Budget Resolutions

Sam Tarry Excerpts

Tuesday 12th March 2024 Commons Chamber

[Sam Tarry (Ilford South) (Lab)]

I apologise in advance, Mr Deputy Speaker, for my rather croaky voice today. I was vocally cheering on the historic double win on the weekend: the Commons and Lords rugby team’s win over the Dáil and Seanad, and of course, England’s dramatic victory at Twickenham.

Turning to less happy matters, this Budget does absolutely nothing to remedy the economic malaise we have had over the past 14 years. Some £20 billion will have been slashed from vital public services by 2028, paired with tax cuts that overwhelmingly favour the very richest in our society—just another round of austerity from the architects of inequality. It is the worst decline in living standards since the second world war, the worst growth since the great depression, and the worst wage crisis since the battle of Waterloo. What an awful record that is. It is economic incompetence of utterly historic standards.

This malaise did not emerge suddenly and recently; it is not solely the result of the pandemic or the war in Ukraine. It is the cumulative outcome of a decade and a half of misguided economic decisions and governance by successive coalition and then Conservative Governments. When the former Prime Minister, the now Baron Cameron of Chipping Norton, announced the beginning of a new “age of austerity” back in 2009, few of us could have predicted the sheer devastation that the Conservatives were about to unleash on this country. A report from the Progressive Economy Forum reveals that between 2010 and 2019, austerity measures drained a staggering half a trillion pounds from the UK’s public spending coffers.

The impacts of those cuts have been devastating. The introduction of the Welfare Reform Act 2012 increased the number of children living in relative poverty by 600,000 in just seven years. Bizarrely, British children are now 7 cm shorter than their European counterparts, clearly because of the malnutrition, scurvy and rickets that now plague our children’s future—it is utterly unbelievable, but these are facts put out by scientists.

As we all know, food bank usage, even in many Conservative constituencies, has skyrocketed. According to the Trussell Trust, emergency food parcel usage rose from 61,000 in 2010 to 1.9 million in 2020. Rates of increase in life expectancy have nearly halved, and more than 330,000 excess deaths in Great Britain have been attributed to this great age of austerity. That austerity has proved to be not just economically devastating, but, sadly, fatal for hundreds of thousands in this country.

These policies were not just confined to the coalition Government. Between 2015 and 2019, a succession of Conservative Prime Ministers committed themselves full-throatedly to the devastating austerity politics of the last five years. The most egregious was the implementation of the two-child benefit cap in 2016-17. That particularly awful example means that 42% of children living in families with three or more children now live in absolute poverty. The two-child benefit cap has impacted on 1.5 million of our nation’s children.

Despite politicians’ promises of austerity leading to an improved economy, our public finances have clearly not improved. Since 2010, the real economy has grown by only 1.2% a year, and we have the weakest growth among G7 countries. The simple fact—and this needs to be said loud and clear—is that you cannot cut your way to growth in any modern economy. We have witnessed the worst growth in GDP per head since records began. The real average wage for most Britons has remained unchanged since 2007, which is the biggest fall in living standards since records began. Productivity, which is closely linked to levels of investment, has stagnated for the longest period in modern capitalism. Productivity is now lower than in France, Germany and the United States.

A decade of austerity left the UK exceptionally vulnerable to the pandemic. When that hit, the years of pay caps and freezes wreaked havoc on safe health and social care staffing. They hindered recruitment and saw a spike in staff turnover, and as a result both sectors were perilously understaffed even before the pandemic hit. The cuts to social security, benefit freezes and restrictive reforms shattered our agreed safety net in this country. Those soaring poverty levels fuelled higher covid risks, leaving my constituents much more vulnerable to severe health consequences.

Slashing funds gutted the provision of health and safety regulators, which left enforcement in a shambles. Amid the pandemic, inspections and notices hit rock bottom, despite rampant workplace infections. This categorically led to the death of NHS workers on the frontlines. Emerging from the pandemic, public services were left in tatters, as they are still, and they desperately need financial support, but it was not brought forward in the Budget last week. The situation was only worsened further by the former Prime Minister’s acts of economic self-destruction, which plunged the pound to historical lows, allowed mortgage interest rates to skyrocket and put six major pension funds at risk of total annihilation.

This track record of the decimation of our country has left classrooms falling apart, NHS waiting lists at near record-breaking length, household unsecured debt going up through the roof and our public institutions on their knees. This is the result of only one organisation and one group of people: it is the result of 14 years of uninterrupted Conservative and coalition economic mismanagement. The Institute for Government has warned that our public services are stuck in a “doom loop” of recurring crises, due to more than a decade of short-term policy making and harsh austerity.

This Budget was a missed opportunity for laying a different progressive pathway forward for our economy—one that empowers and properly funds public services, and puts working people and our fragile planet at the very heart of it; one that invests in people and their skills, whether that is at university or for vocational workers; and one that invests in our workplaces and our people. Until we have a Government who are prepared to do that, as well as to stand up for the ordinary people of this country, and have a serious long-term investment plan for infrastructure and a long-term investment plan for sectors in our industries, our country will stagger onwards on a treadmill of economic decline.

[Several hon. Members rose—]