Stephen Kinnock
Main Page: Stephen Kinnock (Labour - Aberafan Maesteg)Department Debates - View all Stephen Kinnock's debates with the HM Treasury
(2 years, 1 month ago)
Commons ChamberI am going to make some progress at this point.
The Chancellor has also announced his intention to cut the basic rate of income tax from 20p to 19p in the pound from 2024. This will be the first income tax cut for 16 years, and it will be a £5 billion tax cut for 30 million people. The Chancellor has also said that he will set out his support for businesses in more detail in the autumn Budget.
Crucially, everything that we have done has been done responsibly, reflecting our continued commitment to strong and sustainable public finances. In direct contrast, the Labour leadership has so far promised £99.5 billion of day-to-day spending commitments—
I can provide the hon. Gentleman with the full details if he would like a list.
However, Labour has only announced £7.5 billion in revenue to pay for those commitments, less than one tenth. That leaves a £92.5 billion fiscal black hole of unfunded public spending commitments, which would almost double our current borrowing. This year we will spend £80 billion just paying interest on our debt. That is nearly four times what we spent last year, and those numbers should concern the whole House. The Office for Budget Responsibility made it very clear at the time of the spring statement that our fiscal headroom could be
“wiped out by relatively small changes”
to the “economic outlook”. Labour’s £92.5 billion black hole would mean an extra £3,303 per household in general taxation or extra borrowing. In opposition, parties have the luxury of promising it all and not being responsible for delivering any of it.
I would like to start by thanking all the hard-working people who keep our public sector and our public services going day in and day out. They are not responsible for the fact that our country is so bogged down in backlogs and bureaucracy. Indeed, as we have heard throughout this debate, their professionalism and dedication to public service stand in stark contrast to the shambolic performance of this Conservative Government.
I would also like to thank hon. Members, particularly those on the Opposition Benches, who through their speeches and interventions in this important debate have expressed genuine concern on behalf of their constituents about the desperate state of the Prime Minister’s backlog Britain, as opposed to those who have attempted to defend the indefensible.
My hon. Friend the Member for Bristol North West (Darren Jones) made a thoughtful speech and pointed out that if Ministers were running a business it would be bankrupt by now. My hon. Friend the Member for Birmingham, Hall Green (Tahir Ali) gave a barnstorming speech: “Welcome to backlog Britain, thanks to 12 years of a Conservative Government.” is the line that came through very clearly. My hon. Friend the Member for Reading East (Matt Rodda) called on the Government to learn the lessons and focused in particular on the chaos of the Passport Office. My hon. Friend the Member for Ellesmere Port and Neston (Justin Madders) recounted the appalling costs to his constituents of the backlogs and dysfunction at the heart of this Government, demonstrated by the failure to answer his basic parliamentary questions.
Conservative Members consistently attempt to blame covid and the lockdowns for the mess in which we now find ourselves, but backlog Britain cannot be blamed simply on covid and the lockdowns. The reality is that the underlying causes of the mess we are in predate the pandemic and the challenges we now face have got worse since the end of lockdown. That is because backlog Britain has been created by two basic failures: first, a failure of resilience caused by a decade of underinvestment by the Conservatives in British businesses and public services; and, secondly, a failure of governance caused by Ministers walking away from their responsibilities and utterly failing to plan for the end of the covid restrictions. The combination of those two fundamental failures with the fact that we have a lawbreaking Prime Minister who has lost the confidence of 40% of his own MPs and has basically become a national embarrassment provides all the ingredients for a catastrophic breakdown in the systems and institutions that keep our country going.
On the failure of resilience, the decade leading up to the pandemic was defined by a staggering lack of investment by the Government in the private sector, which led to low growth and weakened British business—so much so that Britain became the European capital for hostile foreign takeovers. The Conservatives failed miserably to meet the average growth rate for similarly developed countries and as a result the Government unlocked less private investment than in all but two of the 38 comparable countries. If the Government had matched that growth rate, the Treasury would now have £12 billion extra in the Exchequer, and if they had matched the growth rates achieved by Labour Governments between 1997 and 2010, they would have an extra £40 billion to spend.
Low growth meant less money to invest in public services. NHS waiting lists were already at record highs, and as the shadow Chief Secretary to the Treasury, my right hon. Friend the Member for Wolverhampton South East (Mr McFadden), pointed out in his opening contribution, there were already more than 100,000 staff vacancies while court backlogs were already growing by 23% in 2020. Lower growth inevitably meant weaker public services and less flexible local government, resulting in a less resilient economy and public sector. It also left our critical national infrastructure dangerously reliant on China for everything from personal protective equipment to our nuclear energy supply.
Resilience is about being able to absorb and bounce back from shocks when they hit, but that lost decade of underinvestment removed our shock absorbers: the British state was surviving hand to mouth—it was walking on thin ice; it was hollowed out by the toxic combination of incompetence and indifference that has characterised successive Conservative Governments since 2010. And now we see that this ice is breaking and the result is backlog Britain.
Given that there have been four Conservative election victories—or, at least, four Conservative Governments—is the hon. Gentleman saying that the people cannot be trusted, that the Conservative Government are not as bad as he says, or that the Labour party has been particularly hopeless at giving an alternative message? It must be one of those three things.
The British people participate in democratic elections, and when we see the desperately bad results that this Conservative Government are delivering, I am absolutely confident that at the next general election they will deliver a landslide Labour Government. Then we will see the changes our country needs, rather than the incompetence and indifference we see from the Conservative party.
That leads me to the second fundamental failure: the failure of basic competent governance. Mr Deputy Speaker, you do not have to be Mystic Meg to know that when the pandemic abated, the lockdown restrictions would be lifted. We all knew that GP, A&E and hospital waiting lists were skyrocketing, with 4,500 fewer GPs to take appointments than 10 years ago. We also knew that the court backlog was at a record high, with the victims of the most serious violent crimes, including rape, having to wait two or three years for a case to come to court. We also knew that people would want to go on holiday and that they would need passports.
There was no need for a crystal ball—it was happening in front of our very eyes—but while AstraZeneca and the NHS were rolling out the vaccine at speed, the UK Government were patting themselves on the back and wheeling suitcases full of booze into No. 10. Backlog Britain represents a shameful dereliction of duty by a Prime Minister who is utterly out of his depth. Instead of meeting Britain’s challenges, he prefers Government by gimmick. There are lots of big, flashy announcements, but nothing ever seems to get delivered. The Northern Ireland Protocol Bill is not designed to solve any of the immediate problems, and it will take months to get through Parliament. The Bill of Rights is an empty distraction that will just increase the backlogs in the courts system, and the Government have sent £120 million of taxpayers’ money to the Rwandan Government for a press release.
There is a world of difference between campaigning and governing, and the Government appear to be permanently stuck in campaign mode, constantly hunting for wedge issues that will enable them to pick fights and sow division, inflaming tension, rather than building consensus. They are not even campaigning for the Conservative party. No, their campaigns are focused on one aim and one aim only: throwing red meat to Back Benchers so that the Prime Minister can carry on squatting in Downing Street.
One of the many fundamental differences between Government Members and Opposition Members is that we believe in an active state. We believe that the state should work in partnership with the private sector and civil society to facilitate sustainable economic growth and the smooth running of the systems and institutions that underpin and empower our economy and our communities. We believe in investing to help the private sector to grow so that British businesses can create jobs, improve productivity and compete internationally rather than sell out to the highest foreign bidder We believe in investing in public services so that NHS hospitals do not have to choose between treating covid and screening cancer, and we know that the backlogs are clogging up our courts, our ports, our A&E departments, our GP surgeries, the Passport Office, the DVLA and our asylum system. That is holding our country back.
Government Members do all they can to avoid any state support whatsoever. They see government as the very last resort, and the result is the mess that we are in. The result is backlog Britain.
A Government who fail to plan are a Government who plan to fail. A Government who fail to build resilience are a Government who leave us exposed to shocks. A Government who blame anyone and everything for their own failures will never step up and take responsibility for cleaning up the mess they have made, and a Government led by a man who is utterly unfit for public office are bound to end in disaster. Backlog Britain is the consequence of all those failings. The British people deserve better than this.