with some degree of tax cuts through lowering national insurance, but I ask this question: is it fiscally responsible to plunge more families or more people into desperate poverty than at present? A quarter of a million people in this country are homeless, and more than 1 million households are on social housing waiting lists. Most young people have no chance whatsoever of being able to rent somewhere of their own, because rents are simply too expensive, and they have to share. They cannot even think about buying anywhere, and they have almost no chance of getting on a council waiting list, unless they have either large numbers of children, or quite complex medical conditions or stress levels.

We have a housing emergency—we see that emergency every day when we come to this building and see homeless people on the streets of London begging. Those numbers are increasing as time goes on. As my hon. Friend the Member for Hornsey and Wood Green (Catherine West) pointed out, the amount of money we are spending through public expenditure on housing benefit to subsidise very expensive private rented accommodation is part of a catch-up every year. The local housing allowance rises a bit, the landlords raise the rent a bit more and the public have to pay this exorbitant level of rent. Why on earth can we not have rent controls—private sector rent controls—which are pretty normal across most European cities and, indeed, in parts of the United States?

In my borough, we have 15,000 households on the waiting list for social housing. The only way forward to deal with the housing crisis is not to pledge to build millions of homes, as the Government are doing, but actually to pledge to build council housing at secure and affordable rents to guarantee decent-quality housing for people. This country did that, under both parties, in the two decades after the second world war, and then we had the Thatcherite idea of selling off social housing, which was very nice for those who were able to buy it very cheaply at the time, but every other generation since then has paid the price of that policy. I ask the Government: why do they not give priority to the housing needs of the majority of the population and those in desperate need, recognising the effect on child poverty, the effect of underachievement in school and the effects on society as a whole of the very poor-quality housing so many people live in?

The underfunding of local government has enormous implications. When the Government say they are very pleased that Britain is an attractive place for arts and culture, that is wonderful and I absolutely agree. I want us to be an attractive place for art, entertainment and culture, but if they cut local government expenditure, the art centres get underfunded, the performing arts suffer and the whole cultural scene suffers as a result, as does so much else.

I know you are concerned about the time, Mr Deputy Speaker, so I will conclude with a letter that the leader and deputy leader of my local authority in Islington, Kaya Comer-Schwartz and Diarmaid Ward, wrote to the local paper in a plea to the Chancellor before the Budget. They made several points. First, they called for more realistic local government funding so that they did not have to cut services or reduce them in some way. They are doing that, and they have lost £300 million due to central Government underfunding. They asked for rates to build much needed new council homes. The council has done well on building on land that it owns, but it cannot afford to buy anywhere else, or it must build a mixed development with less council housing than we could have. They also asked for full flexibility about how the money could be spent. We need much more responsibility put on to local governments to spend the money as they see fit, and that will help with the housing issue.

Finally, while the Chancellor said a great deal about the NHS, he did not mention social care at any point in his speech. For many, social care is a crisis, with many families devastated by its cost. Many women have to give up their jobs, careers and hopes because they must care for elderly relatives or those with profound disabilities. We can do so much better in this country than we are doing. This Budget is not welcome at all. It is a huge missed opportunity.