Autumn Statement Distributional Analysis, Universal Credit and ESA

Debate between Peter Grant and Alison McGovern

Wednesday 16th November 2016 Commons Chamber

[Alison McGovern (Wirral South) (Lab)]

It is a pleasure to speak in this debate and to follow the hon. Member for North Swindon (Justin Tomlinson). I admire his ambition and commitment to people with disabilities. Unfortunately, I do not admire the changes that the Government have made, especially the Work programme, which prevented the kind of work with charities that he was just describing. It is a shame that words do not always match reality. That is the nub of what I want to say in my brief five-minute speech.

Today, the Oxford English dictionary added “post-truth” to its long list of words. It is a phrase with which we have become all too familiar over the recent year or so. I place the blame for that squarely on our own shoulders. The public disconnect from the words that we say when they do not match the reality of what they experience.

Another phrase that we learned about in the Brexit debate was the “end of experts”. That is true no more of any profession than of our economists. Far too often, we have seen our economy described in a way that simply does not match up with what the average ordinary person wants in our country.

The point I want to make to Ministers today is that we have a choice about what we offer the British people. We must consider whether we are prepared to face the reality of our decisions. In the end, I feel very strongly that they should publish the distributional analysis—this is what I want to focus on rather than the specifics of ESA. In the end, what matters is the money in people’s pockets. We do not want a repeat of what we saw in the last Parliament, which is the better-off half of our country doing well and those with the least doing the worst. If that happens again, it will not be the Budget book but people’s own bank balances that tell them, so we might as well be honest and up front about it.

A couple of Members have mentioned the prospect of inflation and the fact that the autumn statement needs to respond to the possible risks ahead. Because of Brexit, however, we simply do not know what is going to happen to our economy. Uncertainty has increased radically and British people face a more unstable situation than ever before, so the least they can expect from us is clarity and the knowledge that we have looked squarely at the consequences of our decisions.

[Peter Grant (Glenrothes) (SNP)]

I am sorry that I missed the first part of the debate, but I have been in Committee. As an example of the uncertainty, the hon. Lady will be aware of the collapse in the value of sterling since the Brexit vote, but she may not be aware that as a direct and perverse result of that, the UK’s contribution to the European Union is now £2.5 billion a year more than it was in June. Does she not think it ironic that that alone would cover half the costs of the cuts that are being debated here this afternoon?

[Alison McGovern]

For the good of my constituents, I have never advocated our leaving the European Union and I still do not. Why damage the relationship that we have with our European partners such that they put such high numbers on the table? The hon. Gentleman makes a good point.

We can choose to face squarely the consequences of our actions or we can try to hide them from ourselves. I ask Ministers to consider the steps that they took in the previous Parliament to undermine people’s confidence in us as a body politic that wants to deal with poverty and inequality in our country. Among the consequences of the decisions taken in the previous Parliament—including, despite his welcome contribution earlier, those taken by the right hon. Member for Chingford and Woodford Green (Mr Duncan Smith)—are a steep rise in child poverty that looks set to continue and will see 3.6 million children in relative poverty by 2020. It is no wonder that steps were taken to undermine the clarity of the Child Poverty Act 2010 that meant that we could never hide from the impact of our decisions on the children who depend on us all for a decent life and a decent future.

The Minister mentioned childcare several times. Unfortunately, that is a promise in words only. Families across the country are still not able to access the childcare they need to get to work, and the consequences of the Minister’s decisions mean that we are staring in the face the possibility of single parents being hit hardest, given the changes to universal credit. Ministers should make the right choice, be honest and up front, and allow scrutiny. Let us get this right together. We need to be clear and transparent. At the last Budget, the distributional analysis was not good enough and the IFS produced its own analysis anyway. It did not take long for the obfuscation to be revealed. Others will find out and analysis will make the position clear. Most importantly, our constituents will know. They will see the consequences in their bank balance and in the money in their pockets, and they will not forgive us.