Covid-19 Inquiry

Debate between Pat McFadden and Barry Gardiner

Friday 19th July 2024 Commons Chamber

[Pat McFadden]

I thank the hon. Member for her questions and the spirit in which she asked them. The truth is that it is easy for any of us to say, “Lessons must be learned,” and whenever anything goes wrong, people say that. The proof is in the practice. Will it be shown in practice? That is the ultimate test for us all.

I am happy to confirm to the hon. Member that, just as I said to the Opposition spokesperson, yes, we are happy to work across the aisle on this and to consider suggestions. My colleagues at the Department for Culture, Media and Sport are considering the recommendations on the memorial.

[Barry Gardiner (Brent West) (Lab)]

The Minister spoke of resilience. He is aware that Northwick Park hospital in my constituency was the epicentre at the start of the pandemic, and the lack of resilience meant that nurses there had to wear bin bags to protect themselves. I noted that he spoke of Grenfell in his statement. That was fundamentally important, because this is not simply about resilience in health. In that regard, I ask him to look at the issue of reinforced autoclaved aerated concrete. The same RAAC that caused problems in our schools was used in many housing developments at the time. We need to be resilient to any potential disasters in that respect, too.

[Pat McFadden]

I echo my hon. Friend’s tribute to the work of the NHS staff in his constituency. RAAC in public buildings is part of the Government’s inheritance. Just because the problem has slipped down the news agenda somewhat, that does not mean that it has gone away. In time, we will have to address it to ensure that such buildings—whether housing accommodation or public buildings—are safe for people to live in, work in and be treated in.

Income Tax (Charge)

Debate between Pat McFadden and Barry Gardiner

Thursday 28th October 2021 Commons Chamber

[Mr McFadden]

If the hon. Member reads the OBR report, he will find that it says very clearly that the effect of the pandemic is smaller in the long run than the effect of the low growth over which his party has presided for more than a decade.

As I was saying, in the decade before the Conservatives came to office, growth averaged 2.3%. Let us look at what the difference between those rates means to people. The difference, added up over the years, is worth £9,000 a year to every household in the country, and from the Exchequer’s point of view, the difference would be £30 billion a year more to fund our public services. It is that more than anything—that appalling record on economic growth—which has forced the Chancellor to raise taxes. The British people are being forced to pay the price of the Government’s long-term economic failures.

The long-term effect of this lack of growth is far greater than the impact of the pandemic. When we look beyond the huge fall in GDP last year, due to the pandemic, and the bounce back from it this year and next, the growth picture does not change. The OBR is predicting economic growth averaging about 1.5% between 2024 and 2026. It is that low growth which creates the projections of real wages barely rising in the coming years. In his dreams, the Prime Minister is Winston Churchill; in his rhetoric, the Chancellor is Margaret Thatcher; but in its actions, this Government is Ted Heath.

The Chancellor and the Prime Minister have trapped the country in a vicious circle of low growth, rising inflation, stagnating incomes and rising taxes. The economic legacy of this Chancellor will be a country on the path of low growth and high taxation, but his political legacy will be as the man who buried forever the Tories’ reputation as a low-tax party.

[Barry Gardiner]

I entirely agree with all the points that my right hon. Friend is making. The Chancellor said yesterday that in three years’ time we would still have growth of 1.3%—negligible growth. If we look back to the years of the Labour Government, we see that even in 2010, after the global recession, we still had growth of 2.3%.

[Mr McFadden]

That is precisely the point I am making. The long-term growth trend makes a huge difference to the Government’s choices and their power to fund public services.

In the face of that, what was remarkable about yesterday’s Budget was the total absence of any plan for economic growth, and nowhere is that clearer than in education. The Chancellor expects us to applaud a lap of honour where in a couple of years’ time, funding per pupil only just gets back to its 2010 level. Let us think about that for a moment: almost 15 years with no real increase in investment in the workforce of the future. A generation of schoolchildren will have gone through their whole education with fewer resources than their predecessors.

How can the Government talk realistically about levelling up when their record is long-term neglect of educational opportunity? What an appalling dereliction of duty to young people in this country. There can be no more short-sighted decision than to stop talent flourishing—to take away the platform from which dreams can be fulfilled. For people born without money or without means, education is the only way in which that can happen. It is the means by which people can change the circumstances into which they were born. It is the platform to ensure that the course of life is not dictated by the hand that they were dealt at birth. Yet, for 11 years, this Government have neglected it. Then, when they were presented with a catch-up plan to help children to recover from the education lost during the pandemic, they shredded it. That is not only socially unjust; it is economically self-defeating, and that record on education is a major contributor to the weak, anaemic, stunted growth that has resulted in the tax levels we are seeing today.

This was not a Budget written in a few weeks in the Treasury. These high taxes and stagnating household incomes are not the product of the short-term crisis through which we have been living. This was a Budget written over 11 long years. Where was the plan for growth? Where was the plan to back the best of British creativity and enterprise? Where was the plan to ensure that we succeed in the technologies of the future? Where was the plan to ensure that, when it comes to levelling up, it is people and the talents that they hold, not just bricks and mortar, that are at the heart of it?

It is not just our view that the Budget did not measure up. The CBI has said that it will not

“do enough to transform the UK economy for a post-covid world”.

The Federation of Small Businesses asked:

“Is there enough here to deliver the Government’s vision for a low-tax, high-productivity economy? Unfortunately not.”

The Government ditched their industrial strategy out of ideological spite. The transition plan for net zero produced just last week was a damp squib. One of the biggest challenges that we face is how to transform the heating in our homes, yet their plan would partially cover just one in 250 of the replacement boilers needed. The long-term reform of business rates, which several Conservative Members said they supported, has been ditched once again. Time after time it is ditched. And the Government have only just discovered the importance of early years education, a decade after taking a wrecking ball to Sure Start and setting back a good start in life for millions of children around the country.

It is not just the fact that we have the highest taxes in living memory; it is that those taxes are not being used for any coherent long-term plan for the country. They are being used to firefight one issue after another as it momentarily occupies the mind of the Prime Minister. There is only one plan that the Chancellor has here, and it is as clear as day. It is to hold some money back in order to offer tax cuts before the next election. If that plan succeeded and the Tories won, what do we think would happen afterwards? We know what would happen. There would be a big speech about how taxes now had to go up because we had to pay our way and could not borrow what we could not afford. And the reason for that would still be the Tories’ lamentable failure on economic growth. That is not a moral mission. It is just a Tory election plan, and it is one that has been funded by hard-working taxpayers.

There is a better path. There is a better future and a different way, and that is to put our efforts into raising medium-term growth prospects and to get out of this bind of high inflation, high taxes and poor growth that 11 years of Conservative Government have left us in. That is the better path to prosperity and security. That is the path to ensuring that talent is used and to making the most of the UK’s potential. On the Labour Benches, we want to work with business, not treat it as a scapegoat for every problem that comes along. We want a fair deal for the workers in business, with good pay and decent conditions. We want to support wealth creation every bit as much as we support fair wealth distribution. We want to invest in the skills and talents of all our people, whatever their circumstances, from the youngest age possible, and we will have a net zero plan that meets the challenge of the moment and gets the best possible economic and employment benefits for the country. That is a better plan than the high-tax, high-inflation, low-growth model that the Conservative party has been pursuing, not for two years, not for one year but for 11 long years. It is that failure that gave rise to yesterday’s Budget and the tax burden being imposed on the country by this Chancellor and this Government.