Autumn Statement Resolutions

Samantha Dixon Excerpts

Thursday 23rd November 2023 Commons Chamber

[Samantha Dixon (City of Chester) (Lab)]

It is an honour to follow such a passionate speech from my right hon. Friend the Member for Hayes and Harlington (John McDonnell).

As I listened to the Chancellor yesterday, the same thought kept racing through my mind: too little, too late. This Government have seriously let down working people for the past 13 years and now hope that offering breadcrumbs will solve everything. Staggeringly, measures announced yesterday are equivalent to handing back £1 for every £8 of the rise in tax since 2019-20. Worse, the Government probably expect people to be grateful for the announcements made yesterday. The Government are forgetting that they are the reason we are in this mess in the first place, and, sadly, their latest plan will not get us out of it.

Some of the measures mentioned in the Chancellor’s speech will be welcome, but soundbite headline announcements simply do not measure up to the reality of the challenges facing my constituents and so many across the country. After 13 years of economic failure under the Conservatives, working people are simply worse off. According to the Resolution Foundation, real average earnings are not forecast to return to their 2008 peak until 2028. This is a totally unprecedented 20-year pay stagnation. Meanwhile, prices are still rising in the shops and energy bills are up. Electricity and gas prices are 40% and 60% higher respectively than they were two years ago. Mortgage payments are still sky-high, which is a serious worry for the 28% of the residents in Chester who have a mortgage and now must cut back or find extra cash to make their payments. Figures show that around 9,500 people in Chester face an annual mortgage increase of £2,700 this year. Let us not forget that this Government crashed the economy just over a year ago, resulting in these increases and plunging many hard-working people into further uncertainty about their lives and finances.

The mess does not stop there. Taxes are the highest they have been for 70 years, with households set to pay a staggering £4,300 more in tax each year. As colleagues have already pointed out, household incomes will still be 3.5% lower next year in real terms than they were before the pandemic, which is the biggest hit to living standards ever. The Resolution Foundation has stated that this is the first Parliament in which real household disposable incomes have fallen—let that sink in. It is no good hearing the Minister tell us to be “optimistic”—we are actually going backwards. Latest inflation data shows food prices are up 10% compared with last year, with a rise of 30% over the past two years.

With figures like these, it is no wonder that finances are so precarious for many families, as there is simply no way to make their budgets stack up. Chester’s local foodbank recently reported feeding 170 people in just one week. One was a single mum, who was working and really well organised, cooking everything in batches and freezing it so the kids would have a hot meal every day, but then the freezer broke and everything was ruined. She was not being paid for another week, so literally had no way of recouping the loss.

Regular, hard-working people are turning to foodbanks because they can no longer make ends meet and make it to the end of the month. People have never been in this situation before. Things are dire. KidsBank, a local charity in my constituency that provides vital support to many in our local community, has reported a striking increase in the number of families using their services for the first time. So far, 1,659 children have been referred to them for support this year—a 23% increase from last year—and there has been a staggering 77% increase in referrals for school uniforms.

Behind each of these statistics is a family struggling to make ends meet and provide for their children, with real stories of heightened anxiety and mental health issues brought on by continued financial difficulties. Imagine being a mum whose husband has left, meaning a reduction in finances. Housing conditions are poor and the family faces anxiety, depression and other mental health issues, and then along comes Christmas. There is no money for warm clothing or Christmas presents. Small charities, such as KidsBank and many others who do brilliant work across the country, are their only lifeline and their only hope. It should not be like this, but that is the reality of many.

As I have said before, it is everywhere you look: our councils, schools, hospitals, police, fire service and courts are all starved of resources. Public sector services hardly got a mention in the statement, but they are on their knees and this Government intend to kick them harder. Britain cannot go on like this. My constituents cannot go on like this.

With Labour, families and businesses would be better off. Over the next decade, Labour’s Better Off Plan would help families save £500 a year by insulating homes to make them more energy efficient; save £900 a year by building cheaper, greener, cleaner power across the country through the creation of Great British Energy, a new, publicly owned clean energy generation company; save £400 a year by cracking down on unfair car insurance practices, such as subscription traps and unfair postcode pricing; and save £1,200 a year on mortgage bills, by building 1.5 million homes over a Parliament to keep housing affordable.

The last 13 years have proved that the Conservatives cannot be trusted with the economy, and the autumn statement has shown yet again that they are out of touch. Scraps off the table will not keep hunger at bay. We need change. We need a general election and a Labour Government who will deliver for my constituents in Chester.