Budget Resolutions and Economic Situation
Meg Hillier Excerpts(1 year, 8 months ago)
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Dame Meg Hillier (Hackney South and Shoreditch) (Lab/Co-op)
Madam Deputy Speaker, you would think from the noises on the Government Benches that this Budget was a triumph, but let us not forget who is responsible for the state of the economy today. Wages are lower in real terms now than they were in 2010 and we are growing slower than most members of the G7. Obviously covid and the war in Ukraine have knocked the economy, but it was this Government who allowed fraud and error under covid schemes to hit the billions of pounds, much of which, as the Public Accounts Committee has repeatedly highlighted, will never be recovered—billions that could have been invested in public services and many of the measures that the Chancellor announced today.
It was this Conservative Government, a Conversative Prime Minister and Chancellor, who crashed the economy last autumn and have left havoc in many people’s lives. Every time someone goes grocery shopping, every time the mortgage bill and statement arrives, and every time a rent statement arrives, people are reminded that it is the Conservative Government who have crashed this country, and it is Labour who will deliver a better solution.
I should say, in generosity to the Chancellor, that I do welcome a couple of points. The support for leisure centres and swimming pools is much needed and the prepayment meter changes are long overdue, so they are good to see. Scrapping local enterprise partnerships and giving local authorities the opportunity to lead in their area is also long overdue. Again, the Public Accounts Committee has repeatedly highlighted concerns about how LEPs spent money locally with no accountability; I am all for involving businesses and others in an area in decisions for the future, but for those to be led without accountability was unforgivable, so it is great to see that change finally coming through after much pressure.
It is necessary to see an increase in money for defence, partly because of the challenges thrown up by the war in Ukraine, but it is vital that that money comes with real rigour on spending and project management at every step of the way. The Public Accounts Committee has repeatedly highlighted the defence equipment plan, the efficiencies that never materialise and the overruns on cost. A mere rounding error on some of these large defence projects would build a new school or maybe one of those vaunted 40 new hospitals that we have yet to see.
I represent many great pubs in Hackney South and Shoreditch, so it is great to see an 11p reduction in duty on pints, but even if we take that into account, business rates are going through the roof and pubs are often tied to energy bills that are very high and have ramped up in some cases by more than 200%—one of my pubs had a 700% rise in its energy bills. Add to that rent increases and other bills going up, and 11p a pint will not make the difference—some of my pubs say they would need to charge £15 or even £18 a pint to break even. Even in Shoreditch, that would be an extraordinary and unachievable amount for people to spend.
I can see where the Chancellor is coming from, trying to get the footfall into pubs, and I applaud the idea, but he needs to get into the real world and maybe meet some of the publicans in Hackney South and Shoreditch. I will buy him a pint if he will look them in the eye and tell them that this is a success.
The childcare changes are something I have been campaigning on for a long time. I welcome them in principle, and it is heartening to see the Chancellor taking a leaf out of Hackney Labour’s playbook, since Hackney Council led a successful programme to give grants to childminders, encouraging them to take up the work so that places could be provided for working parents. However, quality is as vital as cost. I speak here as a working mother of three, having had a baby while in the House; I knew that those child carers were fantastic, and it was the quality of the childcare that allowed me to come and do my job. They are often not recognised enough, so it is good that we are talking about them today.
However, the Chancellor is borrowing here from the right hon. Member for South West Norfolk (Elizabeth Truss), the former Prime Minister, who proposed this “pile them high and teach them cheap” approach to childcare, and I worry about the change in ratios. I am heartened that it is only voluntary, but those voluntary changes creep in, and the money proposed will take a long time to deliver the people and places and the certainty childcare businesses and individuals need to invest.
If we do not get that right and those payments are not uprated, we will see that ratio increase creep in as the norm, and that will be a deterrent for many working parents. I would not have been able to come to work and do the job I do if I had not been confident in the quality as well as the cost of childcare. Of course, I am a privileged Member of Parliament who can afford quality childcare, but we need to make sure that is available to everybody.
The Budget does nothing to solve the fundamental problem in my constituency: housing. We have 8,500 people on the waiting list for council housing; there are many more who want it, but those are the ones who qualify under the rules, which are now quite stringent. On average, there is a nine-year wait for a three-bedroom property and a three-year wait for a one-bedroom property, but those are notional waits. Every week, I visit people on their doorsteps, go into their homes and see the overcrowding.
On Monday, someone came to see me at my surgery; he is living in the private sector, renting a one-bedroom flat. He, his two children and his wife live there. He works hard, he wants to save up to buy his own home, but he cannot do that while he is renting privately. He cannot get a council property because he cannot qualify, even with that level of overcrowding, and that is not the worst overcrowding I have seen. The week before, I visited a woman with four daughters in a two-bedroom flat, a tiny kitchen, one living space, and the tiniest bathroom—I have seen cubicles in Parliament that would be bigger than their entire bathroom.
That is a real challenge for people. Fundamentally, without a secure roof over their head, people cannot operate. That does not even cover the issues for “generation rent” in the private rented sector, but let us be clear: it is the Conservative party that ripped up the opportunity for people to have a safe and stable home. It is the party that has lived off the back of the right to buy—I will not go into that now—and has nothing to offer “generation rent” or people desperate for council housing who cannot afford to rent privately. It has done nothing on that, and I am very concerned.
On pensions, the problems with the lifetime allowance were first flagged by the Public Accounts Committee in 2012. Now, in 2023, it is being reversed. No Chancellor should ever be allowed near pensions: an announcement is made in the Budget about pensions, without an impact analysis over the decades that we need to consider, and without revisiting or uprating for many years. The change was out of kilter with other pension changes, which has caused ongoing problems.
Abolishing the lifetime allowance helps the richest 1%, but it does nothing for poorer workers. They are in auto-enrolment, which is a good first step, but it is nowhere near enough to stop the ticking timebomb of poorer pensioners, which will cost the Exchequer in benefit payments in years to come. It will also do nothing to reverse the exodus from work. It might stop some people in their tracks and make them think, but many will have already made their pension plans. Many have factored in the idea of a lower pension and—for doctors—locum work, or for others, a second job, and have decided that that is an option. That is built into people’s way of thinking after more than a decade of the lifetime allowance not being uprated.
Meanwhile, in Hackney, nearly one in two children live in poverty, and of those, 61% are in working households. There are small measures in the Budget that might help them a little, but not enough to tackle the real issue of the working poor in my constituency, and there is no hope on housing for generation rent and families who need it. Without that housing base, there is nothing they can do to improve their lot. They can work as hard as they want, but they will never be able to pay the rent. The measures are slim pickings for people who face systemic lifestyle challenges every day. The Chancellor has not delivered for them.
Scottish Referendum Legislation: Supreme Court Decision
Meg Hillier Excerpts(1 year, 12 months ago)
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Dame Meg Hillier (Hackney South and Shoreditch) (Lab/Co-op)
This important ruling settles the question for now—certainly on the legal matter. Does the Secretary of State think that it gives us ample time to investigate what else the Scottish Government are doing? The debate about the referendum has thrown up a lot of sand, but the Scottish Government are underachieving in so many areas of public service, and that needs to be shown.
Oral Answers to Questions
Meg Hillier Excerpts(9 years, 10 months ago)
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The Prime Minister
I pay tribute to my hon. Friend for the work he does in supporting the freedom of the press and I certainly reiterate what he says today. This most struck me when I visited Jaffna, in northern Sri Lanka, and went to see a newspaper office that had been shot up, bombed and burned. That brings home what journalists in other countries have for years faced in bringing the truth and putting it in front of the people, which is a vital part of a free democratic system. Obviously, the events in Paris are truly horrific, and the duty of everyone in public life is not necessarily to say whether or not we agree with this or that being published—everyone can have their opinion; it is not that that matters. What matters is that we should always defend the right of people to publish whatever is within the law and in their opinion right to publish. That is our job and we must do it properly.
Meg Hillier (Hackney South and Shoreditch) (Lab/Co-op)
Q7. We are seeing a meltdown in emergency care, yet the Prime Minister’s Health Secretary accuses us of whipping up a crisis. Is it not time for some honesty? This Government are simply failing our NHS.
The Prime Minister
I am grateful to the hon. Lady for raising the NHS because, absolutely, we do face real challenges this winter with the pressures on A and E. But in her own constituency, the Homerton University Hospital NHS Foundation Trust proved what can be done with the extra resources that we are putting in and the excellent management of that hospital. Last week, 96.6% of people going to A and E in her constituency were seen within four hours.
Oral Answers to Questions
Meg Hillier Excerpts(10 years, 9 months ago)
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The Prime Minister
I agree with my right hon. and learned Friend that after a very promising start, with chemicals not only being discovered and removed but destroyed, there seem to be indications that the programme is now slowing and that not all the necessary information is forthcoming. I discussed the issue in a telephone call with President Putin some 48 hours ago. Britain will continue to put pressure on all parties to ensure that chemical weapons are produced and destroyed.
Meg Hillier (Hackney South and Shoreditch) (Lab/Co-op)
Q13. Overseas students who are offered places at top British universities get extra coaching in English and maths, but hard-working Hackney students from poor backgrounds with top A-level predictions are not even offered a place if they have a grade C in maths. That is not fair and does not help social mobility. What is the Prime Minister going to do to support hard-working Hackney students?
The Prime Minister
First, we must continue with what has been happening in Hackney, which is the introduction of new academy schools, such as the Mossbourne academy, which is one of the most impressive schools I have ever visited anywhere in the world. We must also continue with my right hon. Friend the Chancellor’s plan to uncap student numbers at our universities so that anyone who can get the grades is able to have a place there. On the hon. Lady’s specific point about GCSE grades, we have to be clear that, in the end, it is universities that set the criteria, rather than the Government, but I am very happy to look at the specific issue. I also believe that, as the Education Secretary has said, if people do not get the right grades at GCSE, particularly in English and maths, we ought to encourage retakes and more work. The reason for that is that there is not a job in the world that does not require good English and maths. That is a very important message to go out.
Oral Answers to Questions
Meg Hillier Excerpts(11 years, 10 months ago)
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The Prime Minister
It is vital that everyone has access to broadband and that increasingly we have that overwhelming access to superfast broadband. I suspect that Edinburgh city council has seen some of the same problems that councils up and down the country have seen with getting state-aid clearance. We now have that clearance for broadband in England, but I am happy to look at the situation in Edinburgh. That has been one of the problems holding back this vital programme.
Meg Hillier (Hackney South and Shoreditch) (Lab/Co-op)
Q7. “You shouldn’t have to fill in long forms from the Revenue. You’re working. You need help. We want to help you.” I am sure the Prime Minister recognises his words to families receiving child benefit. How many families could face a fine for not filling out a long tax form?
The Prime Minister
The point about the child benefit change is that 85% of families who receive child benefit will go on getting it. The question we all have to ask is whether it is right for people earning £20,000 or £30,000 to go on giving child benefit to people earning £70,000, £80,000 or £90,000. We do not believe it is right, but apparently the Labour party thinks it is right to give child benefit to millionaires. We do not think that is a good use of money.