Budget Resolutions and Economic Situation

Norman Lamb Excerpts

Monday 21st March 2016 Commons Chamber

[Greg Clark]

I am going to make some progress, given that about 60 hon. Members want to speak in the debate.

We have seen a second wave of city deals and the launch of growth deals and devolution deals to encompass cities and shires alike. We have even seen something of a change of heart on the Labour Benches. I very much welcome that, if it is a genuine source of support—however qualified—for the principles at stake. If the party of central planning accepts that power must be exercised locally, that is progress indeed.

[Norman Lamb (North Norfolk) (LD)]

Perhaps the Secretary of State will come on to this point, but will he tell me whether he is at all concerned about social care? The independent Health Foundation estimates that there will be a gap of about £6 billion by 2020, and the Local Government Association wanted a roll-forward of extra funding for the better care fund, which has not been forthcoming. Does he not have real concerns that if the amount being spent on social care is not enough, it will simply place an extra burden on the NHS?

[Greg Clark]

As the right hon. Gentleman knows, provision was made in the local government financial settlement and the spending review to allocate up to £3.5 billion for adult social care by the end of the Parliament. The directors of social services and the Local Government Association actually asked for £2.9 billion, so our provision went beyond that. We also need to bring together the treatment of our elderly members of society so that councils and the NHS can, between them, look after those people well. After all, those requiring health care and social care are often the very same people. I know that, as a former Minister in the Department of Health, the right hon. Gentleman will favour that. Part of the devolution deals that we are pursuing will do that. We are seeing it happening in Manchester, and I hope that he will follow that with interest.

--- Later in debate ---

[Norman Lamb (North Norfolk) (LD)]

There are moments when events have a profound effect on politics, and I believe that this Budget and the subsequent resignation of the former Secretary of State for Work and Pensions is one of those moments. He said that this is a “deeply unfair” Budget and that we are

“drifting in a direction that divides society rather than unites it”.

He also said:

“it just looks like we see this as a pot of money, that it doesn’t matter because they don’t vote for us”.

That strikes at the very heart of any sense from the Conservatives that we are all in this together. It also reinforces the public’s view of the Conservatives that, ultimately, they will not govern for the whole of the country. This is a profoundly dangerous moment for the Conservatives.

The Budget is unfair in two particular respects, both relating to the rich and poor. It cuts taxes for better-off people while striking at those with a disability. At the same time, it completely protects the interests of better-off older people while putting all of the burden of welfare cuts on those of working age. That is not fair. The former, well-respected Conservative Minister, David Willetts, has talked about the break in intergenerational fairness, and this Budget is an example of that.

In the time available to me, I want to focus on the NHS and care. Of course, they were not mentioned at all in the Budget, but it seems to me that we are sleepwalking towards the edge of the precipice. It is accepted by everyone that we are looking at a gap of about £30 billion in the NHS budget by 2020, and a gap of about £6 billion in social care, according to the Independent Health Foundation. That does not take into account another £1 billion for the increased cost of the minimum wage. We are due to spend a reducing percentage of our national income on health and care between now and 2020, at a time when demand is rising massively. If we are to have any chance of achieving the objective of genuine equality for those who suffer from mental ill health, investment is required, but such investment is not forthcoming from the Government.

I repeat my plea to the Government that we should work together on this. Partisan politics have failed to come up with a solution. We need a cross-party commission to get to grips with the problem and come up with a long-term settlement for the NHS and for care—a Beveridge report for the 21st century.