Budget Resolutions

Simon Lightwood Excerpts

Tuesday 12th March 2024 Commons Chamber

[Simon Lightwood (Wakefield) (Lab/Co-op)]

It is with pleasure that I speak on the final day of the Budget debate this afternoon. With this being the last spring statement before the general election, last week’s Budget was a golden opportunity for the Chancellor to finally set out his plans to grow Britain’s economy. We did not see a rabbit out of the hat, although it looks as if the Chancellor has managed to make his Back Benchers disappear. Instead, this Budget revealed what we have known for far too long—that this exhausted, fading Tory Government are completely out of ideas. Millions of people across the country will have listened to the Chancellor, and collectively said, “Is that it?” The Government have limped on through another Budget week—clearly not everyone has survived—and a former Tory Cabinet Minister said that it has had “no traction at all”, because the Prime Minister is simply too weak to call a general election.

The unavoidable fact is that after 14 years of Tory Government our economy has flatlined into recession. Living standards have fallen off a cliff, and our public services are crumbling. The Budget has lifted the lid on 14 years of Tory economic failure, and nothing that they do between now and the election, whenever it comes, will change that. The Chancellor may have taken 2p off national insurance as a last-ditch effort to shore up votes, but Opposition Members have not forgotten that there have been 25—yes, 25!—Tory tax rises since the last election. This is the highest tax burden on the British public for 70 years.

For all the attempted fanfare about last week’s Budget—again, we see the enthusiasm on the Conservative Benches—for every £10 extra that working people will pay in tax under the Tories, they will get just £5 back as a result of combined national insurance cuts. As my right hon. and learned Friend the Leader of the Opposition said last week, the Government are openly giving with one hand but taking even more with the other. They are taking the British public for fools. On average, households will still be £870 worse off under this Government, yet the Chancellor merrily told the House last week that his “plan is working”. I know that my constituents in Wakefield, along with millions of people across the country, are just not buying it.

Five Prime Ministers, seven Chancellors, and 11 failed “plans for growth” have been trotted out by this Government. And what do they have to show for it? An economy in recession, smaller than when their latest Prime Minister took office. The national credit card is maxed out, with debt tripling to almost £2.6 trillion since 2010. Average post-tax earnings at the start of this year are £1,870 lower than at the start of 2021, according to the Joseph Rowntree Foundation. Real pay is up by just £17 a week since the Tories took office, with an unprecedented decline in living standards, and a cumulative £19 billion rise in mortgage costs for UK homeowners thanks to the Tory mortgage timebomb. As if that was not enough, now the Tories are eagerly promising £46 billion of unfunded tax cuts, which would leave a gaping black hole in the nation’s finances with working people paying the price.

There was little in last week’s Budget that will make any real difference to the lives of hard-working constituents in Wakefield. Some wards within my constituency rank among the 10% most deprived neighbourhoods in the country, and a shocking 32% of children in Wakefield live in poverty. Every one of those households suffering in my constituency and across the UK are a badge of shame for those on the Government Benches. Last week’s lacklustre Budget also does nothing to address the fact that the basic functions of the state are collapsing under the Tories’ watch. Not a single NHS dentist in Wakefield is taking on new patients. One in seven people in England are on a waiting list for NHS treatment, and thousands of children are studying in crumbling classrooms.

It is plain as day that the Tories have given up on governing, so it is little wonder that they finally caved to pressure from Labour after years of resistance, and have finally acted to close the non-dom tax loophole. That is a crushing, humiliating U-turn even for the Tories, and a damning indictment of a Government totally bereft of ideas. My constituents simply cannot afford another Tory Budget of decay and decline. We desperately need a general election, and a Labour Government who will get the economy growing again, make work pay with a new deal for working people, and back British business with a new industrial strategy in a national wealth fund. It is time for real change, and Labour is ready to serve. Call a general election.