Budget Resolutions

Debate between John McDonnell and Dan Carden

Tuesday 30th October 2018 Commons Chamber

[John McDonnell]

To be absolutely clear, the Chancellor gave the impression yesterday that there would be no departmental cuts, but the Resolution Foundation has said that, although some Departments will be protected, others will have a 3% cut as a result. I call that continuing austerity.

Ending austerity is about more than that; it is about ending and repairing some of the damage that has been inflicted on our society and, yes, has undermined some of the social fabric we rely upon. Yesterday, the Chancellor claimed that this was a “turning point”. It is, but not in the way he suggested. This is not the end of austerity, but it is the beginning of the end of the dominance of an economic theory and practice that has wreaked havoc on our communities. People no longer believe the myth that austerity was necessary. They are seeing this Government hand out £110 billion in tax cuts to the rich and corporations while their services are being cut and their children are forced into poverty.

[Dan Carden (Liverpool, Walton) (Lab)]

Liverpool’s local authority will have had 64% of its budget cut by 2020. Would not a reversal in austerity mean its budget being reinstated?

[John McDonnell]

We are currently seeing local councils—the first wave has been Conservative—virtually going into administration. That must say something about the impact of a 50% cut in local government funding over the last eight years.

People no longer accept the trickle-down economics that has gripped the Tory party for four decades.