Budget Resolutions Debate
Full Debate: Read Full DebateLiz Twist
Main Page: Liz Twist (Labour - Blaydon and Consett)Department Debates - View all Liz Twist's debates with the Department for Work and Pensions
(5 months, 3 weeks ago)
Commons ChamberListening to yesterday’s Budget, we could be forgiven for thinking that the Chancellor was living in a different universe from the rest of us. Wages are stagnating, taxes are rising, growth is stalling, and nothing the Chancellor announced yesterday has changed that. The OBR’s own figures tell us that this will be the worst Parliament on record for living standards. After 14 years of economic failure, his legacy is less money in people’s pockets and the highest tax burden since 1949.
The Chancellor tells us that absolute poverty has gone down and that growth can come only from a high-wage, high-skill economy, which we are supposed to believe his party is on the way to building. Let me tell him that that is not the reality that my constituents are dealing with.
The Chancellor may try to tell us that people are better off after cuts to national insurance contributions, but for every 5p that my constituents get back, they will be paying double that in extra tax according to his plans and the package. People are being squeezed further and further as prices continue to rise. Even a reduced inflation rate means that prices are going up and costing people hard. For those already on low pay, the benefit is even less. The cut is better for higher paid workers and comes at the cost of lower-paid workers, many of whom live in my constituency.
For generations, parents have hoped that their children would have it better than they did growing up. Of course, that has never been guaranteed, but for too many people today it is a far-off dream. There are 9 million young workers in this country who have never seen sustained average wage rises. This is the only Parliament on record where living standards have fallen. Consecutive Conservative Governments have seen inequality outstrip that seen in any other large European country, and our public services on their knees just as people need them more than ever.
Many of us in the House will recognise the stories behind these statistics in the constituents who come to our office doors in the most desperate of circumstances with nowhere else to turn. A report released in January by the Joseph Rowntree Foundation laid out the extent of rising poverty and destitution, which is hitting families with children and disabled members hardest. It said:
“This is a story of moral and fiscal irresponsibility”,
and it is one that affects constituents in Blaydon and across the north-east. In the north-east, the proportion of children in poverty who are from working families has risen from 56% to 67% in less than a decade. That is the impact of Tory Government decisions on real people’s lives day to day.
Times are really hard for people, and we know that there is a well-established link between socioeconomic factors, such as financial distress, and mental health problems, and vice versa. It was therefore disappointing to see nothing on offer in this year’s Budget to tackle our mental health crisis, and organisations such as the Samaritans, YoungMinds and the Mental Health Foundation have all commented on that. Despite uncertainty and anguish in the sector about the ringfenced funding for local suicide prevention plans, which is set to run out this financial year, we did not hear a word about those plans on Wednesday. Nor did we hear anything about specialist mental health support in schools, suggesting that the Government’s aspirations remain limited to covering just 50% of schools. The hon. Member for Redditch (Rachel Maclean), who is just walking into the Chamber, talked about people with mental health problems and bad nerves. Would it not be great if we could tackle NHS waiting lists for mental health services so that people could get the support and diagnosis they need and could improve their lives?
In the meantime, the picture on social care also remains bleak, with the Government’s ambition failing to meet the essential needs of older people, disabled people and their carers, and with local authorities struggling to balance their budgets. There is nothing to tackle that issue.
As a north-east MP, I noticed the Chancellor’s reference to a deeper devolution deal for the north-east. I am pleased to see the north-east getting more powers, and many more powers are needed regionally. However, our aspirations in the north-east are even higher than those in this deeper devo deal, and I have no doubt that we will continue to press for even more measures to reduce regional inequalities.
If one thing was clear from yesterday’s Budget, it was this: the Government are out of touch and out of ideas. Unable to face up to the crisis they have presided over, they are left spinning and scrabbling, trying to tell us that we are out of the woods, while our constituents feel the impact of the recession and tell us about it. The Government’s plan has failed. It is time for a new approach. It is time for a general election.
We come to the wind-ups. I call Liz Kendall.