Laurence Turner
Main Page: Laurence Turner (Labour - Birmingham Northfield)Department Debates - View all Laurence Turner's debates with the HM Treasury
(3 days, 18 hours ago)
Commons ChamberIt is a pleasure to be called in this debate, even if I must start by questioning the wisdom of the Opposition’s decision to bring forward today’s motion. After all, the memories and consequences of their so-called mini-Budget are still fresh—the culmination of Liz Truss’s economic policies, which the present Leader of the Opposition said were “aspirational and inspirational”. Their dreams became our constituents’ nightmares—to say nothing of the Conservatives’ failure to pass renters’ rights reform, which this Government are now putting through, or of their dreadful record on wages, which left people in my constituency with £300 a month less, after inflation, every month.
It cannot be reasonably denied—although the Conservatives have tried—that the incoming Government faced a bedevilled inheritance last July. For all the sound and fury, there is little mystery about this now. As Richard Hughes, the chair of the OBR, told the Treasury Committee:
“When we had a high-trust relationship with the Treasury those things were being well managed, and managed within the total. That system very clearly broke down… there was about £9.5 billion-worth of net pressure on Departments’ budgets, which they did not disclose…which under the law and under the Act they should have done.”
What a disgraceful set of affairs, and decisions that awaited the Government on public sector pay had been ducked and delayed until after the election.
We need to be clear about this: Conservative Ministers already knew the recommendation of the schoolteachers review body. They also knew that the recommendations of each pay review body tend to be similar. Why were those recommendations delayed, given that the pay year started not in July or even at the beginning of the pre-election period, but in April? It was because Conservative Ministers and their Departments submitted the remit letters and their evidence late.
As the Office of Manpower Economics said in its 2022 efficiency review:
“The work of the PRBs is demand led and essentially non-negotiable—departments set the remits and timetables.”
There we have it: the additional cost was always coming, and the only reason why it came seven months into an election year was because Conservative Ministers were content for it to be so delayed. Today Opposition Front Benchers claim that they would have rejected the recommendations, but not once has any Opposition Member had the courage to say how much less they would have paid nurses, paramedics, teachers, police officers and armed forces personnel in each of our constituencies.
Are any Opposition Members able to enlighten us today? No. The reality is that they want the investment that means 25,000 fewer people are on a University Hospitals Birmingham waiting list compared with last year, and which is almost doubling the free school meals entitlement in my constituency of Birmingham Northfield, but they do not support a single measure to pay for it. We should be clear in saying that strong public services create value. Businesses and working people in all our constituencies need roads, schools and hospitals that are resourced and decent.
The hon. Member tempts me to get drawn into a discussion to which, in one minute and 30 seconds, I do not have enough time to do justice. Of course we need a bin service that is fit and decent—I have spoken about that many times in this House.
What my constituents did not need were the sharpest cuts in resourcing of any unitary authority in the entire country, coupled with the sharpest increases in council tax, and those were signed off by Conservative Ministers. I have in front of me the impact assessment of the 10% council tax increase from January last year, which says:
“The decision for Ministers across Government, as No. 10 and HMT clearance will be needed, is whether to grant these increases.”
That is the legacy of the hon. Member’s party for my constituents: the highest spending cuts and the highest tax rises. The last thing they need is a return to the failed approach of the Conservatives, who deserve to be reminded of that every time they bring such a debate to this House.