Budget Resolutions and Economic Situation

Stephen Morgan Excerpts

Monday 20th March 2023 Commons Chamber

[Stephen Morgan (Portsmouth South) (Lab)]

This Budget is quite easy to characterise. Under the Tories we have had a lost decade, and under this Government we are sadly looking at another. Since the Conservatives came to office in 2010, we have seen stagnant living standards, stretched public services, falling investment and the complete absence of a long-term, coherent vision for our country. The real question we need to ask ourselves tonight is, “Will the Budget change any of this?” The answer is a resounding no.

According to the OBR, real incomes are forecast to fall almost to where they were a decade ago, which is the shocking legacy of those sitting on the Conservative Benches. What is more, the hit to living standards over the past two years is the largest since records began. Last week, the Chancellor lauded Britain’s negative growth forecast this year as if it were something to be celebrated. Of course, the Government will blame it on external factors, but the reality is that the UK will be the weakest economy in the G7 this year and the only one with negative growth.

When we talk about a lost decade, it is easy to think of that in an abstract way, but we should remember the reality of it for the people of this country. It means more Portsmouth families struggling to heat their homes; more local businesses battling just to survive; more children in my city hungry and in poverty; more patients at the Queen Alexandra Hospital in pain and stuck on ever-growing waiting lists; and more Portsmouth people struggling to make ends meet.

The real tragedy is that our country has so much to offer. I see that at first hand in Portsmouth, a city fizzing full of potential. It just needs a bit of support to unlock it. This Budget represented a chance for the Government to do that, but instead they have decided to continue papering over the cracks of 13 years of economic failure. Portsmouth and the country were crying out for a long-term plan last week, yet in the midst of a cost of living crisis the only rabbit the Chancellor pulled out of his hat was a handout for the richest 1% and their pension pots.

Judging by this Budget, one would be forgiven for thinking that the crisis facing our NHS had been solved. Sadly, that is certainly not the case. Thirteen years of Conservative mismanagement has left the NHS without the doctors and nurses it needs, and patients are paying the price. People in Portsmouth are finding it impossible to get a GP or dentist appointment, or an operation, when they need one, and nothing the Chancellor said last week will help. It is true that the longer the Conservatives are in power, the longer patients have to wait.

From hearing the Chancellor’s comments last week, one would also be forgiven for thinking that the climate crisis was over, but the sad reality is that the UK is being left behind in the global race for green good jobs. Our investment in green energies and industries is now five times less than that of Germany, and roughly half that of France and the USA. We urgently need a Government who understand the scale of this problem and can make Britain a clean energy superpower, to create jobs, cut bills, boost energy security and accelerate our economy to net zero.

To be fair, not everything in this Budget was bad; I am thinking, in particular, of the policies the Government decided to take from Labour. I was pleased to see the cap on energy bills extended and the scrapping of the extra charges for those on prepayment energy meters. It is now time for the Government to copy at least one more of Labour’s policies. According to the OBR, the Government left £10.4 billion on the table through holes in the windfall tax. It is simply not right that oil and gas companies continue to enjoy astronomical profits at the expense of working people. There are no more excuses; the Government need finally to bring in a proper windfall tax.

In conclusion, in every town and city in our country, in every community, there is so much on offer, but 13 years of Tory economic mismanagement has left us lagging behind. Our country was crying out for a long-term plan this week, but instead we saw a Budget without any ambition and without any vision for Portsmouth or for Britain. It is time we had a Government who deliver on the potential in a way that Portsmouth and our country deserve.