Budget Resolutions and Economic Situation

Rachael Maskell Excerpts

Thursday 17th March 2016 Commons Chamber

[John McDonnell]

Will the hon. Gentleman acknowledge that the objective statements of the past 48 hours have demonstrated that all the factors that he mentions are falling back, and that we now face a serious problem that should be addressed by a responsible Government when they see their own fiscal rule and economic policies failing?

Let me repeat what the IFS said so that everyone is clear: the percentage losses were about 25 times larger for those at the bottom than for those at the top. So much for the Government’s statement about the broadest shoulders taking the strain. Furthermore, time and again, it is women who have borne the brunt of the Chancellor’s cuts. Recent analysis by the Women’s Budget Group showed that 81% of tax and welfare changes since 2010 have fallen on women.

[Rachael Maskell (York Central) (Lab/Co-op)]

Does my hon. Friend agree that it is not just women who have borne the brunt, but disabled people? Half a million disabled people are losing between them £1 billion. Surely not even Conservative Members can stand this anymore.

[John McDonnell]

I fully concur with my hon. Friend. I will come back to that point.

The distributional analysis by the Women’s Budget Group shows that by 2020 female lone parents and single female pensioners will experience the greatest drop in living standards—by 20% on average. In the case of older ladies, the single female pensioners, the cuts in care are falling upon their shoulders. I find that scandalous in this society.

It is disappointing, too, that the Budget offered no progress on scrapping the tampon tax. The Chancellor is hoping for a deal from the EU on the tax. If there is no deal, we will continue to fight for it to be scrapped.