(6 days, 13 hours ago)
Commons ChamberI have very limited time, so forgive me but I will not.
It matters because the Chancellor has a nearly £3 trillion debt to service, and because trust is everything. Because the policies that are being implemented and the promises that were made by the Chancellor are at such variance, the markets—unlike in any other western nation, I believe —have put a higher and higher cost on borrowing for this country. That has very real-world impacts. Investors from Beverley to Berlin need to believe what the Chancellor says. After all, “credit” comes from the Latin “credo”, meaning “I believe”. If that belief falters, borrowing costs rise and more of our taxes go to paying lenders instead of funding the priorities of the British people. When trust goes, growth goes. Investors hesitate, businesses hold back and families feel the pinch.
The Chancellor appears to have learnt nothing from last year’s Budget of broken promises. It was a Budget that brought higher unemployment, fewer businesses and lower growth. She did not learn from that first exercise. As the hon. Member for St Albans (Daisy Cooper) pointed out, the weakness of the jobs tax is not just that it will hurt growth; it does not even raise much money. It was peculiarly poorly thought through.
This year’s Budget repeated more of the same. The British people know that the way to tackle the cost of living is by getting people into work, not increasing the number of people on welfare; and by creating opportunity, not dependency. But Britain has a Chancellor who talks about helping working people while making it harder to work, to save and to succeed—and throwing the OBR under the bus while she is at it. That is not a vision for the future, and it is certainly not leadership; it is fantasy dressed up as policy, and the people of Beverley and Holderness can see right through it.
Labour came to power promising change. Unfortunately, change has been delivered, but it is not what we were promised. We have 280,000 more people on the unemployment register, more than 200,000 businesses have closed, and 5,000 people are signing off sick every single day, because of the decisions made by this Labour Government. People are angry about the impact of Labour policy, but my constituents tell me that they are particularly angry about feeling misled. I hope I have shown my own candour in addressing my earlier error, for which I apologise again. Can we Members of this House try to speak honestly and accurately, and not gaslight or mislead?
On a point of order, Madam Deputy Speaker. Last time I checked, this debate was supposed to be about the conduct of the Chancellor of the Exchequer. I know the Minister is relatively new to the Dispatch Box; perhaps he may need a little guidance.
I thank the right hon. Gentleman for his point of order. I am sure the Minister has heard it and will return to his speech.
(1 month, 1 week ago)
Commons ChamberI thank the right hon. Gentleman for his point of order. I refer him to my answer to the previous point of order. It is not a point of order and not a matter for the Chair, but it is a matter of debate.
Further to that point of order, Madam Deputy Speaker—
It is, Madam Deputy Speaker. You will be aware that a Bill was presented to Parliament only this week that provides for a duty of candour for public servants. It is not enough simply to tell the truth; there has to be a duty of candour. Can you, Madam Deputy Speaker, share with the House whether the sponsoring Minister, the Justice Secretary, has decided to remove himself as the sponsor of that Bill?
I thank the right hon. Gentleman for his point of order; it is not a point of order, but a point of argument.
(6 months ago)
Commons ChamberThe hon. Lady is absolutely right. I was chairing the Education Committee when the coalition Government introduced the reforms that brought in EHCPs as a replacement for statements. I remember thinking then that lots of good improvements were made—there were very sincere Ministers working hard at it, and they brought in a better system—but the fundamentals remained as they were. One of the aims was to get away from an adversarial, legalistic process, in which articulate and typically better-off people were able to use sharp elbows to get their child what they needed, but pity the inarticulate single mother unable to engage with the system. What would she get? The then Government’s promise was to make that better, but the fundamentals remained.
If demand is so much bigger than supply, this is what we will get. With the best will in the world, local authorities will end up being defensive and saying no as a matter of course, and will give way only when they are forced to. Am I going on too long, Madam Deputy Speaker?
For years, I have fought for a fairer distribution of SEND funding, and for years, I have got nowhere, as successive Governments—Labour and Conservative—have lacked the courage to rebalance the system. I hope Labour will not lack that courage again. I do not pretend to have all the answers to this problem, but I know that we must work out what fairness looks like and the minimum per-pupil cost required for SEND support, and commit to meeting that basic need, if not immediately, then at least over time.
This Government need to be prepared to take from those above the baseline and give to those below. Would they be prepared to do that? No previous Government have been, but perhaps this one will. If not, we must find some other way. We could identify, through a mapping exercise, those who have been left behind, and we could say as a matter of principle that whenever there is an above-inflation increase in the Budget—such as the £760 million that the Chancellor came up with in the spending review yesterday—it will always be used first and foremost to lift up those below the line, while doing nothing to cause a below-inflation increase for those who are above the line.
Even if the Minister agrees with that idea, there will still be crisis management. How do we begin to tackle systemic inequality? Above all, it is vital that we revisit the high needs national funding formula, because it does not sufficiently account for regional cost differences, or for the genuine cost of delivering services in dispersed or under-served areas. The formula must reflect both complexity of need and the geography of the area in which that need arises. It needs to account for the added cost of providing services in rural areas. It is vital, too, that the formula moves away from the historical spend factor—the part of the formula that bases current funding on what a local authority spent on SEND provision in the 2018-19 financial year, and how it administratively described that spend. The formula means that a large section of funding is determined by pre-covid demand for SEND services, despite a post-pandemic spike.
The Government have stated their intention to remove that factor, but progress has been painfully slow. Every year that we fail to act, we condemn another group of children with complex needs to struggling without the support that they deserve. The issue is not simply how much money is available; it is also how accessible and responsive the system is. Families are forced into adversarial processes, schools are burdened with bureaucracy, and children are too often treated as numbers on a spreadsheet, rather than individuals with potential. We need a system that is focused on early intervention, not crisis management.
I am here not simply to raise a problem, but to call for action. That action would ensure a fairer, more transparent funding formula that reflects real-world costs across the country, accounting for rurality and discounting historical spend. It would establish a clear baseline per-pupil cost for delivering effective SEND support, and ensure that every local authority was brought up to that level—if not quickly, then at least over time. It would create better accountability mechanisms, so that areas that are underperforming on delivering SEND provision can be supported and, where necessary, challenged. At the very least, I ask that the Government recognise the injustice of the system and the inequality that it produces.
Those are not radical asks; they are practical, deliverable reforms that would make a meaningful difference for my constituents in Beverley and Holderness—and, I believe and hope, across the rest of the country. We have a duty as parliamentarians to ensure that every child, regardless of background, diagnosis, or postcode, has the support that they need to thrive. The disparities in SEND funding undermine that duty. If we believe in a truly inclusive education system, we cannot continue to turn a blind eye to the structural inequities built into the funding model. We owe it to our constituents, our schools and, most importantly, the children to fix this.
Several hon. Members rose—
(11 months, 4 weeks ago)
Commons ChamberI talked about the need for fiscal discipline, one element of which is taking at least £12 billion of savings out of the benefits system, because we cannot continue with more and more of us out of work and out of the workforce. Most importantly, I also said that we have to grow the economy first, because that is the only way to sustain it. This Budget had the opposite effect, as the OBR has laid out.
Order. I remind Members that this debate in Committee is about national insurance contributions.