Budget Resolutions and Economic Situation

Ruth Jones Excerpts

Monday 20th March 2023 Commons Chamber

[Ruth Jones (Newport West) (Lab)]

I am grateful for the chance to speak in this Budget debate and to give voice to the concerns of the many people in Newport West who are finding it tough and wanted a proper plan for growth and opportunity.

The Chancellor’s Budget could have been a unique opportunity to unlock Britain’s promise and potential and to break away, finally, from over a decade of decline and decay. Instead, the Tories have decided to continue papering over the cracks of 13 years of Conservative economic failure. That was exemplified by a handout to the pension pots of the richest 1%, with no regard for the livelihoods and wellbeing of my constituents in Newport West or others around the country who want and need real change and real investment in their communities.

Growth was downgraded in this Tory Budget, but Labour will not allow us to keep bumping along this path of managed decline. I welcome our mission to secure the highest sustained growth in the G7, as set out by my right hon. and learned Friend the Member for Holborn and St Pancras (Keir Starmer). That way, we will create the good jobs and productivity growth across every part of our country that our people are crying out for. Let us be clear: where this Conservative Government have basically given up and thrown in the towel, Labour will build a better Britain.

Despite all the claims from the Chancellor, the OBR downgraded the UK’s long-term growth forecast, with downgrades in all the last three years of the forecast period. The OECD has now confirmed that the UK will be the weakest economy in the G7 this year—a ringing endorsement of 13 years of Tory government. The OBR also confirms that the hit to living standards over the past two years is the largest since comparable records began. Let us just think about that for a minute. It means that the average French family are now one tenth richer than their British counterparts, while the average German family are one fifth richer.

Wages are now lower in real terms than they were 13 years ago. The independent OBR has confirmed that real wages fell last year and will fall further this year. That will mean that, under this Conservative Government, real weekly wages are now expected to remain below 2008 levels until 2026.

This Government have let down the people of Newport West, Wales and our United Kingdom. This Budget was a wasted opportunity that delivered a tax cut for the richest and nothing for the many. It continued a Conservative agenda of delay and decline. The only way forward is to change course, to deliver for our people and to move forward with a Labour Government, and the sooner the better.

I want to conclude by talking about real people who have been directly affected by this Government’s careless attitude to financial matters. Dawn Jones is a 76-year-old pensioner living alone in Newport West. She had to take out a retirement plan mortgage some years ago and was making interest-only payments of £200 per month. However, thanks to the previous Prime Minister and Chancellor crushing the economy, she is now paying over £500 per month. She is a pensioner. How can she afford that?

Dawn is now at her wits’ end wondering how she will make the repayments. She cannot afford to put the heating on and has been having to wear three or four layers of clothing throughout the winter. When it got really cold she had to use hot water bottles. She finishes her heartrending email by saying:

“The Tories do not live in the real world, they have no idea how most of us live.”

I completely agree with Dawn.