Health

Debate between Jonathan Ashworth and Adrian Bailey

Tuesday 14th May 2019 Commons Chamber

[Mr Adrian Bailey (West Bromwich West) (Lab/Co-op)]

My hon. Friend is making an excellent case. In my local authority, Sandwell, life expectancy is in the bottom 15% nationally and the childhood obesity rate is more than three times that of the best local authorities, yet although nationally the Government boast that they are investing money in the health service, public health spending seems to be left out. Does my hon. Friend agree that it is essential that there is a big boost to public health spending, so that local area health budgets do not have devastating long-term obligations in future?

[Jonathan Ashworth]

My hon. Friend is absolutely right and, typically, anticipates the argument I am going to make.

Advances in life expectancy look as though they are going backwards for some of the poorest in our communities, particularly women. Let me take as an example our infant mortality rates, which reflect the survival rates for the very sickest of small babies. Those mortality rates have risen again, for the second year in a row.

Budget Resolutions and Economic Situation

Debate between Jonathan Ashworth and Adrian Bailey

Wednesday 8th July 2015 Commons Chamber

[Mr Bailey]

No, I do not. I will address that issue in a moment.

Before the recession, productivity averaged 2% per annum. It fell in the immediate aftermath of the recession, as it does after all recessions. Most significantly, as the economy has seemed to grow out of recession, productivity has not improved. That is virtually unique in our economic history. If productivity had continued to grow at the average level of the 10 years before the recession, we would not have had to introduce this Budget today, with all the restrictions and cuts that underpin it.

What the Chancellor has done—again, this is almost unique in our economic history—is to initiate an economic recovery that has failed to drive up living standards, failed to generate tax revenues and failed to pay off the public sector deficit. In its March assessment, the Office for Budget Responsibility forecast that productivity would return to normal and estimated that, if it did so, the public sector deficit would be eliminated by 2018-19. Unfortunately, its forecast on productivity has, even as of this moment, been proved incorrect and has been downgraded by the Bank of England. If productivity stayed at its current weak rate, the deficit would increase as a proportion of GDP by 2019-20.

To achieve all the objectives the Chancellor says this Budget will achieve, there has to be a significant increase in productivity. It is therefore perfectly valid to measure the policy initiatives in the Budget against the likelihood that they will deliver that increase in productivity. Will they strengthen the sinews of the economy in the way that is necessary to enable the increased number of people in work to increase their output in order to sustain the level of economic growth that would eliminate the deficit? Those sinews are research and development—I welcome the comments of the hon. Member for North West Norfolk (Mr Bellingham) on that—as well as investment, skills and infrastructure. The hon. Gentleman spoke about how we lag behind. If we are to compete against other countries that are investing far more than us, we will have to raise our level of performance. Nothing in the Budget demonstrated that we would do so.

On private sector investment and business investment, I do not see any improvement in the availability of the much-needed funding for small businesses to expand production. The focus on corporation tax, while not unwelcome, overlooks the fact that for many businesses, things such as capital allowances are far more important in encouraging them to invest than a reduced headline figure of corporation tax.

A number of comments have been made about infrastructure. The Chancellor announced a whole series of measures, just as he has done for as long as I can remember. In the end, we must judge him on performance. What we want is a lot fewer launches and far more starts of infrastructure investment. Government investment in infrastructure is 1.5% of GDP. That is less than the 3.5% that is recommended by the OECD, and it is even scheduled to fall to 1.4%. Private and Government investment in infrastructure is still considerably lower than the pre-recession level. The cancellation of the projects on the midland main line and the trans-Pennine line demonstrate that this is a Government who talk the talk, but do not walk the walk.

[Jonathan Ashworth (Leicester South) (Lab)]

The Red Book describes the midlands as the “engine for growth”. When the Chancellor visited the midlands before the election, he gave a cast-iron commitment to the electrification of the midland main line. Is it not hugely disappointing that there was no progress on that electrification in today’s statement?