Government's Management of the Economy

Kate Osborne Excerpts

Tuesday 23rd February 2021 Commons Chamber

[Kate Osborne (Jarrow) (Lab) [V]]

If the coronavirus pandemic has shown us anything, it is that the Conservative austerity programme just does not work. A decade of Conservative spending cuts has left our economy weak and unable to deal effectively with the crisis when it hit. This, coupled with the Government’s irresponsible decision making, is why we have had the worst economic crisis of any major economy. This economic crisis has hit individuals, families and businesses hard, many being robbed of their livelihoods.

So many of those who have had a drop in their income have had to turn to our social security system for support. This is why we need to invest in an ethical social security system that people can rely on and why the £20 a week uplift to universal credit must remain permanently, as well as be extended to all those on legacy benefits. The uplift has simply been a lifeline to so many. It might not seem a lot to some of us in this place, but to some it is the difference between having heating in their home or food on their table. Figures released today show that, in January, 7.3% of the adult working population in my constituency of Jarrow were in receipt of jobseeker’s allowance or universal credit. That compares with 4.8% when the pandemic began. Those figures serve as a reminder that the journey to economic recovery will be long.

We must ensure that the coronavirus job retention scheme, which is set to end in April, is extended and that the decision is made now, not in four weeks’ time. If the scheme is removed or the Chancellor waits until the last minute to make an announcement, as he has done on previous occasions, many businesses will have to make the difficult decision to make employees redundant, causing increased unemployment and meaning that more people claim universal credit.

The Government must also bring in an amendment to existing employment legislation to outlaw “fire and rehire” practices that are being used by employers to force workers to sign up to wage cuts and inferior terms and conditions under the threat of dismissal. The coronavirus crisis should not be used by employers or the Government as a way to weaken workers’ rights. Instead, those should be enhanced and workers in the UK should be treated with decency. Our trade union movement is doing a fantastic job in pushing back these disgraceful practices, but the Government must step up. I urge the Government and Members across the House to act now and back this motion to protect the finances of not just my constituents, but theirs. Waiting until the Budget will only cause many families even more uncertainty at a time when certainty is needed.