Budget Resolutions and Economic Situation

Sam Tarry Excerpts

Tuesday 9th March 2021 Commons Chamber

[Sam Tarry (Ilford South) (Lab)]

We have many important sectors in our country that will hopefully be the engine of growth in the future, but which need support in the short and medium term—not least public transport. Sadly, there was very little in this Budget on transport. What we did see were mostly drastic cuts, with transport funding slashed from £13 billion to just £2.1 billion for the current financial year at a time when ridership levels are at record lows and operators are struggling to balance the books. Furthermore, funding for transport capital projects was cut from a meagre £600 million to zero, while intra-city funding has been delayed until at least 2022.

The lack of pandemic support has already had a profound impact on those who work in the transport sector, with over 1,000 jobs lost in both the bus and coach manufacturing industries—mostly, unfortunately, again in the north of England. And all this is at a time when the fuel duty freeze is costing the Government the best part of £1 billion, sending a clear message about where their priorities lie in terms of their decarbonisation agenda.

What hope is there for the ordinary worker who wants to return to work but is faced with a rise in rail fares and cuts to bus routes, which, in recent years, have seen 134 million miles lost? Where is the Government’s much heralded bus strategy, which was supposed to have been published last year? There was not a word of this in the Chancellor’s statement or, indeed, any update on the commitment to unveil 4,000 zero-emission buses, which can only lead us to conclude that their decarbonisation agenda has missed the bus. As the MP for Ilford South, I watch in dismay as the Government continue to level down London’s transport network rather than truly levelling up the midlands and the north.

The Budget was a pivotal moment for the climate emergency and jobs crisis, but next to nothing was announced for a new economic green recovery. There is no new investment for green recoveries in key industries, including automotive, aerospace and steel. Just £20 million was announced for floating offshore wind technology. Labour has called for a £30 billion green economic recovery, which would create 400,000 secure jobs in clean industries.

Earlier this week, the Chancellor boasted about kick-starting a green industrial revolution, but in reality the Government have slashed climate spending in this Budget, including a devastating £1.1 billion reduction in the green homes grant. As my right hon. Friend the Member for Doncaster North (Edward Miliband) pointed out, we are lagging far behind our European and global partners, with the US’s recent $1.7 trillion green plan over the next decade, while Germany and France have pledged a combined total of €70 billion over the next two years. Mass unemployment should not be inevitable in this pandemic, but the way that the Government are carrying on, it unfortunately could be.

At a time of acute and prolonged national crisis, there is an opportunity for the Budget to be more than one that drives a new political economy—one of investment to create well-paid jobs, the renewal and expansion of infrastructure projects to fit out our country for the century ahead, and a world-leading acceleration of a green industrial revolution to lift our nation up through an active industrial strategy, not buzzwords, tax-evading freeports and pork barrel projects to shore up Tory ambitions.