Budget Resolutions and Economic Situation

Richard Burgon Excerpts

Tuesday 21st March 2023 Commons Chamber

[Richard Burgon (Leeds East) (Lab)]

Last Wednesday, as the Chancellor stood up to deliver his Budget, millions of people around the country will have been hoping for real action on the biggest cost of living crisis in living memory. They were disappointed. In the theatre of Parliament, with the jokes, the backslapping and the irrelevant asides, it seemed that we had very rarely been as far removed from what was going on outside. We would never have guessed from listening to the Chancellor that there is a cost of living crisis out there and that people are using food banks, are having to choose between heating and eating and are struggling to pay the bills. One would never think that it was about to get worse, with the worst fall in incomes since the 1950s. It seemed from the Budget that the Conservatives just did not think that that was a big deal. The Budget did not say enough. The Budget did not really do anything for the millions of people out there who are struggling to make ends meet.

We hear a great deal about the cost of living crisis, but it is not true across the board. Some people are doing very well indeed at the moment. British billionaires are increasing their wealth by £220 million a day, profits at the biggest UK companies are up by 34%, bankers’ bonuses are up by 28%, top bosses’ pay is up by 23%, and we even have a Prime Minister on the rich list—the richest Prime Minister in history.

The Government had a choice, and the Government failed to do what was right for the people out there. When the hon. Member for Southend West (Anna Firth) was explaining why public sector workers should not get the pay rise that they deserve, she said, “The money has to come from somewhere.” Of course the money has to come from somewhere, but the money is there; the Government just choose not to take it. Let me explain that by identifying just two policies that the Government could have adopted—two taxes on wealth that would have raised £30 billion. When I mention that sum, Members should reflect on the fact that free school meals for every child would cost £1 billion, as would an inflation-matching pay rise for all nurses, and an inflation-matching pay rise for all public sector workers would cost about £12 billion.

The first of those two policies is a 1.5% annual tax on any wealth amounting to more than £10 million, which would raise up to £15 billion a year and would affect only 0.04% of the population: the richest 20,000 individuals. The Government do not have the guts to do that, because they would be doing it to their wealthy friends. The second policy is very simple: equalise capital gains tax rates with income tax to raise up to £17 billion a year. Why should bus drivers, for example, pay a higher rate of tax on their incomes than those living on income from their wealth? It is about time taxation on wealth was equal with taxation on income, because any other system is unjust and unfair.

The results of a new poll show that the vast majority of people back those policies, but instead of making the choices that they should have made, the Government have completely failed to tackle the emergency, now. That is what they should have done, but they chose not to do it.