Budget Resolutions and Economic Situation
Debate between Sarah Olney and Ranil Jayawardena(1 year, 9 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Sarah Olney (Richmond Park) (LD)
Families were looking to this Budget for support, but the Chancellor, instead of throwing them a lifeline, has thrown them under the bus. Mortgage bills are up, the cost of the weekly shop is up and energy prices are up, all because of Conservative chaos, yet this Government have offered no immediate help with the cost of living. They are so out of touch they might as well be on a different planet.
The Chancellor could have done so much more if only he cared enough. He had enough money in the Treasury to cut people’s energy bills by £500 and take them down to last April’s levels, yet he simply chose not to. And while he may claim he is extending support, that is simply not true: people will pay more for their energy this year than they did last year, not less—even though gas prices are falling. In three months’ time there will be no extra help in place whatsoever. The £400 payment is also gone. Fuel poverty will get worse, not better. The Government will now cut energy support for businesses by 85%. Those shops and restaurants that will not be forced to close will have little choice but to raise their prices. The price of food, clothes and the pint in the local pub will all go up, and all because the Government are cutting support to businesses.
We heard the Chancellor say that this Government will grow the economy by getting people back to work, but his plan is merely tinkering around the edges of a system broken by his very own Government: changing pension rules that will not benefit the majority of people; piecemeal changes to a childcare system that needs wholesale reform; and forcing people with ill health to work by threatening to take away their benefits. Are we really meant to believe that that is the recipe for economic growth?
On this Government’s watch, more than 7 million people are waiting for treatment in the NHS and thousands cannot get discharged from hospital when they are ready because there is no one to look after them. I have some news for the Chancellor: people are not off work because they are on the golf course; they are off work because they are stuck on a hospital waiting list. We cannot fix the economy if we do not fix the workforce, and we cannot fix the workforce if we do not fix the NHS and social care. Giving care workers a pay boost of £2 an hour would be a good way to start. Finally, we should be fixing our crumbling hospitals, which are crying out for some proper investment, but the Government simply do not get that.
Liberal Democrats have been championing the need for properly funded, genuinely free childcare for years, but unless the Government fund free hours at the actual cost of providing them, they will make the problem even worse: a lack of providers and eye-watering fees for full-time childcare. It takes real nerve for the Chancellor to say he wants to get more people into work when he is the one who froze the personal allowance, an unfair stealth tax penalising people for every extra pound they earn.
Do not take it from me that this Government have no idea how to grow our economy: just look at the figures. Under this Conservative Government, the UK is the only major economy that is still smaller than before the pandemic. The International Monetary Fund expects Britain to see the lowest growth of any other G7 country. While, thankfully, it looks like a recession could be avoided, this Government seem content with growth moving at a snail’s pace. If the Bank of England is right, the Government’s economic policy could keep long-term growth stuck at 1%. What does the OBR make of the announcements we have just heard? By 2028, they will add no more than 0.2% to our GDP. What a waste that would be of all the talent and ambition I see across every part of the UK.
However, there is no greater indictment of this Government’s economic policy than their track record on living standards. The OBR today warned of the largest two-year fall in living standards in almost 70 years. According to the Resolution Foundation, the typical household income saw a hit of £700 this year and it is about to fall by another £1,100 over the next year. What is more, over half of that—£650—is due to Conservative tax rises. That is an eye-watering £1,800 over two years taken away by Conservative chaos and tax rises.
Sarah Olney
No, you’ve spoken.
This Government are letting people down all across the UK. In very tough times, the British people have shown remarkable decency and strength, but they are finding it harder and harder to make ends meet. Nearly 3 million people are expected to fall into poverty over the next two years, and in four years’ time over a third of children could be growing up in poverty—the highest point this century. That is the true cost of the cost of living crisis under the Conservatives.
That is why Liberal Democrats are calling for more help with energy bills and mortgages and investment in our public services. Many of these people will either be carers or be receiving care from a loved one, so one thing the Government could do to help right now is finally to raise the carer’s allowance. That would go a huge way towards helping some of the most vulnerable among us. All it takes is a Government who really care, rather than a Government who make people pay for their own mistakes.
Oral Answers to Questions
Debate between Sarah Olney and Ranil Jayawardena(2 years, 3 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Mr Jayawardena
First, it is this Government who introduced the monitoring that allows us to know what is going on. Secondly, it was this Government who introduced the Environment Act 2021, which allows the Environment Agency to levy unlimited fines on water companies.
Sarah Olney
We all looked on in horror at the viral images of beaches in Sussex being destroyed by disgusting sewage overflows. I have heard that businesses in the area that are very reliant on income from tourists—from beachside cafés in Seaford to tourist hotspots in Eastbourne—have lost money because beaches were shut and people were put off swimming in poisoned water. Will the Minister demand that Southern Water compensates Sussex seaside businesses?
Mr Jayawardena
First, I have already set out to the House what I intend to do. Secondly, I would observe that the Liberal Democrats’ plan is simply to play politics with this serious issue. When they were in government they did not take the action that we have done now. Sadly—and this is the serious point—what they are calling for in their leaflets is for sewage to flow back into people’s homes, because that is the consequence of what they are proposing.
Sarah Olney (Richmond Park) (LD)
Mr Jayawardena
We have long set out that we have no plans to change our animal welfare, food safety or environmental standards, and that remains the case.