Energy (oil and gas) profits levy
Debate between Mark Fletcher and Lisa Cameron(2 years ago)
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Mark Fletcher (Bolsover) (Con)
“There is nothing in the autumn statement that shows compassion” was one of the last sentences from the hon. Member for Jarrow (Kate Osborne). With the triple lock protected, benefits up by 10.1%, the household energy cap extended, a £900 support package for households on means-tested benefits, £300 support payments to pensioners, £150 to individuals on disability benefits, energy bill support extended into next year, a below-inflation 7% cap on social rents that will save the average renter £200, the education budget protected at £2.3 billion—she did mention children—and an increase in NHS spending of £3.3 billion, is there anything but compassion running through this autumn statement?
I am happy to go so far on economic policy. There is a fair cop that we have made some mistakes on economic policy—that is a perfectly fair cop. But we cannot go into a different galaxy of common sense, where there is no economic credibility, and pretend that that is the reality. I have to question those on the Opposition Benches: if their solution to the economic crisis we face hinges on non-dom status and private schools and does not mention private enterprises, growth and global factors, we are in a different galaxy.
I will go back to where I was planning to start my speech by saying that I had the great pleasure of being parliamentary private secretary to the Chancellor—or more accurately Chancellors—in the build-up to the statement. I must say that my right hon. Friend the Chancellor is a fantastic Member of Parliament and last week delivered an incredibly difficult statement both eloquently and with an underlying level of compassion that we should be very proud of.
The Chancellor set out quite firmly the circumstances we face as a country. All these factors—the pandemic we have gone through, in which we spent £400 billion trying to keep the economy on track, the supply chain issues that came from that global pandemic, the damage that has done to the businesses up and down the country and the costs they face, the increases and challenges to shipping or the 630,000 people who have dropped out of the workforce since the pandemic—are inflationary and have created huge pressures. The OBR report, which I am sure the Labour party has read with great interest, clearly identifies global headwinds as the primary cause of the situation we are in. Does anybody from Labour want to challenge that? No—we are moving on.
The second thing we must look at is Vladimir Putin’s war. My right hon. Friend the Member for North Somerset (Dr Fox) made some interesting points about patriotism and how we address these economic circumstances. We have spent £2.3 billion as a country on the situation in Ukraine, but there has been something along the lines of £150 billion of additional spending on energy within our economy over the past year. That is a huge increase; as the Chancellor would quickly point out, it is another NHS, and £55 billion of that is coming from Government coffers—again, I would suggest compassionately—to households and businesses up and down this country.
We face a challenge of inflation, of war on our doorstep and of global markets losing confidence. That has a ripple-down effect and, unfortunately, the circumstances we find ourselves in mean that the Chancellor had to make some difficult decisions. I think he did so in a way that tries not only to help individuals and families with the cost of living but to provide confidence that Britain can pay its way in the world. When Opposition Members bandy around somewhat childish policies, whether on non-dom status or private schools—it doesn’t half feel as if we are back in the 2015 election with those two; I cannot wait to see the new version of the “Ed stone”—it seems to me as if we are on a different planet.
I wanted to add some notes of caution, however, because I was not entirely happy with everything in the statement. First, there are the labour shortages we face. We increased working-age benefits—I believe there is a compassionate argument for that—and the minimum wage, but our small businesses are struggling to recruit and retain staff, and I worry about the impact that that will have on the labour market. It will have to be monitored very closely.
Secondly, more money for the NHS is of course welcome, but only if we see a proportionate increase when it comes to outputs. We have left the NHS in a difficult situation: covid restrictions are still in place in a lot of venues, and we need to remove them as quickly as possible. Hospitals have been operating at around 80% to 85% of capacity en masse. We cannot get back to previous levels and clear the backlog, which requires us to go above 100%, if we are operating at an 85% building capacity.
However, I very much welcome the Chancellor’s comments on having a workforce plan, which will help to create a longer-term, sensible solution for the NHS, particularly in dentistry and mental health, in which our workforce numbers are woefully low.
Dr Lisa Cameron (East Kilbride, Strathaven and Lesmahagow) (SNP)
Will the hon. Gentleman give way?
Dr Cameron
I thank the hon. Gentleman for giving way and, in particular, for raising mental health. I have been looking just today at the startling figures stating that 215 young people took their lives in 2021—the highest figure since records began. The workforce needs nurses and doctors, but also psychologists and mental health professionals going forward—I refer the House to my entry in the Register of Members’ Financial Interests on that point. It is crucial that we address those issues to support young people and their potential.
Mark Fletcher
I completely agree. We have to be aware of the situation that the pandemic created in mental health. We talk about and acknowledge mental health a lot more, which is a positive thing for society, but our health workforce is well behind where we are as a society on conversational issues. We also have to address pressures relating to image and social media, which affect young people in particular, and the fact that, although we are all so much more connected through mobile devices, we are so much more isolated and judge ourselves in those circumstances. I thank the hon. Lady for raising that point.