Finance (No. 2) Bill

Rushanara Ali Excerpts

2nd reading
Tuesday 13th April 2021 Commons Chamber

[Rushanara Ali (Bethnal Green and Bow) (Lab) [V]]

This Finance Bill fails to meet the scale of the economic challenges and it fails to provide the growth that is needed to recover from the pandemic, not to mention the impact of Brexit. Unemployment is already at 5% and is set to rise to 6.5%. Some groups have been hit particularly hard, especially the young—youth unemployment is at 14.3%—and those from minority backgrounds face much higher levels of unemployment.

Business investment has been in decline for many years and the pandemic has not, of course, made matters any better. We have heard a great deal about the productivity rate being incredibly slow, which it has been for the past decade. Instead of focusing on the big challenges facing the country, such as tackling the jobs crisis and youth unemployment, and promoting growth, what we see is the Government reverting to their comfort zone with an irresponsible council tax hike that will create even greater pressures for families who have faced the most unprecedented of challenges over the last year, and huge adversity—ordinary families in constituencies such as mine, where the level of child poverty is among the highest in the country.

By freezing the threshold for the personal income tax allowance, the Bill introduces a stealth tax on households. Meanwhile, the so-called super deduction gives tax cuts to some of the biggest businesses in the country, including those who have done particularly well during the pandemic, when the support should be targeted to companies that need much greater help and where there is greater need for support.

It is as if the Government have learned nothing from this crisis, as they take funding away from families who desperately need help. That brings me to the issue of universal credit, which will return to its original level later in the year. Millions of families will suffer when that happens. That is why I believe that this Finance Bill does not support families. The stealth tax that has been introduced will hurt ordinary families, including our NHS heroes and other key workers who have sustained us through the pandemic.

The Bill does not go far enough to support the 700,000 young people who face unemployment. Only one in 49 are eligible for support through the kickstart scheme. The Government have not taken the opportunity in the Bill to provide additional support to get those young people back to work.

Despite the fact that local councils such as mine have had to spend a great deal more because of the pandemic, there is nothing in the Bill to support them. There is very little to support our public services when they are facing an unprecedented crisis. The Bill lacks the ambition that is desperately needed after the biggest economic hit for generations. It lacks the ambition to get the unemployed back to work, and bold action to increase investment, productivity, and innovation, create the green industrial revolution, and power our economic growth in the face of the double hit of the pandemic and the 4% long-term hit to GDP as a result of Brexit. It hits families hard when they need to be supported, and it lacks the ambition to match the scale of the economic, social and healthcare challenges exposed by the pandemic. I will therefore not vote for the Bill.