Budget Resolutions and Economic Situation
Mark Jenkinson Excerpts(1 year, 8 months ago)
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Lloyd Russell-Moyle (Brighton, Kemptown) (Lab/Co-op)
I would describe this as a bit of a Stockholm syndrome Budget. After the appalling set of Budgets we have had, 13 years of the failed austerity experiment started by the Tories and Liberal Democrats, and of course the latest mini-Budget, it is tempting to think that the captives would say thank you for some of the peanuts that have been thrown—peanuts such as childcare, but even then, the measures will not come in fully for two and a half years. Hopefully, by that time this shambles will be long gone.
In Brighton, we have one of the lowest payments for childcare from the Government scheme, but we have some of the highest costs because of an historical injustice in the way that the money is calculated. This Budget will not help those childcare workers. It will not save the places at the nurseries currently up for closure by the Green council, because it will not increase the money, wages and professionalism of the sector. What is clear is that, despite a few giveaways, this Budget will still see household incomes fall by 5.7%, one of the largest falls in our constituents’ lifetimes.
Big business will of course receive huge incentives for investment, but they will not be focused on green investment. There will be no focus on co-operative businesses, as the Co-operative party has called for, and the Federation of Small Businesses says it cannot hide its disappointment and that this Budget was wide of the mark and irrelevant. A Budget that is irrelevant to small businesses is a dangerous Budget indeed. The Chancellor said he would save Labour the “bother” of reviewing business tax, but then made no mention of business rates—a regressive tax that punishes our high streets.
The help for draught beer will be welcome, but the problem in our pubs is not the tax on beer pulled from the pump; it is business rates, land values and planning laws that allow speculative breweries to sell pubs and chuck out landlords, because they get better amounts for other uses. The reality is that our leisure and night-time economies will be crippled by rising fuel bills, and, apart from the welcome leisure centre relief, they are being offered no protection whatever.
The failure to bring down energy bills will affect our constituents. That is a failure of Ofgem and of the horizontal privatisation that means it is illegal for British Gas to sell energy to its customers at the price at which it generates it. That is madness. It allows speculation and profits to win out, rather than hard-working ordinary people, for whom there is no benefit.
Of course, it is not just businesses that will suffer. As we know, the Government had to announce only last month a scheme for residential customers who are on business tariffs so that they get the £400 support. As the business tariffs will no longer be capped, all those people will have to pay an uncapped amount for their energy bills. Many of them are the poorest in our communities—they live in houses in multiple occupation and blocks of flats. In fact, some of them pay on commercial prepayment meters, but because they pay their landlord rather than the energy supplier, the welcome support for prepayment meters that is provided directly through the energy supplier will not be extended to them. That is a tragic miss of this Budget.
Another problematic area is that of investments. There are no real investments in the green sector. Germany is proposing 5.2% of its GDP for green transformation; the UK is proposing just 1.2%. America has passed the Inflation Reduction Act, and France has pledged billions for green steel. We are not even scratching the surface. Okay, there are some nice warm words on—currently unproven—nuclear reactors, which I hope will be proven. [Interruption.] Nowhere have they been proven at commercial level.
Lloyd Russell-Moyle
No, I will not.
Britain should invest in the reactors and roll them out, but as yet, we have not done so. [Interruption.] No. It is the same with carbon capture. Investment is welcome, but we are yet to see it at full-scale capacity. It was Labour that said that investment should have come in 2010, but the Conservatives stopped it. They are unproven because of a Conservative failure to invest. Coming late to the party is no good for anyone.
Of course, let us be clear: only a third—[Interruption.] Conservative Members can continue making a noise if they want, but it is a complete waste of their time. Only a third of the poorest households own a car, whereas 90% of the richest households do. A freeze on the fuel escalator is good news for them, but the fact that there is no subsequent freeze on bus, rail and other forms of public transport means that the rich benefit and the poor get messed over again—[Interruption.] There is no cap on rail, and if you do not realise that, you are not really a rail traveller, are you?
Of course, this was a Budget for the top taxpayers—and the pension pots that they will now be able to save—not for normal people. It could have been so different. The upper earnings limit of the national insurance rate is, in my view, a disgrace. It is a disgrace that people earning under £50,000 pay 12% towards national insurance, but those earning over £50,000 pay only 2% on earnings above that. Not only is that a flat rate of tax, which Conservatives usually advocate for, but it is actively regressive. It harms the poorest and helps the richest.
If that one change had been made, £30 billion would have been raised according to the most conservative estimates. What could that £30 billion have paid for? I can tell the House one thing it could have paid for: social care, another area that was totally missed in this Budget. That £30 billion could have paid for all the social care costs that councils up and down this country are currently having to pay, which would have freed up our councils to invest in their communities, as they should in Brighton. It would have equated to £100 million every year in the pocket of Brighton council that could have been invested in our streets and roads. We would not need a pothole giveaway—we would have had our own money to spend—but instead, the Conservatives’ failure to sort social care means that that money is being drained.
Was there any real mention of education going forward? Yes, there were some nice giveaways for higher levels of education through the lifetime guarantee—a policy that has already been announced, might I add, not something new. However, there is no additional funding for proper further education, basic skills, maths, functional skills, GCSEs and A-levels—those things that people at the very bottom need. Yes, it is good that people who achieve higher learning will be able to draw that down, but we need learning for all people. Of course, the biggest thing in the education sector that comes into my inbox and my letterbox is special educational needs. Was there any mention in this Budget of more money going into the awful system that we have at the moment for special educational needs? Not a jot. Those children will go without the care and support that they currently have, which is a disgrace, because every day that they go without the education they need is a day of their potential being squandered.
We have also seen no movement on capital gains or unearned income. Now we have a situation where landlords using shell companies pay little or no tax compared with hard-working ordinary people. It is morally wrong that people who survive on unearned income pay less tax than those who have earned it, because this Budget comes from a Government for people who do not work hard, but who speculate, extract, and use Ponzi schemes to get money out of the market. Rather than build our country up, they take out. This is a Budget of lost opportunities—a Budget that could have changed our country. The Government have to use the term “technical recession” because everyone knows we have a household cost of living recession and a household income recession. Yes, it is a technical avoidance of recession, but the day-to-day lives of people in this country are worse.
Of course, Labour would have done better. We would have supported businesses and the economy, we would have tackled climate change, and we would have made the lives of people in our communities better. It feels that after the last Budget, things could only have got better, but rather than having some poor tribute act that is getting all the notes wrong, we need things to get better with a Labour Government. Move over and let the greats do it again. We did it in 1997, and we will do it again now.
Ordered, That the debate be now adjourned.—(Scott Mann.)
Debate to be resumed tomorrow.
Scotland Act 1998: Section 35 Power
Mark Jenkinson Excerpts(1 year, 10 months ago)
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Mr Jack
No, we are not. The Minister for Women and Equalities has provided a written ministerial statement on that. There are changes, which include 16 to 18-year-olds self-identifying without any medical diagnosis. But most importantly, in the legal advice that I have—this will be in the statement of reasons, but it is very detailed, so I do not want to bore everyone to death with it now—there is an adverse effect on two pieces of UK-wide legislation, and that is the reason why section 35 is deemed appropriate.
Mark Jenkinson (Workington) (Con)
I thank my right hon. Friend for standing firm on the facts against the noise. Does he agree that, rather than manufacturing constitutional battles, the SNP would do better focusing its energies on fixing the failures across Scotland, not least in health and education?
Mr Jack
Again, I do not want to bore everyone with a long list, but we could add ferries and many other things to that list.
Oral Answers to Questions
Mark Jenkinson Excerpts(2 years, 6 months ago)
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Dehenna Davison (Bishop Auckland) (Con)
Mark Jenkinson (Workington) (Con)
The Secretary of State for Scotland (Mr Alister Jack)
The UK Government are carefully considering the recommendations set out in Sir Peter Hendy’s Union connectivity review. My hon. Friend Baroness Vere, the Minister responsible for Union connectivity, has discussed the UCR recommendations with Graeme Dey MSP, the former Scottish Government Transport Minister. Sadly, Mr Dey has since stepped down for health reasons. In February, we first requested a meeting with his replacement, Jenny Gilruth. We hope to meet Ms Gilruth as soon as her busy diary allows.
Mr Jack
I notice that my hon. Friend was being rudely interrupted, but what I think I picked up was that the A68 from Darlington to Midlothian is of great importance to cross-border transport connectivity between England and Scotland. I extend my congratulations to Durham County Council for its success in the levelling-up fund. The rerouting of the A68 at Toft Hill will create a new 1.6 km bypass away from the village centre, which I know my hon. Friend has been campaigning tirelessly for.
Mark Jenkinson
Will my right hon. Friend set out his assessment of the impact of devolution on Union connectivity?
Mr Jack
Sir Peter Hendy noted in his final report that
“devolution has been good for transport”.
However, he identified that it has none the less led to
“a gap in UK-wide strategic transport planning that has resulted in cross-border schemes…seeming to be a lower priority than other schemes which may provide greater local benefit.”
Through the implementation of UKNET, we are committed to forging and strengthening transport bonds and creating a better-connected United Kingdom.
Oral Answers to Questions
Mark Jenkinson Excerpts(4 years, 2 months ago)
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Joy Morrissey (Beaconsfield) (Con)
Mark Jenkinson (Workington) (Con)
The Secretary of State for Scotland (Mr Alister Jack)
British armed forces personnel in Scotland play a crucial role in defending the whole UK, and my Department meets regularly with the Ministry of Defence to help raise concerns that are specific to Scotland. I feel particularly indebted to the armed forces in Scotland, who keep us safe at home and abroad and who assisted with such dedication at the height of this covid pandemic.
Mr Jack
I absolutely agree. Our armed forces perform a hugely important task in their service of the United Kingdom, and it is unacceptable that any member of them should be subject to discriminatory taxation. That is why the United Kingdom Government took the decision to make an annual payment to protect them from the Scottish Government’s decision to make Scotland the highest taxed part of the United Kingdom.
Mark Jenkinson
British armed forces have contributed enormously to the national response to the covid-19 outbreak, supporting the distribution of personal protective equipment, assisting with testing facilities and transporting patients, for which Cumbria and my constituency of Workington are grateful. Will my right hon. Friend join me in thanking the armed forces for all their work during the pandemic, and can he confirm that every part of our United Kingdom will continue to benefit from their hard work?