Budget Resolutions and Economic Situation

Nick Smith Excerpts

Tuesday 9th March 2021 Commons Chamber

[Nick Smith (Blaenau Gwent) (Lab) [V]]

May I welcome the Chancellor’s long-overdue announcement of an extension to the furlough scheme? This will help to avoid an economic cliff edge this spring. However, much more is needed, and our alternative Labour Budget would address the deep inequalities and injustices in the UK and take us forward to a stronger, more prosperous future. After covid, we need to rebuild the foundations of our economy for the long term by supporting new jobs across the whole UK; backing businesses as they recover, and protecting family finances.

We need new jobs in emerging industries, and we need them quickly. Yet the Government’s flagship policy, the kickstart scheme, is proving to be a failure. A business in my constituency applied to the scheme last September. It was keen to start giving opportunities to young people, but, months later, the application is stalled. That is not good enough. The process needs to work much more efficiently. Kickstart also needs to be paired with extra investment for places such as Blaenau Gwent.

The hospitality sector in particular has suffered and many have lost their livelihoods. Our Tradeteam logistics depot took a hammering last summer and 50 jobs were lost, with 50 families left in the lurch. They were well-paid, unionised jobs and they will be missed. To build a new economy and support business, we need investment, yet we are still waiting for a well-funded shared prosperity fund. We need jobs, but we also need to help people get to jobs. I have written to the Chancellor previously about funding improvements to the Ebbw Vale to Cardiff trainline. Accessing the employment market, higher education and leisure is crucial to our valleys communities. Improvements such as this would be hugely beneficial to our economy. New train infrastructure and more frequent services need to be delivered in better time.

On protecting family finances, I will end on an issue that I have raised before in the House. In recent years, thousands of British Steel pensioners were ripped off by pension sharks and denied justice. I urge the Chancellor to look at the Financial Conduct Authority’s role in this crisis and to review its effectiveness in protecting consumers. After constant prodding, I think that it is time to reform this regulator so that it faces towards the whole of the UK, not just the City of London.