Budget Resolutions and Economic Situation

Lord Spellar Excerpts

Wednesday 3rd March 2021 Commons Chamber

[John Spellar (Warley) (Lab)]

Let us be fair, this Budget does try to tackle some of the gross injustices that have plunged many families and small businesses into dire financial straits, often because they do not fit some neat and tidy category, especially freelancers and the self-employed. What they most want to do is to get back to work, and that, frankly, is why I was not only disappointed, but surprised that the Chancellor did not put much more emphasis on the successful roll-out of the vaccine and the health effects and opportunities that opens up.

Fairly or unfairly, that does give the impression that the Chancellor has lost the battle inside Government with the statistical modellers. The Government are seeming to move ever further away from risk management and towards risk avoidance and a belief in blanket bans, rather than seeing how different parts of society can be opened earlier to get the economy moving and people back into gainful and, from the Chancellor’s viewpoint, taxpaying employment.

Unfortunately, Whitehall now seems to be drifting back into its default setting of one-size-fits-all and the convoy having to move at the speed of the slowest ship. Either the Chancellor has lost the war for the Prime Minister’s ear or, like many Ministers and civil servants now, he seems to be focused more on how he will come out of the public inquiry than managing risk effectively. Harold Macmillan once said that the British public expect their Chancellors to be bishops or bookies, and I fear today that the Chancellor has revealed his inner bishop.

The vaccine roll-out programme provides an effective model for governance, and the Government should learn from that. It shows that the Government, the public sector, academia and industry can really work together, making decisions in real time and rapidly rolling them out, and that can transform the country. It should therefore be a learning experience and seen as a template, not just treated as a necessary exception to an outdated anti-Government agenda that has dominated this Government for so long.

The final point I want to address is related to Brexit. Why, when we are out of the EU, are the Government, surprisingly, accepting that we are still bound by its procurement straitjacket—more so, indeed, than many continuing EU members? Frankly, I do not understand it. The Business Secretary is holding talks with Vauxhall, but the local police forces do not buy its cars. We give grants to bus companies to buy Chinese buses. The MOD is still sorting out the fleet solid support. The Chancellor should have made it clear to Departments, the civil service, local councils and all public bodies that they should buy British first, get money moving and get the British economy in all parts of our country back together.