Budget Resolutions

Ruth Jones Excerpts

Wednesday 30th October 2024 Commons Chamber

[Ruth Jones (Newport West and Islwyn) (Lab)]

I would like to say it is a pleasure to follow the hon. Member for Clacton (Nigel Farage), but honesty forbids me and I will move on.

This is a long-awaited Budget. In Wales we have waited 14 years for a Budget from a Labour Government in Westminster who will finally work with, not against, the Senedd in Cardiff, and provide support for the people of Wales. I am so proud that this is the first Budget to be delivered by a female Chancellor—the first female Chancellor ever in the UK. That is fantastic, and I am proud to have been able to listen to her deliver her speech.

Since I was first elected back in 2019, hundreds of constituents have emailed and written to me about the effects of previous Conservative Budgets, most noticeably after the disastrous mini-Budget by the former Prime Minister Liz Truss and Kwasi Kwarteng, the failed Chancellor. One constituent wrote to me:

“Everyday is becoming a struggle”.

Another person had been living off less than £2 over the weekend and came into my office saying that they were

“very low on food and…overdrawn.”

As Members of Parliament, where we are able to help we do, but too often we have reached the end of what support we can offer too soon. I welcome this Budget, which will help working people after 14 years of constant deterioration in their living standards. We must be under no illusions: the Budgets of past Governments were Budgets to enrich the rich and to impoverish ordinary people, not help them. The situation that this Labour Government inherited as a result is not one that we wanted, but it is the one we are left with. We are faced with this black hole, and we must face up to it. This new Labour Government promised change from the failure of the past 14 years, and this Budget confirms our commitment to do just that. The Government have already taken steps to fix the foundations of the economy by shifting power towards working people with the Employment Rights Bill, by addressing the rail rip-off by bringing train companies into public ownership and by introducing a Bill to combat the Tory sewage crisis.

The Conservatives crashed the economy, sending mortgages through the roof. They wasted billions of pounds of taxpayers’ money on their failed asylum system, propped up private rail companies that were not delivering and facilitated dodgy covid contracts, leaving the £22 billion black hole in the nation’s finances and public services on their knees. Let us not forget that the £22 billion is a recurring amount, so it needs to be addressed right away. We cannot afford to wait any longer. After all their dither and delay, the Conservatives called an election and then ran away. All of that means there are choices to be made.

The first choice that this Government have had to make is to be open and honest with the electorate. All of us have felt the effects of 14 years of Tory Government. They were evident in every aspect of our lives. As my right hon. Friend the Chancellor has made clear today, the true scale of the problem did not become clear until very recently, when she actually had the keys to No. 11. The second choice that this Government have had to make is to be responsible in how to go about filling the £22 billion black hole created by the Tories. The third choice is to truly acknowledge the parlous state of our public services and the scale of work that must be done to address that. Crumbling buildings, poor staff morale and recruitment and retention problems are present throughout our whole public sector. Schools, hospitals and the brilliant people who sustain our education and health systems are crying out for the investment they need and deserve.

After 14 years of austerity combined with a post-covid inflation crisis, we have seen a decline in living standards and a soaring cost of living, all while private profits increased and the wealthiest became wealthier still. The Prime Minister is therefore right to insist that tax rises should not be levied on working people, but that those with the broadest shoulders should bear the costs—the very wealthiest and the large corporations that have registered soaring profits. As we promised in our manifesto, we will not raise national insurance, VAT or income tax.

Just as we pledged in the election campaign, Labour will protect working people—people like my constituents in Newport West and Islwyn. This Budget has delivered for Wales for the first time in a generation. Wales voted for change at the general election, and change has begun by sustainably investing in Wales’s future. As Chair of the Welsh Affairs Committee, I welcome the £1.7 billion of new money for Wales through the Barnett formula and through direct spending. Most notably, I welcome the substantial increase in Barnett consequentials for the Welsh Labour Government to put towards day-to-day spending on public services, such as the NHS.

I welcome the money to support steel communities, both through the transition board and by protecting the levelling-up funding in Port Talbot and elsewhere. I welcome the £25 million to make coal tips safe—I am so glad that our Government have stepped in so quickly to do that important work. I welcome the £430 million in funding for communities across Wales and investment zones to drive economic growth. I welcome the money for rail projects with the promise of a sustainably funded future. In Wales, we are seeing the largest real-terms settlement since devolution began in 1999. Labour is creating the conditions for long-term economic growth, so that people can finally enjoy the proceeds of their hard work and see an actual increase in living standards.

Change has begun. With this Budget, this Labour Government are investing in Britain’s future so that we can protect working people, fix the NHS and rebuild our country. This Budget shows the difference that having two Labour Governments working together makes for Wales. I thank the Chancellor for her drive, determination and honesty, and I look forward to her remaining in her post for many years to come.