Budget Resolutions and Economic Situation

Mike Kane Excerpts

Monday 20th March 2023 Commons Chamber

[Mr William Wragg (Hazel Grove) (Con)]

On the earlier theme, it is important that I declare that I do not have a science degree, but it would impress the shadow Secretary of State, the hon. Member for Manchester Central (Lucy Powell), to know that my degree, being as it is, does indeed come from the University of Manchester.

I put in to speak in the debate less on the allocated subject matter and more in the forlorn belief that the best time to speak in a Budget debate is after a set of Sunday newspapers, because they often allow the detail to percolate through. To the credit of my right hon. Friend the Chancellor of the Exchequer, very little seems to have come up in them to trip him up.

We have had all sorts of talk this afternoon of macroeconomic forces, my right hon. Friend the Member for Haltemprice and Howden (Mr Davis) spoke of banking crises across the world, and we have heard a great deal about artificial intelligence—presuming that is what “AI” stands for—but, in the age-old Back-Bench tradition, I want to talk about very parochial matters.

I know that the House will have noted with great enthusiasm and interest, on page 72 of the magnificent Budget document, the announcement of a new community hub in Stockport—the Marple leisure hub. There was some bashfulness at the talk of swimming pools during the speech by my right hon. Friend the Chancellor of the Exchequer. I am not fussed about swimming pools in Richmond, Yorkshire, or indeed about general donations from the Treasury to keep the pool temperature in different leisure centres toasty warm; what I am concerned about is the success—finally—in securing the Marple leisure hub.

The hub will be a magnificent boost for Marple and surrounding districts in my constituency. It will deliver a gym, a fitness studio, a new library, a community space and a five-lane swimming pool. When I saw the artist’s plan at an earlier stage, I noted that there were only four lanes, but we have achieved five—a massive 25% productivity increase, delivered overnight by my right hon. Friend the Chancellor of the Exchequer. I am absolutely enthused. The artist’s impression even has an inflatable flamingo. What could go wrong?

In all seriousness, I am very pleased that that levelling-up bid was successful for my constituency. I should pay credit—those on the Opposition Benches may enjoy this—to the then Labour minority-led Stockport Council, which agreed with me that that was the right bid for the Hazel Grove constituency. It will not surprise the House—I cannot spot any Liberal Democrats in the Chamber—that a few more have claimed credit for it who had, it is fair to say, very little to do with it. I will tone down my language for the sake of Hansard, but success has many parents and failure has fewer—let us put it that way.

I have been quite cheerful so far—those on the Treasury Bench must think, “What on earth has happened?”—but in the time remaining to me I will speak briefly about something else that lurks in the Budget document: Greater Manchester devolution. I am a contrarian. I can see many colleagues from Greater Manchester on the Opposition Benches. They must rejoice when the Mayor is given further powers and the ability to exercise them—

[Mike Kane (Wythenshawe and Sale East) (Lab)]

Hallelujah!

[Mr Wragg]

Indeed, indeed. Whether he exercises them wisely is a matter for debate—I think even some Opposition Members would concede that point.

All I ask is that the Government pay attention to those of us who have the great honour to represent parts of Greater Manchester. Having been to a so-called briefing meeting with my right hon. Friend the Secretary of State for the Department for Levelling Up and whatever else it is called these days, I was somewhat perturbed and worried that I was, in the words of his WhatsApp message to the former Health Secretary, my right hon. Friend the Member for West Suffolk (Matt Hancock), simply in a therapy session, whereby our concerns would be heard but no action would be forthcoming.

In the spirit of cheerfulness, I simply say to the Government that if I and my colleagues from Greater Manchester are simply to be subjected to therapy sessions, then I shall make sure that I turn up at Delegated Legislation Committees in the same cheerful vein to argue against aspects of this so-called deal. I urge the Government to pay attention to Greater Manchester Conservative MPs—indeed, to any Member of Parliament from Greater Manchester—when they bring forward this tranche of powers that have no legitimacy and very little demand.

[Mike Kane (Wythenshawe and Sale East) (Lab)]

It is a pleasure to follow the hon. Member for Hazel Grove (Mr Wragg). I look forward to catching up once again at our annual meet-up at the carnival in July, and I wish him all the best with his therapy.

The Secretary of State mentioned the great British invention of tarmac. John Loudon McAdam was a Scottish engineer in the 17th and 18th centuries who added coal tar to stone surfaces. That became tarmac, or “tarmacadam”—that is where the name comes from. I thought it was an odd reference for the Secretary of State to make, though, as we cannot get enough money for our crumbling roads and the potholes that we all face.

Every day, I hear residents and businesses in Wythenshawe and Sale East talk about the harsh realities of the cost of living at the moment: old-age pensioners are afraid to put on their heating; more and more working families are using food banks; nurses, teachers and firefighters are struggling with household bills as costs go up and their pay stays the same; people are unable to meet private rents or manage rising mortgage rates; and local businesses are closing down because of overheads.

Last Wednesday, the Chancellor had a chance to show that he is on the side of Britain’s people and businesses with a Budget that offered real support and serious solutions, but that is not the Budget we got. Instead, what the Chancellor offered was a Budget that did worse than deny people’s realities: it insulted them, with a £1 billion pension cut for the richest 1%; a stealth tax freezing income tax levels, meaning workers will see their pay squeezed further; and an overarching message that the Government’s plan was working and the economy was not that bad, at the same time as the OECD announced that the UK will be the only—the only—G7 economy to shrink this year.

Where the Chancellor came closest to offering real support, he did so by stealing ideas from others, yet bungled the detail. The hon. Member for Bassetlaw (Brendan Clarke-Smith) mentioned the expansion of free childcare. Sadly, we will not see that crucial support to help parents get back into work introduced in full until September 2025. As it stands, the subsidy from childcare providers is so high that it threatens to put them out of business.

I welcome the extension of the help with energy bills. The Government again capitulated to what Labour and campaign groups have been calling for, for months. But with an extension of just three months and more limited support, what we are seeing is more sticking-plaster politics. Where is the investment in green energy, which is the only way we will achieve true energy security? Then there was more of the same, with recycled ideas and empty promises from the many Tory Chancellors and Prime Ministers of the past. To level up, the Chancellor announced plans for the Truss-Kwarteng “investment zones”. Forget HS2, Northern Powerhouse Rail or solid regeneration projects for Wythenshawe town centre and Sale town centre, all of which have been delayed or denied by the Government. Instead, they think these low-tax, reduced regulation, potential Canary Wharfs will generate jobs and skills in left-behind communities. These are far from the serious solutions that Britain needs. What the Chancellor put forward is a Budget that denies reality, delivers little and borrows heavily; a Budget from a Government who are out of touch, out of ideas and quickly running out of time.

Under this Government, people are getting poorer. People are being supported into work, but getting paid less and taxed more, while public services struggle to cope—all the hallmarks of an economy in managed decline. Our people and businesses deserve more. We need a Budget that delivers for people, communities and businesses like those in Wythenshawe and Sale East: 1,600 homes for Wythenshawe town centre, if we had got our levelling up bid; 250 homes for Sale town centre; investment to regenerate Wythenshawe hospital, but with the hospital building programme stuck in the muck we could build 1,000 homes on that site with the right release of investment; an HS2 station near my constituency and an extended Metrolink loop line; a station on the mid-Cheshire line; scrapping business rates; and a proper plan to address skills gaps that are holding back our small and large businesses.

What we need is a Budget that acknowledges reality and the scale of the challenge head-on, but meets them with the hope, ambition and determination needed to get Britain back on the path to growth. But for that style of Budget, it seems we will have to wait longer still.