Local Government Finance

Liam Byrne Excerpts

Tuesday 5th February 2019 Commons Chamber

[Liam Byrne (Birmingham, Hodge Hill) (Lab)]

I want to start by associating myself with the remarks of the shadow Secretary of State, my hon. Friend the Member for Denton and Reddish (Andrew Gwynne), in what I thought was a brilliant exposition of the injustice at the heart of this statement this afternoon. Be in no doubt: this statement today is a basic question of injustice and unfair deserts. It shows this Government’s wilful determination not to do anything about tackling the injustices that now scar this country, including communities such as mine in Birmingham. If they did want to tackle them, at the heart of this statement would be a bold determination to make sure that we were investing most in those communities that need it most. Instead, as the shadow Secretary of State has set out with such brilliance, we have exactly the opposite.

Many of us on this side of the House came into politics for a simple reason: because we wanted to tackle the basic, fundamental injustice that the postcode in which people are born defines their possibilities in life. That is why I gave up a career in business to serve what is this country’s most income-deprived constituency, where four generations of my family have lived and worked.

Nine years into this Government’s austerity, those injustices are now looming larger than ever. This Government have given us a slower recovery than after the great depression. What that means in Birmingham is that it is harder to earn a good life than ever before. The employment rate in our city is now lower than it was before the great depression. In some parts of the west midlands today, people are now earning 9% less than they did in 2008. The ladder in life is harder to get on to because apprenticeship numbers in the west midlands have fallen by a third. That is 10,000 fewer apprentices in our region over the last year.

How can it be just for a child born in Ladywood to live eight years less than a child born in Sutton Coldfield? How can it be right that a kid born in Alum Rock has a third less chance of going to university than a kid born in Solihull? How can it be right that someone born in Bordesley Green has a one in five chance of being overcrowded, even if their parents or siblings are disabled? How can it be just that someone born in Birmingham this year has a four in 10 chance of being born in poverty? These injustices are wrong.

These inequalities demand an answer, not the proposals from the Secretary of State this afternoon. This Government were able to rustle up £1 billion for their friends in the Democratic Unionist party in the space of days. In Birmingham, we have taken the biggest cuts in local government history—£690 million to date, £85 million still to come and £46 million to come out of our budget this year. That is a total of nearly three quarters of a billion pounds. The bad news is that it could be worse because we face £161 million of pressures over the next two to three years. That is why I say to the Secretary of State today, on behalf of all the Labour MPs in Birmingham: this battering of our city has to stop and it has to stop now.

Yesterday morning, I met the friends of Kane Walker, the young man who died on the pavements of Birmingham a week or two ago. They could not stop for long because they were rushing to hospital to see a friend, homeless too, who had been bitten in the face by rats and they feared sepsis—the sepsis that they think killed Kane Walker just a week or two ago. But Kane Walker was not alone: one homeless person a week now dies in the west midlands, sometimes in medieval conditions. This, in the fifth richest economy on earth, is a moral scandal, and this statement this afternoon has done nothing to reverse it.

This Secretary of State takes the issues of Birmingham so seriously that, when its entire number of Labour Members of Parliament wrote to him demanding an urgent meeting last November, he cleared his diary immediately to offer us some time five months later—in March. I know how little this Government care for Britain’s second city, and I know it will take a Labour Government to bring justice back to our city.