Budget Resolutions and Economic Situation

Stella Creasy Excerpts

Tuesday 9th March 2021 Commons Chamber

[Stella Creasy (Walthamstow) (Lab/Co-op) [V]]

A decade ago, we were told that austerity was a necessary response to borrowing £158 billion, and we have spent 10 years arguing about the damage done as a result: cost-cutting measures that cost us more than they saved—the bedroom tax springs to mind—the sluggish productivity that we have not dealt with, and the inequality that has grown worse as a result of focusing not on investing in people and their potential but on trying to pick winners and losers.

Now we are in a position where we are borrowing a figure double that and then some. The Chancellor tells us that he is being honest, but he is not being honest, and he is about to repeat the mistakes that were made in 2010. Austerity did not move our economy forward and it did not improve the lives of our local communities. We have the fourth highest death rate from covid-19 out of 132 countries. As Sir Michael Marmot has said, that is at least in part down to the pre-existing poor health in poorer sections of our local communities. What a damning indictment of austerity indeed.

Coming out of the pandemic, we cannot afford to make the same mistakes again, but that is exactly what is about to happen. The universal credit cut will see 500,000 children dragged into poverty. It is a 7% cut in incomes. Some people might say that 7% is not very much, but if that is the difference between waving and drowning, that is the impact this Chancellor is going to have.

The Government promised that nobody would lose their home as a result of covid, yet we know that half a million people are already in rent arrears, and the Prime Minister and the Chancellor have said nothing about that issue. We know that they plan to clobber nurses with a pay cut—because it is a pay cut when inflation is predicted to be 1.5%. It is going to cost us more, just as the bedroom tax did, because nurses are not daft. In London alone, we are paying £6 billion a year for agency staff, because we have NHS staff shortages. Nurses are going to work for agencies when they are not being paid properly. There is money there to be had.

It is right that we look at corporation tax rates. It is right that we do more on capital gains tax—after all, there are people trading shares in UK companies through tax havens who are not paying it. However, there is no point raising money if we are not going to invest in people, and the mums of this country know that most of all. Those who became a mum in the past year are one and a half times more likely to have lost their job than a dad. Our childcare sector is crumbling, with 58% of nurseries saying they cannot make it to the end of the term, but the Chancellor said nothing. We have spent the last 10 years dealing with the outcome of not investing in the people of this country. I urge the Chancellor to rethink and not do that again.