Budget Resolutions

Stephen Doughty Excerpts

Tuesday 12th March 2024 Commons Chamber

[Laura Trott]

I will say to the hon. Gentleman that since 2010 we have grown faster than France, Germany and Italy, and we are predicted to do the same in the next five years.

It is no coincidence that between 2010 and 2019 the number of violent crimes and burglaries halved. Our reading standards in schools, which were previously behind those of France, Germany and Sweden, raced ahead. The latest technologies, such as the NHS app and virtual wards, are now used by patients across the country.

However, this is not a “once and done” situation. The effect of the pandemic on productivity was significant. Moreover, as Lord Maude has put it, the focus on productivity must

“never end. This will always be a work in progress. There never can be a steady state… The public, for whom public services exist, deserve nothing less.”

That is why this Conservative Chancellor is willing to invest once again to drive change.

The head of the National Audit Office has said that if we can improve public sector productivity, the size of the prize is tens of billions of pounds, and the Office for Budget Responsibility estimates that raising public sector productivity by 5% would be the equivalent of about £20 billion extra in funding.

[Stephen Doughty (Cardiff South and Penarth) (Lab/Co-op)]

While the Chief Secretary is on the subject of the OBR, may I ask her whether the OBR is correct in saying that the target public sector debt measure is forecast to increase, or whether her own personal calculations continue to suggest that debt will fall?

[Laura Trott]

I am sure that the hon. Gentleman will see in the OBR figures that public sector net debt overall is expected to fall, and public sector net debt excluding the Bank of England is due to fall in the fourth and fifth year of the forecast. [Interruption.] No, that is just the overall public sector net debt figure.

--- Later in debate ---

[Darren Jones]

Two short answers: first, we are not sticking to the Conservatives’ spending plans and, secondly, the OBR forecasts Conservative party failure, not the success that the Labour party will bring to this country and the economy.

I know that Conservative Ministers do not like to think about their fourth Prime Minister since 2010, who only recently crashed the economy off the back of unfunded tax cuts, sending mortgage bills rocketing, but they really do not need to look back far in history to understand the risks of a £46 billion unfunded tax cut promise. They do not even need to ask their predecessors about the consequences of such risky behaviour, because the British people are still paying the price today for their economic vandalism through higher mortgage and rent costs every single month. Conservative Ministers need to look at themselves in the mirror and ask whether they have learned anything from the last 14 years in office. I have given just a few examples of confusion, delusion, denial and risk-taking with the economy, which prove that the biggest threat to the economy is the Conservative party.

[Stephen Doughty]

On the subject of confusion and the unfunded £46 billion commitment on national insurance contributions, my hon. Friend will note that the Chief Secretary to the Treasury would not give clarity on the date for her Government’s promise, yet the Chancellor said in an email to Conservative party members that he wanted to make progress on that promise “in the next Parliament”. Other members of the Government are saying completely different things. Is this not an example of the chaos that the Conservatives are in?

[Darren Jones]

That is yet more evidence of the Conservatives’ ill discipline. Last time, they wanted to disregard the Office for Budget Responsibility, and announced unfunded tax cuts; now the former Chancellor supports these new, unfunded tax cuts, and yet again the Government are not giving the OBR the information that it needs to make policy forecasts.

--- Later in debate ---

[Stephen Doughty (Cardiff South and Penarth) (Lab/Co-op)]

The speeches delivered from the Government Benches today have been a metaphor for this Government: they are out of ideas, out of time and out of touch. That says it all. Anyone listening to the Chief Secretary to the Treasury would have thought that everything in the country was rosy and we were in some sort of sunlit uplands. The experiences of my constituents in Cardiff South and Penarth are anything but rosy. Individual constituents who come to my surgeries are struggling to make ends meet because of sharp increases in their mortgages or rent, stagnant or declining wages, and the high price of food, fuel and the everyday goods and services they need.

Those struggles are the reason we see such amazing community responses. I spent last Friday at Splott Community Volunteers in my constituency, who provide warm hubs and a series of other advice and support services. Demand for those services is through the roof because of the experiences people are having in the economy and in society. I also visited the Salvation Army last Friday, which is doing fantastic work on housing and homelessness in my constituency. Why are people finding themselves homeless or in a housing crisis? Because of the shambolic record of 14 years of this Conservative Government.

I recently met businesses of all shapes and sizes in Grangetown, including the small and medium-sized enterprises that are the lifeblood of our economy. They told me that they want to see certainty, leadership and a solid environment for investment, but they have had exactly the opposite over the past 14 years. We have seen chaos and a revolving door of Ministers. Businesses have not had the confidence to make the investments they want to make to generate jobs and opportunities in our communities. They are coping with high inflation, which means their cost base has gone up substantially, so their ability to grow and generate more jobs and opportunities is limited.

What have we seen? We have seen debt up, taxes up, interest rates up and inflation up, yet we have seen the economy stagnating and now in recession. That is on top of the austerity and cuts in our public services and, indeed, to Wales, leaving us unable to invest what we want in our NHS, our education and our police, which has had a huge impact on the ability of the police to deal with antisocial behaviour and crime. Thanks to the Welsh Government, we have seen investment in police community support officers, in new schools and in new health facilities, but think of how much more we could do if we had a Labour Government in Westminster working with a Labour Government in Wales and our Labour councils making a difference.

The Chancellor’s latest Budget simply lifted the lid on 14 years of Tory economic failure. When we lifted that lid, there was no rabbit, there was no hope. Many of us were left asking, “Is that it? Is that all they have to offer?” Again, the Conservative Benches are a reflection of that today. Instead, we saw more unfunded tax cuts —we all know where that got us last time. We have heard today of the £46 billion-worth of unfunded national insurance cuts, and also of the total chaos in the Government’s messaging about when those would come in—another stark reflection of where we are. Yet again, working people are left to pay the price of an underperforming Britain, with a high-tax, low-growth economy. Let us consider just how different things could be.

I am very clear about what Cardiff South and Penarth needs from what my constituents tell me. We need investment in our green transition. Places such as Sully and Dinas Powys have already seen the impact of flooding and climate change. A response is needed to that not only locally, but nationally and internationally. That is exactly why I am proud of the Labour plan to invest in our green transition, in green steel, in renewables, in nuclear, and of course in the high technology and green solutions that are being generated by our fantastic higher education sector. I am very proud of our university in Cardiff, which is doing fantastic work on this and putting some of those green ideas into action for our country.

I want to see support for our creative industries. We have seen huge investment by the BBC and other film and TV production firms locally, such as Netflix, but in other areas we are seeing that market contracting, which is having a big knock-on effect on smaller creatives and those who are commissioned to work on those bigger productions, so we need to invest in our creative economy.

Thirdly, we need to see crucial infrastructure investment. I have argued time and again for investment in the south Wales main line. We are seeing a really bad performance on the Great Western Railway. We all want to see St Mellons Parkway station built on the edge of Cardiff—my hon. Friend and neighbour the Member for Newport West (Ruth Jones), is nodding in agreement—but we will need to invest in those relief lines and that critical infrastructure to make sure that we can deliver growth through our infrastructure investments.

We need to see a proper reflection of Cardiff’s status as a capital city in the funding for our police. I raised this issue recently with the Minister of State for Crime, Policing and Fire. It is good to know that he is now talking with our police and crime commissioner and chief constables about this issue. We need to see that investment to reflect the challenges that we face as a capital city.

Crucially, we need to see certainty for businesses to be able to invest. We have seen some great success stories recently: Rolls-Royce coming into invest and our legal and financial services sector in Cardiff doing very well, but we also need an industrial strategy, tax certainty and a climate of leadership and ambition for this country, which we simply have not seen from the Government or in this Budget.