Budget Resolutions and Economic Situation

Rushanara Ali Excerpts

Wednesday 15th March 2023 Commons Chamber

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

Britain could be so much better. We have world-class universities, some of the best firms in the world, an amazing tech and life sciences sector, great start-ups and SMEs, a fantastic banking sector and people who are desperate to rebuild our economy after the damage done to our country by the Government. The Chancellor could have come up with a Budget that was about fixing the future, investment and growth. What we have is him trying to fix the damage done by his party in government. Last year, we saw the spectre of the International Monetary Fund pointing out that the UK had the weakest growth compared to our competitors. UK growth is flatlining, and the economy will shrink by 0.2% this year. The OBR forecasts that the next two years will see the biggest fall in household incomes since records began in the 1950s, with real incomes to fall by 5.7% in the next two years.

We also saw the spectre of people’s mortgages going up. Because of the former Prime Minister and the former Chancellor crashing the economy, the average mortgage will go up by £2,000 a year. The previous Prime Minister crashed the economy in her 49 days in office, costing the country more than £1 billion for every day that she was in office, making it the most expensive work experience placement in history.

This Chancellor delivered his autumn statement and promised a shallow downturn, but he served up £55 billion of spending cuts and tax rises to patch up the Conservative chaos caused by multiple Prime Ministers and about four Chancellors—I have lost count. What he should have done today was begin with an apology to the British people for the economic misery and hardship that they have seen and experienced at the hands of the former Prime Minister and the former Chancellor.

We need rapid investment and a genuine plan for growth. In the US, President Biden has introduced the Inflation Reduction Act, whereby $370 billion will be invested in business and focused on greening the economy. We need to ensure that our economy is fit for the future and that there is a genuine plan for growth. We have not seen that. Investment is down—we have the lowest business investment in the G7—and mortgages are going up. Wages are at their lowest in real terms in the last 13 years and the tax burden is among the highest since the second world war. The Chancellor has done nothing to improve the plight of the British people; he has tried to pretend that this mess was not made by his party in government.

Labour will deliver green growth and support 400,000 jobs in green businesses. We will retain workers with skills in a green economy in every corner of the UK. There will be genuine levelling up. We will rebuild business with a national investment bank that will support the drive for a net zero economy. I could say much more, but I am limited in time. We have a plan for growth and for a high-skilled, high-wage economy. The Conservatives have had 13 years in government—13 years of austerity, the destruction of vital public services and the destruction of our economy. Added to that, the previous Prime Minister but one negotiated a poor Brexit deal that has led to reduced GDP. That is costing £100 billion in lost output and £40 million less in revenue to the Treasury every year.

The last Prime Minister cost £55 billion when she tanked the economy with the then Chancellor. Britain could do much better, but not until we have a change of Government. It is time for a Labour Government.