Budget Resolutions and Economic Situation

Rachael Maskell Excerpts

Wednesday 3rd March 2021 Commons Chamber

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

It was critical that today’s Budget plugged the gaps in support, built a financial bridge to see us through this next phase, stabilised the economy, and invested in rebuilding a resilient economy for all. It should have moved us from short-term help to secure, long-term foundations, and pivoted from an economy driven by deep levels of inequality to one that values every worker, every business and every community.

Now confirmed by the Office for Budget Responsibility, the economic failure outlined today goes to the heart of how this Government have mismanaged the pandemic, leaving the worst health and economic legacy of any developed country. They have failed to plug the gaps in support. Businesses, charities and people will struggle, with greater turbulence, pain and austerity to come—not the stability and investment that Labour would have instilled. It is the same old Tory recourse to bear down on the most in need, regurgitated through their broken ideology, plunging us into another decade of austerity with no lessons learned. The lifeline that many were hoping for was never thrown.

Take charities, for example, which are over £10 billion in debt. The Prime Minister promised in this House last November:

“We will be doing much more over the winter to support the voluntary sector”—[Official Report, 2 November 2020; Vol. 683, c. 41.]

Those were words of hope—and yet, winter is over, the Budget done and barely the crumbs thrown. Starving charities will choke off the social recovery we long to see. The Government’s Victorian belief about charity fails to make the connection that charities today are the engine rooms of social transformation and building community resilience. Having closed their shops and stopped their fundraising, the Chancellor is now denying them their future.

Let me turn to my constituency. York is one of the worst-hit economies in the country. In my Budget submission, I set out three pillars for investment to rebuild York’s economic foundations. First, BioYorkshire would have put York at the heart of the global bioscience economy through significantly cutting emissions and reducing waste, while creating 4,000 green collar jobs and upskilling 25,000 people. Just £12 billion for a green investment bank in the year of COP26 shows no commitment to mitigating the climate crisis.

Secondly, I called for a high street recovery fund for York—the eighth worst-hit high street—and not a Tory towns fund that will benefit three Labour-held constituencies out of 40 areas. This is Tory self-interest put ahead of public need.

Finally, I called for a community business hub to harness innovation, talent and skills by supporting the growth of new businesses, including social businesses, to generate not only a secure foundation for future jobs, but greater community wealth. The Chancellor failed to respond to the needs of our communities. Today’s Budget should have been about support, stabilisation and long-term security to transform our economy and protect our communities. But, of course, those are Labour values.