Budget Resolutions

Siobhain McDonagh Excerpts

Monday 1st November 2021 Commons Chamber

[Siobhain McDonagh (Mitcham and Morden) (Lab)]

The message from the Budget was clear: the Conservatives are now the party of low growth and the architects of the highest sustained tax burden in peacetime. The aspiration of Margaret Thatcher; the delivery of Ted Heath.

We are told that this change of philosophy is temporary —that the virus has infected our economic growth and the growth of developed nations around the world—but the simple fact is that Britain has suffered the worst economic hit of any major economy, coupled with the highest death toll in Europe. The national insurance hike alone will cost a care worker £140 a year, a nurse £310 and a paramedic £420. Meanwhile, banks, which have recorded record profits, are set to save £4 billion in taxes by 2027. In the words of my late mum, is this not just another example of “much gets more”? The cost of living is rising at its fastest rate for 30 years and the tax bill is £3,000 per household higher than when the Prime Minister came into post. There is no hiding place. This is Conservative economic mismanagement, and it is working people who are paying for it.

The Chancellor delivered most of the Budget in advance through co-ordinated announcements to the press, but after hearing it in full, I am amazed that he had so many announcements to leak. This Budget offered so little to so many. Universal credit was slashed, pushing thousands of the poorest people in our society even further into poverty at a time when their energy bills are about to soar. There was barely a word on connectivity and closing the digital divide, which is vital for levelling up and pivotal for the technology-reliant society we now live in.

With 200,000 children transferring from primary school to secondary school this year, we were asked to celebrate a boost to the schools catch-up fund despite that support providing just £310 per pupil, a third of the amount the Government’s own education tsar stated was required before he resigned and only one tenth of what the Dutch Government believe their children deserve.

However, Budget announcements cannot be considered in isolation; to understand the impact of spending increases, it is important to consider what has been cut in turn. The final totals are revealing and clear. This is a Government who ask the poorest people in our country to celebrate £2 billion from one hand while taking £6 billion with the other, to be thankful for small wage increases that are negated by higher taxes and inflation, and to watch their taxes rise while banks have theirs cut. That is not what I understand by “levelling up”.