Budget Resolutions

Debate between John McDonnell and Keith Vaz

Thursday 9th March 2017 Commons Chamber

[John McDonnell]

As always, my hon. Friend has pre-empted my remarks. Not only did the Government fail to address social care yesterday, but they failed to address in any way the crisis in our NHS. It was completely ignored.

Ahead of the autumn statement, Labour and others were warning that the NHS was in crisis. It was in crisis before the winter, but the Chancellor could not find a single penny for the NHS in the autumn statement. The Royal College of Nursing now says that the NHS is in its worst crisis ever. Ahead of the Budget, the British Medical Association called for another £10 billion for the NHS. As my hon. Friend has just said, A&E waiting times have today got worse again—more people are waiting longer. It is astonishing that there was a complete failure on the part of the Chancellor in the Budget to recognise the scale of the crisis that our hospitals and doctors face. It is a crisis that the Government created by cuts.

Instead, we have a £100 million fund to enable GPs to triage in accident and emergency. The capital spend will build rooms for GPs in hospitals with no GPs to staff them, because no revenue funding is associated with the proposal.

[Keith Vaz (Leicester East) (Lab)]

The issue is not just the immediate crisis in the NHS, but the preventable future crises that will come from long-term conditions such as diabetes. There seems to be no planning for the future. Does the shadow Chancellor agree that we have missed an opportunity to invest in prevention to save the taxpayer an enormous amount of money in future?

[John McDonnell]

I congratulate my right hon. Friend on his campaign, which he has stuck with for a number of years. I remember him saying that some years ago under a previous Secretary of State. Assurances were given about investment in preventive medicine and so on, but then what happened? We had an unnecessary £3 billion reorganisation imposed from the top and the money was lost. I regret that my right hon. Friend has had to continue his campaign. We need investment in preventive health, but we also need emergency funding now for the NHS.

This shows the difference in values. Labour says we need investment in the NHS, but the Government believe we need tax giveaways of £70 billion over the next five years to those who need it least. People are suffering in the NHS and they need social care. People are dying because of the Government’s decisions. They have failed to address them, but have also prioritised tax cuts for big corporations and the wealthiest few rather than investment in our NHS.

On education and skills, the Chancellor claimed in his speech that the Budget was for the young and for skills. He waxed lyrical about the need to provide decent chances in life for all. We share those sentiments—extra funding for training is welcome—but the £500 million of additional skills funding is nowhere near enough to undo the damage of seven years under this Government. Adult skills funding has fallen by 54% since 2010, which is a cut of £1.36 billion. That £500 million does not even come close to reversing the damage already done.

The Chancellor is providing £1 billion for the vanity project of free schools. That is more money for the ludicrous throwback of grammar schools. Thousands of Whitehall hours have been wasted on schemes for a tiny handful of privileged children, leaving the rest to fail. It is the same old Tories, isn’t it? There are real-terms funding cuts for the state schools that 95% of our children use. They are the first cuts since the last Conservative Government. Fifties throwbacks and fantasies are not how we should run a modern education system.

Finally, the Chancellor never spoke the word “Brexit” in his speech yesterday. Shocking. The Chancellor was silent on the greatest challenge facing this country. The word “Brexit” never passed his lips once during his speech. As Britain prepares to begin the process of leaving the European Union, the Chancellor had nothing to say on the matter. It should be clear why. I do not think he agrees with the position of his Government. The Prime Minister claims that no deal is better than a bad deal, which is absurd—no deal would be the worst possible deal. The Chancellor knows that very well. He knows it is a risk, because the warnings come not just from Labour but from manufacturers, business leaders, employers organisations, trade unions and a wide range of civil society organisations. They come from economists and international organisations as well. The Chancellor is being told from every part of our economy that to crash out of the European Union without a trade deal will be disastrous. We will be cut off from investment and our biggest trading partner. We will be cut off from the skills of EU nationals, who have made so much of a contribution to our economy and society. It is a disgrace that those EU nationals live with insecurity still because the Government will not give them the assurances they need, but that is where the Conservative party is setting its course.

--- Later in debate ---

[John McDonnell]

I know how hard my hon. Friend has fought on these issues, and I congratulate her. She has a grassroots understanding of the consequences of that lack of funding, and of the implications for her region and city. The consequences of the lack of investment are staggering, but it also undermines confidence in the private sector to match fund and invest. That is what we are seeing, even at the first stage, and yet, as my hon. Friend the Member for Cardiff South and Penarth (Stephen Doughty) said, we heard in the Chancellor’s statement not a word of assurance to anybody, whether council leaders, business investors or workers. I found that disgraceful.

It is interesting that, prior to the Budget, the Chancellor and allies floated the idea that he was garnering a £60 billion fighting fund to deal with Brexit. It is not a fighting fund; it is a failure fund. He is having to put aside cash to deal with the consequences of what he knows will be a Tory Brexit failure. That is what the failure fund is for.

[Keith Vaz]

On Brexit, I wonder whether my right hon. Friend shares my concern that no provision has been given to the Home Office for processing the applications of 3.2 million EU citizens. The Home Office has suffered enormous cuts over the past few years and will simply be unable to deal with the applications that will be made. Currently, there is a seven-month wait to get a certificate to remain. Does he believe that provision should have been made for that?

[John McDonnell]

It is not just that provision should be made, but that the cuts have established that situation. Whatever system is introduced, that organisation will not be fit for purpose because of a lack of investment over the recent period, which my right hon. Friend has consistently pointed out.

We understand the vote in the referendum. People voted to leave, but we repeat time and again that they did not vote to trash their jobs, their livelihoods or the economy. A responsible Government would ensure that jobs and the economy were protected. A responsible Budget ahead of article 50 would have shown how the Government would protect both. The Chancellor had a responsibility and failed to deliver on it.

The Chancellor has dared to talk elsewhere about the difficult decisions he had to make. It is not he who is making the difficult decisions; it is the NHS manager in a hospital deciding whether someone will have a bed or a trolley; a police commissioner deciding which streets will be patrolled; or a council leader deciding which children’s centre will be closed. They are the ones with difficult decisions, not the Chancellor. He is passing the buck to others for his cuts.

I think that the Chancellor lives in a world in which he is completely insulated from the consequences of his decisions. He can sit in No. 11 and delete lines from his spreadsheet without a thought for the consequences. For him, it is all in a day’s work, and it is the rest of our society who must deal with the results. We have had seven long years of austerity from this Conservative Government, and the spending cuts have dragged our economy and society to the brink.

The suffering has been immense, and it is not the Chancellor or his colleagues who have been on the receiving end. It is their victims: those parents who cannot get a school place at the moment, those young people who cannot get a decent home because of a housing shortage, those families who cannot get care for their parents. We have seen public services shredded and basic standards in public life torn up, and for what? So that this Government can add three quarters of a trillion pounds to the national debt. After seven years of austerity, and two years after it was supposed to have ended, what can we look forward to? Continual cuts in public services for the rest of the decade.

This was a Budget of complacency. We need a Government who will introduce a fair taxation system, who will use public resources for long-term, patient investment in our economy, who will tackle tax evasion and avoidance at the same time, and who will grow our economy but, as we build a prosperous economy, will ensure that that prosperity is shared by all rather than being given away in tax cuts for the rich and the corporations. Yesterday’s Budget was not just complacent; it was arrogant, and it was cruel.

UK Border Agency

Debate between John McDonnell and Keith Vaz

Wednesday 4th July 2012 Commons Chamber

[Keith Vaz]

The hon. Gentleman is absolutely right. Yarl’s Wood is near his constituency, so he will have dealt with these kinds of cases. It is important that we look at the cases on an individual basis. Of course they form part of a grid, table or pie chart, but they involve individual people with real problems that we need to deal with.

I will move on to students, which is an issue of great interest to the hon. Member for Oxford West and Abingdon. The Select Committee happens to contain not only the hon. Lady, but the hon. Member for Cambridge (Dr Huppert), so obviously student visas are an important issue to it. Of course, the fine universities of Northampton, Leicester, De Montfort and Rhondda are also represented in the Chamber. [Interruption.] If there is not a university of Rhondda, I am sure that there will be by the end of the week.

We love seeing the Minister for Immigration before the Committee, although we do not see him often enough. He is coming before us on Tuesday. When he last came before us, we talked about student visas. There is definitely a difference of emphasis between the Foreign Office, the Department for Business, Innovation and Skills and the Home Office. The Home Office feels that it is very important to reduce the number of students, and to reduce the intake only to the brightest and the best—whatever that means.

We all want to get rid of bogus colleges. That is why the Committee has pressed the UKBA to ensure that more of its visits are unannounced. The majority of its visits to colleges are still announced. People can therefore prepare for its arrival. We believe that it is important, as we have said in successive reports, that it just turns up on a Monday morning, a Friday afternoon or a Wednesday morning to see whether the college is operating. It is quite easy to do that. The UKBA does it for enforcement purposes. I have many examples of that. Indeed, the Home Secretary has given the example of a restaurant in her constituency, which she visited regularly and liked, being raided by the UKBA. It found that some of the workers were here illegally. If it is all right to raid restaurants, it should be all right to go into colleges to see whether they are bogus.

We and the university sector want as many genuine students to come here as possible, because if they do not come here, they will go to the United States of America. There is even evidence that France is setting up courses in English to attract people who do not want to apply to come to the United Kingdom. It is therefore important that we deal with student numbers.

[John McDonnell (Hayes and Harlington) (Lab)]

There are genuine students who apply to and are accepted by a college on the UKBA’s approved list only for the college to be delisted. Those students are given no opportunity to find an alternative course and are left high and dry. They, too, are victims of this system.

[Keith Vaz]

My hon. Friend is right. I have many examples of people who have come to my constituency only for the colleges to be closed down. That has happened to one or two colleges in Leicester. Where do those people go in the meantime? The colleges are bogus, but the students are not. They have paid their money in good faith. They are then in limbo if they do not have a different educational establishment to go to.